What is recruitment process outsourcing?
RPO stands for recruitment process outsourcing – where a company outsources the management of the recruitment function (in whole or part) to a third-party expert to drive cost, quality, efficiency, service, and scalability benefits.
The third party is responsible for placing people into that organisation. When managed well with a quality provider, RPO can reduce time to hire by 40 percent and deliver cost savings of more than 50 percent.
How does RPO work?
A quality RPO programme embeds dedicated recruiters, technology, and best practice processes inside an organisation’s business. Aligned to hiring managers, they lead the end-to-end recruitment process from forecasting to sourcing, assessing, placing, on-boarding, and reporting.
Through clearly defined processes and deep specialisation, RPO solutions can dramatically reduce cost per hire, time to hire and attrition, plus measurably improve quality of hire, reporting and scalibility, delivering you a far greater return on investment.
What kind of RPO models are there?
An end-to-end RPO solution may be used for a single market, country, region, or across the globe. Likewise, the RPO solution may focus on a specific business division, role family (e.g. sales), or encompass all hiring across the enterprise.
A Project RPO solution allows a company to hire a team of expert talent acquisition professionals to quickly fill a specific need within a designated time frame, such as recruitment back-logs, launching a new sales team, meeting an unexpected hiring demand, or talent pooling and sourcing.
An On-demand Recruiter solution is similar to Project RPO, but instead involves having one or two outsourced recruiters join your talent acquisition team for a specific project or time period.
Lastly, you may also leverage an outsourced provider to build your contingent workforce, ensuring you have access to a high quality talent pool whenever needed.
What is the difference between Business Process Outsourcing (BPO) and RPO?
With BPO, a company outsources the management of an internal business function to a third party expert to drive cost, quality, efficiency, service, and scalability benefits. The third party is responsible for hiring the people and is also responsible for their ongoing performance and output.
Examples include outsourcing of:
- Help Desk Support
- IT Infrastructure Support
- IT Applications Development
- Accounts Payable/Receivable
- Claims Processing
With RPO, the third party is responsible for placing people into that organisation, but does not manage the performance of the people they place.
What is the difference between Human Resource Outsourcing (HRO) and RPO?
With HRO, a company outsources the management of parts of the Human Resources function to a third-party expert to drive cost, quality, efficiency, service, and scalability benefits.
- Recruitment (referred to as Recruitment Process Outsourcing or RPO)
- Payroll (referred to as Payroll Outsourcing)
- Employee Assistance (Referred to as Employee Assistance Program or EAP)
As outlined above, RPO is a specific service category within HRO, as opposed to BPO.
The Benefits of Recruitment Process Outsourcing
Reduce cost per hire. Save your organisation money by significantly decreasing your average cost-per-hire, often by more than 50 percent.
Shorten time to hire. Reduces your time-to-hire by over 40 percent, lessening your organisation's lost productivity around open vacancies.
Manage fewer suppliers. Tailor your recruitment panel to supplement hiring, helping you drive quality, efficiency, and cost reduction.
Access additional sourcing channels. Many clients are in a niche sector and need scarce skill sets. Leveraging formerly untapped sourcing channels to access additional candidates is one of many benefits of outsourcing recruitment.
Improve quality of hire to deliver talent that delivers more, for longer. Studies continually show that high quality hires improve productivity for organisations. Embedded in your business, our RPO programs can provide world-class assessments measure candidate quality to make more informed hiring decisions.
Improve scalability to respond to your organisation’s changing needs. An RPO solution allows your organisation to flex talent acquisition headcount up and down as hiring needs change.
Gain transparency through reporting. Measure and track performance through regular reporting on key performance indicators (KPIs) and service level agreements (SLAs).
Mine talent data for continuous optimisation. With an RPO solution, you'll have access to talent data with tangible insights to inform your hiring decisions, from talent mapping through to workforce planning. You'll increase efficiencies, identify process improvements, and better forecast future hiring needs.
Access expertise. Utilising Hudson RPO's experienced recruiters as an extension of your team provides accessibility to deep candidate networks and reduces time to engage those candidates.