Benefits Of RPO (Recruitment Process Outsourcing)

When choosing any product or service, one of the main considerations is always ‘how is this going to help my organisation?’ If a company chooses an RPO provider that is the correct fit for them, one that understands their culture, values and hiring goals, then the benefits both long and short term, can be enormous.

The main benefits associated with RPO are:

1. Stronger Quality of hires

This is the main purpose and advantage of an RPO provider. They invest their time, energy and resources into sourcing, screening and presenting the cream of the crop in terms of available talent to the client. The aggregated talent stream offers a cultivated pool from which to search. Referral activation is often a unique feature of RPO.

2. Cost Reduction

Obviously one of the prime advantages of RPO is its cost effectiveness. The bottom line is that RPO saves companies money in the long run. RPO providers can scale up and scale down their recruitment activity to match the fluctuating hiring needs of the client. In business, to use the old adage, time is money. Every day that a position remains unfilled costs a company. Filling vacancies fast is better for productivity and reduces the amount of HR resources spent on sourcing candidates. RPO providers are ultimately measured on time to hire, cost of hire and quality of hire.

3. Scalable Model

As companies experience peaks and troughs to staffing an RPO model is calibrated to flex accordingly. If a company is expanding or opening a new department it will need more staff, while if it is downsizing or it has to implement a hiring freeze, it will not. RPO providers have structures in place to adapt to any situation. They can scale their recruitment team up and down as needed. At the end of the day the client pays for what they get; successfully filled vacancies, nothing more, nothing less. RPO providers are flexible and can accommodate every situation. Prices are based on closed positions.

4. Reduced Time to Hire

Internal RPO resource models scale to overcome the challenge of tight time to hire deadlines. Most RPO providers will have established time to hire models.

5. Talent Pooling 

The RPO provider will present the client with the best people for the job. All strong candidates are pooled and actively engaged with, creating a community for future hiring.

6. Recruitment Process and Assessment Design

RPO providers may re-engineer a company’s entire recruiting process so that it is consistent across all departments. This makes it easier for management to follow progress and understand how the procedure is developing at any given time.

7. Analytics and Reporting

RPO providers track and trace every stage of the recruitment process allowing for real-time reporting and detailed insights for prompt decision making. This also makes it a lot easier for future audits of recruitment activity.

8. Enhanced Stakeholder Engagement

RPO enhances hiring manager and senior leadership engagement through fulfilling pre-agreed SLAs. The quality of hires and the efficiency of the recruitment procedure lead to high levels of HR satisfaction which can only be good for productivity. Essentially RPO allows the client get on with the business of being a business.

9. Excellent compliance regulations

RPO firms are experts on labour laws and standards. Detailed records are kept, mapping every stage of the recruitment process. They are guaranteed to implement fully complaint, auditable processes and methods.

10. Reduces the Need for Direct Advertising

Advertising is expensive. When a company engages with an RPO provider they drastically cut back on those costs. The need to advertise in all the regular, costly outlets is eliminated. The RPO firm assumes responsibility for finding the candidates. They go to them, instead of having them come to you. They have all the necessary resources for tracking the strongest available people.