Why Do Companies Use Recruitment Outsourcing? - 15 Key Benefits Of Recruitment Process Outsourcing
The benefits of the recruitment process outsourcing (RPO) can be quite enormous for companies when done right.
RPO involves delegating partial or full responsibilities of hiring to an external organization or recruiting specialist. This might become necessary when a company is struggling to find quality talents or has too many open positions; more than enough for the in-house recruiting team to handle.
Benefits of Recruitment Process Outsourcing
Whatever the reason for choosing RPO, below are some of the biggest advantages of an efficient recruitment RPO that businesses stand to gain:
1. Reduced recruiting costs
Cost-effectiveness is unarguably one of the biggest benefits of recruitment RPO. RPO solutions are streamlined to help organizations hire faster and better, reducing the time and financial costs of leaving open positions unfilled, a lack of modern recruiting technology, posting on job boards, and a thorough screening and selection process. The benefits of recruitment RPO in this sense span every area from the reduced recruiting costs to faster turnaround times and improved quality of hires, among others.
2. Better recruiting flexibility and scalability
One of the benefits of outsourcing recruitment and selection processes, in this case, is that RPOs can deliver solutions that align with your organization’s hiring needs. Here are the four most common types of recruitment outsourcing RPO engagements, and what they entail.
Each model provides an efficient recruitment process that includes different services that make up its nature:
On Demand RPO: Best for organizations in constant flux with volatile hiring needs. This model helps manage spikes and rapid changes in the company's need to fill new positions, helping you avoid costly shortfalls when an unforeseen event takes place.
RPO providers usually provide a project RPO solution for specific business initiatives, contracts, launches, and similar processes where employers need hiring support for specific high demand hiring activities
Hybrid RPO Models: This RPO model blends both RPO and MSP, managed service provider needs to manage both permanent recruitment needs as well as the entirety of the contingent workforce.
Enterprise/Full-Service RPO: Full-service RPO providers offer end to end RPO solutions from candidate sourcing to screening, interviews, employer branding, marketing, and more. With this, businesses can easily access scalable RPO services with recruiters and additional resources to attract, assess good candidates to hire the right candidate.
Businesses are in constant flux with a need to upscale or downscale their recruiting activities depending on the hiring needs at any given time. Although RPO models typically reduce company costs, the RPO helps companies to scale their hiring, reduce costs and adjust their resources during the hiring process in order to ensure the company is never understaffed or overstaffed.
3. Greater consistency in the recruit-to-hire process
Traditional hiring processes are often plagued with inconsistencies.
This problem becomes even more pronounced in large corporations with multiple entities and departments, many of which tend to have separate hiring processes.
There are many companies that are growing rapidly and may lack a well-established employer brand or know how to market to potential candidates to attract top talent. To attract top talent, something must be done differently, and that is where an RPO provider can provide its clients with an advantage.
The benefits of an effective RPO provider in this regard include a partner that is able to deploy best practices and processes that provide consistency and predictability to potential employees in the hiring process resulting in candidates easily understanding where they are in the recruiting process as well as what’s supposed to happen next, and what to expect.
4. Improved quality of the candidate pool
Compared to traditional hiring processes, recruitment RPO gives organizations access to a wider pool of qualified candidates. Recruiting process outsourcing (RPO) can provide organizations with the competitive advantage needed to access the best talent faster to increase the speed of hiring when they require high volume, healthcare, manufacturing, and tech recruiting. These candidates can be targeted for long-term relationship building, to keep them informed on new opportunities and easily accessible for future hiring opportunities.
5. Reduced burden on in-house HR teams
What are the benefits of a clear recruitment process without easing the burden of recruiting on in-house HR teams? Having recruiting channeled through an RPO specialist means the HR team or talent acquisition recruiters won’t be stretched too thin.
As a result, the HR team can be more productive and efficient and they can focus on other important HR issues, like employee retention and development.
