What is recruitment process outsourcing (RPO)
Recruitment process outsourcing, or "RPO" is a form of business process outsourcing (BPO) where an organization outsources its recruitment functions to a third-party service provider.
The RPO provider assumes responsibility for the entire recruiting/hiring process from job profiling through candidate sourcing, screening, and on-boarding. Typically, RPO providers manage the process using their own technology platforms, which they may license to their clients or make available as a software as a service (SaaS). The service delivery model can be operated either offshore or onshore.
An RPO solution offers many potential benefits over traditional in-house recruiting, including decreased time-to-fill and cost-per-hire, improved quality of hire, and increased access to a larger pool of talent.
RPO can be used for all or part of an organization's recruiting/hiring processes. For example, an organization might outsource only its high-volume hiring processes and retain control over more senior executive searches. Or, an organization might outsource the entire recruiting function—including both sourcing/screening and hiring—but retain control over processes such as performance management and succession planning.
When done correctly, RPO can result in a dramatic decrease in time-to-fill and cost-per-hire while also improving the quality of candidates hired. Additionally, by leveraging an RPO provider's technology platform, client organizations can gain increased visibility into their overall recruiting efforts.
On the downside, some organizations have found that RPO can be disruptive to their existing culture and processes. Additionally, if not managed properly, RPO can lead to a loss of control over the talent acquisition function.
Potential Benefits Of RPO
Decreased time-to-fill
Reduced cost-per-hire
Improved quality of hire
Increased access to talent pool
Conclusion
Overall, RPO can offer many potential benefits for organizations that are looking to improve their recruiting/hiring processes. These benefits include decreased time-to-fill and cost-per-hire, improved quality of hire, and increased access to a larger pool of talent.
However, it is important to keep in mind that RPO can also be disruptive to an existing culture and lead to a loss of control over the talent acquisition function if it is not managed properly. When considering whether or not RPO is right for your organization, be sure to weigh all of the potential pros and cons before making a decision.
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