A Complete Guide to RPO (Recruitment Process Outsourcing) Services

Businesses fear taking the risk of outsourcing. It takes immense courage, planning, confidence, and commitment to outsourcing your key business functions. Affirmatively, the approaches and the models of recruitment process outsourcing were significantly affected in the two years after the pandemic started. However, various economic experts now believe that the industry is in the stage of recovery and growth.

The founder of Virgin Group, Richard Brandson, rightly said, “Hiring the right people takes time, the right questions, and a healthy dose of curiosity.” Therefore, it’s worth trying effective RPO (Recruitment Process Outsourcing) strategies if your company fails to retain the right talent solely relying on onshore support.

What is RPO?

RPO, as the name implies, is a total workforce solution in which a business can outsource portions or all facets of the full cycle recruiting process to a third-party service provider. The external recruitment service provider can be based offshore or nearshore.

The traditional recruitment method follows the procedure of job analysis, creating job descriptions, promoting them through various mediums, and placing the ideal candidate in its role. RPO service providers design and execute the entire recruitment process, aligned to address client goals and challenges. They also ensure the resources can be scaled up or ramped down based on the hiring demands, enabling better operational agility and safeguarding sustainability. Some of the critical RPO advantages that clients experience are:

1. Qualitative talent: Whether it’s an easy or challenging market, RPO companies guarantee your business gets the best permanent hires. They’re proficient in giving their time, energy, and resources to help your company enjoy benefits. The experts dedicatedly source, screen, and present the best cream of talent that meets the company’s requirements. Moreover, they create diverse talent pools with detailed global databases that can provide quick talent for vacancies and boost businesses. Lastly, RPO reduces hiring time by 40% and supply cost savings of 50% or more.
2. Cost-efficient: RPO solutions may seem expensive at first, but you can enjoy the minimization of negative factors through their process of cost reduction and savings in the long term. You can measure RPO by their taken time, cost, and quality of hire. They ensure you won’t experience vacancies for months because it increases your business’s expenses and HR resources. In addition, RPO providers are capable of matching your fluctuating hiring needs. Therefore, RPO is the right choice because filling vacancies fast boost productivity and achieves results on time.
3. Agile and scalable recruitment: Your company can experience ups and downs in recruitment. When you expand or create a new department, you may want a quick new staff. Similarly, you may want to downsize or proceed with a hiring freeze. The RPO team is well-equipped to help you scale up or down. They create practical models and structures that aid adaptability, flexibility, and accommodation in any situation. You will always pay for what you get at a suitable time and with the right talent.
4. Global reach: It’s easy to reach a global market to search for talent. However, it’s challenging to achieve global compliance. That’s when RPO experts will be of great help. RPO providers are aware of the changes in employment laws and recent trends. Therefore, it is beneficial to you in a way that they will hire people for you who are compliant with local regulations. For example, the approach to hiring Indians is different from that of US citizens. Therefore, you won’t have to be stressed when the global RPO experts are here to meet your goals with fresh hires.
5. Less expense in advertising: Undoubtedly, you have to keep a considerable budget aside for advertising. The search for competent permanent staff is expensive. However, RPO providers will help you cut back these costs. They have a database of potential employees that can fit well in your company. So, they reach out to candidates instead of prospects coming to them. You won’t have to spend money on tedious and pocket-eating advertising if you let RPO experts help you through their resources.
6. Affordability of talent acquisition: Finding the right hires to aid business growth in a particular department is tedious, especially in hard-to-fill positions. Even the best HR and talent acquisition professionals can get stressed. It’s a time-consuming process, and thus it’s costly. But, RPO solution providers will seamlessly reduce your talent acquisition expense. For example, research shows the US average cost per hire is $4,425. So, if the vacancies remain empty, your company will lose a lot of money. RPO experts can quickly fill your vacancies through their read-made talent pools and save you a lot of money.
7. Advanced technology: You can find it difficult to keep up with the latest technologies in the industry. HR experts can wince over excess time consumption, tight budgets, and huge expenses. RPO solutions deliver technologies to keep your businesses up to date via assessing historical industry and company data. They conduct real-time reporting and produce detailed insights through tracking and reporting. In addition, you can get resources like high-tech VMS platforms and data analysis tools to aid your decision-making, future recruitment audits, and talent acquisition.
8. Improved Candidate Engagement: It’s not easy to make every candidate’s experience perfect because of the time and energy it demands. HR professionals may understand the importance of candidate engagement but may fail to fulfill other primary objectives in a company. RPO professionals optimize employee experience by offering expertise and background in in-house positions. Thus, you will attract top talent and increase the company’s growth through productivity.

