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recruitment process outsourcing (RPO).

what is recruitment process outsourcing (RPO)?

Recruitment process outsourcing (RPO) takes place when employers transfer some or all of their recruitment processes to an external service provider.

For example, let's say you're looking to hire a new salesperson but don't have the time. You could get an RPO firm to set up job ads, filter through applications, conduct interviews, and find the candidate that best suits your needs.

Below, we'll look at the benefits of RPO, when you should consider it, and how much it costs.

what are the benefits of recruitment process outsourcing?

Here are five standout benefits of outsourcing hiring processes to external companies:

1. you save time and money

The biggest reason why businesses invest in recruitment process outsourcing is that it saves time and money. 

When someone else is recruiting for talent, you won't have to worry about screening and training employees. You can focus on other business processes like marketing and product development. 

2. your hires are high-quality

Because these 3rd party recruitment firms specialise in recruiting the most qualified and experienced candidates, your new employees should be of high quality. When hiring employees yourself, if you are overworked or not a specialist in recruiting in that sector you might make some costly errors. 

Instead, RPO firms have the resources and knowledge to dedicate to screening and training. 

3. there's more flexibility in your hiring process

An often overlooked benefit of RPO firms is that it's flexible - firms will tailor inbound recruitment around your company values, culture, and requirements.

Often we think that if we want candidates that suit our values, we need to hire in-house. However, this isn't true anymore. RPO firms will embed their service into your organisation so that they really know who you are and what you need to see in future hires. 

4. it's easy to scale

RPO is easy to scale, which is handy if you're running a startup or want to increase hiring in the future.

Instead of onboarding more hiring managers and training them on what you're looking for in talent, simply ask your RPO firm to hire more employees. And if rough times roll, you can stop or scale back the hiring process.

5. you gather valuable data

Many businesses also turn to RPO because of the data it provides. You can analyse data in real time and use it after hiring multiple employees to make better business decisions. This allows you to constantly improve remote onboarding and hiring processes, ultimately improving the quality of your hires.

when should I consider outsourcing the recruitment process?

Fifty-four per cent of companies have lost high-quality talent because the recruitment process took too long. So the main sign you should look out for is the length of your hiring process. 

Research shows that the average recruitment process is around 23 to 24 days. So if hiring managers are struggling to source the quality and quantity of applicants you need within a month, you'll need to outsource recruitment.

three types of recruitment process outsourcing.

Here are three types of RPOs you should consider:

1. full RPO

The most common form of RPO is full RPO. This is when an accredited RPO provider takes over all internal recruiting functions. This includes:

  • Posting job ads
  • Interviewing
  • Screening
  • Hiring
  • Onboarding

This is popular amongst larger organisations with the budget to outsource everything and who require a constant stream of quality employees.

2. modular RPO

Modular RPO is when a company only outsources the part of the hiring process that's the hardest to scale. This could be interviewing applicants or sourcing talent.

By outsourcing individual components, you still have complete control over the hiring process. This is a good option for medium-sized companies that aren't struggling to hire employees but would like to streamline a few steps.

3. emergency RPO

The final form of RPO is emergency RPO. This is necessary when a top-level employee quits unexpectedly, and you don't employ anyone who can fill their position. You'll need a replacement as soon as possible, and by contacting an RPO firm for emergency hires, you'll have a replacement within six weeks.

streamline your recruitment process with hireful.

RPO refers to outsourcing hiring processes to accredited RPO firms. This offers multiple benefits like higher-quality employees, more potential for growth, and reduced business costs.

So if you’re looking to streamline your hiring processes, consider signing up for a hireful free trial. Our applicant tracking system (ATS) enables you to attract the most suitable candidates and reduce time spent on administrative tasks. Book a 15-minute intro call today!