Businesses are becoming keen on the need to outsource parts, or all, of their hiring processes in an effort to achieve more sustainable outcomes, like longer retention rates and higher-quality candidates, in an already tight labor market.
Not only do U.S. businesses face monthly turnover rates of 5 million workers nationwide, they also face obstacles like competing for passive candidates and hiring job hoppers. While passive candidates may have the skill sets and experience necessary for the jobs, they are typically already employed and looking for a better opportunity, leading them to wait for the most enticing offers.
Job hoppers, on the other hand, are people who have a retention rate between one and five years, which makes it difficult for companies to find employees with a depth of experience and skills needed for specific positions.
Employing recruitment process outsourcing (RPO) alleviates those concerns because it serves as an extension of the company, and takes a holistic approach to the hiring process.
What is RPO?
Recruitment Process Outsourcing sets itself apart from traditional recruiting by assuming all or part of a company’s recruitment processes, which may include staff, technology, systems and reporting. It is both a partner and service provider to a company, while also maintaining its own strategy and oversight of the recruitment process.
RPOs seek to improve the recruiting process of a company through consulting and building relationships with the companies they serve. Instead of filling long-standing, open positions, their focus is on a holistic approach. They evaluate turnover rates, the use of technology, a company’s scalability and the average length of time it takes to fill each position.
The goal of RPO is to have a long-term relationship with a company as they continually make improvements and demonstrate the effectiveness of their hiring strategies through reports and data analysis. And according to an Aberdeen Group study, 77 percent of companies reported they’d recommend RPO to their peers. In other words, the proof is in the pudding.
Who Uses RPO?
There isn’t a specific category or industry that couldn’t benefit from outsourcing recruitment if they find that they have a few glitches in their hiring process. Because RPO can serve a company through many different types of services, it doesn’t limit itself to only serving specific companies.
Determining whether RPO is a good decision for your company comes down to answering a few questions to help you understand your needs:
- How efficient is your current hiring process?
- Can your recruiting department currently manage hiring needs?
- Have you experienced a high turnover of employees?
- Is communication with your candidates during the recruitment process effective and timely?
- Do you have access to full reports and analytics of your hiring process?
- What technologies are you using for recruitment and are they satisfactory?
- Is your employer brand attracting a full pipeline of talent?
Why Use RPO?
If any of the answers above indicate your hiring process needs improvement, it may be a sufficient reason to pursue RPO. Common challenges are addressed with RPO, such as the true cost of hiring a new employee, the time it takes to fill a role with a qualified candidate, access to analytics for evaluating the hiring process, and addressing disgruntled hiring teams.