Finding the right person to fill a position on your team can be a challenge. Your HR team has to source qualified candidates, screen them to create a shortlist, and interview people to find the right applicant.
If you don’t want to take them away from other responsibilities, recruitment process outsourcing (RPO) is an option. Remember, RPO may not be right for all companies, but understanding the ins and outs can help you decide if it can benefit your business.
Here are 5 major points you should know about Recruitment Process Outsourcing (RPO):
- Using an RPO firm can be more cost-effective than traditional recruitment methods. RPO solutions are customized to fit the needs and budgets of every organization. While the overall cost of RPO depends on your specific talent needs, it is typically more cost-efficient than building an in-house team with the same resources. Plus, the cost of RPO encompasses all recruitment-related expenses, such as advertising costs, software, technology, and recruiter salaries.
- RPO can benefit organizations of any size, from small, local/rural healthcare facilities to large national health systems. With RPO providers’ flexibility and expertise, companies of all industries and sizes can benefit from their partnership. Outsourcing can significantly reduce recruitment costs for smaller organizations, as labor is typically one of their highest expenses.
- RPO solutions can be offered in 3 ways – On-Demand, Function-Based, or Full RPO. solutions.
- On-demand RPO: Contract- or project-based RPO for filling specific roles within a defined timeframe. It’s useful for high-level or specialized hires.
- Function-based RPO: Takes over specific recruiting needs (e.g., talent sourcing) while the company handles other aspects.
- Full RPO: Comprehensive services where the third party manages all talent acquisition processes, including employer branding and data analysis.
- An effective RPO aligns talent acquisition strategies with business objectives. The goal is to help organizations stay competitive in a dynamic hiring landscape. Successful RPO contracts require a shared understanding of recruitment goals and objectives between the external agency and the in-house HR team. During the initial needs assessment, RPO providers gather information about the workplace, work ethics, and the impact of hiring on operations. Clear communication and transparency are crucial.
- A good RPO partner will enhance employer branding and culture. They will work with you to deeply understand your culture and values and build a strategy to attract suitable candidates for your organization. This strategy will include creating a positive candidate experience, tailoring job descriptions to accurately reflect your organization, and highlighting your unique selling points.
A successful RPO solution involves creating a customized plan that outlines the organization’s desired scope, goals, and deliverables. As hiring ebbs and flows, adjusting resources quickly and cost-effectively is essential. An RPO enables your company to increase or decrease resources according to your changing demands without impacting internal resources.