What is RPO?
Recruitment Process Outsourcing (RPO) is an external service provider that assumes all or part of its recruitment processes for a company. RPO providers assume the company’s recruitment, job advertising, networking, screening, selection, interviewing, methodologies and reporting. RPO differs greatly from staffing companies and search providers in that it assumes ownership of the structure of the recruitment process and the ownership of the results.
What are the business benefits of RPO?
- Scalability
Hiring needs fluctuate throughout the year, and RPO providers are equipped to scale their solution models accordingly. Organizations can find themselves understaffed which can lead to costly consequences, including lost revenue due to lower production and excess overtime. An RPO provides scalability to manage inevitable peaks in recruitment activity. It gives you access to the right candidates precisely when you need it. This also allows businesses to convert the fixed cost of in-house recruiting to a variable cost that adjusts as needed.
- Expanded Talent Pool
Today’s market is suffered by a talent shortage, making it more difficult to engage with and attract qualified candidates, especially those highly-skilled passive candidates. RPO providers have the sourcing expertise and proven methodologies to ensure quality candidates are matched to their clients’ positions. RPO providers have an extensive database of candidates, enabling greater accessibility to the in-demand talent a company needs to achieve its goals.
- Cost & Time Savings
Cost efficiency has long been the main priority and the key reason businesses choose to adopt the RPO model. Establishing the recruitment process through an RPO can result in significant cost and time savings while improving time-to-fill and hiring manager satisfaction.
- Access to Technology And Tools
RPO providers have access to the latest technology and search tools to find the candidates you need. There are a number of talent intelligence tools available to track the effectiveness of a company’s recruiting and hiring processes. RPO providers deliver on this, as they are in tune with the latest technologies to improve hiring outcomes and continually invest in new solutions and platforms to help their clients find talent.
RPO has the power to transform each stage of the talent acquisition process. Realigning your staffing and recruiting programs will create a fully optimized recruitment strategy that drives measurable business impact – and your bottom line.