The global spending on recruitment process outsourcing is projected to reach a staggering $21 billion in 2021. And with more companies recognizing the unique advantages of using a professional recruitment services provider, that number is set to become even higher in the near future.
While many organizations still try to get by with traditional internal recruitment practices, it’s hard to argue against RPO (recruitment process outsourcing). As companies grow, streamlining parts of the recruitment process becomes the only viable option, at least when trying to keep costs manageable and maintain consistent quality.
But how exactly can recruitment process outsourcing help your company? And what does the term even stand for?
We’ll answer these questions below and will also help you figure out whether RPO is right for you.
What is Recruitment Process Outsourcing?
For a long time, having an in-house hiring process was the go-to option for businesses of all sizes. But as the hiring process became more complex and fast-paced, many companies found themselves overwhelmed with finding, hiring, and keeping top talent long-term.
And since the quality and expertise of your employees can be the deciding factor in the company’s success, it’s easy to understand why it makes sense to seek help from outside experts who can provide guidance and a proven process for consistently hiring the right person for every position you need to fill.
That’s where recruitment process outsourcing comes into the equation.
An RPO recruiter can come in and provide you with a complete process for hiring employees, adjusted to match your unique challenges and business requirements. With the right recruitment process provider, you can ensure consistent quality hires faster while also being able to scale your hiring efforts with ease.
Whether you need an RPO to take over the entire hiring process or just parts of it (such as the sourcing and screening of candidates), you can leverage the methods of a company that specializes in the hiring process and adopt its best practices to your own company.
Benefits of Recruitment Process Outsourcing
There’s a reason why more companies are deciding to switch from an in-house hiring process to a recruitment process outsourcing provider. But while we covered them briefly before, what exactly can you expect if you choose to find a company that will handle the hiring for you?
Well, to answer that, let’s look over five of the most important benefits that this type of service can offer.
The recruitment and hiring process can be expensive. Paying for headhunters or allocating resources to using job boards takes a lot of time, which ends up eating a big part of the hiring budget. And if you don’t have a proven method for hiring employees that’s on par with the industry standards, you will likely invest a lot of resources into the process only to achieve mediocre results.
Meanwhile, when you outsource the recruitment process, you are paying for a service that’s been fine-tuned to be as cost-effective as possible. So, while you are making the investment to gain access to the process and the expertise, adopting it will usually end up saving you a lot of money through streamlined hiring steps, better candidate selection, and even secondary benefits such as improved employee satisfaction.
Higher Quality Candidates
Identifying the best people for a position isn’t always easy. Many candidates have a solid resume, but it’s often the less tangible qualities that separate the truly best talent from the rest.
By leveraging the experience of an RPO provider, you can learn to recognize the right combination of expertise, credentials, education, and personality traits that are essential for top performers in your field. You will also get better at finding talent that can fill crucial roles in your company, bringing unique expertise and experiences that you are currently lacking.
Better Company Satisfaction
Hiring new employees is not just about finding the best-qualified candidate. It’s just as much about ensuring that the people mesh with your current team and enhance the company with what they bring to the table.
Recruitment process outsourcing providers can walk you through some of the most important considerations regarding new hires, resulting in you bringing in people that are an ideal fit from a cultural perspective.
You can also use the expertise of an RPO to improve your onboarding processes. For instance, when you need a process for effective customer support agent onboarding, an RPO can assist you with helpful advice on how to best approach it.
Increased Appeal to Top Talent
Finding and hiring top talent is an essential aspect of success in business. Businesses that have the best people working for them will eventually separate themselves from the competition because innovative, productive, and competent workers are the backbone of any goals that you might set out.
When you work with an RPO provider, they will help you position your company as an appealing workplace, offering advice on what types of benefits to emphasize so that you separate yourself from the competition and become the desired employer in your field.
Ability to Scale
Finally, when you work with a recruitment process outsourcing agency, you won’t have to worry about how to scale your hiring efforts. When you’re experiencing rapid growth, filling all the positions in a short time can seem like an impossible challenge, but an RPO agency has dealt with these types of situations before and can offer constructive advice on how to approach them.
