Recruitment Process Outsourcing Guide for Staffing Companies in the US

The labor market conditions in the US are extremely competitive, given the talent gap between the demand and availability of talent. As skills shortages have increased the competition for staffing companies, recruiters focus on optimizing their talent acquisition process and looking for technological support and expertise. Recruitment process outsourcing has gained immense popularity in this scenario, with many recruitment process outsourcing companies trying to fill the gap by providing a wide range of RPO solutions to help businesses hire better.

What is Recruitment Process Outsourcing?

Recruitment process outsourcing is a type of business process outsourcing and management service where an external service provider assists a staffing agency or employer in carrying out their recruitment processes. Depending on its requirements, businesses may outsource the entire recruitment process or a part of it.

Recruitment process outsourcing companies can provide their own technology, staff, and process optimization methodologies or may also use that of their client’s process and technologies. Recruitment outsourcing, however, is different from the services provided by traditional staffing companies, as RPO recruitment involves ownership and management of the recruitment process as well as the responsibility of candidate placement.

Choosing Recruitment Process Outsourcing Companies for your Staffing Business

Recruitment process outsourcing companies can help staffing agencies deal with time constraints and fluctuations in hiring demand, refining their candidate search and expanding their talent pool. Therefore, selecting the right RPO service provider is crucial to getting the perfect recruitment outsourcing solutions for your staffing business.

A couple of factors play a significant role in the decision-making process when choosing your RPO service partner such as:

1. Reputation

The reputation of the recruitment process company you want to outsource with is a major factor to be considered. The company’s track record and service delivery capacity are indicators of its outsourcing efficiency and performance. The number of clients the RPO company has served in the past and its reputation in the candidate market directly impact the employer’s brand and are instrumental in attracting better-quality candidates.

2. Industry Expertise and Business Compatibility

Many staffing companies work for dedicated industries or sectors and require support for specialty hiring. A recruitment outsourcing partner can help such agencies with their experience and expertise in hiring for specific industries. RPO agencies have a wide talent pool and network of candidates suitable for meeting challenging hiring requisitions for industries such as healthcare, IT, manufacturing, engineering, and education. When choosing a recruitment process outsourcing company, a staffing agency must check if the recruiters have knowledge and experience in related fields and business domains.

3. Market Reach

Another decisive factor influencing your choice of an RPO company is its size and market reach. RPOs have different talent pools and national and international market reach. Before hiring their services, it is essential to check if they have access to the right talent pool of candidates to meet your hiring requirements and if their network of candidates is large enough.

These factors must be considered before any staffing agency plans to outsource its recruitment process. You can learn more about it here- 10 Things to Know Before Choosing an RPO Service Partner.

Recruitment Outsourcing Solutions

Experienced recruitment outsourcing service providers such as the QX Global Group provide data-driven RPO solutions with the help of robotic process automation and AI-based solutions for high-volume, time-consuming tasks.

You can choose from a host of recruitment process outsourcing solutions:

1. Sourcing

With a trained team of sourcing experts with several talent sourcing tactics at their disposal, QX recruitment services can help your staffing agency fill all your temporary, contractual, or permanent job requisitions. We cater to a number of sectors, including healthcare, IT, engineering, manufacturing, education, and multi-specialty sectors. From meeting urgent hiring requirements to building a talent pool of candidates for future reference, our sourcing services offer many options – resourcing & screening, market mapping, Out-of-hours support, and executive search & headhunting.

2. Compliance and Admin

Back-office and admin tasks take up a lot of resources affecting a staffing agency’s ability to focus on the core business functions. Outsourcing these processes help to minimize wastages, gives a competitive edge to your business, and streamlines compliance and admin functions. It includes compliance checks, CV formatting, database and portal management, and reference-chasing services.

3. Full Cycle Recruiting

Full cycle recruiting is an end-to-end recruiting service that covers every aspect of the talent acquisition process, from lead attracting to onboarding and client management. It is a complete 360-degree support customized for specific business needs and includes placements, out-of-hours support, and VMS/MSP recruitment.

