Whether you’re looking to staff your own small business or a human resource worker at a major corporation, should you try RPO, recruitment process outsourcing? What is RPO? To understand this hiring process, consider the meaning of the word “outsourcing”. With RPO, you would use outside experts to do your hiring. Acting as a service provider, they would assume the plan, management, and responsibility of your recruitment.
If you want to recruit the right people for the right position at the right time, you should consider using an RPO.
A company may outsource the job of filling one or more positions. Recruiting to fill a position requires the company providing the service to thoroughly investigate the turnover rate of the position and the amount of time it has taken to fill the position in the past.
Usually, once an RPO company has filled a position, the company requiring help in filling the position will continue to be a client for years. They will need continued assistance to both fill positions and evaluate the performance of employees. Recruitment for one position is rarely done with just the one position. Improving recruiting processes may be needed by a company.
- Cost reduced. – RPO can decrease the cost of each hire by over 50 percent. This is the result of an outside agency using its resources. They will also streamline the methods and share the risk.
- Time to hire reduced. – Open vacancies can be filled in about 40 percent less time limiting your organization’s productivity less. According to Outsourcing Insights, delays will be eliminated and there will be no duplication of tasks.
- Fewer suppliers need to be managed. – By supplementing hiring, you can reduce costs and raise both efficiency and quality.
- The quality of hires improved. – Higher quality of hires will improve your organization’s productivity.
- Improve your organization’s ability to meet its changing needs. A company’s hiring can go up or down to meet its changing needs.
- Make more informed hiring decisions and forecast future hiring needs better.
- Outsourcing recruitment allows a company to access to additional candidates.
- You can extend your team with RPO’s experienced recruiters.
- End-to-end solution – This type of RPO solution’s focus may be on one specific business division, a family role such as sales, or it may cover all an enterprise’s hiring. It may be used across the globe, in a region, country, or single market.
- Project RPO solution – With this type of RPO, a company may fill a certain position within a specific time frame. The company would hire a team of professionals with expert talent. Examples might include a new sales team, a recruitment to fill back-logs, an unexpected demand for hiring, sourcing, or pooling of talent.
- On-demand Recruiter solution – This type is a lot like the Project RPO because it fills a need for a special project or a specific time. Instead, a small number of outsourced recruiters will join your team based on their talent.
- Outsourced provider – In order to build a high-quality talent pool when needed, you can use an outsourced provider.
With BPO, a third-party expert is used to save in cost, raise products’ quality, make a company more efficient, and improve the services of a company and its scalability as well. This is done by outsourcing the management of the business functions to the third party. The third party is also responsible for the performance, output, and hiring of the company.
Outsourcing examples include:
- Accounts Receivable and Payable
- Support of a Help Desk
- Information Technology’s Development of Applications
- Information Technology’s Support of Infrastructure
The RPO’s third party places people into a company’s organization, but the performance of the people is not managed by them.
Similar to Business Process Outsources, the cost is less, and the quality, efficiency, and scalability are better with HRO.
HRO Examples:
- Payroll is Outsourced
- Training
- There is an Employee Assistance Program
- Recruitment Process is Outsourced (RPO)
As you can see above, RPO is within HRO, and it is responsible for a specific service category, unlike BPO.
Conclusion
You may now be thinking, “Why spend additional money to hire workers? Yes, hiring an RPO company may seem like an unnecessary expense. However, if you look at the advantages of using an RPO company, you will realize that a one time expense will be worth the savings you will realize. In the long run, you will both save money and the people you hire will be better qualified to perform.
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