Recruiting process outsourcing (RPO) is a workforce solution in which a company outsources all or a portion of its permanent recruitment to a third party. An efficient RPO programme integrates a talent acquisition team, cutting-edge recruiting technologies, and adaptable recruitment procedures into a company.
The benefits of RPO:
Outsourcing the recruitment process is a solution with huge potential. The rapid expansion of the RPO industry demonstrates this. There are significant benefits for companies who include RPO which are as follows:
- Higher Talent Acquisition:
The primary goal of an RPO service is to ensure that your company receives the finest permanent hiring possible, particularly in notoriously challenging areas. With an RPO, a company’s time, energy, and experience in finding, screening, and onboarding new permanent employees ensure that it receives the finest people. They may also construct talent pools to guarantee that whenever a new role becomes available, a ready-made pipeline of talent is available to join a client’s organisation. RPO suppliers have talent databases all across the world, as well as programmes to recruit previously overlooked talent.
Another essential factor to consider is the importance of varied teams. According to Harvard Business Review research, organisations that prioritise diversity outperform their competitors: 45 per cent increased their market share over the preceding year. Businesses benefit greatly from RPO providers who use various talent pools.
An RPO service not only ensures that you employ and retain the top personnel but is also less expensive than conventional recruiting. Because RPO providers are frequently evaluated based on time-to-hire, cost-of-hire, and quality-of-hire, it is their responsibility to guarantee that permanent openings do not linger vacant for months. Every day that a position is unfilled results in higher expenses and lower production. A completely optimised RPO keeps these unfavourable variables to a minimum.
- Permanent scalable recruitment
Hiring is rarely constant in any firm. Your company may require hundreds of employees when a new department is opening up. Similarly, months can go by without a single hire. RPO providers build structures within a business that’s adaptable to any situation, scaling teams up or down whenever necessary.
- Global observance
Though compliance is not the most exciting aspect of RPO, it is essential. Employment rules change all the time, so staying on top of what is and isn’t legal may be a difficult task. An RPO guarantees that all hiring is following local legislation. This is especially crucial when the company grows more global. Hiring permanent workers in India in a compliant manner necessitates a different strategy than hiring in the United States. The competence of a global RPO provider guarantees that organisations do not burn their fingers while employing fresh staff.
Businesses that use an RPO solution may take advantage of the provider’s worldwide knowledge to verify that every single permanent employee complies with local legislation.
- Advertising spending is being cut back.
Job advertisements are costly, especially when it comes to attracting the best qualified permanent employees. Purchasing an RPO solution relieves the service provider of the burden of recruiting this talent, as well as the need to spend money on promotion.
- Reduction in talent acquisition spend
One of the most successful strategies for firms to cut their talent acquisition expense is to outsource recruiting using an RPO service. Finding talent takes time, even for the greatest talent acquisition and HR specialists. This is especially true when it comes to recruiting for difficult-to-fill positions.
- Take use of cutting-edge technologies.
It is challenging for HR professionals to keep up with industry innovation. With budgets being squeezed, investing hundreds of thousands, if not millions, of pounds or dollars on talent acquisition technology may make even the most ambitious firms cringe.
- Improved Candidate Engagement
HR professionals recognise the importance of candidate engagement (CX). Getting the applicant experience right, on the other hand, is no easy task. Though crucial, it is time-consuming and frequently diverts HR departments’ attention away from their major goals. An RPO provider has the knowledge and in-house skills to fully optimise a company’s candidate experience. This not only increases the possibilities of recruiting top people but also influences a company’s capacity to grow its market share within its industry.
- Professional Employer Branding
Employer branding is critical for attracting top personnel in the market. 72% of global recruiting leaders think that corporate branding has a major influence on hiring.
- Improved Strategic Understanding
Any strategic choice is built on data science. While HR and internal recruiting teams are frequently aware of this, several factors continue to stymie firms.
For one thing, technology is expensive, and HR technology is frequently pushed to the bottom of the priority list. Second, HR specialists do not necessarily have the technical knowledge required to properly analyse data. Finally, the data a firm keeps is exclusively about the company and does not consider the larger picture.
How is RPO different from traditional recruitment?
An RPO service provider does not simply fill permanent jobs on an ad hoc basis; rather, it embeds itself throughout an organisation, radically altering the way a company acquires permanent employees.
A good RPO solution is strategic, even if no two solutions are the same. It should take charge of the recruiting process’s design and administration. It should use the proven technology to ensure optimal efficiency, conduct frequent data analysis, and provide regular reporting on the success of the solution.
What are the most common RPO services?
- End-to-end RPO
A full-service RPO might be employed in a single company division, a single market, or a worldwide corporation. It includes all permanent hiring services as well as technological investments. End-to-end RPO often provides the greatest cost reductions and efficiency for enterprises, as well as higher customer satisfaction. Value-added services like employer branding improve the quality of permanent recruits as an end-to-end RPO service improves.
- RPO for the Project
A Project Recruitment Process Outsourcing employs an end-to-end procedure as well, but it is used to swiftly bring in professionals to meet an unforeseen staffing demand on a single project basis. Launching a new sales or digital transformation team, for example.
- RPO on-demand
An on-demand RPO, similar to a Project RPO but more focused on the short term, includes recruiters joining your team for a limited time to quickly attract and hire the talent you require. It is requested when there is high recruitment. Though it allows organisations to move rapidly, the benefits aren’t as wide as those of an end-to-end Recruitment Process Outsourcing solution because it lacks technology deployment and additional perks such as employer branding.
What technologies are included in RPO solutions?
Our world is changing as a result of technological advancements. It is also affecting Recruitment Process Outsourcing Companies. The finest RPO companies use modern staffing technologies to give a highly efficient, cost-effective recruiting process, from talent analytics to machine learning, applicant screening to automated sourcing. And as technology evolves, so will true RPO service providers.
Typically, an RPO will include technologies such as:
- An ATS is an (Applicant Tracking System)
- CRM (Candidate Relationship Management) software.
- A dedicated job-search website
- A platform for internal talent communities
Businesses in the RPO industry are increasingly attempting to leverage the power of artificial intelligence (AI), optimising solutions for large, multinational corporations in hitherto unseen ways. Though it is still in its infancy, AI is expected to play a significant role in the development of RPO during the next five years.
Is RPO a suitable match for your business?
An RPO may be a boon to business for the majority of organisations. Historically, Recruitment Process Outsourcing Companies were exclusively utilised by major corporations. However, with the advancement of technology in recent years, medium-sized enterprises have begun to benefit from RPO solutions. An RPO makes a lot of financial, structural, and strategic sense for any company that recruits permanent workers regularly.