Speaking the RPO Truth: The Six Truths to Recruitment Process Outsourcing

With a potential shortage of 2.4 million workers in the next decade, it’s no wonder that companies are struggling to source appropriate, qualified talent.

But the lack of talent hasn’t stemmed the need to fill these highly technical roles, and so it’s not a surprise that The Wall Street Journal recently called recruiting one of the toughest jobs on the market. On top of wading through ‘must-have’ qualification requirements in a low population talent pool, recruiters are met with candidates actively ignoring calls, switching positions after just days on the job, or even scheduling and then skipping an interview with a hiring manager altogether.

Recruitment process outsourcing (RPO) is one method that companies can take to simplify this process and ease the stress of filling job roles. In most cases, this solution would include outsourcing a portion of the internal recruitment components and can either replace the need for internal sourcing or recruiting, or can augment resources already in place.

But it’s all too common that hiring managers are scared of RPO, despite its proven track record. Most often, that’s due to confusion surrounding what RPO really is. Recently, we talked about some of the myths of RPO. Now, let’s discuss RPO’s benefits, why this investment in talent process is worth it for companies, and what RPO brings to an organization.

1.Truth #1: RPO enables organizations to focus on their core, strategic business.

Some businesses will spend countless hours trying to find the right people who fit within an organization’s culture and can deliver on its mission when they should be spending time actually delivering on the mission themselves. With RPO, external experts can focus on the task of finding talent without sacrificing valuable business hours.

2. Truth #2: RPO improves recruiting effectiveness.

With a mapped, well-defined process that has clear service level agreements (SLAs), an RPO partner can:

  • Improve (or define) an employment brand
    • Improve candidate submittals-to-interview ratios, interview-to-hire ratios, and offer-to-accept ratios
    • Improve time-to-fill
    • Deliver larger candidate pools from which to pull
    • Deliver clear business analytics and reporting with full accountability

3. Truth #3: RPO delivers better fit hires.

According to SHRM the cost of a single worker turnover is equivalent to the loss of 6 to 9 months of salary. The Bureau of Labor Statistics says a bad hire costs 30 percent of their annual earnings. For many businesses that can be crushing to a bottom line.

For those organizations having difficulty not only finding and recruiting qualified talent but keeping them on board, RPO providers can help alleviate that pain by using their candidate sourcing tools and strategies to make the right hire from the get-go. Increasing employee retention and reducing new hire turnover are core tenants of any strong RPO program and the best providers will show their ability in this department with metrics to prove it.

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4. Truth #4: RPO provides scalability.

Surprising news here – hiring can be expensive! And it gets even more expensive with an ineffective recruitment process.

Since most companies don’t experience consistent hiring demand throughout the year, they either have an overstaffed internal team in order to meet peak hiring periods or work with traditional third-party recruitment firms that sometimes work to find a candidate, but not necessarily the best candidate.

Unlike internal recruitment teams, RPO providers can flex big or small to meet these ever-changing hiring requirements without wasting unnecessary spend during slower times or feeling understaffed during times of high demand.

5. Truth #5: RPO gives organizations a competitive advantage in recruiting and talent.

Many organizations understandably do not have the resources to build a top recruiting function. They can become very dependent on job postings and simply hope the right people apply. Even hiring good recruiters is a tremendous challenge today. They’re not only in very high demand, but their compensation has gone up exponentially during the last few years. Working with an RPO provider to hire timely, qualified talent will give the organization a leg up on competitors, allowing it to deliver on its business plan more effectively and grow more quickly.

6. Truth #6: RPO offers access to state-of-the-art tools and thought leadership.

Recruiting technology is changing at a rapid pace, and even the most advanced companies can find it difficult to keep up with the latest and greatest tech. With an RPO partner, organizations will receive access to artificial intelligence technology and recruitment process automation without the costly capital investment.

Additionally, most organizations aren’t in the business of talent and can’t afford to spend time becoming experts in it. By partnering with an RPO provider, companies will receive access to talent acquisition thought leaders who stay current on all the latest processes, tools, and strategies that will define the talent industry now and in the future.

RPO is a frequently misinterpreted toolkit that hiring managers can have in their holster, and unfortunately, that lack of clear understanding prevents companies from harnessing high-tech equipment, a competitive advantage and scalability.

It’s crucial that companies interested in RPO do their research and choose a provider that aligns with a company’s vision and values, as well as having a strong reputation that you can trust. With a solid partnership and a set goal in place, recruitment process outsourcing can push any company’s talent sourcing to the next level.

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