Why should you prefer Recruitment Process Outsourcing (RPO)?

Written by Abhishek on Nov 24, 2017

Recently, many top Indian companies and MNCs outsourced its talent acquisition and other internal recruitment processes to several Recruitment Process Outsourcing (RPO) agencies. 

According to the Indian media, most organisations are dissolving their in-house hiring teams and subcontracting recruitment activities to hiring specialists who have greater potential to acquire the best talent. 

The outsourcing of recruitment activities to third-party specialists is a compelling departure from traditional recruitment techniques, which makes it a logical option for organisations both large and small. In addition, it helps them to strengthen their recruitment models and get an edge over securing the best talent. 

How do we define RPO?

The Recruitment Process Outsourcing Association (RPOA) provides a standard definition of an RPO. They say it as “a form of business process outsourcing where an employer transfers all or part of its recruitment processes to an external provider.”

RPOs are generally considered an extension to an organisation’s Human Resources Department. The services are modified and designed as per company requirements. Here the external agency claims ownership of the entire recruitment process. In brief, RPOs enable companies to promote their own brand rather than their own. 

How is an RPO beneficial? 

An RPO service can offer a load of advantages, including enhanced contracting time, improved quality of potential applicants and data-driven measurements for the hiring procedure.  

Regardless of whether a company requires assistance with employing or would like to outsource the whole hiring procedure, there are a couple of things their decision maker must consider before finalising an RPO service, such as: 

  • Cost to the company 
  • Incompetent internal staff 
  • Deficit in hiring metrics – quality and speed 
  • Outdated internal applicant database 

How to select an RPO agency?  

Subsequent to deciding whether or not an RPO service is the best answer to an organisation, they must be deliberate in their choices. Here is a list of tips to consider while selecting an RPO agency:  

Size of the RPO agency  

Based upon hiring requirements, a company can select between a small, moderate or large RPO supplying agency. Small RPO suppliers are locally based and usually assist companies in recruiting talent within a given framework. Moderate sized RPO suppliers are regionally located and offer companies a diverse talent pool from across the country. Similarly, a large sized RPO supplier is globally based and can assist a company with additional services such as executive talent hiring and global placement. 

Service methodology 

Businesses are progressing at a quick pace, and RPO suppliers may be diverse in their hiring services, innovations used, techniques employed and the workforce they use. 

Some RPOs will refine a company’s present recruitment procedures and work with their current workforce. It is advised for an organisation to clarify their doubts with RPOs, cross- check their services and arrive at a conclusive understanding as to which RPO supplier could address their hiring issues. 

Agency Background 

It is the right of any company to safeguard its interests from swindlers engaging in fraudulent activities. Always ask references before settling the deal. An organisation must assure its internal staff that any RPO agency they plan to work with is a well-established set-up and has a reputation of client-value benefit. Always request references, ideally of those clients who fall under the company’s industry or geographic range. 

Social fit 

It is imperative to pick an RPO supplier whose staff will be complacent working with a company’s current requirement. Since an RPO agency serves as an extension to the Human Resources Department, it is necessary that both the company and the supplier cooperate with each other’s requirement and mutually assist each other in the long run. 

Price rate of the RPO service 

Based on a company’s requirement, the underlying expense of collaborating with an RPO agency might be more exorbitant than hunting talent themselves. But the long-term benefits that accompany an RPO service is aplenty.  

Likewise, an organisation will be saved from incurring high overhead expenses of finalising new procedures or in-house innovations. In addition, it will also benefit by the adaptable and flexible hiring services an RPO agency will offer. Moreover, it will allow the company to focus on its core business activities while their hiring needs will be taken care of by recruitment experts. 

Commitment to service 

An organisation’s responsibility does not end with setting up an RPO agency and overlooking its activities. A company must also participate and offer due assistance during the recruitment process. 

An organisation’s association with any supplier will also require a speculation of time, particularly at the beginning of execution. A considerable duration is allotted for both the company and agency to arrive at a mutual agreement.  

Are you looking for Han Digital Recruitment Process Outsourcing services? We currently work as RPO service providers to numerous MNCs, it would be a great to work with you too. Get in touch to know more about our RPO services. You can write to us at info@handigital.com