6. Better hiring manager experience/satisfaction
Executive support and the services of an RPO provider can significantly improve hiring success for the teams due to the engagement and/or sponsorship of management and senior leadership.
Hiring managers need to ensure that the recruiting efforts of their company are successful. This can be easily assessed by pre-agreed SLAs to measure the efficiency of the process, time to hire, and other key performance indicators to gauge satisfaction and result.
The key to a successful process is being able to measure the outcome. That's why any good organization will use pre-agreed SLAs, which are benchmarks for measuring efficiency and satisfaction with your service in order to evaluate and/or measure the efficiency of the process, time to hire, and other key performance indicators to gauge satisfaction and result.
7. Improved employer branding benefits of recruitment process outsourcing
The improved efficiency of the talent acquisition process, better candidate quality, increased hiring manager satisfaction, and improved consistency and predictability of the recruiting process for candidates, among the other advantages of the recruitment RPO process, collectively help to boost employer branding.
8. Faster and more efficient hiring processes
The best RPO specialists have established time to hire models that help overcome the challenge of tight hiring deadlines.
9. Valuable RPO analytics and reporting help with making informed business decisions
One more benefit of recruitment process outsourcing is the availability of detailed insights and data made available from real time reporting and tracking every stage of the hiring process.
For the organization, this makes an audit of the recruiting process much easier as well as the availability of reliable data to help with understanding the job market, improving the hiring process, as well as making other well-informed business decisions.
10. Robust recruiting strategy advantages of the recruitment process
The wealth of experience and expertise of recruitment RPO agencies, access to modern recruiting technologies and a diverse pool of talent, as well as meticulous attention to detail from the sourcing to selection phase, testing, and eventual hiring, all point to the fact that organizations stand to benefit from a more complete and robust recruitment service, compared to what is often possible in-house.
11. Reduced need for direct recruitment advertising
Posting job ads on job boards can be time-consuming and recruitment advertising is generally expensive. With specialized RPO providers, however, the need for this is greatly reduced.
The RPO provider bears the responsibility for advertising. And since they usually have well-established strategies for attracting the best talents, the need for costly advertising is almost always partially eliminated.
12. Better focus on core business goals
There’s a saying that RPO firms allow businesses to get on with the business of being a business. This is true to a large extent. With RPO solutions tailored to your organization’s needs, your HR teams and the business generally can focus on growth and other key aspects of the business while they enjoy the support of RPO providers on crucial HR functions such as candidate sourcing and recruitment, among others.
13. Reduced turnover rates benefits of effective recruitment
Hiring the right person for your job is a priority in any organization. The improved access to higher-quality candidates as well as increased effective hiring processes from the RPO provider can help to reduce turnover rates, which leads companies towards success on all levels of business operations by increasing productivity and efficiency.
14. Tapping into the benefits of advanced recruiting technology during recruiting
For many organizations, the only way to tap into modern recruiting technologies is through an RPO provider considering that many of these technologies could be quite expensive.
For RPO providers, however, leveraging the latest techniques and technologies always seems to be a priority. Everything from communication with candidates and prospective employees to others such as the service delivery platforms and skill assessment processes benefits from technologies like advanced online psychometric tests, artificial intelligence, machine learning, and more to help streamline recruitment activity for the highest possible levels of effectiveness.
To unlock the advantages of recruitment process outsourcing, choosing the right RPO provider is key
Organizations that want to tap into the benefits of recruitment process outsourcing should focus on partnering with the right RPO provider. Everything from the level of transparency of the RPO’s recruitment processes to the technology at their disposal, their reputation, scope, and experience with the kind of talents needed will impact the cost-effectiveness of this investment.
But when done right, RPO services can have key advantages such as reduced costs and streamlined recruitment processes, among other benefits. With the right RPO firm, hiring managers and their organizations stand to gain a lot with more efficient recruitment processes, high-quality candidates and employee hires, better candidate experience, improved employer branding, and sustained business growth.
This article was written by Consultant, Crystal Mano.