Top 7 Benefits of RPO (Recruitment Process Outsourcing)
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What is Recruitment Process Outsourcing)?

RPO is the full or partial outsourcing of a company’s internal recruitment function to an outside specialist or external organization that acts as the company’s recruiting arm. An RPO can sit on-site or be remote to provide the client with a comprehensive hiring solution.

Companies often do this when they struggle to find talent for a crucial, niche role or have too many openings that the current recruiting team is unable to meet the volume of demand. They also may do this when they are challenged by the lack of long-term or short-term strategic workforce planning. A primary reason for hiring the services of an RPO is when companies lack consistent processes and knowledge of advanced recruiting technologies.

When working with an RPO, companies can solve various business challenges in their organization. RPOs can solve challenges in recruitment such as:

  • Strategic candidate sourcing
  • Screening
  • Interviews
  • Recruiting
  • Onboarding
  • Needs assessments
  • Employer branding
  • Process reviews
  • Applicant recommendation
  • Workforce planning
  • End-to-end recruitment

The Top 7 benefits of Outsourcing Recruitment

These are the seven top benefits of outsourcing recruitment, and why you should hire one today.

1. Reduced cost

The main advantage of working with an RPO provider is its cost-effectiveness. While it may seem like extraneous expenses to hire an RPO provider, it will save your company money in the long run. RPO providers can scale up or scale down depending on your hiring needs.

More importantly, they fill up your roles fast. As the saying goes, time is money. The longer a position remains unfulfilled, the more your company loses out on potential growth and revenue. Your team will not have to spend time posting on job boards or reaching out to LinkedIn profiles. RPO providers will fill your roles fast, saving you time and money spent on sourcing candidates, recruiting them, and then onboarding them.

2. Better quality candidate profiles

One of the main reason’s companies work with RPO providers is to find higher-quality candidates. RPO providers are experts in sourcing, screening, and presenting the top of the talent pool to meet the needs of an open role.

They have a well-cultivated talent pool and know the right channels to seek candidates with the right experience-level fit for the position. Expect to be presented with only top-tier candidates who have the right background and experience.

3. Faster hires

According to the 2016 SHRM Human Capital Benchmarking Report, the average time to hire for an open position is 42 days. The more positions remain empty and the longer it takes to fill up those roles, the less equipped a company is, due to the lack of a needed employee.

RPO providers can speed this process up. They work closely with hiring managers to understand the job requirements and implement service level agreements to fill up the roles within a specific time frame. Because of their rigorous screening and onboarding process, they can provide a quick and efficient hiring process.

4. Reduced risk of turnover

A gamble when hiring an employee is whether or not the employee will stay in the company. You would not want a new-hire to leave your company within six months after spending time and money training them. This additionally places a burden on employees and managers to fill the role of the job the outgoing employee would leave behind.

RPO providers ensure they determine and analyze the root cause of fast turnover hires. They then use this knowledge and execute solutions across recruiting actions, from talent sourcing to the onboarding process, to identify candidates who are likely to stay longer than the probation period.

5. Allow the team to focus on their core business goals

RPO providers support crucial human resource functions of recruiting. They can handle end-to-end candidate sourcing and recruitment so your human resource team can focus on learning and development, and employee growth, allowing your business needs to be met and emphasis to be placed on growth.

6. Larger talent network

Recruitment is becoming a crowded marketplace with more companies in competition for the best talent. RPO providers have extensive candidate databases globally that can help you access the best candidates you would have otherwise have no access to. As this is in the core business of the outsourced firm, they come across numerous profiles in a day, which allow them to build such extensive networks.

7. Leverage advanced technology

Recruitment has evolved with technology. Modern technology has streamlined the recruitment process from talent sourcing to onboarding. Tools such as machine learning, artificial intelligence, and online psychometric tests help identify the qualities of the best candidates.

Online communication tools like Zoom also make remote hiring seamless. Furthermore, Biometrics and CRM platforms make the onboarding experience easier for candidates. However, these tools can be expensive and time-consuming to adapt to your existing team. You can leverage these advanced technologies with an RPO provider.

Why are companies outsourcing a range of different things like recruitment, PEO, and other areas?

Outsourcing has become a necessary part of business today. While smaller businesses do try and keep everything in-house, the larger a business grows, the more essential it becomes for a business to outsource particular functions. From accounting to legal services, to HR, almost every unit or function of a business can be outsourced. There are numerous benefits to this, such as reduced operational costs, access to expertise and an improvement on company focus.

Human resources are a necessary yet complex function for any organization. As a result, more companies are outsourcing HR functions to professional organizations because it is cost-efficient, saves time, and is effective.

It is cost-efficient because you spend less on salaries and benefits on hiring new HR team members. You also save on the costs of hiring and training new hires of other functions. Working with an RPO provider can reduce costs by more than 50% without the burden of hiring a whole new team, when you need to speed up recruitment.

A combination of RPO providers and Professional Employment Organizations (PEO’s) ensure that they meet tight recruiting timelines, assist you in hiring and onboarding staff, and ensuring the employees’ salaries are paid on time. Your business does not have to worry about finding or hiring staff, nor does your current team have to compensate for an increased workload or encounter problems related to late or incorrect payments.

One of the most important reasons for companies outsourcing functions, is that it is effective. Outsourcing not only solves immediate problems but also provides processes and long-term solutions to your business. In particular, RPO’s and PEO’s ensure compliance for recruitment, salaries, and benefits.

Why work with specialized RPO providers

When seeking an RPO provider, it is crucial to find one that has the necessary expertise and reputation that you can trust, as that allows you to focus on your own core business needs. Instead of hiring experts in a particular field, who may not be a correct fit and may end up being more costly, get the services of an RPO and take advantage of their expertise.

Specialized RPOs can create custom solutions for your needs. They understand the right avenues to find the best hire. Online may be a great way for digital-based roles, but referrals are vital for C-suite positions.

It can also be difficult to evaluate the skills of potential hires in specific fields. A specialized RPO provider has the know-how to identify the right skills, attitudes, certifications, and training needed for particular roles. They can also point out warning signs to avoid in candidates.

What to look for in an external partner?

  • Industry expertise – Not all RPO providers can hire for every industry. It is important to work with one that has the experience to hire the right candidates within your industry.
  • The breadth of scope – Every RPO provider has different specialties and services. Identify what support you need, create a checklist, and cross-check potential RPO providers with what services you are seeking.
  • Technology innovation – A key benefit of working with RPO providers is to leverage their modern recruitment technology. You want to work with one that makes use of these tools to seek out the best candidates.
  • Track record – Work with RPO providers who have a successful track record. You can check their website of past clients and even ask them for references.
  • Delivery method – Some RPO providers bill their services using a resource-based or performance-based model. Determine what would be best for your enterprise.
  • Global scope – If you are a global company, check if the RPO providers can support multiple locations. It will save you money in the long-term if you plan to expand abroad.

How Can INS Global Assist Your Business?

Having provided hundreds of clients with HR solutions for more than 14 years, INS Global has the necessary knowledge and expertise to assist your business. We specialize in global recruitment and we can assist your enterprise to find the talent you need. Our recruitment experts are able to find talent globally and our solutions can be tailored to the needs of your business. We also provide PEO services, which allow you to hire employees in different countries or territories, without setting a distinct legal entity. Get in touch with us today and let our consultants help you.

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