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How Does Recruitment Process Outsourcing Work

How Does Recruitment Process Outsourcing Work

Recruitment process outsourcing is a type of business process outsourcing, where a company transfers all or part of the recruitment processes to an external third party. It is a partnership between recruitment service provider (RPO) and the company requiring the recruitment services. Recruitment process outsourcing is different from hiring a recruitment agency or a headhunter. It is not just about hiring for a vacant position, it is about designing the recruitment process, successfully implementing it and taking the responsibility for the results. The RPO provider promotes the brand of RPO buyer. The RPO services depend more on consulting and they are highly customizable when compared to normal recruiting.

How it is Different from Traditional Recruiting?
Unlike in traditional recruitment, recruitment process outsourcing streamlines monitors and implements the entire system required for the employment needs of the company. RPO ensures top quality hire, who are perfect cultural fit to the company. Instead of charging a lump sum amount for recruiting process unlike traditional recruitment, they will charge you on an hourly or monthly basis which will be nominal. RPO providers give detailed metrics regarding turnaround ratio, time to hire, retention ratio, cost to hire and many other parameters.

What are The Deliverables?
RPO sometimes accounts for the entire recruitment process of a company but in many instances RPO caters to part of their recruitment process or aids in improving their recruitment process. Some of the common services that an RPO will provide are reporting & audits, process mapping, compliance tracking, technology consulting, candidate research, hiring manager training and other such services.

How does RPO Work?
Recruitment Process Outsourcing works by integrating with your company culture, understanding your values to provide right fit candidate, who is perfect for your culture and adjusts in the structure of your company. Some of the stages involved in RPO are:

  • Sourcing – RPO providers gather candidate information based on networking, social media, existing application tracking systems, data mining & extensive databases and source high quality candidates for each vacant position.
  • Screening – RPO providers conduct rigorous drug tests, reference checks, background verification checks, skill tests, aptitude tests and other screening processes to select the perfect candidate for the company. Screening for cultural fit is also an essential function of RPO providers, so that they provide best suited candidates who will go with the current culture of the company.
  • Recruiting – The RPO providers specialize in recruiting both active and passive candidates to get a large talent pool for choosing the best candidate for the job. The RPO providers propagate a strong brand image of the client company and schedule interviews and hold salary negotiations adhering to strict quality control.
  • Reporting – The RPO providers are answerable to their client company and provide them reports on regular analysis of the metrics like retention rates, cost per hire, time to fill and productivity.

What are the Benefits of RPO?

  • Recruitment process outsourcing eliminates the need for advertising for the vacant positions by the client company and thus saves cost. The RPO service provider will do the necessary advertising and will act as a brand ambassador of the client company.
  • The cost per hire will reduce as the RPO provider will have a strong network, extensive database, referral network and other sources resulting in a vast talent pool. The time required per hire will reduce as RPO providers have their own time to hire models.
  • The client companies can get best quality talent for their company from RPO providers. The RPO providers will invest all their resources in sourcing, screening and recruiting high quality talent for their clients.
  • The client companies can get access to regular analytics and reports from RPO providers regarding cost per hire, retention rate, time to fill and other metrics, which will help the companies in taking company decisions based on these metrics.
  • Services from RPO providers are scalable for client companies depending on their need. The client companies may have a peak time of hiring in hundreds, when they want to scale up hiring or they might have periods when no hiring occurs requiring a scale down. The RPO providers are flexible and can adjust their resources for peak and low periods of hiring in the client company.
  • The RPO service providers are experts in labor laws and standards. Hence the end to end recruiting processes will be auditable and fully law compliant. Complete records will be kept for each stage of recruitment process.

Recruitment Process outsourcing is inevitable for small, medium or large sized companies in the modern business world, if they want to compete with their rivals and survive in the business market. Hence, RPO is here to stay and the companies must make best use of RPO services to enhance their business operations and achieve their recruiting goals.

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