Recruitment Process Outsourcing
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Take Your Hiring to the Next Level with Recruitment Process Outsourcing

Difficulty attracting top talent, high costs, time-consuming screening process… These are the challenges many companies struggle with. Yet, there’s a solution: Recruitment Process Outsourcing (RPO).

Paulina Twarogal

Content Specialist

Influenced by technology and globalization, the landscape of recruitment has changed. So have the hiring strategies. Among all these changes and shifting trends, Recruitment Process Outsourcing (RPO) has emerged as a key solution for addressing various talent acquisition challenges.

As organizations strive to adapt to the changing dynamics, the global RPO market is expected to witness substantial growth. Projections indicate that by 2030, it will reach a value of $24.32 billion. Yet, what exactly is RPO? What benefits and potential risks does it entail?

What is Recruitment Process Outsourcing (RPO)?

Recruitment Process Outsourcing is a form of outsourcing in which companies delegate all or part of their recruitment operations to an external service provider. An RPO provider acts as an in-house recruiter for an organization. It removes the administrative tasks from employers and HR staff and ensures a smooth, hands-on experience for job seekers. 

Back in the day, Recruitment Process Outsourcing was mainly linked to the talent needs of rather large enterprises. However, over time, the RPO industry has expanded to offer tailored services to meet the recruitment needs of both small and large businesses.

RPO services can cover a wide range of tasks, from advertising roles and reviewing resumes to candidate sourcing, interviewing, and hiring. Your RPO partner might handle tasks like overseeing your applicant tracking system, working closely with hiring managers, and making sure everything aligns with legal requirements. They can take care of all these aspects or just specific parts, depending on what you need. Typically, they handle all aspects of talent acquisition.

How does an RPO service work?

Simply put, the right RPO partner serves as an extension of your company’s HR team. ​​It easily blends in and feels like an internal asset rather than an external service. Moreover, it deeply understands your business’s culture and hiring needs. 

This close collaboration allows the RPO provider to optimize talent acquisition and focus on important metrics. These include candidate quality, time to hire, cost reduction, and satisfaction rates for both candidates and hiring managers. Their goal? To efficiently and cost-effectively secure top talent, whether for immediate hiring or building a future talent pipeline.

What does the RPO process look like at Neontri? 

Here’s how we handle it:

  1. Analyze the information you gave us.
  2. Conduct market research to provide you with the resources you need.
  3. Identify candidates with the best role fit.
  4. Send you 2 – 3 resumes with relevant soft and technical skills.
  5. Facilitate a meeting or a video chat with the specialists you liked most.
  6. You decide on the candidate that fits your needs best.

It’s that simple. Clear steps, no hustle.

What are the different RPO models?

Although there are three primary RPO models, each can be tailored to meet your unique business needs. Your RPO provider will collaborate with you to identify the most suitable model for your organization. As for now, let’s take a closer look at how these models work.

End-to-end RPO

In this model, the RPO provider takes charge of all recruitment processes and talent acquisition strategies. This includes everything from sourcing and attracting candidates to onboarding new hires. End-to-end RPO typically involves strategic planning, technology implementation, candidate engagement, and performance measurement. It aims to streamline and optimize the recruitment process, which often results in improved efficiency, cost savings, and better quality hires for the client company.

Usually, it’s a long-term arrangement that spans several years, especially in the case of organizations with ongoing hiring needs. However, the specific duration may vary and is outlined in the contract or service agreement between the parties involved.

Project RPO (On-demand RPO)

It’s an agile and flexible alternative for companies looking for short-term support, instead of a lengthy outsourcing partnership commitment. In fact, Project RPO covers all the processes involved in the end-to-end RPO model. 

Businesses commonly adopt this approach when they need talent only for specific projects. This could be a solution to bridge internal talent resource gaps or to meet a specific urgent demand, such as staffing a newly-opened office.

On-demand RPO enables businesses to tackle short-term hiring obstacles while fostering long-term benefits, as expertise is frequently shared from the RPO partner to your internal team.

Hybrid RPO

This strategy involves customizing a blend of end-to-end and project RPO services to suit the business’s specific needs. Typically, an outsourcing partner offers short-term, project-based help in some areas while providing full support in others. This RPO model prioritizes flexibility, allowing recruitment assistance to be adjusted based on specific needs and timing within your talent strategy.

Benefits of Recruitment Process Outsourcing

Why should you consider teaming up with an RPO provider? Well, by doing so, you’ll tap into the decades of market expertise across various industries and recruitment scenarios. Whether you’re hiring for a large team or just a few positions, permanent or contingent, hourly or executive roles, your RPO partner is equipped to handle it all. Let’s dive into the benefits it might bring to your business.

