Recruitment process outsourcing (RPO) involves an employer outsourcing its recruitment processes to a third-party provider.
An RPO solution can help improve a company's talent acquisition efforts and fulfill its hiring needs. In this article, we will explore the core principles of RPO, see how it differs from traditional recruitment, and review the benefits of using an RPO provider.
Hiring has become a more in-depth, complex process over the years. The tight labor market has made it increasingly difficult to find and hire the best talent. Candidates "ghost" companies — making appointments for job interviews and failing to show up. Mobile phones are a principal form of communication and major tool for hiring. Advanced recruitment technology helps, but the process can still be time-consuming and costly.
RPO services helps your organization recruit. RPO providers leverage your company's culture, business model, and other specific information to build your talent pipeline.
They can help with the entire recruitment process or perform specific HR responsibilities, such as:
An RPO differs from traditional recruitment methods in several ways.
The primary objectives of implementing RPO in an organization are:
RPO providers offer many benefits for all sizes of companies, including small and medium-sized organizations.
It can be cost effective because you may not need internal resources or you can allocate internal resources more efficiently and focus on their core operations.
RPO providers can bring industry-specific expertise, helping SMBs tap into the right talent pools and make informed hiring decisions.
Companies often experience hiring fluctuations. RPO's scalability and flexibility enable them to expand or contract their recruitment efforts as required. This can help a company not overstaff during quiet periods and understaff during busy times.
SMBs can create a competitive advantage by offering a superior candidate experience. RPO providers prioritize candidate engagement, helping to ensure that potential hires have a positive impression of the company.
If your business struggles with filling its open roles, productivity can suffer. RPO providers tend to maintain efficient processes that can help get qualified people in your seats faster than other methods. Decreasing time-to-fill reduces the disruptions that turnover has on your business operations.
To make a good decision, businesses must understand the pricing models for RPO providers. The choice of model can significantly impact hiring costs and the benefits of outsourcing recruitment.
The RPO provider can charge a fixed fee for their services. It doesn't matter how many hires your company needs. If your organization has consistent hiring needs, this pricing plan could work well.
If your business has sporadic hiring requirements, you may want a pricing structure where you pay on a per-hire basis.
In this model, the RPO provider cost is based on a percentage of the hired candidate's annual salary. RPO providers make more money on placing higher-level (higher paid) managers and executives.
For specific recruitment projects, businesses can opt for project-based pricing, paying a predetermined fee for the completion of the project.
Hybrid models combine elements of different pricing structures to tailor the RPO arrangement to the specific needs of the business.
Deciding if and when it's time to engage with an RPO provider, you'll need to consider signs within your organization and external market intelligence.
Recruitment process outsourcing can help your organization such as helping with the recruitment process, creating consistent hiring practices, and elevating the quality of your new employees.
When companies put their hiring strategies in the hands of TriNet, they acquire the tools and expertise needed to help them recruit and hire top talent. With cutting-edge technology, our applicant tracking helps to organize candidates’ information and streamline your recruiting process. TriNet can also help you attract your best talent through access to premium benefits. Contact us now to learn more about how TriNet can help with your recruitment process.
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