In today’s scenario, the recruiting process has become relatively complex. Sourcing, nurturing, taking 7-8 rounds of interviews can be hectic. Thus, to recruit competent professionals for the open positions at your company, it is imperative to navigate through a rigorous labour market. This is where Outsourcing Recruitment comes in!  

What is Recruitment Process Outsourcing (RPO)? 

Recruitment process outsourcing (RPO) involves an employer turning the responsibility of finding potential job candidates over to a third-party service provider. The third party (in this case, a recruitment services company) is the one that sources, takes interviews, and finds the most appropriate candidate for the job role.  

This method is primarily used by medium and large-sized companies and is often a popular choice for employers needing talent acquisition in specialized or technical areas. The recruitment process outsourcing method is designed to bring qualified candidates to a potential employer with minimal involvement from HR staff.  

What is the difference between RPO providers and Traditional Staffing Agencies? 

In many ways, an external recruiter working for an RPO firm operates exactly like an internal recruiter though there are significant differences. The scope of traditional recruitment firms will be to source and place the candidate in the required role. Whereas an RPO provider takes ownership of the design and execution of the recruitment process, which includes services such as:  

  • Candidate management
  • Strategic sourcing  
  • Recruitment analytics support  
  • Employer brand consultation  
  • Pre-employment screening  
  • Early careers/graduate recruitment 

Types of RPO models 

The RPO assistance is divided into three types based on the nature of help required by the companies who outsource their recruiting process:  

On-demand RPO:  

This type of RPO solution involves engaging outsourced recruiters to join your talent acquisition team for a specific project. It is a contract-based engagement with a third-party service provider who is aware of the company’s hiring policies.    

End-to-End RPO:  

This RPO solution is usually used for a streamlined market, country or region. This means that the hiring mechanism is extensive and can focus on recruitment for any business division or job role. Hence, the end-to-end RPO initiative encompasses all the hiring requirements of a company.  

Project RPO:  

This type of RPO allows the company to outsource the talent acquisition process to a team of professionals who would hire the best talent. This service is usually an ad-hoc request that is to be accomplished within a designated timeframe. It includes:  

  • Hiring extra manpower to mitigate excessive workload during busy seasons  
  • Launching a new team or sub-service line and  
  • Performing other just-in-time requirements  

Finally, an outsourced provider is also used to build a contingent workforce. Therefore, this initiative is more like a strategic partnership between your company and the third-party provider. The result of this partnership also brings value-added benefits.  

Why Recruitment Process Outsourcing? 

Organizations that outsource recruitment hope to reduce costs, save time, and get better access to more qualified candidates. In a tight labour market or with specialized fields, RPO in recruitment can help an employer stand out.  

Cost Reduction

The primary benefit of outsourcing recruitment is cost-effectiveness. This is one of the main reasons for various companies to adopt this model. We all know that recruiting costs go overboard in many companies. Hence, the recruiting partner assists with providing an integrated recruitment solution. This, in turn, contributes to cost reduction besides improving the hiring quality.  

Increased Scalability

While outsourcing the recruitment process, it is possible to scale up and down on the hiring activities per-requisite. This practice allows your company to swiftly adapt to the altering recruitment needs. Thus, it proves to be an ideal solution for companies that are looking forward to expanding shortly. 

Time-efficient Hiring

With any recruitment process, the time taken is inversely proportional to the cost incurred. As in, a cost-effective recruitment process requires significantly more time. This is because most of the companies follow a standard recruitment module which is quite primitive. Such outdated strategies would consume potential time and money with little to no focus on the employment perks offered by the company.   

On the other hand, outsourcing recruitment results in adopting robust processes to mitigate the delays. This in turn results in securing the best talent available in the industry for the open position at your company within a short period.   

Improve in Quality of Hire

Few companies have HR departments large enough to support full-time recruitment teams, so busy HR staff members often have many other tasks besides recruitment. Recruitment process outsourcing firms provide professionals who are full-time recruiters with deep industry knowledge, which they use to help reach hard-to-find candidates. An RPO firm is more likely to know which specialized websites or social media can attract talent, and it also has access to the latest tools and trends in recruitment, which in-house HR professionals may not be familiar with.  

Analytics and Reporting

In addition to the above-mentioned benefits, outsourcing the recruitment process leads to data gain. Besides real-time reporting, the idea of documenting the candidate information also contributes to the decision-making factor. This practice further improves the standard of recruitment besides enhancing efficiency, cost-effectiveness and hiring quality.   

Thus, outsourcing the recruitment process also stimulates the growth of your company through dynamic recruitment assistance.   

Improves Employer Branding

In today’s scenario, candidates with commendable skill sets are sought after by varied firms from across the world. Hence, it is imperative to market the vision and values of your company to attract a good talent stream. If the in-house talent team of your company does not add brand value to every open position, securing the best talent might become a difficult task.   

When you outsource your recruitment needs, the third-party service provider performs a thorough market analysis about your company. This analysis revolves around researching the industry and evaluating the performance of your company by making a comparison with your competitors. Based on the details acquired, the provider would create brand value for your company. It would further result in highlighting the benefits of joining your workforce.   

In a tight labour market where it can be difficult to attract potential new employees, RPO can bring different perspectives, skills and attention to the problem. Outsourcing also helps in getting all the tedious work done while freeing HR staff to focus on internal tasks.  

What do you think about outsourcing recruitment? Is it a good strategy to go ahead with or should one stick to traditional hiring? Let us know in the comments below.  

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Vedangi Pathak
Vedangi is currently pursuing her B.E in Mechanical Engineering. She's a woman in STEM with a keen interest in Marketing and mutual love for reading. Skilled in Public Speaking, Writing, Content Creation and Organization, she has won multiple awards and prizes for the same.