When a company makes the switch to RPO to handle it’s hiring, the return on investment can be staggering – If you’re looking in the right places.
Making the case for recruitment process outsourcing ROI can be challenging, especially if you’re not looking at the correct recruiting metrics and the not-so-obvious benefits associated with using RPO.
Some of these benefits can be a little tricky to quantify, so that’s what we’re going to talk about here.
Before we get to the list, it’s a good idea to get a baseline of your current situation. Calculate your current cost per hire, including all the factors that impact your bottom line: cost of staff, training, software, and don’t forget other duties that get neglected to run the recruiting function.
Now let’s get to those massively overlooked benefits of RPO.
1. All kinds of savings
You’ve probably heard that you can save oodles of money by outsourcing your hiring function, which is definitely true. (Here’s an example) There are lots of other kinds of savings that you can get with RPO that also add to the return on investment:
- Saving staff hours to work on other strategic projects and duties
- Saving hours of sifting and sorting through resumes
- Saving screen time (and your employee’s eyesight) on candidate tracking and status updates
- Saving phone time on preliminary interviews, background checks, and reference checks (not to mention saving sweaty phone ears)
- Saving aspirin on all those headaches you won’t have anymore
- Saving wine o’clock for relaxing instead of de-stressing
2. You won’t have to hide from hiring managers in the parking lot
That’s right – Hiring Managers will love you because the recruiting function is organized and efficient, they know what’s going on with their open positions, and they’re kept in the loop at all times. Not only that, but you may even get a few gift cards and baskets when they get the perfect candidate. You definitely won’t need to avoid them at lunch or when you’re refilling your coffee in the employee lounge anymore.
3. More Feet on the Street
One benefit that is often overlooked for recruitment process outsourcing ROI is the fact you have a TEAM of recruiters focused on finding you the best candidates. That means more feet on the street recruiting for you without any additional staffing costs. In effect, you’re getting more recruiters working for you and it’s costing you less.
4. Better Bacon Number
I’m sure you’ve heard of the game “6 degrees of Kevin Bacon” based on the idea that any two people on Earth are six or fewer acquaintance links apart. In the world of RPO, you have recruiters who only concentrate on talent acquisition, and that means they have the time to connect with resources and networks that you wouldn’t normally be able to access.
That gives you an AWESOME Bacon Number!
It also means that RPO recruiters have a greater reach to find highly qualified candidates for your open positions.
5. Be on the Ball with Improved Timelines and Scalability
We often talk about how much time to fill impacts business, but when you’re determining recruitment process outsourcing ROI, measuring time to productivity may be more accurate. This is especially true for revenue generating positions such as members of the sales team. Not only does RPO typically allow you to fill open positions more quickly, but faster fill time means those positions are generating sales and revenue for the company more quickly.
Add to that the ability to scale your recruiting based on dynamic hiring needs, and you’re talking some serious recruitment process outsourcing ROI because they always have the staff to support your needs.
6. Win Over More New Customers
We all know that a positive candidate experience can help you attract the best talent, provide candidate referrals, and improve employee engagement. In fact, being able to create a great experience for your candidates is one of the biggest benefits you can gain from using an RPO, but what if you could actually turn some of those candidates into customers?
Just crazy enough for Richard Branson to make over $7 Million a year! How’s that for recruitment process outsourcing ROI?
7. Polish Your Image
Attracting top talent depends a lot on the perception of what it would be like to work for your organization. Your employment brand is the impression that your organization creates about your company culture, work environment, benefits, and the value you place on your employees.
If that image stinks, you’ll drive away the most talented candidates.
RPO can be a pivotal partner to provide key insight, help you brand your company, and market your culture to candidates. So what would be the recruitment process outsourcing ROI of positive employment branding? That’s hard to put into a firm number.
How much will it cost you to hire a mediocre candidate because the top talent won’t work for you?
It’s clear that making the case for recruitment process outsourcing ROI can be a little bit tricky because many of the benefits are not all that obvious. It helps if you start by:
- Make sure you’re using the right metrics to measure what you’re doing now. Recruiting Metrics 101 is a great resource for that.
- Take a look at your current cost per hire. Here’s a cost per hire calculator.
- You may also want to take a look at this article for some other important factors to consider when looking at recruitment process outsourcing ROI.
But not all benefits can be specifically quantified, and that’s where the benefits listed above will help. When you’re ready to start talking specifics and how RPO can help your organization, get in touch with us. We’re here to help!