As of September 2022, there are an estimated two job openings for every one person looking for a job. The job market is hot, and the current “war for talent” creates an added pressure for anyone looking to fill a role at their company. Here is where outsourcing your recruitment process comes in handy.
As you look to grow your business, recruitment process outsourcing (RPO) can help with a couple of things:
- It can build your infrastructure to ensure scalability
- You get better candidate quality for your needs
- General recruiting and HR processes improve
- It cuts down the amount of time it takes to fill roles at your business
- You provide a better candidate experience
RPO also helps retain your employees, too, because of the care and attention afforded up front to finding the right people for your business.
Before we get into the benefits, though, let’s quickly define what recruitment process outsourcing is and, just as importantly, what it isn’t.
What is RPO?
Recruitment process outsourcing (RPO) is when a company outsources a portion (or all) of their full-time, large-scale recruiting efforts to an external vendor. It’s estimated that the RPO market was around $5.8 billion in 2019 with potential to grow to over $20 billion by 2027.
Once a company outsources their recruiting process, their staffing partner (like Insight Global) becomes an extension of the company, supporting all parts of recruiting like planning roles needed, finding candidates, interviewing, delivering candidates directly placed into full-time roles, reporting on the progress of all of these steps, and more. That vendor will exclusively handle filling dozens or hundreds of job requisitions for the company.
“I see a lot of talent acquisition teams under high pressure to meet large-scale hiring goals,” Rachel Ewald, a regional direct placement manager at Insight Global, said. “But finding the time to recruit, interview, cross-compare, onboard, and train is overwhelming when it feels like everyone is already working at maximum capacity.”
“RPO companies should have the resources and expertise to make these seemingly impossible goals, possible,” she continued.
RPO is not just simply filling roles for teams on a short-term basis. (That’s what classic staffing and recruiting is for. Insight Global does that, too.) RPO looks at the entire recruiting process as an entity and works to optimize that process to make it a better overall experience for both the candidate and the company.
When a company outsources its recruitment process, the relationship should be about more than just finding people. It should be a strategic partnership, rooted in helping a company accomplish its business goals through strong communication and a shared focus on hiring.
Many vendors offer all-inclusive services within RPO, including:
- Consulting services in various areas, such as DE&I and culture
- Reporting on business goals
- Talent management and optimization
- Front-to-back management of recruiting operations
Benefits of RPO for a Business
We briefly mentioned some of the benefits RPO can have for a business earlier. Let’s dig into them now.
It Helps Scale Business Needs
When you need to hire employees—and lots of them—quickly, RPO services help provide the infrastructure to make sure those roles can be filled as needed and in realistic timelines.
Once that infrastructure is in place, it allows the business to grow at any scale needed. It also makes sure employees who are hired on are the right ones for your business goals which helps with overall retention and can cut down on training costs (as you won’t be training multiple people for the same role over the course of the year).
As an added bonus, RPO can drive further cost savings by translating the fixed costs of internal recruiting into a purely variable cost based on demand.
Better Candidate Quality
Businesses may use recruitment process outsourcing because the candidate quality from their current talent acquisition or HR department isn’t fulfilling what the business needs. RPO companies expand a business’ candidate network and help improve that candidate quality, because they are subject matter experts when it comes to recruiting and finding talent for certain roles.
“An RPO is hired with a subject matter expertise on recruiting strategy, so throughout the partnership clients will also be able to take away valuable processes, data, and practices that will optimize the organization beyond the duration of the RPO agreement,” Ewald said.
Companies that offer RPO are often experts in the field of the business they work with, too, covering industries like healthcare, IT, and more.
Improves the Recruitment Process
Part of what RPO services also provide is an opportunity to find out what recruiting and onboarding processes need improvement. This process is followed all the way from the diagnostic level to actual implementation of the needed improvements. Typically, companies offering RPO services use various technologies and tooling enhancements—built by the companies themselves—to improve overall efficiency in the recruitment process.
Ewald said that “providing a positive candidate experience is crucial to enhancing new employee engagement and improving employee retention.” After a company is able to find candidates and have them accept a job offer, if their onboarding process—from initial training to making sure they get paid on time and in the right place—is off, it can result in a candidate leaving the company. They may not have picked the right person to offer the job to in the first place, either. High turnover among new employees then trickles down to tenured employees who are affected by the attrition.
RPO services help shore up all of these hiring processes.
Allows HR to do HR Things
Human resources departments are often burdened with being the recruiting team on top of other vital business functions like payroll, benefits, training, policy improvements, and other components of the employee journey. If an HR team is understaffed or undertrained, it can affect the talent being brought into the organization.
RPO services take recruiting responsibility on for HR teams, freeing them up to focus on other core needs of the employee experience. They can alleviate up to 90% of administrative work surrounding hiring and onboarding.
Better Experience for Candidates
If a company’s recruiting arm is lacking in any area, it can affect the candidate experience and, in turn, the candidate’s perception of the company as a whole. Outsourcing that recruiting process—from initial contact to onboarding—and making it a more efficient, enjoyable affair for the candidate can lead to more engaged employees who want to grow along with the company.
“When you feel cared about by your future employer,” Ewald observed, “you show up your first day more connected to the company mission, your new team, and your new manager.”
On the employer side, a better candidate experience helps a company’s ability to hire employees and increases retention down the line with more engaged employees.
Insight Global & Evergreen Can Help with Your RPO Needs
Insight Global is an RPO vendor. In collaboration with Evergreen, our managed services arm, Insight Global offers multiple tiers of RPO services—from job requisition prioritization and identifying stakeholders all the way to end-to-end process improvements and reporting—to help your business needs.
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