Being able to scale up your recruitment levels as necessary is a big advantage, as you can leverage the resources of a third-party provider instead of having to handle everything yourself. Then, once the roles have been filled, you can just as quickly scale down, which provides much-needed flexibility.
Is Recruitment Process Outsourcing Right for Your Company?
For a long time, RPO was mainly used by enterprise-level companies that needed a proven process for hiring at a larger scale. But with technology making it easier to streamline various recruitment tasks, today’s RPO agencies often cater to small and medium businesses as well, providing them with access to tools and best practices usually reserved to large corporations.
But how can you figure out if recruitment process outsourcing is the right choice for your company? To help you answer that question, let’s look at five situations where such a service makes a lot of sense.
Rapid Growth Period
If your company is experiencing rapid growth, you are probably in a constant state of trying to fill new roles that have to be created on the fly. And when trying to handle the process within the company, your hiring managers might end up being in a position where new roles are created before the current ones can be filled, resulting in an endless cycle of trying to catch up.
Being in that position means that you might have to settle for mediocre talent or spend more on candidates than you are comfortable with. And that’s not a position that any company wants to be in.
You can manage increased customer demands using a customer support outsourcing company, but that’s just part of the equation. It’s equally important to fill roles that can continue to innovate your products, create effective marketing campaigns, and ensure that sales remain consistent. And that’s where an RPO can help.
A recruitment process outsourcing company can come in and provide much-needed relief to your hiring managers, bringing their own process, resources, databases, and recruitment tools that can streamline the entire process and allow you to fill roles at a rate that’s much higher than what you could do on your own.
Maintain Consistent Talent Quality
Another reason why you might want to consider an RPO agency is if you want a proven process for maintaining talent quality as you scale. As mentioned in the previous section, it’s easy to fall into the trap of settling for talent that’s below the industry standard when you’re pressed for time and don’t have a way to expand your search.
RPO agencies have extensive networks for sourcing top talent in any industry and can allow you to tap into a much larger pool of potential candidates than you could access on your own. That alone can be a huge difference-maker in the types of candidates you end up choosing, especially when you can also leverage the expertise of the RPO provider when selecting the best choice for a position.
Looking for a Long-Term Recruitment Partner
Some businesses work with RPO providers to meet short-term recruitment goals. But usually, recruitment process outsourcing works best if you work with a company for a more extended period, developing a deeper relationship and allowing the recruiter to really get to know your unique needs and challenges.
Since it’s very easy to scale your recruitment levels up and down based on your immediate needs, having a partnership with an RPO agency can make a lot of sense. You can reduce the in-house hiring responsibilities, adopt industry-leading practices, and cut costs on unnecessary processes that the RPO provider can handle.
Need a Proven Process
Success in recruitment largely depends on the process that you employ at every step of hiring new employees. But finding what works and refining the process to suit your needs can take many years, which is not something that most companies have to spare.
However, when you partner up with a recruitment process outsourcing provider, you don’t have to learn by trial and error; instead, you can plug in a proven process that has been tested on hundreds of companies and in thousands of different scenarios.
You can consult the RPO provider on how to adapt the process to your unique needs and start using it at the scale you require from day one. Combined with the extensive network and pool of candidates, this can result in a powerful combination that completely transforms your hiring practices seemingly overnight.
Want to Focus on Running the Business
Finally, a good reason to work with recruitment process outsourcing agencies is that it frees up your time to focus on running the business. While it’s possible to develop an effective recruitment process within your company, it might be worth asking whether it’s actually worth it.
Recruitment process outsourcing is affordable, efficient, and produces more powerful results. When you consider the advantages it comes with, the real question becomes not whether you should consider the service for your company but how to find a provider that can offer services that match your needs.
Recruitment process outsourcing is one of the best ways to streamline your hiring practices and ensure you get the best candidates for each position. It’s also an excellent way to quickly scale your hiring efforts and fill critical positions during periods of rapid growth.
While this type of service used to be mainly used by enterprise-level companies, it’s now more accessible for small and medium-sized businesses, which is why RPO is bound to become an ever more prominent practice in the coming years.