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Recruitment process outsourcing (RPO) is a workforce solution in which a business transfers all or part of its permanent recruitment to an external provider. An RPO provider is responsible for the management of the permanent recruitment within a business, and typically has outsourced recruiters based onsite — embedded within the HR or people function of the business. An effective RPO program installs a talent acquisition team, the latest recruitment technology, and flexible recruitment processes within an organisation.

The Benefits of RPO

Higher quality talent

An RPO provider’s main purpose is to ensure that your business gets the best permanent hires, even in markets which are notoriously difficult. With an RPO, the time, energy and expertise in sourcing, screening and onboarding new permanent staff ensure that a business gets the best talent. They can also create talent pools to ensure that if a new position becomes vacant, there’s a ready-made line of talent ready to join a client’s business.

Cost efficiency

Not only does an RPO provider ensure that you hire and retain the best talent, but it’s also more cost-effective than traditional recruitment. As RPO providers are most often measured on time-to-hire, cost-of-hire and quality-of-hire, their role is to ensure that permanent vacancies do not remain open for months at a time. Every day that a vacancy remains open leads to increased costs and decreased productivity. A fully optimised RPO ensures that these negative factors remain at a minimum.

Agile, scalable permanent recruitment

In any business, hiring is rarely consistent. If your business is opening up a new department, it may need hundreds of permanent staff as quickly as possible. Likewise, there can also be months that pass without a single hire. RPO providers build structures within a business that’s adaptable to any situation, scaling teams up or down whenever necessary.

What are the typical RPO services?

End-to-end RPO

An end-to-end RPO can be used in a single business division, a single market, or a global enterprise. It encompasses all permanent hiring services, as well as technology investments. An end-to-end RPO typically offers the biggest cost savings and efficiencies for businesses and typically leads to greater client satisfaction. As an end-to-end RPO service evolves, value-added services such as employer branding increase the quality of permanent hires.

Project RPO

A Project RPO also utilises an end-to-end process but is deployed to quickly bring in experts to fulfil an unexpected staffing need, on a single project basis. For example, launching a new sales or digital transformation team.

On-demand RPO

Similar to a Project RPO but more short-term, an on-demand RPO involves recruiters joining your team for a short period of time to rapidly attract and hire the talent you need. Often, an on-demand RPO is sought out during spikes in hiring. Though it allows businesses to move quickly, the benefits aren’t as extensive as an end-to-end RPO solution as it lacks technology implementation and added benefits like employer branding.