Thu Feb 01 2024
5 min read
RPO Recruitment Process Outsourcing Solutions
Hiring a high-quality workforce is time-consuming and requires the allocation of a lot of companies’ resources. And RPO recruitment process outsourcing is no exception! As a matter of fact, Research And Markets estimates that the global RPO market stood at $5.9 Billion as of 2020 and will continue to increase by a CAGR [compound annual growth rate] of 17.3% till it hits $18.2 Billion by 2027.
Therefore, let’s go beyond the growth of the company and human resources with recruitment process outsourcing. So, what is an RPO recruitment process all about? Any guesses? In any case, the RPO is a practice that helps reduce costs and time spent on hiring. It increases the exceptional stability and efficiency of the company.
Require a more comprehensive look at the RPO services? Then, continue reading! This blog post will look at RPO in depth. But first of all, let us begin by defining the concept itself.
What is the RPO recruitment process outsourcing?
RPO denotes the practice of hiring another agency to handle a company’s recruitment activities. Various RPO recruiting companies offer talent acquisition services. An RPO provider may take charge of the entire recruitment process or aspects that a business finds difficult to handle.
RPO is usually associated with the talent needs of large, enterprise-type organizations. But that was valid in the early years of RPO; today, the RPO industry encompasses the provision of a more flexible service that could fit into small firms all the way to large organizations, depending on their recruitment needs.
Below are a few benefits of RPO recruitment process outsourcing:
- Access to industry expertise.
- Reduced time-to-fill positions.
- Enhanced initiatives for DE&I.
- Extensive candidate pools.
- Compliance and risk mitigation.
- Access to intelligent hiring technology.
With the definition and benefits being clarified, let us take a glance at how the RPO process differs from that of traditional recruiting.
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RPO vs. Traditional Recruiting: How do these two differ?
By understanding the difference between RPO vs. Traditional Recruiting, it’s easy to find the good-to-go choice. So, let us examine their fundamental distinctions:
| Basis of Differentiation | RPO | Traditional Recruiting |
| Scope | Comprehensive | Transactional |
| Approach | Focuses on employer branding and expanding the pool network. | Limited to the present candidates in the candidate pool. |
| Suitability | Best suitable for long-term goals | Best suitable for short-term goals |
| Involvement | Involves external, third-party providers | Involves internal HR team or resources |
| Cost | 60% to 75% less costly than the traditional method | Much costlier |
Yet, an ultimate selection of RPO recruitment process outsourcing or Traditional Recruitment depends only on the needs and goals of an organization. Consequently, it is important to consider the pros and cons of each approach so as to identify the right recruitment strategy for your organization.
When to engage RPO providers?
Including an RPO recruitment process outsourcing provider in your talent acquisition strategy provides holistic solutions, improved quality of candidates, and efficiency in the hiring process. They also formulate a total recruiting program designed specifically for your company while addressing distinctive organizational needs.
There are several reasons your company may elect to use an RPO solution for its hiring needs. For instance, when your business wants to fill a position, positions quickly within some specified time period lack many hiring resources, or maybe if it is growing. This list is, however, not exhaustive, as these are some of the reasons companies hire RPO firms.
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What are the types of recruitment process outsourcing?
You can select from various types of recruitment process outsourcing models based on the volume and duration of your hiring needs that match your business objectives and budget. Some of the major types of RPO recruitment process outsourcing are:
On-Demand RPO
In this kind of RPO, the recruitment process outsourcing provider’s functions are provided as and when needed. An RPO provider offers flexible and scalable services to match your changing hiring demands.
Project-Based RPO
RPO provider outsources a particular project or campaign to you. The RPO (recruitment process outsourcing) is intended for a set number of roles or positions against time or project-based recruitment ending.
Fully Outsourced RPO
Through end-to-end RPO, you outsource your entire recruitment function to an RPO provider. With an RPO provider, they own and are accountable for all elements of your talent acquisition processes – from strategy to execution.
Half Outsourced RPO
In this type of recruitment process outsourcing, you outsource just a segment of your recruitment function to the RPO provider. For example, your RPO provider manages some parts of your hiring strategy: sourcing, interviewing, or onboarding.
