RPO Delivery Methods & Pricing Strategies: Knowing Your Options

In the current recruitment world, finding talent to fill the open job roles in your company can feel like a huge feat. With the lowest employment rate in years,hiring managers are struggling to find the staff needed to fill their job roles, and it’s only expected to get worse in the coming years.

Organizations know that their growth is dependent on their ability to attract, hire and retain qualified talent. So, what do they need to do to stay competitive and relevant in their industry, when recruitment is so difficult?

That’s where RPO can come in to sooth recruitment perils.

This solution can replace the need for internal sourcing or recruiting, and typically includes the outsourcing of some or all components of internal recruiting for candidates, lowering the responsibility on your company’s internal team and giving more time for them to work on the engagement and retention of current employees.

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As with any new addition to an age-old way of doing things, there are always myths to bust and truths to uncover surrounding RPO. The important thing to note is that there are a number of different ways a recruitment process outsourcing program can be delivered and priced. Here are a few to consider.

1. Full Talent Lifecycle RPO. Full talent lifecycle RPO is where the organization outsources the entire recruitment function. It is an end-to-end recruitment solution, from workforce planning support through new-hire onboarding. While it may not be right for everyone, it is the most comprehensive solution.

2. Point of Service RPO. Point of service RPO augments what already exists within an organization by delivering some aspects of the recruitment function but not the entire recruitment process. Examples may include candidate sourcing and/or candidate screening or new hire on-boarding. Sometimes point of service is deployed for scalability purposes and is perceived as less invasive where the organization maintains at least a minimal core recruitment team.

3. Project-based RPO. Project-based PRO can be either a full talent lifecycle or point of service for a defined period of time depending on the organization’s requirements. Examples may include times when an organization is introducing a new product line, a new service offering, a new plant start up or new facility, or a sudden peak in hiring demand. Project RPO may also be offered as a pilot (taste before you buy) to a longer term RPO solution.

As for pricing, there are a number of options organizations can consider depending on the project, need or budget. It can be:

  • A resource-based model, billing on time and materials
  • A performance-based model, billing per hire
  • A hybrid/blended model, with both resource-and performance-based pricing

Recruitment process outsourcing may be a somewhat scary concept at first but once organizations take the time to learn the ins and outs of this talent strategy, it may make a lot of sense as a recruitment alternative for companies both big and small. This is especially true if their current strategies are not working or not producing the desired results.

However, it is important that if you do decide to go RPO that you select a provider that is culturally aligned with yours and has a strong reputation and a high client satisfaction rating. RPO works only if it is a trusted partnership between the two parties. With that in place, it’s a strategy that can make talent a true organizational asset and a competitive advantage.

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