Recruitment Process Outsourcing: Overview, Benefits of RPO
The successful workflow of every company greatly depends on the quality of its recruitment process. What is recruitment in this situation? Generally speaking, it is the process of finding the right person for the job. The more professionally this process is conducted, the bigger company’s profits will be. Most business people understand this and therefore implement a great deal of effort into creating and managing their company’s HR department. However, those actions also require lots of financial input and some companies simply cannot afford that. Luckily, today we have a new option on a market that is called recruitment process outsourcing.
Challenges of In-house Talent Recruitment
Since the tech market faces a major talent shortage, recruiters are often challenged when looking for job candidates for demanding positions. However, skilled recruiters and such as ATS consultant or HRIS consultant know what to do. Here are the most common and frustrating talent recruitment challenges:
- Losing prospective employees to other talent managers. Common in nascent teams, losing candidates to competitors stems from the lack of experience in the human cloud, failing to describe the job offer in an appealing way, or a tedious, time-consuming recruitment process.
- Getting job applications with skillset mismatches. Such an issue arises from emphasizing on secondary responsibilities, demanding too much for lower pay, or not being familiar with the range of responsibilities a particular opening entails.
- Filling in an opening takes too much time. Even if companies manage to hire employees, training and onboarding them takes a while, creating bottlenecks and preventing the project from developing efficiently. The challenge stems from not having a well-planned and unified onboarding system that would be relevant across all departments.
Recruitment Process Outsourcing: An Overview
Recruitment process outsourcing, or, as it is also known, RPO is a business model, that originated not that long ago and currently is widely used by companies all around the world. What is it all about though? RPO meaning implies recruitment process outsourcing that a company delegates all its recruitment management processes to an outer executor (related to ESP meaning). In this case, the recruitment process outsourcing companies can provide their own staff or use the already existing employees of the company-employer.
There are usually three main types of recruitment process outsourcing services: ‘end-to-end’, ‘project’ solution and ‘on-demand’ solution.
It would be wrong to claim that the only good use for recruitment process outsourcing is to fill in positions, as it stands for so much more than that. One of the greatest recruitment process outsourcing benefits is that it can significantly improve your company’s recruitment strategy. However, this is not the only advantage what is RPO model recruitment gives you. Let’s now talk about the pros of the recruitment process outsourcing model in detail.
Recruitment Process Outsourcing: Benefits
There are lots of benefits for you to hire top recruitment process outsourcing companies. Let’s get through the most prominent of those:
- Time savings. When it comes down to conducting business – the time is valued the most. All business owners are trying to receive the best quality for the least amount of time. This is specifically what IT recruitment process outsourcing was created for. Now while an RPO company takes care of your recruitment management, you can dedicate your attention to the company’s more urgent tasks.
- Easier planning. With the use of RPO, you will be able to foresee your recruitment needs and plan them in advance.
- Extensive talent pool. With traditional hiring, you are entitled to search for new talents within your country or even city. Now with the recruitment process outsourcing model, you can significantly extend the field of your search party to other regions and countries.
- Cost reduction. One of the greatest recruitment process outsourcing benefits is the opportunity to reduce your hiring costs up to 50%.
- HR process improvement. When it comes down to using RPO as a part of your business strategy, it is more than just filling in an open position, but rather the improvement of your HR strategy as a whole.
- High technical expertise level. From day to day pre-employment testing allows recruiters to understand specific features a talented candidate must have before sending him a job offer.
Recruitment Process Outsourcing Companies: Are They in Demand These Days?
Continuing the topic of benefits of recruitment process outsourcing – there is no better way to prove the popularity of this method than to show how many RPO companies operate on the market these days. However, you should clearly understand the difference between RPO and ODC meaning. While the latter simply supply you with candidates for the position, partnering with RPO will allow you to completely change and optimize your whole recruitment process. Think of your recruitment process outsourcing company rather as your business partner, than just a vendor.
Also, according to this source, there are over 60 companies that currently provide recruitment process outsourcing services.
These numbers only prove the extensive list of benefits of this method and improvements that it can bring to your business.
How to Choose the Right RPO Firm?
Hiring an RPO team is not a set-it-and-forget-it decision. Collaborations with outsourcers can last for years – make sure to choose the right firm to partner with from the start. Given a huge variety of RPO teams, selecting the one that fits the main company is challenging. That’s why business managers need a list of criteria to rely on – such as the following ones:
- Define the goals of your collaboration. Before reaching out to outsourcers, define what are the benefits of IT outsourcing for the company, as well as the objectives you want to accomplish by the end of the collaboration – an international recruiting presence, a strong connection with college students that’ll help them consider the company as the future workplace, or a stream of highly experienced, skilled talent that can get started right away.
