There are many different ways in which Recruitment Process Outsourcing (RPO) services are beneficial to hiring companies. The potential is almost mind-boggling.
Not only does this solution offer a better quality of hire for the company in need, it also finds a way to lower the cost-per-hire to unheard of percentages. If that isn’t enough to perk your ears up, RPO programs give companies the data or analytics in job-seeker activity and insight into the specific competitive employment community, they lack.
Frankly, it was a lot to think about putting all of it into one blog, in any kind of digestible format. To keep things simple I prioritized the biggest benefits then summarized and grouped however seemed most logical.
The full list is also below.
Recruitment process outsourcing’s main purpose is to provide a overall better quality hire than their clients can find on their own and through their own efforts. This is not only the #1 purpose of RPO, it is also the #1 advantage. Time and time again, this is quoted as being the Top #1 benefit.
Particularly in the mental and behavioral health industry where hiring companies are faced with an already highly competitive environment due to an imbalance in supply and demand, they can sometimes find themselves just hiring anyone with the right credentials who is interested. This situation often does not end well for anyone.
Working with an RPO provider gives companies not just more potential candidates to select from, but better quality candidates. Hiring the most qualified professionals brings benefits that bleed into many areas of the business outside of just billable revenue, like less ramp up time required.
Lower cost-per-hire and decreased time-to-hire are probably the biggest reasons companies explore the RPO model. RPO is the most budget-friendly option in hiring solutions avaliable. For multiple reasons. Period.
There is no other hiring model that allows companies to cut the cost-per-hire so such a low percentage, while also decreasing the time-to-hire average.
To paint you a picture, you can use Empowered Partnerships’ RPO Program which offers various Tiers a company can chose to work on. Our first tier includes between 5-10 openings and averages about 7% cost-per-hire over a 6-month time period. This means you can save around 13% per hire (as compared to the 20% average contingent fee). That’s no small chunk of change.
An efficient RPO model is designed to provide clients with data, analytics and reporting in real-time to keep the hiring company informed throughout the process.
One of the most effective keys to a successful RPO program is a clear, consistent and efficacious communication system. This means a communication system where, to who, how often and what data will be communicated. A sign of a truly excellent RPO Provider is one that place great importance on establishing this in detail very early on in the process, most likely in the very first kick-off meeting. If not, then those are silent warning bells you are hearing and you need to take a closer look at the partnership.
This is one of the more organic results of hiring better quality professionals, having a consistent hiring process, creating an improved candidate experience, etc. provides. By implementing such a specialized and detailed hiring process (all done for you by your RPO Provider), the candidates you end up with are very serious about considering your opportunity, they are interested and understand the requirements, compensation, etc. and their educational history, professional background, licensure, etc. have been well-vetted before they even reach your desk. These professionals are much more likely to stay in the opportunity for the long-haul.
This has a shorter-term positive affect on new employee retention rates and also carries long-term positive affects on overall employee retention rates. A win-win.
The majority of RPO staffing models are based on ranges of positions. For example, Empowered Partnerships’ RPO program is set up on basic Tiers which include various ranges of openings (i.e. 5-10, 11-15, etc.). Most RPO models will also work this way because it creates a simple visual for hiring companies to see how an RPO program might fit into their hiring plan.
Shifts in hiring happen for many reasons and when they do, companies must be agile in their staffing. The RPO model allows companies the flexibility to easily scale up or down depending on their needs at the time. They also work over a contract period, usually 6-months or 1-year. This creates a security net for hiring companies when things do shift and change. Their relationship with the RPO Provider and the importance the RPO Provider places on hiring for their positions does not change, as compared to contingent staffing.
For companies who are thinking to themselves, “How would I ever work that cost into our budget?” First of all, I would like to ask you how you managed to work in that contingency fee at 20%-25%?
Don’t worry, RPO has an answer for you.
Recruitment Process Outsourcing program agreements spread the cost out over time. This makes working the expense in much more manageable, particular if your company is new to the RPO hiring model. They also don’t have to worry about incurring a big chunky fee that has to be paid all at once.
Frankly, I feel this particular perk never gets the attention it deserves.
Creating a positive candidate experience is absolutely essential to the livelihood of any company and that’s a fact. If job seekers who consider working for your company are walking away feeling like they were not valued or treated badly, they are going to tell someone. Probably a few people. Then, every time after that when someone brings up your company, they will tell that same story of their negative experience. It’s important hiring companies realize, the experience adds to the quality of the candidate and in simple terms, you get what you give in hiring.
The RPO model is designed to create the perfect candidate experience. One that is nurturing and engaging; where no matter the outcome, the candidate leaves feeling grateful for the consideration and hopeful there will be opportunity to be considered again in the future.
This benefit is like a little golden nugget that keeps gaining value over time. Its truly a priceless benefit that often doesn’t get the credit it deserves.
Most RPO Providers out there are specialists in their industry or niche. This carries many benefits with it. They speak the language and are they more likely to have existing relationships with the type of professionals you are looking to connect with. They have a handle on what’s going on currently within the industry, what companies are shifting, where are employees not as happy, etc. They will have industry insight others just will not have developed.
P.S. Beware the non-specialist RPO Providers!! If you do consider working with them, pay particular attention to the promises they make around understanding your industry, related needs, etc. Consider yourself warned.
This is actually a term I regularly use to describe Empowered Partnerships’ RPO program. It portrays it perfectly.
We have a keenly developed methodology that has been tried and tested over the years. The data is there to prove it. We also have an acute pool of candidates we have built relationships with who enable us to very quickly develop sourcing activity, conduct candidate market research, network open positions and many other benefits. These two components combined perfectly spell out one of the great pieces to our success.
For companies who are lacking predictable and calculable results in their recruiting process, this is a major advantage. It’s like inserting a hiring efficiency ninja into the process who identifies and highlights inefficiencies in the hiring process, then offers ways to eliminate or compress them.
It is also particularly beneficial for companies who need to move quickly. RPO providers are much more likely to be able to jump in and get some activity going immediately.
There are many ways in which Recruitment Process Outsourcing (RPO) can be or has the potential to be beneficial to companies hiring. There is also some significant potential for problems to occur.
After writing these two comparison blogs, it seems the need for companies to fully-vet RPO Providers is critical to the success of the project. There are many staffing companies out there claiming to be providing RPO services to clients, but what they are providing is not the true definition of RPO.
The purpose of Recruitment Process Outsourcing is to provide a better quality hire. If you don’t end up with that result at the end of the day, you need to look at the RPO Provider and the process.
Opt to work with a Provider who understands the space they will be hiring for and has a history being successful in that area. That’s always a great place to start.
Ashley Lane Boyle
Empowered Partnerships LLC