Recruiting plays a major role for any growing company. The problem for many business owners is that recruiting is neither quick nor simple. It’s essential for employers to hire the right people for their business, but that type of commitment can take a lot of work and dedication without some help.
Recruitment process outsourcing (RPO) gives businesses the resources to simplify their recruiting efforts without sacrificing on the quality of their search. The RPO market has steadily grown for years as more businesses turn to outsourcing as a viable solution for their needs. In this post, we’ll break down how RPO works, why you may need it, and how it can benefit your business.
What Is Recruitment Process Outsourcing?
Recruitment process outsourcing (RPO) is a partnership where a business hires a separate company to manage the various tasks and responsibilities associated with finding potential job candidates. The RPO provider then acts as the recruiting extension of that company and provides talent acquisition services based on their needs.
RPO providers can come in different forms, ranging from third-party staffing agencies to Professional Employer Organizations (PEOs) that provide comprehensive HR solutions. The exact level of RPO services can vary depending on how much assistance an organization needs. There are multiple types of outsourcing engagements available:
- On-demand RPO – Outsource recruiting services on an as-need basis for a specific job or to accommodate recruitment during peak hiring seasons.
- Partial-cycle RPO – Selectively outsource single or multiple components of the recruiting process to alleviate internal workload and maximize hiring efforts.
- Full-cycle RPO – Have an RPO provider manage the entirety of the recruiting process, from initial job descriptions up to the final offer.
Does My Business Need Recruitment Process Outsourcing?
Regardless of the size of your business, there are multiple steps that an organization must take when recruiting new employees. Each of these tasks takes time and effort, including:
- Writing and updating job descriptions.
- Drafting a specification of desired attributes, skills, and other qualities for the ideal hire.
- Advertising the opening on job boards, social media, and other places.
- Screening the applications, creating standardized interview questions, and interviewing initial candidates.
- Shortlisting applicants and conducting second interviews.
- Selecting the most suitable candidate (or starting over if none was found).
- Making a job offer.
- Updating unsuccessful applicants.
- Passing relevant client information along to initiate the onboarding process.
The key to deciding whether to outsource some or all of these tasks involves your organization’s challenges and needs. Any of the following business challenges are legitimate reasons why businesses turn to RPO to bolster their hiring process:
- Recruiting has become time-consuming and costly to manage internally.
- Your organization needs to quickly address short-term turnover or keep up with demand.
- Internal recruiting efforts aren’t yielding qualified candidates.
- You’re looking to improve your time-to-hire.
- It’s becoming difficult to manage and track all the different applications, especially when multiple managers or teams are involved.
- You want to concentrate more of your time and energy on core business functions and leave recruiting to the experts.
What Are The Benefits Of Outsourcing Recruitment?
If you find that your business needs recruiting support, it’s time to consider an RPO. Outsourcing some or all of your recruitment efforts can benefit hiring managers and their employers in the following ways.
Reduced recruiting costs
It’s no secret that recruiting good talent takes time and money. Outsourcing these recruiting efforts not only reduces costs associated with labor, but also streamlines these processes to make them more efficient. RPO services can also scale with your business as it grows, adding even more flexibility and cost-efficiencies as your hiring needs increase.
Improved time-to-hire
A streamlined recruiting process does more than just reduce overall costs. RPO providers can cut down on hiring times by implementing more efficient recruitment strategies and attracting more qualified candidates. In turn, your business can start onboarding employees quicker than before.
Better candidate quality
Those same strategies also help businesses find employees who are particularly suited for open positions. In addition to expanding searches to new sources, RPO partners can directly recruit ideal candidates and reach out to these individuals. These measures can open your business up to new candidates you wouldn’t have found on your own.
Recruitment technology
Access to special software like applicant tracking systems (ATS) is another way that RPOs lead to both cost savings and an improved process. These systems can automate time-consuming tasks, use machine learning to sort and rule out applicants, and increase internal collaboration through a variety of functions and features.
Advanced tracking and analytics
Want hard data to show how well your recruiting efforts are working? RPO solutions can set performance benchmarks, provide real-time data to track success, and highlight areas for improvement.
Streamlined onboarding
An RPO doesn’t have to only support your recruiting efforts. These partners can help you streamline the onboarding process by integrating initial procedures into an ATS. This setup will help automate the welcoming process once an offer is accepted and prepare new hires with key documents, new employee forms, and other vital information.
Compliance support
A few simple mistakes can lead to compliance issues. RPO providers can help businesses stay clear of regulatory issues, such as avoiding illegal interview questions and establishing best practices for the recruitment process.
How To Choose A Recruitment Process Outsourcing Partner
While there are countless forms of recruitment companies out there, some are better for your business than others. It’s important to evaluate each provider before you invest in RPO. There are several factors that will impact which RPO provider is right for your organization.
- The ability to scale with your organization, both over time and during seasonal hiring needs.
- Customization options for your specific recruiting program.
- Partnerships with employment websites and other hiring sources.
- State-of-the-art technology and other resources.
- Excellent customer service and organizational support.
- Comprehensive HR outsourcing solutions that extend beyond recruiting.
As recruiting top talent becomes more difficult than ever, GMS strives to help businesses simplify and improve their hiring efforts. Being a PEO, we can oversee the recruiting process to save you both time and money while providing you with a pool of quality candidates. Contact GMS today to talk to one of our experts about outsourcing employee recruiting and other time-consuming administrative functions.