Recruitment process outsourcing (RPO) is a form of business model in which an organization transfers all or part of its recruitment function to an external provider. RPOs work in partnership to set long-term goals with their clients and value long-standing relationships, rather than short-term, that produce tactical results. The benefits of working with an RPO partner can be discovered in a range of business areas, from cost reduction to improved quality of hire.
Whether you are planning to outsource all aspects of recruitment, or selecting individual components of the end-to-end recruitment process, there are several benefits that your organization can reap.
From speaking with our clients around the world, we have identified the top 5 benefits of RPO:
- Quality of Hire
- Reduced Vacancy time
- Cost Reduction
- Ability to Flex and scale
- Enhanced Employer Brand
1. Quality of hire
Sourcing and attracting the right talent are at the core of an RPO’s expertise. Studies continually show that high quality hires improve productivity for organizations. Embedded in your business, RPO programs can provide world-class assessments that measure candidate quality to make more informed hiring decisions. With expertise across technology, sourcing, recruitment process design, employment branding and reporting, RPOs are optimally positioned to source, attract and assess quality talent for every role – no matter the industry. Paired with strong HR partnerships, RPO providers can positively impact retention and performance of all new hires.
2. Reduced Time to Hire
Reducing time-to-fill is a key deliverable when working under an RPO model. The longer a vacancy remains open, the greater the impact on an organization’s income. By driving a consistent recruitment process and developing a strategic talent attraction plan, you can reduce your time-to-hire by over 40 percent, lessening your organization’s lost productivity. An RPO partner is adept at balancing speed of hire with quality of hire to ensure the right outcome every time.
3. Cost reduction
Many organizations get caught spending significant amounts of money through heavy reliance on agencies. With the high use of online job boards, alongside underutilized recruitment technology, this can directly raise costs while decreasing quality of hire. There are several indirect costs of recruitment that many organizations fail to consider — poor quality of hires, lengthy vacancy periods and high turnover. By leveraging an efficient and robust recruitment process, driving proactive sourcing strategies, and focusing on quality of hire for each role, working with an RPO provider can decrease your average cost-per-hire by more than 50 percent.
4. Ability to scale and flex
An RPO solution allows your organization to flex talent acquisition headcount up and down as hiring or recruitment demands change. The RPO model is able to fluctuate without compromising quality, speed, or the organization’s brand. Working with an RPO partner allows your team of HR or recruitment experts to focus on the core of the business while working alongside an extension of your team that provides accessibility to deep candidate networks during hiring peak seasons.
5. Enhanced employer brand
Recruitment process outsourcing is an ideal solution for organizations wanting to access the best talent in an efficient, professional, and cost-effective way — all while making a powerful impact on the organization’s employer brand. In a talent driven market, an authentic employer brand helps organizations stand out from their competitors. While job searching, top candidates often do their research before responding to job advertisements and current employees monitor their company’s position as an employer. Therefore, having a discoverable and positive employer brand in place will help leverage the right talent, giving candidates the correct understanding of your organization, improving retention and overall engagement.
Want to know more about the benefits of RPO? Get In Touch with our talent experts.