Outsourcing within the recruitment industry is typically know as recruitment process outsourcing. RPO solutions can complement or even completely substitute an organization's internal recruitment function. There are many benefits to outsourcing the management of the recruitment function to an external recruitment expert. We have identified the top four:
Improved Quality of Hire
The right candidate is more than just a combination of experience and education. Numerous factors go into identifying the best person for a position. RPO providers have the resources necessary to source, screen, and hire the candidate who is the right fit for your organization not only in terms of experience and skill, but also in terms of personality and previous accomplishments. Additionally, RPO providers maintain a constant stream of candidates, which results in better options and a better new hire.
Reduced Cost per Hire
One of the greatest benefits of RPO is significant cost reduction. Companies often face hiring budget overruns as a result of steep recruitment agency fees that often exceed 30%, high job board subscription costs, and substantial turnover. RPO solutions provide an integrated recruitment solution that reduces your dependency on employment agencies while still maintaining fast time to hire and excellent quality of hire.
Greater Flexibility and Scalability
An RPO solution allows your organization to adjust your talent acquisition capabilities as your hiring needs change and fluctuate. Arrangements like project RPO are especially popular with organizations that find it difficult to forecast their needs or are experiencing rapid growth. Ultimately, RPO offers the option to scale up and down recruitment activity and resources to meet your current hiring needs.
Enhanced Speed of Hire
According to SHRM's most recent Talent Acquisition Benchmarking Report, the average time to fill a single vacancy is 36 days. This represents a long delay in acquiring urgently needed candidates and results in lost productivity and revenue as your organization is less equipped to execute your business objectives. RPO providers solve this challenge by working closely with hiring managers to understand specific job requirements, completing rigorous screening and assessment, and streamlining the offer presentation and onboarding process in order to create a quick and efficient hiring process for your organization.