Recruitment Process Outsourcing
What is RPO?
Recruitment Process Outsourcing (RPO) is the transfer of a company’s permanent recruitment processes to an external provider, either in part or entirely. RPO is a form of BPO (Business Process Outsourcing) and aims to gain efficiency in recruiting and saving time. These external providers are responsible for handling all the open positions and finding suitable job candidates, with minimal to zero involvement from the HR department.
What are the benefits of RPO?
Outsourcing business processes has become a common activity these days. Companies hire third parties to hand over each part of recruitment so that they can cut down on budgets for in-house recruitment or agencies. The 6 main benefits of Recruitment Process Outsourcing (RPO) are:
1. Improves quality of hires
External providers invest their resources entirely in finding, screening, and presenting potential talent to the clients. The expertise of recruiters helps source and deliver quality talent for the organizations.
2. Reduces costs
RPO saves costs in the long run as the firm will evaluate the needs of the companies, ensuring that highly qualified people are hired to fulfill the demands. By meeting the hiring needs of the clients, RPO providers either scale up or scale down their recruitment activity.
3. Provides access to a diverse talent pool
One major issue in the current job market is a lack of suitable candidates to fill the company positions. Recruitment Process Outsourcing (RPO) service providers have an extensive pool of qualified candidates. They engage with such candidates and present the best ones to the client.
4. Increases retention
RPO vendors streamline the hiring and onboarding processes, reducing any chances of new hires leaving the company. They maintain consistency in the processes and continuously engage with them.
5. Generates analytics
RPO firms provide clients with real-time data and benchmarks to help with recruitment strategies. They track every stage in the recruitment process, allowing employers access to detailed insights and prompt decision-making.
6. Supports compliance
Recruitment Process Outsourcing providers maintain compliance with the changing regulations in all stages of recruitment. These external providers are experts on labor laws or regulations, and they ensure record-keeping. All of their methods and processes are compliant and auditable.
What are the steps in RPO (Recruitment Process Outsourcing)?
Recruitment Process Outsourcing (ROP) is the process of handing over recruitment tasks to third parties. This process includes end-to-end hiring or onboarding. These are the 6 steps followed by the service providers:
1. Determine the hiring requirements
RPO firms assess a company’s hiring needs and candidate expectations required for a job role. They analyze an organization’s overall environment, culture, salary structure, and gaps in processes. This information is used to hire replacements in time and fill in missing skills and qualities.
2. Write a comprehensive job description
Once the requirements have been determined, the RPO providers prepare job descriptions that are tailored to the current hiring needs. They reflect the company and clearly explain the new hire’s responsibilities.
3. Identify the right talent
RPO vendors are responsible for finding the right sources – be it internal referrals or external sources, and then devising strategies to attract such talent.
4. Shortlist and interview candidates
In the next step, the applicants are screened, and suitable candidates are shortlisted. Based on the client’s candidate requirements, the hiring team decides the number of interview rounds.
5. Evaluate candidates
The final candidates are evaluated based on their eligibility and competency. The hiring team ensures that the candidates meet the expectations outlined in the job description.
6. Plan their onboarding and induction
Once their candidature has been finalized, RPO providers are responsible for developing onboarding strategies and ensuring a smooth transition to the company. They strive to provide a positive candidate experience, which improves the employer brand – ultimately attracting high quality talent in the future.
What do RPO companies do?
RPO companies handle end-to-end hiring needs of their clients, from job postings to providing a positive onboarding experience. Their main role is to guide and assist companies in sourcing, attracting, recruiting, and hiring talent. For example, they perform activities like preparing job descriptions, job postings, screening, scheduling interviews, evaluations, and onboarding.
How do employers know if RPO is a good fit for their business?
Recruitment Process Outsourcing (RPO) will be a good fit for companies that face challenges when it comes to recruitment. If the process takes too much time, money, and resources away from its core operations, it’s time for the business to hire an external provider to handle its end-to-end recruitment processes. Some indicators are:
- The company doesn’t rely on real-time metrics and analytics in the recruitment process.
- Higher backfilling costs.
- Reduced focus on business operations.
- Positions remain unfilled for a long time
However, companies should also evaluate the cost for outsourcing their recruitment activities. The cost depends on the volume of hiring, resources, time, locations, and positions. It’s crucial to assess both the options and choose the most efficient one.