Anything that is not core to the organisation's function is likely to be accomplished at less than optimum efficiency. While large conglomerates may justify in-house recruitment operations, the rest of the organisations may realise better efficiencies with an externally managed process. Placing recruitment in the hands of specialists will help an organisation benefit from technology-enabled processes that will increase the quality of the outcome. The RPO model provides a comprehensive, integrated approach to conception and implementation of effective recruitment processes. This is done in a streamlined, consistent manner.
What is RPO?
RPO is a process whereby an organisation chooses to outsource part or all of its recruitment needs.
Seven Swords of RPO
- Qualities of hires ensured
RPO providers are specialist recruiters and therefore invest heavily in their recruitment staff, recruiter training and technique and recruitment technology and tools as this is their core business. These recruiters focus on only one thing: recruitment. Whereas corporate recruiters are often responsible for other aspects of HR, RPO recruiters have gained deep industry knowledge as well as extensive experience. For these reasons, the hire is guaranteed to be top quality.
- Cost Reduction
RPO providers can scale up and scale down their recruitment activity to match the fluctuating hiring needs of the client, therefore, the organisation does not have to hire more permanent staff, and costs change from fixed to variable with this recruiteron-demand model. In business, to use the old adage, time is money. Every day that a position remains unfilled costs a company.
Better quality means better retention and opportunity costs reduced. Filling vacancies fast is better for productivity and reduces a number of HR resources spent on sourcing candidates. RPO providers are ultimately measured on time to hire, cost of hire and quality of hire. There is also no need for the client to incur additional costs such as advertising, job boards, etc, when partnering with an RPO provider as the provider assumes complete responsibility. As Brian Tracey mentioned, "Hiring the wrong person is the most costly mistake you can make". RPO assists you in avoiding this.
- Scalable Model
As companies experience peaks and troughs in staffing, an RPO model is regulated to adapt accordingly. If a company is expanding or opening a new department it will need more staff, while 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.
- 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. Considering their expertise in this field, time to hire is reduced significantly.
- 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. Through means such as candidate mapping, social media and other brand-outreach programmes PRO proactively creates a talent database of both passive and active candidates which cannot be built via traditional recruitment methodology. In addition, RPO incorporates value-added initiatives such as employer branding to ensure candidate-culture fit. Effectively the RPO model improves hiring manager satisfaction and improves staff retention. An ancillary benefit of RPO is that it assists in delivering diverse candidates.
- End-to-end Recruitment Process
RPO providers may re-engineer a company's entire recruiting process so that it is consistent across all departments within the organisation. This makes it easier for management to follow progress and understand how the procedure is developing at any given time. By adopting a holistic approach from design to implementation, the RPO model centralises recruitment processes and ensures consistency by standardising best practices, managing compliance, issues, and minimising risk by getting involved in the entire recruitment cycle.
- 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. RPO providers are entirely accountable for filling positions whereas contingency searches are not guaranteed. They undertake to deliver more value at optimal cost and management is provided with hiring metrics including candidate satisfaction, cost efficiencies and talent pipeline. 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 compliant, auditable processes and methods.