So, these were the different ways RPO recruitment process outsourcing providers assist businesses in their talent acquisition efforts. Moving ahead, let us gain some insights into how much the entire RPO process costs.
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How much do RPO services cost?
The costs of RPO can differ substantially depending on the industry, provider, and the nature of your specific hiring needs. But while agencies are quite costly, many RPO providers provide better cost-cutting capabilities.
Management Fee Pricing Model
It is a specific fee that the client must pay to the RPO provider for handling some predetermined number of positions each month or year. Few conventions may modify the fee with additional factors based on the count of hires over a particular period. It is usually used for enterprise recruitment process outsourcing services where the provider acquires the entire client recruitment process.
Cost Per Hire Pricing Model
The RPO model is also known as the pay-per-hire, where the RPO agency’s payment depends on the fixed number of candidates they source to fill positions in the company. The company pays set RPO charges determined by the recruitment process outsourcing pricing per position. It simplifies the company’s work a lot. It is suitable for all positions that face difficulties in finding, attracting, and sourcing good manpower.
Cost Per Slate Pricing Model
This is the RPO model whereby an agency charges for a fixed number of candidates they source for the positions in an organization. The company has to pay fixed RPO charges for a particular position depending on the recruitment process outsourcing pricing. This drastically eases and simplifies the company’s work. It can be used for all roles that have difficulty tracking and sourcing human capital.
Cost Per Transaction Model
In this pricing model, the RPO charges are based on every transaction or service the agency undertakes. Moreover, it may refer to end-to-end recruitment of some positions or manpower-sourcing activities for others. As a result, each recruitment operation guides the RPO recruiters, and they are assigned specific tasks based on transactions.
In short, RPO recruitment process outsourcing models are based on using streamlined processes for sourcing, vetting, and onboarding candidates; hence, they need less time and resources to assemble a team.
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How to choose the right RPO provider?
When you’re outsourcing HR services, you want to make sure you pick the right RPO recruitment process outsourcing provider for your needs. Hence, here are some of the factors to look for while selecting for your recruiting needs:
Assess your needs and goals
Evaluating the needs and goals of your organization is the first step to choosing the right RPO provider. It includes setting up recruitment problem-solving teams and attaining the desired levels of hiring. You should also define the scope of services needed, from sourcing and screening to interviewing and onboarding, as well as set goals for the RPO partnership.
Evaluate capabilities
With a clear grasp of your organization’s needs and goals, you can now assess the capabilities of potential RPO recruitment process outsourcing providers. This includes examining their track record, range of solutions, industry expertise, familiarity with the latest ongoing trends, customizations, etc.
Assessing costs
Another major worry that may make you doubt working with an outsource recruiting company is cost. So, you should calculate your hard and soft costs. You also need to appreciate the type of enhancements that an RPO organization can bring to your soft costs, such as job vacancy costs. If the RPO Company can help you manage costs with their skills and tools, then they are worth a shot.
RPO execution
Together with your potential partner, the RPO company will go over its strategy. At this critical stage, they should be conversant with the information about your company in the recruitment process. Not to mention but it is you, who is responsible for giving them concrete data to work with and the duration within which they should meet the plan post-signing agreement.
With these factors in mind, let us know why Pitch N Hire stands to be the top choice for recruiting businesses in the USA and worldwide.
Choosing Pitch N Hire as an RPO Provider
The right RPO recruitment process outsourcing provider brings what your current recruitment processes lack. Outsourcing the hiring process for local expertise, wider reach, and advanced processes can be ideal. In the final analysis, RPO is all about getting talent who will excel in necessary roles.
That is what Pitch N Hire hire ATS does, and it has been successfully proven by getting the right people to take your business to the next level. We have served companies of all kinds through many different industries to address their recruitment pains and develop special recruiting approaches that lead to cost savings.
Conclusion
By selecting the appropriate RPO provider and incorporating your organization with RPO substantially, you will be sure of a scrutinizing relationship that addresses your recruitment demands specifically and keeps you forward in today’s dynamic business. If you are ready to tap into the potential of RPO recruitment process outsourcing and find a way to lock in some leading talent on behalf of your organization, this is where Pitch N Hire comes in.
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