Recruitment Process Outsourcing (RPO) is when an organization transfers all or part of its recruitment process to an external service provider. RPO consultants basically serve as an extension of an organization’s human resources department focusing on long-term business strategy and tailoring solutions based on the specific needs of the organization. RPO covers full lifecycle recruitment needs from job profiling to onboarding new hires. RPO is a common practice worldwide with Globe Newswire reporting the global RPO market valued at $4.16 billion in 2018.
RPO vs. Staffing Agency
In simple terms, RPO = proactive. Staffing agencies = reactive. RPO consultants imbed themselves in an organization enabling recruitment to align with business strategy with a focus on building a recruitment program that attracts, recruits and retains top notch, full-time employees. An RPO consultant also manages the recruitment process from beginning to end including onboarding the new employee. A staffing agency is often used to find part-time, freelance and temporary workers to fill in workforce gaps. A staffing agency’s job is usually complete once a company agrees on a candidate, and all onboarding is handled internally at the company. While a company may use a particular staffing agency for all its short-term or temp to perm needs, the staffing agency is not a partner in the company’s strategic planning.
How Does RPO Work?
RPO consultants offer value at all stages of the recruitment process which typically involves the RPO consultant performing the following:
- Sourcing: Devises targeted sourcing strategies to cater to the needs of specific industries including talent pipelining, screenings and assessments, predictive analytics and talent advisory solutions.
- Screening: Conducts screening procedures like background and reference checks, skill evaluations, interviews, and drug screenings to narrow the pool of candidates who are best suited to the position.
- Recruiting: Serves as a brand representative promoting specific messages, schedules interviews, handles pay negotiations and ensures quality control.
- Reporting: Provides regular analysis of metrics such as cost per hire, time to fill, productivity and retention rates.
The Benefits of RPO
Among the benefits to using an RPO consultant:
- Reduced cost per hire: RPO reduces hiring expense by reducing or eliminating the need for an internal recruiting presence.
- Reduced hiring time: Due to cutting-edge recruiting technology and comprehensive industry expertise, RPO reduces hiring time.
- Access to additional sourcing channels: RPO provides another means to recruiting avenues not readily available to most HR departments.
- Fewer suppliers to manage: The RPO model is a one-stop shop reducing the number of product and services providers needed.
- Real time response to changing needs: RPO solutions can be tailored to meet each client’s unique needs, whether they involve bolstering current recruitment attempts or outsourcing the entire process.
- Mine talent data for continuous optimization: Researching and collecting information is a key part of any recruitment process, and RPOs can use specific metrics like skill assessments and case interviews to determine which candidates are best suited for the company.
Call Smart HR For All Your Recruiting Needs
Smart HR takes pride in its superb client relations and knows one-size doesn’t fit all. Therefore, Smart HR’s Recruiting and Talent Acquisition arm offers three recruiting options for its clients. If you want to transfer your entire recruiting process from planning and searching to screening, interviewing and on-boarding, RPO is the way to go. Enjoy all that RPO has to offer and reap the benefits of Smart HR’s extensive recruitment and management expertise. Direct hire allows you the option of having Smart HR fill a specific position or set of positions as opposed to outsourcing your entire recruitment process. Read more in Smart HR’s Direct Hire blog.
Finally, Smart HR offers recruiting consulting services for companies desiring to optimize their recruitment process without outsourcing their hiring process. This allows companies to vastly improve their sourcing and recruitment strategy, processes, systems and overall productivity, and determine the most effective recruitment tools to find and recruit top talent. Maybe you aren’t sure which solution is best for you. Smart HR will listen to your needs and help you determine the best route. Leave recruiting to the experts and call Smart HR today.