RPO stands for recruitment process outsourcing. It is a business model where a company outsources the management of the recruitment function (in whole or part) to a third party expert to drive cost, quality, efficiency, service, and scalability benefits.
The third party RPO vendor is responsible for placing people into that organization. When managed well with a quality provider, RPO can reduce time to hire by 40 percent and deliver cost savings of more than 50 percent.
The benefits of Recruitment Process Outsourcing:
- Reduce cost per hire. It saves the organization money by significantly decreasing the average cost-per-hire, by more than 50 percent.
- Shortens time to hire. Reduces time by over 40 percent, in searching.
- Tailor your recruitment panel to supplement hiring, helping you drive quality, efficiency, and cost reduction.
- Access additional sourcing channels. Many clients are in a niche sector and need scarce skill sets. Leveraging formerly untapped sourcing channels to access additional candidates is one of many benefits of outsourcing recruitment.
- Improve quality of hire to deliver talent that delivers more. Studies continually show that high quality hires improve productivity for organizations
- Gain transparency through reporting. Measure and track performance through regular reporting on key performance indicators (KPIs) and service level agreements (SLAs).
- It increases efficiencies, identify process improvements, and better forecast future hiring needs.
In order to maintain a competitive edge, companies must become more adept at recruiting talent with impact. RPO is not just a services used by the company but a relationship and a commitment with the third party to boost the employment brand and to hire the best possible talent and not just filling positions for the sake of it.