- Look for experienced teams. Most managers will name the experience of the vendor when answering the question ‘What are the benefits of outsourcing IT services’. For RPOs, the experience is proof of how well the company tracks the job market trends and adapts to them. A company that worked reliably for years has higher odds of having a powerful network of international connections for sourcing top-tier talent – that’s why you should choose an experienced firm.
- Find a team that works with hard-to-fill positions. Finding hi-tech specialists (data scientists, IoT software developers, or AI engineers), is one of the reasons for outsourcing IT department – these spots are tough to fill on your own. When reaching out to RPOs, look for companies with an established array of techniques and practices for finding talent in rare fields.
Look for a cultural fit. When choosing an RPO, find a firm that has a similar project management framework, recruiting and communication strategies as the main office. Keep in mind that an RPO will act on the company’s behalf – hiring a cultural fit is essential to keep a good reputation.
Recruitment Process Outsourcing Model: What It Is and How It Works
Previously we briefly mentioned the three most common RPO models, however, let’s discuss those with a bit more details. Nowadays such RPO programs can be found on the market:
- An ‘end-to-end’ – this RPO solution may be used in almost any situation and remains to be one of the most popular ones.
- A ‘project’ solution – in this case, the recruitment process outsourcing firms are assisting you with finding perfect candidates for a particular project.
- An ‘on-demand’ solution – for this matter recruitment process outsourcing companies provide your already existing team of specialists with one or two outsourced executors.
Recruitment Process Outsourcing Trends
A few last years brought many new trends to RPO practices. One of the most prominent ones were the following:
- Keeping eyes on the taxes. One of the biggest recruitment process outsourcing trends of recent years was the PRO companies keeping track of all the tax changes that might have affected their clients’ recruitment process.
- Google for Hire and Google for Jobs. The HR world receives new and amazing technologies every now and then and these were the two most outstanding ones in recent years. As claims the head of the Recruitment Process Outsourcing Association, these technologies, even though might seem like a substitute for ‘human touch’ in the world or recruitment, in fact, will be a great supplement to the whole RPO strategy.
- The deficit of talent. Lately, it became harder for employees to find great specialists for their projects. Obviously, it became one of those recruitment process outsourcing trends that caused a great effect. RPO companies had to adapt to new realities in the job market. As the market continues to tighten, more and more companies tend to look for time-to-fill RPO options.
- More interest in RPO from small businesses. With such strong competition in the job market, small business owners simply cannot withstand and recruit necessary talents. Therefore, many small businesses start turning towards recruitment process outsourcing as an option for their future prosperity.
- Lots of freelance. Over the last couple of years, freelance became quite a big deal in the world of recruitment and more and more companies turn to it as their permanent solution.
Recruitment Process Outsourcing: Pricing
Now that you have learned how awesome this strategy is for your business, you are probably wondering how an average RPO salary looks like. For better information perception, we present you with a table of RPO specialists’ wages from all around the world. All numbers were taken from Upwork.
|Rate per hour
Also, moved to the chart below so you can see the difference.
As you see, Ukrainian RPO specialists have the lowest rates, however, do not let that fool you as according to Hacker Rank’s report, Ukrainian programmers hold the 11th place among the best ones in the world.
Recruitment Process Outsourcing: Sample Contract
Right before you jump into this collaboration, it would be better if you took a look at the recruitment process outsourcing sample contract first:
Find out more about:
- IT outsourcing services Poland: Pros and Cons
RPO Worldwide Services: Final Thoughts
As you have learned from this article – RPO is not just another outsourced company that does staffing for you, this is a whole new strategy in business, that can bring it to the top within months. Now that you know all about its benefits and have taken a look at the recruitment process outsourcing sample contract – it is time to get down to business and find your perfect RPO company. However, there are so many these days, which one should you choose?
As we already discussed, when it comes to outsourcing, there is no better place than Ukraine, to do that. Among all Ukrainian RPO companies, there is one, that will definitely become your favorite. It is called Mobilunity and here is the list of reasons why you should choose them as your RPO contractor:
- Fast employment process
- Low prices
- Wide variety of options to choose from
- Convenient location
- 24/7 customer support
These and many other benefits of this company will make you fall in love with RPO and all the opportunities it might open for your business.
Contact us now to get more details about the recruitment process outsourcing services!
All salaries and prices mentioned within the article are approximate NET numbers based on the research done by our in-house Recruitment Team. Please use these numbers as a guide for comparison purposes only and feel free to use the contact form to inquire on the specific cost of the talent according to your vacancy requirements and chosen model of engagement.