While recruitment process outsourcing is a branch of traditional recruiting, there are a few key distinctions. A sort of business process outsourcing (BPO) in which an employer transfers all or part of its recruitment operations to an external service provider like GlobalHunt. An RPO provider can either deliver its own people or assume responsibility for the company’s technology, processes, and reporting. RPO differs from other providers such as staffing firms and contingent/ retain, search firms in that it takes responsibility for the design and administration of the recruitment process as well as the outcomes. 

What is the definition of a recruitment agency?

A recruiting process outsourcing company’s main function is to match companies with employees. They work under the recruiting firm’s brand and are paid only if the firm places employees for their customers.

Instead of using an employee recommendation network or having a prospect apply for a job online, RPO companies can use an agency to discover the people they need. When the RPO agency identifies a qualified candidate for a job and the company hires them, the hiring agency is reimbursed. Recruiters are thus incentivized to hire swiftly and efficiently to move on to the next position.

This means that instead of posting job openings on internet job boards or relying on employee recommendation programmes to discover candidates, a business can pay a recruiting process outsourcing company like GlobalHunt to assist them in finding the right people. When the RPO finds the right candidate and the candidate starts working for the company, the agency is paid. Recruiters will be more driven to hire swiftly and move between different employment possibilities as a result of this approach. As a result, job openings are swiftly filled, as several recruiters fight for the available vacancies. This can be a beneficial employment option for a company at first.

At the end of the day, job openings are rapidly filled since many recruiting services compete to identify the best candidate for the job. While this is an efficient recruitment strategy for some organisations, it is not a long-term answer for companies trying to find excellent employees who will stay with them for a long time.

This method, however, may not pay off as the company grows and expands. This is because, while it will assist you in hiring rapidly, it will not give you the long-term recruitment solutions that your company need as it grows. More significantly, you’d like to hire good people who will stay with the organisation for a long time.

What exactly is RPO (recruitment process outsourcing)?

RPO (Recruitment Process Outsourcing) is a type of business process outsourcing in which an employer outsources all or part of its recruitment processes to a staffing firm. An RPO partner can provide its recruitment process or take over the company’s personnel, technology, processes, and reporting.

An RPO partner differs from a recruiting agency or a contingent/retained search provider in that the RPO firm takes responsibility for the design and management of the recruitment process, as well as the results.

RPO partners provide recruitment services or work according to the company’s workforce, technology, reporting, and methodology. These firms take on a role that entails much more than simply finding the best candidate for the job and filling it swiftly.

Unlike a random contingent search provider or recruitment agency, the RPO partner manages the entire cycle. The recruitment process is conceptualised, designed, managed, and executed from start to finish. They are also responsible for the processes’ outcomes.

  • Choosing the right culture for your candidates
  • lowering the cost of premium labour
  • Increasing employee loyalty

As a result, an RPO partner is the employer’s sole recruitment partner who is solely responsible for all recruiting efforts, from conception to completion. They also offer expert advice on how to develop the best recruitment strategy for the firm.

Other notable variations exist between RPO and regular recruitment, aside from the concept and overall functioning. Let’s take a closer look at them.

Making placement vs. finding the best match

The number of placements made by traditional recruitment companies is used to gauge their success. They achieve this goal with the help of the candidates they find and charge the business once the candidate has been employed successfully. As a result, such organisations discourage businesses from establishing employee referral systems or other direct recruiting strategies, as these programmes will reduce their pay.

The RPO partner, on the other hand, makes it easier to find candidates through all channels. Their main goal is to locate the best candidate for each position. RPO partners seek to offer a long-term answer to the company’s recruitment efforts. Employer websites, internet job portals, employee recommendation systems, and their networks are all used to find candidates. As a result, the RPO partner opens additional routes for sourcing applicants, resulting in a more efficient and result-oriented recruitment process. As a result, the RPO partner not only assists in the recruitment of the best candidate from the available resources but also in the development of a strong employer brand.

The candidate’s ownership

Because recruiting process outsourcing companies are compensated for each placement, they want to “own” every prospect they’ve given to a company – forever! This means that if a need develops in the future, an employer cannot go back to the candidate pool and hire an applicant who was previously introduced by the agency without paying the agency for the recruiting. This is especially problematic after the recruitment contract has ended. For the employer, this ownership snafu complicates the hiring process.

Candidate ownership is not something RPO partners believe in. Employers, they believe, control their job searchers, regardless of whether the RPO partner sourced the leads directly or not. This makes finding the best applicant much easier.

ExpenditureAnother key distinction between an RPO and a regular recruitment firm is how they charge clients for their services. A recruiting agency normally costs between 25% and 30% of the compensation of the applicants they assist in finding.

The RPO partners take a different approach to this scenario. RPO partners charge monthly fees to manage all the hiring functions as assigned, as well as transaction costs to recruit for job opportunities because they are responsible for handling the entire or part of the company’s recruitment process. Taking all of this into account, the RPO’s total fees are still 65% to 70% lower than the total fees of a traditional recruitment firm. In addition, the company has the option of delegating internal human resources to other departments.

Traditional recruitment agencies and RPOs are very different from one another, and the distinctions are significant. The decision to work with an acceptable recruiting partner is based on the company’s hiring needs. Traditional recruitment firms can assist you in achieving your short-term hiring objectives. However, if you want to focus on accomplishing your long-term hiring goals, an RPO partner will help you achieve considerably better and longer-term recruiting results.

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