Outsourcing refers to the act of hiring a third party so that they can perform something in your stead. For example, in our daily lives, we hire plumbers so that they can fix any problems we may have with the plumbing in our houses or workplaces instead of trying to fix it ourselves. Similarly, a company may hire a Software Outsourcer to develop software according to its requirements, instead of developing it.
Recruitment Process Outsourcing refers to a business model in which a company hires a third party to manage the process of employing new workers. The RPO works almost as an extension of the Company’s Human Resources Department and overlooks the entire process of recruitment from the job posting to interviews and even training of the new employees in some cases. An RPO provider may provide a variety of things depending on the needs and preferences of the company.
The Recruitment Process Outsourcing Provider may either provide a holistic solution to the company and let it handle the process by itself, or provide the necessary methods, staff, and technology for the entirety of the recruitment process. It all depends upon what the company needs and prefers. An RPO is mainly of two types, which have been explained below:
Half-Cycle Recruitment Process Outsourcing:
In this type of RPO, the RPO provider’s job is limited to finding eligible candidates for the company, through job postings and then screenings.
Full-Cycle Recruitment Process Outsourcing:
In Full-Cycle Recruitment Process Outsourcing, the provider covers the entirety of the recruitment process, from getting the manager’s approval for job postings to selecting candidates and presenting them with probable contracts for the position.
Why Choose RPO?
In today’s world, the recruitment environment is pretty difficult, with a tough and dense labor market, in which it has become increasingly difficult to spot and acquire the top talent. Recruitment Process Outsourcing Providers are the experts in acquiring talents. They are experienced in not only finding the best people suited for a position but also in making sure that these best of the best choose the company the provider wants them to. They keep up-to-date with the newest recruitment trends and are well-versed in navigating the job market. The RPO provider studies what the company wants and what their end goal and ideal employee is. They then streamline the hiring process, simplify it, reduce the total time and cost invested into the process and generally, make everything a lot easier.
Originally RPO was something large organizations used to save time and money, but over time RPO has integrated itself into medium-sized corporations and even small businesses. This has created room for small-scale RPOs and the market for Recruitment Process Outsourcing gas becomes very dense in and of itself. Many benefits can be attained through the use of RPO’s. Some of them are as given below:
Candidate experience:
There is a lack of communication between an employer and potential employees. The candidates stay in the dark during the recruitment process and there is a lot of confusion about what needs to be done and when to wait. An RPO adds a human touch to the entire process and helps bridge the communication gap between the employer and the candidates.
The provider addresses any queries that the candidate may have and updates them regularly about the recruitment process. This is because whether or not the candidates are hired, they must leave the process with a good and positive experience. With a positive experience, the candidate may refer the company to their acquaintances, and with a negative experience; they may ruin the company’s reputation.
Efficiency:
The needs of a company and its employees and the recruitment process have changed a lot over time. Recruitment Process Outsourcing Providers have updated their expertise, technology, and methodology to keep up with these new requirements and to stay on top of the game.
The Human Resources Department of a company has a lot on its hands, and the people there are, in some cases, very overworked. Choosing an RPO provider takes the responsibility of hiring new employees off of the HR department’s shoulder, allowing them to focus on their other responsibilities. It also increases the efficiency of the overall recruitment process, as the provider is experienced in the hiring process and knows the best possible solution for a company.
Cost:
It costs a lot of money to hire new employees. According to a survey, it costs around four to six months of an employee’s salary to hire a new person for the same position. From advertisement placements to interviewing and training, the expenses are endless and a strain on the company’s limited resources. Hiring an RPO provider can greatly reduce the total money spent on the hiring process.
According to an estimate, hiring through an RPO provider can cost 60-70% less than hiring through the Human Resources Department, while, at the same time, freeing up the Human resources department so that they may be able to work on some other tasks. Through the use of streamlined methodology and planning that increases the efficiency of the hiring process, the RPO provider saves a lot of money and time for the company.
Placement Agency versus RPO Provider:
A placement agency is an organization that finds jobs for fresh graduates or newly unemployed people. These organizations match employers with potential employees according to the requirements and skillsets.
The primary goal of a Placement agency is to find jobs for potential candidates, not to fulfil the requirements of a particular company. Keeping that in mind, the placement agency is not very time efficient and may not find the company what it needs. On the other hand, an RPO provider charges the company at a monthly rate and can reduce the turnover rate and the expenditure of the company on the recruitment process, while a Placement agency needs to be paid only for as long as it takes to hire an employee for the required post.
Simply put, a Recruitment Process Outsourcing Provider can help a company increase its efficiency manifold. It can also reduce the amount of time and money spent on hiring new employees and relieve some of the burdens of the Human Resources Department.
