Definition: Recruitment Process Outsourcing (RPO)
The Recruitment Process Outsourcing Association (RPOA) defines RPO as “a form of business process outsourcing (BPO) where an employer transfers all or part of its recruitment processes to an external provider. Recruitment Process Outsourcing providers can manage the entire recruiting/hiring process, or can manage one or two aspects of the process, essentially serving as an extension of the company’s human resources department”. This definition illustrates that RPO services are not outsourcing in the traditional sense, as working with an RPO provider is much more consultative and customizable than normal recruiting.
What Do RPO Services Entail?
Yes, some RPO providers and solutions will take on a client’s entire recruiting function, but that’s only sometimes. In most cases, RPO providers offer specific services that are designed to improve what the client is already doing for recruiting, or work with a company’s recruiters to do more and to do better. Here’s a list of some of the services an RPO provider might do for a client:
Recruitment Process Outsourcing is when a provider acts as a company’s internal recruitment function for a portion or all of its jobs. RPO providers manage the entire recruiting/hiring process from job profiling through the on-boarding of the new hire, including staff, technology, method and reporting. A properly managed RPO will improve a company’s time to hire, increase the quality of the candidate pool, provide verifiable metrics, reduce cost and improve governmental compliance.
RPO Provider also involved in below activities for their clients:
– Candidate research
– Compliance tracking
– Reporting and Audits
– Hiring Manager Training
– Process Mapping
– Technology Consulting
– Third Party Vendor Management
RPO providers assume ownership of the design and management of the recruitment process and the responsibility of results. So, a provider will do more than X and Y for a company, but work with company resources to improve upon recruiting processes and recruiting results. This makes it easier for clients to hold providers accountable and to hire the right talent for the company, instead of simply keeping positions filled.
Recruitment process outsourcing (RPO) is only about ten years old; the progeny of human resource outsourcing as corporations found that recruiting posed a significant cost to their staffing needs. However, RPO has evolved into much more than outsourcing recruiting to an outside provider, although that’s two-thirds of the name. RPO is a partnership between a company with recruiting needs (RPO buyer) and a company with recruiting services (RPO provider) in which the RPO buyer’s brand is being promoted instead of the provider’s.