Let's talk RPO

What is RPO? RPO stands for recruitment process outsourcing. Simply put, recruitment process outsourcing (RPO) is having an external provider take charge of some or all your company’s recruitment process. This means handling everything from finding candidates, to interviewing them, and advising you in the final stages of your hiring decision. They provide the technology and the expertise to help you lower recruiting costs and perform these tasks without having to hire your own internal team.

It’s a pretty straight forward idea, however there are many companies completely misrepresenting RPO. Some are simply staffing firms who call themselves RPO providers, while others tack on a bunch of extra jargon onto the definition of RPO to muddy the waters.

When choosing an RPO provider, make sure you know exactly what you’re getting. Be sure you’re comparing apples to apples – there are a lot of RPO imposters out there.

What is RPO

Your Options for Outsourcing Your Hiring

Now that we’ve explored the definition of RPO, let’s take a look at all your different options for outsourcing part or all of your hiring function. We provide our Elevated RPO Solutions as an end-to-end solution and essentially become your recruiting department, while staffing agencies work on a per job, and essentially “sourcing only” basis. The differences between RPO and staffing firms are drastic. Whether you choose RPO or an agency, here’s the skinny on the different approaches to recruiting:

At first glance, this would seem to be the best option for companies to choose as it would seem like the most cost effective and simple way to go.  Most companies tend to find that developing a thriving and effective recruiting function is a lot more difficult than they imagined.

Most internal recruiters end up wearing a lot of other hats within the HR department. Internal recruiting teams very often get overwhelmed with the workload and tasks involved in finding the best candidates for the company, and things fall through the cracks.

Companies recruit for many diverse roles. Chances are you’re not going to be able to hire an internal recruiter that has the expertise in finding, attracting and engaging the myriad of skills your organization needs.

In addition, internal recruiting teams are often required to adjust to the dynamic hiring volume throughout the year. That means hiring new recruiters or temps to fill in when hiring is at a peak, laying off recruiters when you don’t need them or simply powering through without adjusting the team size. This is tough on the HR department and really puts a damper on morale.

Contract recruiters are typically brought on to supplement the internal team through increased hiring demand or in some cases, in place of an internal team. As would be expected, engaging a “gun for hire” is expensive. With a high hourly bill rate and no accountability for actual results, many companies have learned that engaging contractors to do their recruiting expensive and does not deliver results.

Companies hire contingent staffing agencies to find candidates specific positions. As their earnings are contingent on their customers hiring their candidates, staffing agencies “sell” their candidate’s capabilities and leverage a placement guarantee to help close the deal. The challenging part of those guarantees is that there is no accountability for the agency to fulfill.

Contingent staffing agencies are incredibly expensive. With an industry average fee of 20% of annual compensation is 3-4 times higher than an RPO or internal team’s cost per hire yet they only manage the sourcing part of the process, bring no process leadership, and provide no technology to elevate the candidates’ engagement.

In addition, staffing firms really don’t care too much about your hiring manager satisfaction or employment brand. Most staffing agencies ONLY find candidates to fill jobs and don’t manage any of the other components involved in recruiting. They have a “fill the job quick so we can get paid” mentality, so making sure you have hiring managers are happy or your employment brand is solid just isn’t on their list of priorities.

Recruitment process outsourcing differs greatly from contingent staffing agencies, starting from their very core mandate. RPO is not built around the hurry up and fill the job mentality. Instead, recruitment process outsourcing centers around the mission to help organizations improve their overall hiring.

Successful RPO partnerships result in dramatic improvements, not only the process, but in costs, hiring manager satisfaction, employment branding, and finding the best candidates for every position. Above all, RPO is designed as a long-term, strategic partnership with built-in accountability that ensures a consistent talent pipeline.

Not only that, but the RPO provider’s job doesn’t end with filling the position, as it does with staffing agency recruiters. An RPO will continuously analyze employee turnover, hiring technology, and all elements of the hiring equation to constantly improve the entire hiring process for their client.

In direct contrast to contingency staffing firms, RPO providers are far less expensive, deeply invested in your hiring manager satisfaction, and employment brand, and they strive to do more than just fill the job. Regardless of source, RPOs work diligently to find the best fit candidates, for every position, every time.

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What is RPO?

What Does Accolo RPO Mean for Your HR team?

When your internal HR team handles the entire hiring process, their attention is divided between the nitty-gritty details of the recruitment process and high-level, strategic HR planning.

Instead of their valuable time being focused on productive activities like succession planning or employee engagement initiatives, their time will be eaten up by the need to write job descriptions, post job ads, sift and sort through resumes, chase and interview candidates, manage contingent staffing agencies and perform background and reference checks. And that doesn’t even include the time it takes to correspond with hiring managers and candidates to keep everything coordinated.

Is this how you want your full-time, highly skilled Human Resources professionals to be spending their days?

Drowning in resumes and paperwork?

Sitting through interviews with so-so candidates? Pulling out their hair?

Or would you rather give them the time to focus on the big picture?

By leveraging an RPO service, you free up your HR team to focus on the processes and planning that make your company a great place to work. Though you are outsourcing your recruiting process, you’re mostly outsourcing the stuff that your team doesn’t want to deal with anyway.

Instead of slogging through your candidate pool, your HR staff will be able to focus on your company’s talent needs and evaluating the very best candidates that the RPO provider presents to them. They’ll also have the bandwidth to continuously improve upon your recruiting function, turnover rates, employee profiles and more to determine which candidates will be the best long-term match for your business.

Is Your Business Ready for Accolo RPO?

If you’ve gotten this far, you’re probably ready to start seriously exploring your RPO options. By now, you’ve likely been able to evaluate all the different recruitment support options available and you’ve probably determined that you need a long-term partner to help manage your recruiting process. Even if you’re still on the fence, you understand that RPO services will help your company to improve hiring while reducing the fixed costs of recruiting.

The typical profile of a company ready for Accolo RPO is a business that is experiencing high growth, but is looking to control their recruiting costs – without sacrificing quality. A company that is ready for Accolo RPO also understands that there is a change management element involved in making the transition to an RPO solution (Of course we help you with the transition).

If you’re still reading, then you want a solution that’s going to work now and in the future. You’re looking for a long-term partner to manage the details of the recruiting process so you can focus on your company’s core strengths. Businesses in all industries use RPO and experience the best of both worlds: sourcing and hiring top talent without the headache that goes into making a great hire.

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