4. Finance & Accounting

Recruitment agencies managing thousands of timesheets on a daily basis can get outsourced support for accounting and financial processes. RPO providers have access to the latest accounting software and technical expertise to optimize these processes and save the recruiting agency time and money. Recruitment payroll outsourcing support at QX includes a wide range of F&A processes, including pay & bill, accounts payable, payroll management, time & expense management, credit control, and management accounts.

RPO Recruitment Models

There is no one-size-fits-all in RPO, as different clients have different staffing requirements. Therefore, RPO companies offer various types of RPO engagement models. Some of the most popular RPO recruitment models include:

On-Demand RPO – is a contract-based RPO engagement model where the recruitment outsourcing company finds candidates for defined roles per the contract and is required to close the hiring requirements within a fixed time.

Project-based RPO – this model follows the end-to-end approach and caters to a specific project, such as the launch of a new product or the start of a new branch. Project-based RPO is particularly useful for staffing companies that want to maintain the pace of their day-to-day hiring and require outsourcing solutions for end-to-end specialized hiring for a project.

Other RPO recruitment models are Full-Service RPO, Hybrid RPO, Cost-per-hire model, management fee model, monthly fee model, cost-per-transaction, etc., and you can learn more about them in detail in our guide to recruitment process outsourcing models.

Difference between Recruitment Process Outsourcing Companies and Staffing Agencies

Traditional staffing agencies have a limited scope of sourcing and placing required candidates to fill open vacancies. On the other hand, recruitment process outsourcing companies take ownership of the entire recruitment process from the design to its execution. Recruitment process outsourcing is a more comprehensive recruitment process that includes more than just sourcing and placing candidates such as:

• Candidate management
• Workforce planning
• Talent engagement
• Hiring manager engagement
• Recruitment analytics
• Supply chain management
• Compliance and risk management
• Pre-employment screening
• Strategic Sourcing
• Employer brand consultation
• Vendor partnering
• Graduate recruitment
• Training and development

Benefits of offshoring with recruitment process outsourcing companies

The advantages of enlisting with an experienced RPO provider are plenty and can help your staffing business grow amid fluctuating demands, inflation, or instabilities. One of the greatest advantages of outsourcing to an offshore RPO agency is the ability to scale up or down the staffing requirements. An offshore RPO service provider allows staffing companies to take advantage of business opportunities as they come along and meet client needs, even if their in-house team is understaffed to handle the new project. Full-cycle recruitment outsourcing solutions are a great way to meet client demand within a given time frame.

Another benefit of working with RPO companies is process efficiency. RPO companies use AI-powered recruitment technology and innovative screening and sourcing strategies to find suitable talent faster and at lower costs. Outsourcing the recruitment process to offshore agencies drives optimization, minimizing hiring costs and shortening hiring deadlines.

Diverse workforce management and developing a more equitable and inclusive hiring culture are other advantages of outsourcing recruitment process. Outsourcing to an RPO expert can be hugely beneficial and cost-saving for staffing agencies that work for industries requiring strict compliance with legal and regulatory frameworks.

Recruitment Process Outsourcing for Staffing Agencies in the US

Offshoring is gaining popularity around the world with businesses looking to scale their service delivery capacity, expand their geographic reach and reduce overhead costs. Recruitment process outsourcing services offered by the QX Global Group from its offshore and nearshore centers in India and Mexico provide a fantastic opportunity for staffing agencies in the US to elevate their service delivery capacity and build an offshore team of recruiters to support their existing in-house team. With QX Global, staffing agencies in the US can hire dedicated recruiters at 40% less cost and outsource their recruitment processes completely or in parts.

QX has over 20 years of experience working with recruitment agencies in the UK and the US, delivering quality RPO recruitment services and flexible outsourcing solutions to meet each client’s needs.

Speaking to our experts, you can learn more about the QX recruitment outsourcing services for staffing agencies in the US. Schedule a meeting to begin your free consultation.

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Originally published Oct 26, 2022 11:10:03, updated Feb 05 2024

Topics: Offshore RPO, Recruitment Process Outsourcing, Recruitment Process Outsourcing Companies, RPO