What is Recruitment Process Outsourcing (RPO) and Why Is Everybody Doing It?

Allied OneSource • October 18, 2023

In the world of work, finding skilled and talented employees is crucial for a business to succeed. Think of a business like a chain, where each part needs to work well for the whole thing to be strong. Yet in today's competitive market, finding the right talent can be tough. Every company wants the best candidates for their teams, and they're all searching for them.

Aside from participating in the hunt for the most qualified candidates, what else can you do to improve your company's talent acquisition? Consider receiving assistance from staffing experts through a service called Recruitment Process Outsourcing (RPO).

The RPO Market in a Nutshell

Recruitment Process Outsourcing is a service provided by staffing companies like Allied OneSource. It's when a company hands over the job of finding potential candidates to an outside service provider. Unlike traditional methods, RPO aims to acquire top candidates with minimal involvement from the companies and leaders who availed the service.

In 2019, the global RPO market size was approximately valued at 5.48 billion U.S. dollars. Experts also predicted it continue growing until the year 2027 with an annual growth rate of 17.4 percent.¹ This goes to show there is an increasing recognition of what RPO can bring to the table in today's employment market.

Meanwhile, the progressively increasing market size and value of Recruitment Process Outsourcing reflects the growing needs of companies when it comes to recruitment and talent acquisition.

Models and Processes of RPOs

Recruitment Process Outsourcing is a personalized service based on your company’s specific needs and requirements. It can operate on a variety of models while still maintaining its structured processes.

It’s crucial to understand the different models available and how each part of the process works to make the most out of an RPO service. This way, you can choose which structure is most aligned to your goals and objectives.

Examples of RPO Models

As mentioned, RPO can be adjusted to what your company needs. The following are some examples of models RPO providers may offer.

End-to-End RPO - Just like what the name suggests, this service model aims to provide a holistic RPO solution where your chosen company will handle every stage of the recruitment cycle from job profiling to onboarding. This is ideal for companies who prefer a hands-off approach to their talent acquisition process.

Project RPO - This is a project-based approach that’s best for companies with seasonal staffing needs or those looking to hire experts for a specific project only. For this model, partnerships with the chosen service provider are often on a temporary, short-term basis.

On-Demand RPO - as opposed to End-to-End RPO, offers flexibility by allowing clients to engage the recruitment process outsourcing agency as needed. This grants company leaders the autonomy to select specific components of the recruitment process for assistance. Unlike the comprehensive approach of End-to-End RPO, the On-Demand model suits organizations that prefer a more hands-on involvement in their hiring process.

Allied OneSource's RPO Process

The process of RPO can differ based on many factors like model, necessity of clients, and the go-to process of the third-party provider. At Allied OneSource, here are the typical steps in our RPO solution.

Agreement. It includes the details, scope, cost, and other stipulations of the partnership made with your company.

Needs assessment. One of our recruiters interviews you about your organization’s needs and expectations. This is where you can specify any necessities or preferences you have related to potential candidates.

Candidate sourcing. Based on the approved job descriptions and requirements, we gather the best candidates and screen them on your behalf.

Shortlisting. Once we create a shortlist of top potential employees, you will get the final decision on who is a good fit for your company.

Onboarding support. After choosing your desired expert, we will continue to nurture our partnership and support you in onboarding your newly recruited employee.

Benefits of Using RPO Services

As RPO recruiters become popular, it’s only natural for you to wonder the reasons why. One of the most frequently asked questions about recruitment processing is about the advantages it can give to employers and their businesses.

Talent Acquisition Experts

RPO providers are experts specializing in the field of talent management and acquisition. They’re equipped with a deep understanding of the staffing industry as well as the most recent and effective recruitment strategies.

By tapping into their knowledge of current market trends, using an RPO service ensures you a talent acquisition expert who can guide the best candidates towards your organization.

Cost and Resource Efficient

Instead of allotting budgets to different steps of the recruitment process like advertising and interviewing, RPO costs less since your chosen provider will take care of everything related to recruitment.

Aside from having the ability to reallocate your budget to more critical areas of your business, you're also able to redirect your workforce to other projects and programs that need their expertise.

Assured Compliance

With the technological advancements in the current world of work, your company can gain access to different candidate pipelines in various geographical locations. A good RPO can help you navigate the different laws and regulations present in different areas, which can aid your efforts towards success.

This way, you can ensure compliance to all rules and regulations Through your trusted provider’s knowledge and expertise.

Improved Employer Brand

One of the best ways to build your employer brand is to make sure all potential employees have good experiences with your company.

By enlisting the help of an agency that offers RPO, you’re handing all of your recruitment process to experts who are equipped with strategies and techniques that can produce positive candidate experience. This would then lead to a better reputation as well as increased attractiveness for potential employees.

Wide Network of Professionals

Thanks to years of experience and hard work in their specialized industries, agencies that provide RPO usually have access to wide networks of professionals and experts who may be actively or passively looking for a job.

With a reach encompassing the general job boards and the typical market of job seekers, you are increasing RPOs to help you increase your likelihood of finding the right fit for your roles.

DEI Opportunities

According to Glassdoor’s research, around three in four Americans say that they will most likely work with companies committed to breaking down barriers for underrepresented groups of people.²

So if you find your staff lacking in diversity and you're looking to improve that, you can be detailed during the first few conversations you have with your RPO.

Since their services are personalized to your needs, you can request qualified employees who meet the criteria's you're looking for.

FIND TOP PERFORMERS AND EXPERT CANDIDATES THROUGH ALLIED ONESOURCE

As a staffing company with roots going back to 1898, Allied OneSource is one of the best RPO providers in the job market. We take pride in serving our clients and helping them with personalized recruitment solutions.

Whether your company specializes in customer service, engineering, sales, or manufacturing, we can assure you that we know top talent to place in your open roles. As your trusted partner, we’re dedicated to connecting employers like you to outstanding professionals. Reach out today to begin finding the best candidates.

References

1 "Recruitment Process Outsourcing Market Size, Share & Trends Analysis Report By Type (On-demand, Enterprise), By Service (On-site, Off-site), By Enterprise Size, By End Use, And Segment Forecasts, 2020 - 2027." Grand View Research, Sept. 2023, www.grandviewresearch.com/industry-analysis/recruitment-process-outsourcing-rpo-market.

2 Glassdoor Team. "What Job Seekers Really Think About Your Diversity and Inclusion Stats." Glassdoor, 12 Jul. 2021, www.glassdoor.com/employers/blog/diversity/.

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