Recruitment Process Outsourcing (RPO): A Complete Guide for Recruiters

By hrlineup | 10.05.2023

Recruitment Process Outsourcing (RPO) is a strategic practice that involves outsourcing all or part of an organization’s recruitment process to a third-party provider. The RPO provider serves as an extension of the organization’s recruitment team and takes responsibility for managing the recruitment process, including sourcing, screening, and hiring candidates. RPO has gained immense popularity in recent years as organizations seek to streamline their recruitment processes, reduce costs, and improve the quality of their hires. This article provides a complete guide to RPO for recruiters.

What is Recruitment Process Outsourcing?

Recruitment Process Outsourcing (RPO) is a type of business process outsourcing that involves outsourcing some or all aspects of the recruitment process to an external provider. The RPO provider acts as an extension of the organization’s HR or recruitment team, taking on the responsibility of managing the recruitment process. RPO services can include sourcing and screening candidates, conducting interviews, conducting background checks, and managing the offer and onboarding process.

Benefits of Recruitment Process Outsourcing (RPO)

RPO offers several benefits for organizations, including:

  • Cost savings: By outsourcing their recruitment process, organizations can save on recruitment costs such as job board fees, advertising costs, and recruitment software.
  • Improved candidate quality: RPO providers are experts in the recruitment process, and they have the resources and expertise to find and attract high-quality candidates that meet an organization’s specific needs.
  • Faster time-to-hire: RPO providers have the tools and resources to streamline the recruitment process, reducing the time it takes to fill open positions.
  • Scalability: RPO providers can quickly scale up or down recruitment efforts based on an organization’s hiring needs, making it an ideal solution for organizations with fluctuating hiring volumes.
  • Improved candidate experience: RPO providers have the expertise to create a positive candidate experience, which can enhance an organization’s employer brand and improve candidate engagement.

Types of Recruitment Process Outsourcing

There are three main types of Recruitment Process Outsourcing:

1. End-to-end RPO

End-to-end RPO involves outsourcing the entire recruitment process to an external provider. The RPO provider takes on all aspects of the recruitment process, from sourcing and screening candidates to managing the offer and onboarding process.

2. Project-based RPO

Project-based RPO involves outsourcing a specific recruitment project to an external provider. This type of RPO is often used for high-volume recruitment projects or for filling specialized roles.

3. Selective RPO

Selective RPO involves outsourcing certain aspects of the recruitment process to an external provider. This type of RPO is often used to supplement an organization’s internal recruitment efforts.

Choosing an RPO Provider

Choosing the right RPO provider is critical to the success of the recruitment process outsourcing initiative. Here are some factors to consider when selecting an RPO provider:

  • Expertise: Look for an RPO provider with expertise in your industry and the specific roles you are looking to fill. The provider should also have a deep understanding of the recruitment process and best practices.
  • Resources: Make sure the RPO provider has the resources necessary to manage your recruitment process effectively. This includes recruiting tools and software, as well as a team of experienced recruiters.
  • Cultural fit: Look for an RPO provider whose values and culture align with your organization’s values and culture. This can help ensure a successful partnership and a positive candidate experience.
  • Scalability: Make sure the RPO provider can scale up or down recruitment efforts based on your hiring needs.
  • Reporting and analytics: Look for an RPO provider that provides regular reporting and analytics on recruitment metrics, such as time-to-fill and cost-per-hire.

Implementing an RPO Program

Implementing an RPO program can help companies save time, reduce costs, and improve the quality of their hiring process.

Here are the key steps to implementing an RPO program:

  • Determine Your Hiring Needs

The first step in implementing an RPO program is to determine your hiring needs. This involves identifying the types of positions you need to fill, the skills and experience required, and the timeframe for hiring. This information will help you determine the scope of your RPO program.

  • Choose an RPO Provider

Once you have identified your hiring needs, you can start looking for an RPO provider that can meet your requirements. Look for a provider that has experience in your industry, understands your hiring needs, and has a proven track record of success.

  • Set Expectations

Once you have chosen an RPO provider, you need to set expectations for the program. This includes defining the scope of the program, the roles and responsibilities of the RPO provider and your internal team, and the metrics that will be used to measure success.

  • Establish Communication and Reporting

Communication is key to the success of any RPO program. Establish regular communication channels between your internal team and the RPO provider. This includes regular status updates, progress reports, and feedback sessions

  • Implement the RPO Program

Once all the groundwork has been laid, it’s time to implement the RPO program. This involves providing the RPO provider with access to your recruiting systems and tools, sharing job descriptions and hiring criteria, and providing feedback on candidates.

  • Measure and Evaluate

It’s important to measure and evaluate the success of your RPO program. This includes tracking key performance indicators (KPIs) such as time-to-fill, cost-per-hire, and quality-of-hire. Use this information to make adjustments to the program as needed and to ensure that you are getting the most out of your RPO provider.

Recruitment Process Outsourcing Examples

Here we will explore some examples of RPO.

One example of RPO is Randstad Sourceright, which offers end-to-end recruitment solutions for companies of all sizes. Randstad Sourceright uses a mix of technology and human expertise to identify and attract top talent, streamline hiring processes, and improve employer branding. They also offer talent analytics to help companies measure the effectiveness of their recruitment strategies.

Another example is KellyOCG, which provides a range of RPO solutions, including full-cycle recruitment, project-based recruitment, and employer branding. KellyOCG uses a data-driven approach to recruitment, leveraging analytics and market intelligence to identify the best candidates for each position. They also offer flexible pricing models to help companies manage their recruitment costs.

A third example is Allegis Global Solutions, which specializes in RPO solutions for large enterprises. Allegis Global Solutions offers a range of services, including candidate sourcing, assessment and selection, and onboarding. They also provide talent analytics and market insights to help companies optimize their recruitment strategies.

Overall, RPO can be an effective way for companies to reduce costs, improve recruitment processes, and access top talent. By outsourcing all or part of their recruitment process to a third-party provider, companies can focus on their core business operations while leaving recruitment to the experts.