Recruitment Process Outsourcing: What Is It and Why Should You Do It?

Recruitment Process Outsourcing allows a provider to act as a company’s internal recruitment function for a portion or all of its jobs. This includes managing the recruiting/hiring process, which improves a company’s time to hire, increases the quality of the candidate pool, provides verifiable metrics, reduces costs and improves governmental compliance. Introduced in the 1970s, RPO has seen continuous success in creating more profitable companies. There are six major benefits that have made this possible: Reduced recruiting costs, scalable recruiting capacity, a consistent and predictable recruit-to-hire process, increased candidate quality, increased hiring manager satisfaction, and enhanced employment brand.

First and foremost, RPO reduces cost. Where money is typically wasted through job boards or high turnover rates, outsourcing the recruitment process saves money by decreasing the time and cost spent on finding the right candidate and by initially finding candidates of better quality to reduce turnover rates. Secondly, scalable recruiting capacity goes hand in hand with reducing costs. This is a great benefit for companies undergoing rapid growth or that need additional help during, for example, holiday seasons. RPO is able to adjust itself by scaling up before and during the season, and scaling down as it nears the end of the season. Having an automatic scalable recruitment saves the time and expenses needed for traditional hiring processes.

Next, having a consistent and predictable recruit-to-hire process is another value of RPO. This is further advantageous for companies that have multiple departments or entities because RPO encompasses all of them and creates an efficiency that is both consistent and predictable for the business. Not only does this benefit the company, but also the applicant. Through RPO, job candidates will not have to wonder where they stand in the recruitment process or wonder what is going to happen next.

Increased candidate quality, the fourth benefit, practically speaks for itself. There is much more to a candidate than simply education and work experience. The ideal candidate will also have a winning personality, previous accomplishments, and a great work ethic. Often times companies become pressed for time when trying to find an immediate hire, who is also the ideal candidate. RPO enables companies to avoid choosing the wrong candidate and instead gives them the capability to hire the candidate who is the perfect fit for the company. This is because RPO solutions seek for qualities, education and work experience simultaneously, shortening the time and money spent searching for the perfect hire.

Fifthly, RPO increases hiring manager satisfaction. With a recruitment process that produces effective and lasting results, hiring managers have a more manageable way to analyze their success and their efforts. RPO takes a great amount of pressure off of the hiring managers and allows them to perform their jobs more efficiently. Additionally, executives will support the hiring managers and the new recruits with the accomplishments that PRO will allow them to achieve.  Enhanced employment brand, the sixth major benefit, comes with an improved recruiting process. As candidate quality improves, the company’s identity and reputation spreads positively to other potential candidates. With satisfied hiring managers and employees who are consistently working in a recruit-to-hire process, those who go through that process will say good things about the company as an employer. This is a great quality of RPO because it demonstrates that it is beneficial in more than just financial aspects. Overall, RPO is a long-term, strategic initiative to identify ideal candidates and reduce costs.


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