what is RPO in recruitment? your questions answered.

Today’s recruitment solutions set new talent acquisition best practices that use talent analytics, recruitment technology and innovative sourcing strategies to get your organization the people it needs. This RPO at-a-glance page is your quick guide to understanding how recruitment process outsourcing (RPO) helps you source, screen, engage, hire and onboard the right talent while building business agility.

Randstad Sourceright RPO definition

defining 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, a scalable model, cost savings, a technology stack, market intelligence and predictive talent analytics, recruitment process outsourcing helps you find and identify the right talent quickly.

Your RPO model 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 your business 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?

  • enhance workforce planning and gain agility using market insights and talent analytics
  • find and engage the right talent faster with innovative sourcing and screening strategies, AI-powered recruitment technologies, and proven talent marketing and employer branding strategies
  • minimize hiring costs by reducing reliance on third-party agencies
  • build a more diverse workforce and an inclusive culture
  • create talent pools for niche and in-demand skills to source qualified talent faster
  • gain specialized sourcing, talent marketing, candidate management and onboarding expertise instantly without having to invest in internal resources
  • 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 recruitment process outsourcing 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. You can expect the greatest savings, efficiencies, hiring outcomes, satisfaction and compliance, but this model is also the most complex 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 you need the benefits of an end-to-end approach for a defined hiring project but want to maintain internal recruitment capabilities for day-to-day hiring.

selective RPO.
Addresses and strengthens specific components of your company’s internal recruitment process. Many employers strictly outsource sourcing and screening processes, or candidate management. With selective RPO, you receive best practices for those services only.

recruiter on demand (ROD).
Provides recruiters to help your company address spikes in hiring, new business initiatives, product launches or handle parts of the hiring process. You can add recruitment capabilities immediately, without any process changes or technology implementation; however, ROD does not typically result in permanent process transformation as other models do.

contingent recruiter on demand (ROD).
Getting greater agility to bring additional recruiting resources in quickly can help you accelerate hiring and meet business demand at speed, while ensuring a positive talent experience for all. 

A contingent ROD immediately addresses your most critical staffing needs in a cost-effective way. We provide a team of highly trained professionals to quickly source, screen and engage contingent talent for both volume hiring and specific hard-to-fill positions.

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 immediate challenges and future goals. Answering these questions can set you on the right path:

  • 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?

Each model offers great flexibility and agility. The solution that is right for you today can evolve with your business to adapt as markets change.

RPO pricing examples

what are the costs of RPO?

Recruitment process outsourcing rates are 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 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, costs tend to be lower than those of a recruitment agency.

> calculate now

what does RPO stand for

how do we get started?

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

ready to take the next step in your RPO journey?

case study: support a strategic business initiative

When Cetera Financial Group proceeded with a major acquisition, it needed to rapidly source talent to support this strategic business initiative — without interrupting other recruitment initiatives. Find out how the company hired 50 positions in just nine weeks.

read the success story

your guide to 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.

get your guide

sourcing and recruiting in a virtual environment.

What does a job fair look like in an online setting? Can a video interview really provide a great experience? Keeping talent safe and respecting physical distancing guidelines during this global pandemic doesn’t mean you can’t have high-touch hiring experiences.

watch the on-demand webinar

nine benefits of RPO beyond cost savings.

It’s true: recruitment process outsourcing can help you manage costs and discover efficiencies. But there’s more to it than cost savings. Here are some of the numerous ways RPO can help you transform talent acquisition.

see the benefits