Myths about RPO Partnerships

Challenges are part and parcel of recruitment models. You may form different expectations that may blur your mind from thinking about choosing RPO. Therefore, let’s debunk some myths about RPO and help you decide the best for your company.

1. Expensive: You may not find RPO the most cost-effective model. However, it promises a cost reduction in agency expenses, time to fill vacancies, and employee turnover. In addition,  RPO solutions reduce recruitment costs by 50%. Thus, it increases overall efficiency in your company’s financial and operational health.
2. Replaces HR: Small HR teams focus on satisfying stakeholders due to lack of time or personnel. However, they may have to give extra time and energy to recruit the top talent. Thus, making it challenging to complete all the responsibilities like HR management. RPO experts understand their burden and work alongside them. They complement your HR department and enhance recruiting experience.
3. Lack of control and transparency: You and RPO experts have the same goal of providing the best talent to enhance your company’s development. You may outsource your recruitment function to them, but you will be aware of the entire talent acquisition process. Whether they’re virtually or physically connected, RPO experts will provide detailed insights by constantly tracking and reporting the whole process. Besides, the hiring choices are always in your hand.
4. Low emphasis on quality of hires: Whether you require a senior employee or a junior, RPO professionals aim to create solutions that cater to their needs. Besides, they focus on selling your brand and making them aware of the culture and opportunities. Moreover, they will analyze recruiting management fulfillment, quality of hire, and candidate experience to maintain quality in the hiring staff and reduce your expenses.
5. Strict procedure and administration: RPO experts won’t be able to help without forming a healthy relationship with you. Therefore, they will team up with you to create a winning strategy and improve the entire recruiting process. The RPO professionals evaluate every step and work as a helping hand by introducing unique strategies.

Various RPO Models

Although the situation after the pandemic is better, filtering the right talent for the organization is a struggle. Therefore, finding the best RPO solution for your company is essential. RPO experts have created the top 5 models that aid in finding top-tier talent.

1. End-to-end RPO: This model mainly focuses on single business departments, an individual market, or a global establishment. End-to-end RPO offers value-added services like company branding, inner mobility programs, advanced technology execution, and more. This model’s package contains all permanent hiring services and technological investments. Thus, you will experience higher efficiency and significant cost savings.
2. Project RPO: Imagine that you own an agency and are starting a new project. However, you lack the staff to meet the objectives of the project. At this moment, wouldn’t it be better to hire someone? However, hiring a team on short notice is challenging. That’s when RPO solution providers enter. The Project RPO model involves the end-to-end process that’ll aid you with the right team when you need to change your business strategy or launch a product.
3. Hybrid RPO: It’s wise to outsource some of your talent acquisition requirements when unsure about full RPO. You can let RPO experts aid your process in part, and you can have complete control over your other open positions. In this model, the trained experts will closely work with your HR team and mostly curate a separate email address for recruiting candidates. In addition, you can employ a hybrid or selective model to outsource specific departments, management, or processes.
4. Recruiter on-demand RPO: A spike in the business puts everyone on their toes. Therefore, you can release some stress and leverage the situation with a recruiter on-demand RPO. This model will have two-three experts assist you with hiring, new initiatives, and launches. You can use this model immediately. However, unlike others, it may not result in permanent process transformation.

Temporary Staffing

Your company may raise a temporary job requirement to fulfill the specific goals and objectives. During a new requirement, you may require a new staff. RPO experts will help you find temporary workers on a contractual basis.

Who are temporary employees?

The temporary employees are appointed to perform the job for a short time. They work on contractual terms, and you can hire them directly or by outsourcing to RPO. The temporary hires are exempt from company benefits and function only for less or equal to a year. Moreover, you can choose to hire temporary workers until you’re sure to work with them full-time. It results in a flexible work environment, mutual understanding, and better bonds to deliver result-oriented work.

Why should you hire temporary employees?

