what is RPO in recruitment? your questions answered.

Today’s RPO recruitment solutions are evolving to set new talent acquisition best practices that use talent analytics, recruitment technology and innovative sourcing strategies to get your organization the people it needs. Our RPO at a glance web page is your quick guide to understanding how recruitment process outsourcing (RPO) can support your talent acquisition goals.

Randstad Sourceright RPO definition

what is RPO?

Recruitment process outsourcing can support part or all of your company’s permanent workforce hiring through a comprehensive set of external recruitment resources. Offering process excellence, scalability, cost savings, a technology stack and predictive talent analytics, RPO delivers access to critical talent quickly using world-class recruitment methodologies and market insights.

An RPO solution can be customized with a specific set of services to directly address your company’s goals, requirements and recruiting challenges. Recruitment resources can be scaled up or down based on changing hiring needs, providing you with a high degree of agility. Some RPO partners also offer talent mobility and career transition services to employers that are downsizing their workforces, creating a true end-to-end solution.

Randstad Sourceright define RPO

what are the advantages of RPO?

With an RPO model, your company can:

  • enhance workforce planning and execution using insights from both market and talent analytics
  • build a robust talent pipeline through talent engagement, innovative sourcing and recruitment strategies, and employer branding
  • support workforce diversity and inclusion goals
  • source and engage in-demand talent faster, without compromising the candidate experience
  • minimize hiring costs by reducing reliance on third-party agencies
  • mitigate risks with compliant hiring practices
  • build the process and technological infrastructure necessary to move toward a total talent management model
Randstad Sourceright RPO meaning

what are the various RPO models?

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

end-to-end RPO.

An ongoing solution encompassing all services involved with permanent recruitment, including recruitment 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 may deliver on-site and off-site resources who consult with your 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, implementation of advanced recruitment technologies and contingent workforce management.

project RPO.

An end-to-end approach applied to a specific project, such as a new product launch or opening a new branch. Project RPO is an effective solution if your organization wishes to maintain its internal recruitment capabilities for day-to-day hiring, but needs the benefits of an end-to-end approach for a project with a defined scope.

selective RPO.

Selective RPO addresses and strengthens specific components of your company’s internal recruitment process. For example, many employers strictly outsource sourcing and screening processes, retaining critical services such as interviewing and offers. With a selective RPO, you receive best practices for the services in scope only.

recruiter on demand (ROD).

Provides as many recruiters as needed to help your company address spikes in hiring, new business initiatives, product launches or achieve other business goals. An ROD solution allows you to add recruitment capabilities immediately, without any process changes or technology implementation; however, its impact is the least transformational and does not typically result in permanent process improvements.

Randstad Sourceright how to determine the right RPO solution

how do I determine the right RPO recruitment solution?

Selecting the right RPO model depends on your company’s current challenges and future goals, but with many solutions available, almost any organization can benefit from one of these choices.

Here are some important questions to ask:

  • Do we need resources on a temporary or permanent basis?
  • Do we want to transform our company’s current recruitment processes?
  • Are our agency use and costs consistently high due to ineffective internal recruitment strategies?
  • Do we want our recruitment capabilities to reflect the most updated methods and practices?
  • Are our talent needs urgent due to a new initiative or problems with the internal team?
  • Do we know how and when technologies, such as AI, recruitment marketing tools, candidate engagement solutions or talent analytics, can best complement human intelligence to improve our recruitment results?

With a better understanding of your current capabilities and challenges, you will be able to choose a solution that’s well-suited to address your organization’s goals. RPO offers great flexibility and agility; a solution that is right for you today can evolve with your changing business goals and market conditions in the future.

pricing for recruitment process outsourcing

what are the costs of RPO?

Pricing for RPO is based on a monthly management, placement and/or project fee. In an end-to-end solution, you would 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, your RPO provider 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 (e.g., an employer brand audit). In all cases, RPO pricing and costs tend to be lower than those of a recruitment agency.

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what does RPO stand for

how do I get started?

Start by identifying issues that get in the way of your ability to attract and hire high-quality talent. Once you have an understanding of those challenges, you can work with the experts to better determine the right RPO solution for your organization.

ready to take the next step in your RPO journey?

case study: centralize recruitment to boost employee retention.

Is a lack of consistent recruitment processes creating waste and driving up costs for your company? Find out how this appliance manufacturer achieves 95% employee retention and a cost of hire that’s 21% below their goal.

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your guide:

RPO for recruitment.

Do you know the cost of a poor recruitment process? Do you know the benefits of a world-class talent acquisition function fueled by industry best practices and the most innovative recruitment and talent analytics technologies?

Get your RPO Playbook to access a comprehensive guide for driving results through a recruitment process outsourcing. Discover the keys to winning executive and internal customer support and start building your business case today.

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Cisco and Philips on talent experience.

Are short-term relationships with talent holding your company back? Check out this episode of Talent Trailblazer TV with Kelly Jones, senior director of talent acquisition at Cisco, and Martin Thomas, head of total workforce management at Philips. Hear how these top employers drive talent attraction and employee engagement.

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talent experience fitness test.

When it comes to the talent experience, where does your organization stack up? Are you attracting and retaining the permanent and contingent workers your company needs, or do you need to rethink your strategies? Take our quiz to find out.

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