8 Reasons Recruitment Process Outsourcing (RPO) Works
Key Takeaways:
- Outsourcing recruiting using RPO can help companies attract top talent quickly and easily.
- RPO can save companies money on recruiting because of reduced time to hire and because they only pay for specific recruiting services they need.
- RPO is also scalable for times when hiring needs change rapidly.
Recruitment process outsourcing (RPO) is rising in popularity because it has a lot to offer to companies that need help with their hiring, but may not need or want traditional recruiting services.
What is Recruitment Process Outsourcing?
Recruitment Process Outsourcing (RPO) is when companies use third party recruiters for some or all aspects of their recruiting process.
| Reasons to Use an RPO Firm | Reasons not to Use an RPO Firm |
| Need better quality candidates | In-house team getting good results |
| Don’t have own talent pipeline | No immediate hiring needs |
| Can’t afford to hire in-house | No capability for high-tech hiring strategies |
| Hiring needs vary by season | Company culture doesn’t support outsourcing |
Here are 8 top reasons RPO works.
1. Recruitment Process Outsourcing is Cost-Effective
RPO saves companies money because they only pay for the services they use. This could mean paying by the hour or by the task rather than paying a percentage of the new hire’s salary, which can be cost-prohibitive for some. Companies also save money by not having to hire more HR staff when they might only need part time or piecemeal help.
2. RPO Delivers Higher Quality Candidates
RPO providers have access to diverse and proprietary talent pools that will give companies a chance to hire better quality talent. Hiring better talent will help companies earn more money and grow larger, faster. This is all without the need to hire additional staff or pay traditional recruiting fees.
3. RPO is Scalable
Because RPO only provides the services companies need and because the recruiting company’s resources are used, RPO is highly scalable. If you need to hire a larger number of workers for a particular season, your needs can be met easily because the resources are there. If your hiring needs are slower at other times, your costs will be lower to match those needs.
4. Reduce Your Time-to-Hire
RPO also reduces time to hire in many cases because service providers can source candidates quickly and can manage the hiring process in less time than your HR department or current staff. When an IT company decides to use RPO services for hiring, for example, there may already be candidates in the RPO provider’s talent pool that would be a good fit. They may even be prescreened and ready to jump straight to the interview. This saves time and money.
5. Access to Recruitment Technology
Because they are focused on recruiting, RPO providers use all the latest recruitment technologies such as AI sourcing tools, screening tools, and other software to automate the hiring process. Recruitment technology not only saves time, which saves money, but it can also be helpful for diversity and inclusion practices by taking human bias and error out of the process.
6. Improved Compliance and Risk Management
One aspect most people don’t think about regarding RPO services is that they can provide compliance and risk management services. Many fields like government services companies and health care require these services, and they can be time consuming and expensive. Outsourcing them to an RPO provider can ensure the continued smooth running of the company without devoting company resources to these requirements.
7. Enhanced Employer Branding
RPO goes beyond traditional recruiting services and can help companies develop their employer branding in addition to direct hiring tasks. Employer branding is essential in developing top talent because it gives the brand a positive reputation and attracts quality workers who want to be part of it.
8. Focus on Your Core Business
Sometimes companies just don’t have the resources to properly focus on their core business tasks and practices while conducting the hiring processes they need to maintain their staffing at optimum levels. These companies benefit greatly from RPO services because they can outsource their hiring needs and keep their focus where it needs to be.
Case Study
A leading defense technology contractor faced a critical challenge in rapidly filling over 200 positions within four months. All the positions required active government clearances. With a track record of securing high-stakes government contracts, the company needed a reliable staffing and Recruitment Process Outsourcing (RPO) partner capable of efficiently sourcing top technical talent with existing security clearances for government roles.
With a long-standing partnership dating back nearly a decade, GDH was well-positioned to address the client’s urgent staffing needs. Leveraging its agile federal delivery process, GDH quickly sourced, screened, and delivered over 25 candidates per week. Integrating RPO best practices into the client’s recruitment processes, GDH ensured a seamless candidate experience by aligning with the client’s employer brand.
By partnering with GDH, the client achieved significant improvements in recruitment efficiency. GDH reduced the time-to-fill by 43% and cost-to-hire by 50%, exceeding the client’s expectations. Impressed by the initial success, the client expanded the engagement to fill an additional 200 positions supporting 12 government agencies.
GDH wants to help your company find the top talent it needs, quickly and easily, using RPO and other talent acquisition strategies it has developed over many years in the field.
If You’re Seeking Top Talent, We Discover It at GDH.
