RPO at a glance

Five Q&As to help you understand recruitment process outsourcing.

what is RPO?

 

A Recruitment Process Outsourcing (RPO) solution supports part or all of a company’s permanent workforce hiring through a comprehensive set of external recruitment resources. Offering scalability, cost savings, process excellence, a technology stack and predictive analytics, an RPO program delivers access to critical talent quickly using world-class recruitment methodologies.

Most importantly, solutions can be customized with a specific set of services designed to directly address an employer’s needs and recruiting challenges. Recruitment resources can be scaled up or down based on changing hiring requirements, providing employers a high degree of agility. Some providers also offer career transition services to employers downsizing their workforce, creating a true end-to-end solution.

Through an RPO, employers can:
  • minimize hiring costs by reducing reliance on third-party agencies
  • build a robust talent pipeline through candidate engagement and employer branding
  • mitigate risks with compliant hiring practices
  • enhance workforce planning and execution using analytical insight

what are the various models?

There are several considerations when determining what type of RPO solution is best for your organization. The four main types commonly offered in the market include:

  • end-to-end RPO – an ongoing solution encompassing all services involved with permanent recruitment, including technology investments. An end-to-end solution produces the greatest savings, efficiencies, hiring outcomes, satisfaction and compliance, but is also the most complex and time consuming to implement. The RPO provider will deliver onsite and offsite resources that consult hiring managers, process requisitions, source and screen candidates, schedule interviews, prepare and present offers, and conduct onboarding activities. End-to-end RPO often evolves through value-added services, such as employer branding and contingent workforce management.
  • project RPO – an end-to-end approach applied to a specific project, such as a new product launch. Project RPO is an effective solution for organizations that wish to maintain internal recruitment capabilities for day-to-day hiring, but need the benefits of an end-to-end approach for the project in scope.
  • selective RPO – addresses and strengthens specific components of an employer’s internal recruitment process. For example, many companies strictly outsource sourcing and screening processes, retaining critical services such as interviewing and offers. Buyers receive best practices for the services in scope only.
  • recruiter on demand (ROD) – provides as many recruiters as needed to help companies address a spike in hiring, a new business initiative, a product launch or for any related business reason. A ROD solution allows the buyer to add recruitment capabilities immediately, without any need for process changes or technology implementation. However, its impact is the least transformational and results in no permanent improvements in processes.

speak to an expert to learn how RPO can impact your business

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global sports apparel giant accelerates hiring through RPO

One of the world's premier brands in athletic apparel needed a more effective and efficient way to recruit talent for its 30 retail locations in Latin America's most populous country, Brazil.

In just a few months, the program has helped the organization deliver the resources required to maintain business growth, while significantly improving retention, candidate and hiring manager satisfaction and time to hire.

read our case study

how do I determine the right solution?

 

Selecting the right solution depends on current challenges and future goals, but with many solutions available, almost any organization can benefit from one of these choices.

Some important questions to keep in mind are:
  • Do you need resources on a temporary or permanent basis?
  • Is there a desire to transform current recruitment processes?
  • Are your agency usage and costs consistently high due to inability to effectively recruit internally?
  • Do you desire recruitment capabilities trained in the most updated methodologies and practices?
  • Is the need urgent due to a new initiative or problems with the internal team?
  • Do you need access to critical recruitment technologies, such as an Applicant Tracking
    System (ATS) or recruitment marketing tool?

With a better understanding of your current capabilities and challenges, you will be able to choose a solution best suited to address your organization’s goals. RPO offers great flexibility and agility; a solution that is right for you today can easily be adapted to your evolving requirements.

what are the costs of RPO?

In general, the cost of an RPO is based on a monthly management, placement and/or project fee. In an end-to-end solution, clients typically guarantee a minimum volume of hires to provide a baseline cost. For each placement, an incremental charge is added. A project RPO may be similarly priced, but because the scope and volume are usually well defined and distinct, solution providers may be able to provide a more specific estimate. In selective RPO, fees can be determined by volume (per candidate scheduled for interviews, for instance) or a specific project (i.e., an employer brand audit). In all cases, RPO costs tend to be lower than those of a recruitment agency.

how do I get started?

Start by identifying issues that are hindering your ability to attract and hire high-quality talent. Once you have an understanding of the problem, you can work with the experts to better determine the right RPO solution for your organization. You can learn more by visiting Randstad Sourceright’s RPO solutions page or requesting a personalized consultation with an expert.

get your complete RPO playbook

Organizations today need to look beyond traditional talent boundaries to holistic talent attraction strategies that encompass international mobility, diversity and cross-industry recruitment. The Randstad Sourceright RPO Playbook helps you answer your biggest talent strategy questions.

request the RPO playbook

speak to an expert to learn how RPO can impact your business

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