Cost efficiency

Each day a position remains unfilled, your company might experience a drop in productivity, leading to potential revenue and profit losses. Inefficient hiring processes or employing the wrong person can also result in wasted time and additional expenses for recruitment and training.

By optimizing recruitment procedures, improving hiring speed, and retaining employees longer, RPO providers can boost your recruiting ROI and save costs for your business. Everest Group reports that organizations can expect annual savings of 45% to 55% with RPO compared to internal recruitment efforts.

Access to quality talent

RPO providers have access to a broad talent pool. Their in-depth expertise and vast network of skilled recruiters enable them to quickly source, engage, and hire suitable candidates for various positions. This also includes professionals from diverse and underrepresented backgrounds. Moreover, they can ensure you have a full talent pipeline or pool ready to tap into whenever a new position comes up.

Expert employer branding

69% of employees find it important for their employer to have a brand they can stand behind. This is particularly relevant for small businesses seeking to hire, as they often lack the necessary budget for robust employer brand marketing. Since RPO companies use your employer brand for candidate sourcing and other job marketing functions, they are well-equipped to support you in marketing your brand effectively.

Up-and-down scalability

Every business might experience varying recruitment demands over time. For example, there may be months when you need to hire multiple people, followed by periods of no hiring needs for several months in a row. One advantage of RPO is its ability to flexibly scale up or down. This means your changing recruitment needs are addressed without the expenses associated with maintaining an in-house recruiter who may be overwhelmed during busy periods and idle during slower times.

Compliance support

Laws and regulations related to employment are constantly changing, which can make staying compliant feel like a full-time job. A good RPO partner stays updated on relevant regulatory changes and ensures that your hiring process remains compliant.

Best-fit technology

Keeping pace with the latest industry technologies can be daunting. With thousands of talent technology options available, selecting the most suitable ones for your business can be even more challenging.

RPO solutions, on the other hand, offer access to cutting-edge technologies by analyzing historical industry and company data. They provide real-time reporting and generate detailed insights through tracking and analysis. What’s more, you can access resources such as advanced VMS platforms and data analysis tools to support decision-making, future recruitment audits, and talent acquisition efforts.

Better strategic insight

Gone are the days when businesses had to guess what works in their recruitment processes. Today, good RPO providers offer valuable insights into the labor market, talent intelligence, and benchmarking data. Access to these insights equips you with the necessary information to support your workforce strategy and make informed business decisions. By leveraging the latest market analysis, thought leadership, and competitive intelligence, you can more effectively shape your talent strategy. This is what sets RPO apart from other recruitment services—the strategic solutions it offers. 

Are there any potential drawbacks of RPO?

While outsourcing has its benefits, it’s important to recognize that there are also trade-offs to consider before making the decision.

Giving up some control

For those who are used to being hands-on with every hiring email and candidate interview, the idea of turning to an RPO service provider might be difficult. However, it’s important to keep in mind that RPO service providers are experts in the field and strive to optimize hiring processes. As you observe the time and resources they can save for you, letting go of control may become more feasible. 

Communication issues 

After delegating some responsibilities to an RPO partner, you might not always receive updates on every aspect of the hiring process. While this is normal, it also increases the risk of miscommunication. To ensure that the service provider accurately conveys your brand message and maintains company culture, consider arranging regular status reports and check-ins with the team. 

Cultural clashes

Given that the RPO team doesn’t work alongside your employees every day, they may not be completely immersed in your company culture. This doesn’t imply they can’t make successful hires, however, there’s a genuine risk of a disconnect between your core mission and values and the talent they recruit. To avoid this, make sure the RPO team has all the information they need to understand your culture and incorporate it into their candidate selection process.

Ramp-up time

Getting the RPO team fully acquainted with your industry can take some time. While they excel at hiring, they might miss some industry-specific insights only known to those working within your business. Industries like tech, finance, or specialized legal sectors often have unique needs that a standard RPO team might overlook. Therefore, it’s important to provide them with the necessary time to get up to speed. 

How can Neontri’s services help your business?

Limited recruitment resources, high costs, difficulty attracting top talent, and time-consuming screening process—these are challenges we understand all too well.  That’s where Neontri’s RPO services step in. 

Our team of RPO specialists brings years of hands-on experience in providing personalized recruitment solutions tailored to your needs. From sourcing and screening candidates to seamless onboarding, we’ve got you covered every step of the way.

We keep it simple yet effective, leveraging the latest technology and tools to speed up the process. This allows us to find the best talent for your business faster than traditional methods. No matter your business size, we ensure a smooth and efficient recruitment process, enabling you to focus on driving business growth.

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