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Recruitment Process Outsourcing is present for a while now. It shows many similarities with its ancestor traditional recruiting. Recruitment Process Outsourcing is done by any company that transfers all or part of its permanent recruitment to an external provider.

That is self-explanatory to understand how it will benefit the small/medium-size businesses by saving them time from vacancy filling havoc. Sending out the Job vacancy ads, interview, training and more. This helps it to use the saved time with the RPO’s well-trained employees to make a productive difference in the market.

The function of Recruitment Process Outsourcing.

The RPO provider as mentioned earlier will do the job of the company’s HR section or Resourcing Function.

An RPO will provide all the requirements for a client company by providing recruits on site. They are capable of providing the necessary staff and technology by meeting the exact requirements. The RPO is capable of providing training offsite or as a combo across the country.

Why is RPO different from Traditional Recruiting?

Traditional recruitment focuses on finding and placing a candidate in the available role. After that, they give the whole responsibility to the company.

While RPO takes full ownership of the planning and execution of the recruitment process along with a bunch of other services.

Extra Services provided by RPO which are Handy for the Clients.

Choosing the right candidate for the company through Talent Engagement along with employer brand consultation. They will continue doing Candidate Management and vendor partnering and supply chain management. Strategic sourcing, workforce planning, compliance and risk management, pre-employment screening, even the selection of an adequate salary package will be done by RPO according to client requirements.

Pitfalls Companies should be aware of before choosing and RPO.

With all these interesting qualities there are many problems that can come along with the wrong choice of RPO. With the increasing popularity of this extremely useful technique, more players are entering the game of which some recruiters are in for simply playing the game.

It will be confusing for the small or medium-size business companies as some are just temporary staffing providers disguised as RPO Providers.

The increasing interest in Remote recruiting which enables a lot of cost-cutting at different levels gave rise in head-hunters or recruiters for a fraction of traditional recruiting cost. With all this mayhem, the real meaning of RPO is lost causing trouble for the client companies to make the right choice.

What the Client Companies should Understand about Real RPO Providers?

RPOs are the permanent staff providers while the Managed Service Providers are only for temporary staffing. This means RPOs are far from closing jobs and filling positions. RPO stands for the improvement in recruiting and monitoring all staffing needs of a company.

Why is RPO the right choice?

It is common knowledge that a company’s success or failure directly depends upon who they hire.

A well-established RPO Provider has a good understanding of recruitment and choosing the right candidate according to the requirements of the clients. Without question, this is the right choice for a Small/medium-size company as it will save a lot of money from the limited resources they usually have and provide compatible clients whom they probably won’t be able to hire as a new company with inexperience and lack of reputation.

These are the most recognized benefits of the RPO model

  1. Cost efficiency will cover a wide range of requirements with a systematic cost structure that takes quick turnaround, reduction in cost and quality of hire into account.
  2. Scalability enables the clients to scale up and down their staff requirements on short notice without any trouble which will usually become disastrous if handled alone. 
    Access to new hiring technology and reduced time to hire.
    Analytics and reporting capability enable better insights.
    Improved candidate quality which is impossible to acquire for a new small company on their own.
  3. Cost Models for RPO and Comparisons 
    For any specific RPO services, there aren’t any industry-based fees. There is no different price structure for small businesses and large ones. The cost will always depend upon the exact needs and goals of the organization and the decisions of the RPO Provider.

There are Five popular Cost Models used by RPO Providers

  1. Management Fee Model: A fee is paid usually on a monthly basis for an agreed number of positions. The fees change in accordance with the time when the requirements change. Emerging white label RPOs and enterprise RPOs use this model.
  2. Cost Per Hire Model: This is used usually for short term hire. A fee paid for each candidate. A good fit for point-of-service RPO
  3. Management Fee Plus Cost Per Hire: Combination of the two mentioned above.
  4. Cost Per Slate: Another model suited for short-term project RPO or point-of-service RPO.
  5. Cost Per Transaction: Cost specified for each service provided by the RPO.

While historically restricted to high-volume employers due to high costs of delivery, these days RPO partners deliver cost-effective value to SMEs. RPOs have evolved over the years and are able to provide clients with specialized recruitment services that are efficient, affordable, and, ultimately, scalable to changing hiring needs.

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