Do you want a less tedious and costly alternative to hiring full-time employees? Choosing temp staffing will be the best choice. The dedicated staffing service by RPO executives will take some responsibility off your shoulder and help you focus on other needs. First, however, let’s consider the best reasons for employing candidates temporarily.

1. Vacancy during leaves: You might have approved the leave of your employee. However, your company’s work might suffer for that specific time. Undoubtedly, it significantly develops stress. However, you can outsource the requirement and process of filling the temporary vacancy to RPO professionals. You cannot replace your original employee but can employ a temporary worker to fulfill the needs.
2. Seasonal requirements: Did the demand for your products or services increase, and do you lack some staff to assist with the hike? Seasonal job vacancy leads to employing temporary staff. Since your company needs an extra hand for a limited time, hiring a talented employee is clever. In addition, you can select an employee for recurring seasonal work and enjoy benefits like result-oriented and on-time deliveries.
3. Short-term work and gaps: Your company may have short-term work or operate only during certain times each year. Or maybe you need a better-skilled employee to perform a task that your staff cannot complete. During these specific times, RPO experts will scan their database and tie you up with a talented temporary employee. Then, you can effectively reach all your short-term goals.

Permanent Staffing

It’s incredibly challenging to find, hire, and work with a candidate who doesn’t appropriately fit your needs or bring results. The best solution to finding the right permanent fit for your company is to seek external help. RPO experts understand your services and approach their talent pool to build your connection with their hire options.

Who are permanent employees?

The permanent employees are selected to work for the requirement that your company raises for the long-term. You regularly pay them their salary and provide them with various company benefits. They will carry on with their dedicated duties with a preset schedule and location. Moreover, if this becomes a burden for your team, you can book RPO services, explain to them the skills needed in a candidate and get prospects in touch with you for further process.

Why should you hire permanent employees?

The benefits of hiring permanent employees might seem obvious, but it’s crucial to understand them. First, you will get to choose between the availability of options like freelancers, contractual hires, temp employees, and permanent prospects. Then, you can hire someone who blends well. Therefore, let’s consider the famous reasons for hiring permanent staff.

1. Productivity and longevity: A newly joined member or someone having a short-term role may fail to gain the knowledge of a company deeply. But, an experienced person working for some years may know more and provide their best to the company. Of course, it varies from role to role. However, it affects some crucial job roles in the HR and marketing departments. Thus, you will gain a long-term relationship with a person who can enhance company development.
2. Shared objectives: Most employees come and go, but some stay to achieve a long-term goal. They commit to your company, stay involved, and become loyal. So, you retain valuable staff. Hiring permanent staff who can understand your work culture and objectives will make you relish growth and returns in your company. You and your team can mutually share success and enhance your company’s reputation.
3. Business Advancement: Temp staff plays a specific role in supporting a particular stage of your company. Permanent employees play a similar position but stay for a significant time. Moreover, you can invest your essential resources in their training and progression, which aids in reciprocal growth. Additionally, your permanent member climbs the ladder of hierarchy in your company, becomes a leader, and forms a significant portion of the company’s advancement in its market.

Industries RPO Partners Cater

Your company may be in the industry of finance, marketing, or HR. Similarly, you may have in-house departments. During the ups and downs in the company’s needs and goals, you may want to enhance your existing talent quality, decrease vacancy time, reduce some expenses, downsize, increase scalability, and encourage innovation. However, recruiting new staff can get an unwanted burden for your company and reduce overall productivity. Therefore, to aid your HR teams, you can create an extension of them by outsourcing work to RPO experts. RPO solutions can benefit various industries and solve their recruitment obstacles.

1. IT/Technology Recruitment Outsourcing: RPO solution providers offer personalized services to meet your staffing requirements. The experts are trained and qualified to understand the diverse IT recruitment market to offer technological excellence with their knowledge. In addition, the RPO professionals come with their expertise and tools to determine, source and hire the right resources at your company’s doors.
2. Healthcare Recruitment Outsourcing: Finding reliable perm and temp employees may divert your attention to unexpected or elongated work hours, making hiring stressful. RPO specialists with a backing of expertise in healthcare will aid you in bringing in a talented team of doctors, nurses, or supplementary helping staff. Moreover, these professionals have proven mastery in CV sourcing to curate compliance with potential candidates and connect them with your company.
3. Engineering Recruitment Outsourcing: An expert learns the approach to letting engineering candidates select a company through years of understanding. A proficient RPO provider will be skilled in apprehending and implementing the strategy to hire an employee. Therefore, they can fulfill your vacant roles in manufacturing, energy, electronics, automotive, construction, and rail. A proactive RPO recruiter will give their best to find suitable engineering candidates by tracking, analyzing, and reporting the planned hiring process.

