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The Top 10 Benefits of Recruitment Process Outsourcing (RPO)

Published May 17, 2023
People in a business meeting discussing the top ten benefits of RPO

Recruitment is a vital aspect of any organization. However, the process of finding the right talent for a job role can be both time-consuming and costly, which is why many companies are partnering with Recruitment Process Outsourcing providers.

In this blog, we will discuss the top benefits of RPO and how it can be a valuable asset to your organization.

What is RPO?

Recruitment Process Outsourcing, or RPO, is a form of business process outsourcing where an employer transfers all or part of its recruitment processes to a third-party service provider.

An RPO provider works closely with your organization to define recruitment needs, assess current processes, and pinpoint areas of improvement. Based on the unique factors of each company, providers can customize solutions, service level agreements, and success metrics to create a tailored recruitment strategy.

With their flexibility and expertise, organizations of all sizes and within different industries can benefit from an RPO partnership to find better candidates faster.

What are the Key Benefits of RPO?

 

1. Optimize the Candidate Experience 

As competition intensifies in today's job market, employers must deliver the best candidate experience and application process to remain competitive. In fact, even when candidates don't get the job, they are more likely to recommend a company if they have a positive experience during the application process.   

RPOs can strengthen the candidate experience by ensuring the application flow is optimized, candidate reviews are monitored, and candidate communication is timely.

2. Upgrade Candidate Quality 

RPOs are constantly building their talent pipeline with pre-vetted candidates, making it easy to fill positions quickly. They also have the time, expertise, and tools to source high-quality candidates across multiple target personas.  

For example, although your company may have many job openings, the requirements for the roles and the value propositions for the candidates may vary drastically, creating a need for multiple customized journeys.   

An RPO provider has the knowledge and technology to segment the candidate experience by creating unique personas for each role based on the candidates' current work-life situation, skills and experience, goals and motivations, geographic location, and more.

By accessing and analyzing various data points, an RPO provider can build the perfect persona for each role, optimize the experience for the candidates, and fill the job quickly with the best person.

3. Increase Employee Engagement & Retention 

Employee satisfaction and retention start with your company's recruitment strategy. Short-sighted hiring approaches can lead to costly turnover rates and lackluster teams.

Access to a much deeper candidate pool, coupled with rigorous screening techniques, allows your RPO partner to recruit people who can perform the necessary job functions and closely match the values of your organization.

Hiring candidates with the right combination of skills and principles can bring positive energy to the company, help drive engagement, and ensure that everyone has peak performance. Plus, when employees are engaged, they are more likely to stay long-term. 

4. Realize Cost Savings 

Although the cost of RPO depends on your talent needs, it is typically more cost-efficient than building an in-house team with the same resources.

Organizations that partner with RPOs are charged one flat fee that encompasses all recruitment-related expenses, including advertising costs, software, technology, office spaces, and recruiter salaries.

Plus, they experience indirect cost savings such as reduced time-to-hire and lower turnover (which can cost 30 percentof an employee's earnings).

5. Boost Hiring Efficiency 

If your busy internal employees need to take responsibility for filling positions, it can lead to hiring quickly rather than finding the right fit for the job. Outsourcing allows those internal resources to stay focused on their core competencies.  
 
An RPO partner brings an entirely new level of expertise to the table—they are highly trained and experienced in recruiting for your specific industry and skill sets. Their technology, marketing techniques, and dedicated team of recruiters enable them to streamline sourcing and screen large numbers of candidates, which reduces time-to-hire. 
 

6. Achieve Greater Scalability 

As your hiring needs fluctuate—whether seasonal or market-driven— it’s important to be able to adjust resources quickly and cost-effectively. An RPO enables you to increase or decrease resources according to your changing demands without having to impact internal resources.

Additionally, a dedicated RPO partner monitors and forecasts talent trends that can help you proactively plan for future recruitment needs.

7. Reduce Turnover 

We mentioned it before, but it really does deserve its own separate write-up. RPOs take the time to get to know your organization’s culture and values so they understand who will be a good fit. Hiring candidates who align with your values typically results in stronger, happier, and more engaged teams who stay for the long run.   
 
On the other side of the coin, an RPO provider also will understand what candidates value. Is it salary? Health and wellness benefits? Growth opportunities? Work-life balance and flexibility? Employee assistance or family support services? All of the above?

As they develop their candidate personas, RPO providers know which benefits will be most attractive to each candidate and ensure those are highly touted, again increasing the chance of a better fit and mitigating the risk of turnover. 

8. Reach DEI Goals 

RPOs can help your organization build a more diverse and inclusive workforce. To do this, they leverage a variety of sourcing platforms, craft inclusive job descriptions, diversify their interviewing team, and provide training to avoid unconscious bias throughout the recruitment process.

Some RPOs even have DEI-certified recruiters who receive in-depth training on best practices to ensure their partners receive the expertise needed. 
 
RPO providers also have the resources to explore international and emerging markets for diverse talent with the necessary skills who may be willing to work remotely or even relocate.  
 

9. Future-Proof Your Recruitment Strategy 

Challenging economic markets often force organizations to conduct layoffs or put them in a financial bind if they are not properly prepared. RPO providers can access and monitor industry data and quickly adjust resources depending on the market.

Although RPOs can’t predict the economy, they can help recession-proof talent acquisition strategies to mitigate any potential impacts 

According to HBR, companies that rely solely on cutting their workforce during economic difficulties have only an 11% probability of succeeding after a downturn.  

 

10. Fill Specialized Roles 

Finding candidates for hard-to-fill roles can be incredibly challenging for any organization. RPOs have advanced recruitment tools and access to a larger talent pool to search for candidates who possess the specific qualifications needed for specialized roles. 

In the current market, it has become necessary to cast wider nets and look beyond typical hiring requirements. Companies are beginning to look more at transferrable skills and employee potential. These types of candidates have become known as STARs—people who are “skilled through alternative routes.” RPOs can help identify these candidates and incorporate the proper training into your onboarding program to get them up to speed quickly.


The bottom line is this: an RPO partner brings unmatched expertise to the table that will help improve your internal processes, realize cost and time savings, and hire better candidates faster, all while being accountable to you and your leadership team. 

 

At Hueman, we understand your recruitment needs are unique. If you're interested in learning more about the benefits of recruitment process outsourcing, contact us today!

 

  • Topics: 
  • Recruitment Process Outsourcing