Oct 10, 2016 10:59:11 AM / by Cassandra Czech& Karen Relucio
What keeps HR leaders up at night? Based on research, things like increased competition for skilled talent, new technologies, and cutting costs are the top concerns for HR professionals. Fortunately, there are certain human resource strategies that can solve these problems. An increasing number of HR leaders are seeking the help of experts to outsource the recruiting function in an effort accelerate the hiring process, find candidates with special qualifications, and reduce time to hire. How do they do it? They rely on Recruitment Process Outsourcing (RPO).
Recruitment Process Outsourcing (RPO) is a form of business process outsourcing (BPO) where an employer outsources or transfers all or part of its recruitment activities to an external service provider. An RPO provider can provide its own or may assume the company’s staff, technology, methodologies and reporting. In all cases, RPO differs greatly from traditional providers, such as staffing companies and contingent/retained search, in that it assumes ownership of the design and management of the recruitment process and the responsibility of results.
Below are just some of the reasons companies are choosing RPO:
For the HR leader, understanding employment metrics is very crucial in business. With an RPO provider, the analytics is done behind the scenes. As part of its service delivery, your RPO provider includes analytics and provides reports that help the HR staff understand what a company needs and its talent acquisition program. RPO provides a competitive advantage by helping HR control the hiring process and searching for employee alignment.
Analytics goes together with alignment. Once analytics are done, it is easier to match the right employee to the right company, allowing HR leaders worry less about their company and employee alignment. RPO providers take on the responsibility of developing a candidate pool using candidate relationship management tools, leading to better hiring results.
3) Control Costs
According to our survey, 89% of HR leaders stated that costs are their biggest challenge when using a recruiting agency. However, a key benefit to considering RPO is that you can control costs, which usually results in a reduction of cost per hire.
4) Reduce Time to Fill
Unfilled jobs are a major strain on a company’s finances, making reducing time to fill a major priority for many firms. RPO providers save you time and money by using their expertise in full life cycle recruitment processes to quickly vet and produce a slate of candidates. Many RPO firms also assist with on-boarding, which means candidates will be hired, trained, and contributing to your company faster.
5) Process Improvement
RPO organizations are experts in the process of recruitment and will provide metrics, reporting, and auditing of your recruitment cycle. This intelligence provides HR leaders with data that enables them to budget better, project costs, and identify needs pertaining to recruitment over time.
With the right RPO provider, HR leaders will gain back time, money, and an increase in recruiting efforts. They will also find that outsourcing their recruiting function is the best way to find qualified candidates and decrease staffing gaps. RPO providers reduce human resource challenges, allowing HR leaders to recruit efficiently and effortlessly.