How much would RPO cost you?

If an RPO solution is the right choice for you, it’s reliable to inquire with an RPO provider to know the exact costs. Majorly, the prices depend on the chosen RPO model and the project’s scale. Therefore, it’s best to gain a deep understanding from an expert to get a personalized quote.

How to choose the right RPO Service Provider?

It’s understandable if you’re unsure about how to choose a reliable RPO company from the varied options available in the market. It’s similar to other business deals that you might make. The standard process of RPO experts includes communicating with you, presenting their success graphs, and taking you on the roadmap of hiring strategy. First, however, let’s explore more signs and help you choose the partner that can help your company effectively.

1. Understanding your requirements: Different companies have different reasons for contacting an RPO company. First, you need to dig into yours. You can begin by openly communicating with your talent acquisition specialists and internal stakeholders. Next, you can ask questions about outsourcing the specific positions or a whole, targeted industries, and goals to accomplish with RPO experts. Once you understand, you can reach out to the company that matches your needs through their services.
2. Assessing costs: Cost is another primary concern that might put you in doubt before working with an RPO company. Therefore, you need to evaluate your hard and soft costs. In addition, you need to understand the improvements an RPO organization can give to your soft costs like job vacancy expenses. They are worth a shot if the RPO company can help you manage your costs with their skills and tools.
3. Choosing standards: It’s pretty challenging to filter the best RPO companies; therefore, you require a proper screening. Then, you can choose a focused platform to let them bid for you. Otherwise, you can establish RFOs or such systems to compare and connect with various firms. The joint meeting point should match your required experiences, services, and responsiveness.
4. Matching culture and hiring timelines: You will be able to connect with an RPO partner when they can align candidates to your culture. Getting the candidates to blend in with your work culture will positively impact the candidate’s experience in the hiring cycle. Moreover, making hiring strategies and designing a plan with the RPO expert to bring in the right talent at the right time will be highly beneficial.
5. RPO execution: Lastly, your potential RPO company will walk you through their strategy. During this essential process, they should be well-versed with your company’s information concerning the recruitment procedure. Your responsibility would be to provide them with accurate data and a decided timeline to meet the plans post-signing agreement.

How does the RPO provider help combat workforce shortage?

RPO companies cannot make skill-shortage go away. However, they can affirmatively give you an upper ground in the market by connecting you with exceptionally qualified candidates. They can help you gain a competitive edge, provide insights and data, execute strategies, and utilize recruiting technology. In addition, the RPO experts are well-versed in distinct business sectors. Therefore, they can use their knowledge and expertise in specific industry settings. A reliable RPO company can reduce hiring time and costs, contributing to your company’s rapid development and goal achievement.

About QX Global Group

QX Global Group is a global Business Process Management (BPM) company focusing on employing the perfect blend of people, processes, and platforms to transform your business functions. Our RPO experts combine their industry expertise and qualified skills with advanced technology and automation in the areas like finance, accounting, and recruitment operations. As a result, we can effectively use our 3P approach to deliver innovative outsourcing solutions with our BPM services, leveraging our offshore, onshore, and hybrid delivery models.

We give utmost importance to data privacy. Hence, we’re India’s first BSI-certified, GDPR-compliant outsourcing provider. We have proper safety controls to safeguard information and intellectual property.

Our company continuously develops and sustains a culture of inclusivity to help everyone working with us feel they belong and can prosper effectively. Our primary focus areas include gender equality, disability inclusion, LGBTI, religion, ethnicity, and cross-cultural diversity.

QX has successfully employed 2400+ staff across the UK, USA, Canada, and India. In February 2022, we acquired a majority stake in Austin, Texas-based Chazey Partners Inc- a management consulting and advisory company specializing in business and digital transformation. Our common goal is to deliver end-to-end, personalized solutions covering transformative consulting, digital services, and outsourcing business processes.

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