What is Recruitment Process Outsourcing (RPO)?

Definition and examples of Recruitment Process Outsourcing (RPO)
By Abhishek Kathpal Updated 07 August, 2022

There is competition among companies in the same environment; therefore, an effective recruitment strategy is needed to give one edge over the others. A company fails when it has problems with its recruitments and doesn't get suitable candidates for its open positions. However, outsourcing companies can ensure that candidates are hired for the right job during recruitment.

What is Recruitment Process Outsourcing (RPO)

Recruitment Process Outsourcing (RPO) meaning and definition

Transferring all or part of the recruitment processes of a business by the owner to an external service provider is known as Recruitment Process Outsourcing (RPO). The external service provider is responsible for designing and managing the recruitment process and the outcome. The RPO provider can either use the staff and technology of the company or provide them.

How Does Recruitment Process Outsourcing Work?

The recruitment environment is complex nowadays, and navigating the tight labor market is necessary to recruit the best talent. Also, there is a need for the RPO service provider to be well-grounded in the essential technologies. The service provider will be responsible for the hiring manager and the candidates' management and nurturing. The main field of a provider is the acquisition of talents, and they are experts in this field. Navigating the recruitment industry, staying relevant with the latest technology for recruitment, and meeting the demands of employers in terms of recruiting capacity are their strong suits. Talent acquisition programs are composed of technology, metrics, people, technology, and process that the RPOs bring together.

Benefits of Recruitment Process Outsourcing

RPOs are experts in the recruitment industry and regardless of what a company wants, once hired, they have many benefits to offer, which include:

  1. Simplifying or streamlining the recruitment process

  2. Working according to the hiring manager's desire

  3. Reducing overall recruitment costs

  4. Improving the candidate journey of the candidates

  5. Elevating job brands

  6. Managing fluctuations in recruitment throughout the year

  7. Reducing time-to-fill

  8. Saving time for other duties

How can Outsourcing Assist in the Recruitment Process?

According to history, the cost at which RPO operates by working with a large company in recruiting candidates is lesser than that of having to deal with independent recruitment agencies. The flexibility of RPO in providing solutions to the recruitment problem of a company using strategic means makes it suitable for all kinds of companies. One of the challenges small companies face is the inability to manage the recruitment capacity and its varying needs.

Small companies' human resources departments always have much work to do. They will train, manage, hire, and recruit workers. They will also be in charge of compensating and paying the employees. The major challenge they face is staffing an internal hiring team according to demand due to the fluctuations in the recruiting number of smaller companies over a year. However, with the help of the RPOs, the challenges are adequately managed. By making the process scalable, the structure and pricing for the recruitment process become more defined.

Types of Recruitments Processing Outsourcing

Types of Recruitments Processing OutsourcingThere are three main modes of engagement for RPOs, and these include:

  1. On-Demand RPO: As the name suggests, the RPO provider works for a company based on demand and contract. The contract is only valid for a specified period, ending once it elapses and the roles have been filled. Such providers need to know what the company needs and its processes.

  2. Function-Based RPO: Instead of recruiting for a specified number of roles, the RPO will be in charge of recruiting employees for a whole company department.

  3. Full RPO: It involves outsourcing the whole internal recruitment of a company to a service provider.

How is RPO Different from Other Outsourced Recruiting Options?

The three prominent options companies use in recruiting are staffing agencies, internal recruiters, and contract recruiters. However, some organizations realize that outsourcing recruitment completely could be a better solution for solving recruitment problems. Compared to other recruiting processes, RPO brings extra benefits to the companies, which include:

  1. Planning and Analysis: Forecasting a company's staffing needs and planning how to achieve those needs to ensure the company's goals are realized.

  2. Extensive Job Marketing: Driving candidates' exposure to employment and the company by marketing the company through referring, social media, networking, and employment boards.

  3. Sourcing and Engaging Talent: Building up job brand and recognition is part of the work of RPO providers apart from recruiting talents. Using talent pipelines and communities, the RPO engages future potential skills. Sourcing potential candidates before the company require their needs.

  4. Candidate Assessments: Candidates need the necessary skills and motivation for a job, which the RPO provider will ensure before recruiting, assessing, and guiding candidates through the hiring process.

  5. Candidate Care: How candidates are managed will showcase a company to potential employees. When recruitment is outsourced, the service providers are motivated to put their best foot forward in this regard to win the employee's trust and retain the company's services.

Top Recruitment process outsourcing companies

Top Recruitment process outsourcing companiesThere are many recruitment process outsourcing companies. Below are some of the best in no particular order:

  1. Cielo

  2. Randstad

  3. PeopleScout

  4. Orion Talent

  5. ManpowerGroup

  6. Alexander Mann Solutions

  7. Sevenstep

  8. Korn Ferry

  9. Pierpoint

  10. Lucas James Talent Partners

About the Author

Abhishek Kathpal

Abhi is the co-founder at Longlist.io. Funded by US based OnDeck, Longlist is currently enabling 50+ businesses to increase their candidate and client reach outs, automating the workflow across stages.

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