Everything you Need to Know About Recruitment Process Outsourcing

While there are numerous benefits to enlisting an RPO provider, some of the most commonly cited are:

1. Access to industry expertise
2. Enhanced D&I initiatives
3. Extensive talent pools
4. Scalable hiring capacity
5. Access to innovative hiring technology
6. Reduced time-to-fill
7. Compliance and risk-mitigation

There are several RPO models that target various recruitment challenges. 

1. End-to-end RPO, a full-cycle solution that involves completely outsourcing every component of your organization’s internal recruiting function.
2. Project RPO, a project-based model that applies an end-to-end solution to a specific project or situation. For example, if your organization is opening a branch in a new location and needs to hire new salespeople.
3. Selective RPO,  a solution that addresses specific components of your recruitment lifecycle. Selective RPO allows organizations to retain responsibility of their in-house recruiting strengths, while outsourcing hiring weaknesses.
4. Total Talent Solution, a hybrid of end-to-end RPO and outsourced employee management, a total talent acquisition model brings together recruitment and management of all types of talent, including:
   • Full-time employees
   • Independent contractors
   • Contingent workers
   • Gig workers
   • Temp-to-hires

Deciding which RPO solution to move forward with involves a thorough examination of your hiring needs.

One of the first questions to arise when organizations are deciding whether to leverage an RPO partner is "how much does an RPO solution cost?"

Unfortunately, there is no one-size-fits-all answer to this question. The cost of outsourcing your organization’s recruitment functions will depend on several factors, such as:

• The length of your hiring project 
• Your organization’s hiring needs and additional business goals 
• The type of RPO solution applied
• Recruiter compensation, unique to each RPO service provider

That said, there are some common payment models used by RPO providers to price their programs. The key to understanding RPO pricing is recognizing the cost drivers behind these various payment models.

1. The management fee model, wherein a recurring management fee charged, most typically monthly, which provides a baseline for the RPO provider’s continuous recruiting efforts.
2. The cost-per-hire model, wherein both client and RPO provider must reach an agreement on a placement fee for each successful hire.
3. The management fee plus cost-per-hire model, which combines a monthly management fee with the cost-per-hire model. With the management fee providing a baseline for the continuous recruiting efforts of the RPO service provider, an incremental charge is added for each successful placement.
4. The cost-per-slate model, wherein a fee is charged for each candidate slate presented to the client’s internal hiring department.
5. The cost-per-transaction model, wherein a fee is charged for a specific process or project.

Selecting the wrong RPO partner can result in cultural clashes, poor brand understanding, and a lack of communication.

This can negatively impact your hiring needs, as well as have a damaging effect on your employer brand. When researching and interviewing potential RPO partners, consider the following: 

• What challenges exist in your current recruitment infrastructure?
• What should your talent strategy look like following RPO?
• Which model will enable you to achieve your goals?
• Do you need an on-site or off-site RPO solution?
• How will your organization be kept in the loop?
• What kind of technology will the RPO provider use?
• Is the RPO provider familiar with your industry?
• How will RPO providers learn about your organization and leverage your Employer Value Proposition or EVP?
• How will RPO providers work with your hiring managers and internal team?
• What kind of experience will RPO provide to candidates?

We have written up some guidelines on how to navigate these concerns and engage the right RPO provider.