subject: Benefits of Recruitment Process Outsourcing Services [print this page] Recruitment Process Outsourcing Recruitment Process Outsourcing
Recruitment Process Outsourcing (RPO) is a form of business process outsourcing (BPO) where an employer outsources or transfers all or part of its recruitment activities to an external service provider. RPO differs greatly from providers such as labour hire companies or contingent/retained search providers, in that it assumes responsibility for performing and managing the procedures involved in the recruitment process and sometimes their design and responsibility for the results.
Recruitment of an occasional nature is very sympathetic to outsourcing and part of the procedures have traditionally been outsourced to recruitment firms. It's just that it could go so much further and provide added benefits. For no upfront cost you will be provided with the necessary skills, tools and technologies to perform the recruiting function. Recruitment Process Outsourcing (RPO) will bring in significant COST savings and improvements in the QUALITY of recruitment.
What are the Major reasons clients have chosen RPO?
- Create operational efficiency via addressing more effectively the shortage in skills and expertise within the organization
- Achieve cost benefits by outsourcing non core functions.
- Focus organizational resources on core functions
- Reduce management and overhead cost
The RPO mindset
RPO is a mindset and companies planning to adopt RPO as one of their strategic initiatives, should be ready for an uphill challenge right from having top management's buy in and setting the right expectations internally.
1. SUPPORT OF TOP MANAGEMENT
Outsourcing the recruitment process will have an organization wide impact hence buy-in of top management is an absolute must. Unless the top management has full faith and is driven at a strategic level then RPO will not yield the desired results.
2. EXPECTATION SETTING
RPO will bring in a lot of changes in the way the organization functions and hence you must set the right expectation amongst all stakeholders, including your employees. You have to be very clear on what is expected of the whole RPO activity.
3. IDENTIFY FUNCTIONS TO OUTSOURCE
It's important to identify the right activities to outsource. I would suggest start with absolute non -core activities like sourcing, Training & Development, Compensation Management, Performance Management System and Exit Interview.
4. MEASURING
It is important to measure the effectiveness of RPO. Don't start immediately talking about ROI and set metrics to measure substantial cost saving and operational efficiency. I would suggest look at smaller and more direct parameters like Time to hire ratio, source to submission ratio, submission to interview ratio and interview to offer ratio. However you need to compile these statistics for a period before RPO.
BENEFITS
1. QUALITY
Recruitment is a labor-intensive and recurring process. Companies require people with different skill sets for different positions. Sourcing and recruiting is a challenging job. Recruitment process outsourcing improves the quality of recruitment. To cite an example, your company could have a very high number of open positions during a certain time of the year with each requiring varied skill-sets and experience. To hire a team that is capable of sourcing and recruiting these candidates is very challenging. The outsourcing firms have the required expertise, extensive database of resumes and networking with recruitment firms, talent agencies and other sources of candidates.
2. COST
Your costs can be significantly reduced because an RPO provider essentially uses "economies of scale". They are also capable of handling volume fluctuations in a much easier way. For example, the RPO provider could allocate 10 recruiters to your company when volumes are high and then easily shift them to another client when volumes are low. If you as a company could hire these 10 recruiters, which is problematic, you would either be forced to pay for resources that are not being used or lay them off at substantial expense. Your advertising costs are also reduced as more extensive database searches are available.
3. SERVICE
A Recruitment Process Outsourcing (RPO) provider will help to streamline your company's recruitment function and make it seamless and effective. RPO providers are equipped to provide you with the best people when you need them and also take care of your ongoing and future needs through greater employee retention and process control.
4. REDUCED TIME TO HIRE
"Time to hire" is a very critical factor in the recruitment process as this directly affects business performance. A Recruitment Process Outsourcing (RPO) provider will find it much easier to analyze their database and create a pool of candidates that is ready to be interviewed. They need not take time to advertise for the specific job profile.
Recruitment Process Outsourcing is an end to end function. It begins all the way from designing a job profile to charting the recruitment process and also developing orientation strategies once a candidate is hired. It is not just restricted to hiring a specific person for a specific profile at any time. It is about building a talent pool of resources that can be made accessible for your company. RPO providers also go the extra mile to provide your company with valuable advice and strategies on employee retention.
Recruitment Process Outsourcing has a powerful place in the market. RPO providers are well connected to various companies and the job seeker market. They have a much larger and attractive talent pool than any single company could possibly have.
5. IMPROVED PRODUCTIVITY
A Recruitment Process Outsourcing (RPO) provider manages operational recruitment activities in an organized and strategic manner that reduces administrative burden. To top it all, all the back-up time spent by our support team is entirely non-billable. Timely, affordable and qualified recruitment specialists working dedicatedly for your company enable you to build competitive capability faster and more effectively.
6. INCREASED FLEXIBILITY & CONTROL
RPO services allow you to free up human and capital resources that can be better spent on core competencies. Our services provide you with flexibility, control, and visibility over your entire recruiting function by removing your dependence on third party staffing agencies, who are often unreliable, unpredictable, and expensive.
7. OUTPUT-ORIENTED PRACTICES
Relying on our years of accumulated experience, Recruitment Process Outsourcing (RPO) providers have developed the best practices for all research and recruitment oriented tasks, including internet research and database management. Recruitment Process Outsourcing (RPO) providers follow a set of productivity benchmarks for all tasks to encourage a successful end to the process.
8. RELIABILITY
Once you outsource your recruitment needs to a Professional RPO, you immediately gain access to quality RPO services delivered by qualified recruitment specialists that guarantee high reliability. Hence, your work does not face hurdles and the necessary processes run smoothly without any delay. Processes are constantly monitored and measured to ensure delivery of higher quality services.
Benefits of Recruitment Process Outsourcing Services
