Recruitment Process Outsourcing (RPO) is a new trend that may benefit your bottom line and should be explored when your company is considering options for recruiting. With RPO your company typically pays only for the actual hours and expenses required to find and hire a new employee. This is in contrast with the traditional recruiting agency model that requires you to pay a flat percentage of your new hire’s salary in fees to the recruiter. Some RPOs require that you outsource all of the recruitment activities for a given search; others allow you the flexibility to outsource the parts of the process that you need help with.
Some things to consider when deciding whether or not to outsource some or all of your recruiting:
- Are your hiring efforts working? Where are the breakdowns in the process?
- How much control do you want to have over your search efforts?
- Which pieces of the search process do you most need help with?
Recruiting involves a number of steps:
- Writing or verifying the job description for the position to fill
- Strategizing about how and where to find the best candidates
- Writing job postings and position descriptions that get the attention of appropriate candidates
- Sourcing – which includes finding unique ways to attract the highest quality candidates
- Reviewing resumes to determine who will be interviewed
- Interviewing – which can include both telephone screening and in person interviews
- Selecting finalists and assisting with hiring decisions
- Reference checking
- Job offer and salary negotiations
- Declining candidates not selected
- Organizing start date and onboarding activities for the new employee
When it comes to Recruitment Process Outsourcing (RPO) you will find many different service offerings. You want to make sure you are working with an RPO company that meets your needs. As you consider the different companies you may want to consider the following:
- Will the RPO customize their involvement to best fit your needs?
- Will the RPO allow you to drive the process or expect you to fit into their process?
- Will they spend time with you to determine where the process “pain points” are and work with you to address those issues?
- Is there a minimum commitment money-wise or time-wise?
- Can they come up with out of the box solutions to recruit for hard to fill positions?
- Will you have direct contact with the recruiter(s) working on your position or is there an account manager you must go through?
- How much regular contact will the RPO have with you? Will there be regular meetings and updates?
- Will you be given copies of applicant lists? Many retained and contingency firms will not share their list of contacts which can be valuable to you in future searches. A good RPO should share this information with you since you are paying for the time and materials to generate the information.
- While RPOs don’t generally have a set fee they should be able to offer examples of total expense as a percent of base salary so that you can compare this expense to other retained or contingency firms you are considering.
- RPOs generally do not have a ready-made database of potential candidates since each search is customized to the client. However, the RPO should be able to give you a rough idea of search length if they have recruited for similar positions.
Resourceful HR offers RPO services and customizes each search to individual client needs. Let us know if you have questions about RPO services or how we can best help you.