What is an RPO?
Recruitment Process Outsourcing (RPO) is a cost-effective recruitment solution that allows an organization to outsource all or part of the recruitment and hiring process.
The RPO solution will be branded as the client and accountable for meeting the company and its clients’ recruitment and hiring needs within budgetary expectations, while working within the framework of a flexible, quality-driven customized program.
- High cost per hire
- No standardized hiring process which impacts time-to-fill, consistency and staff productivity
- No performance metrics or accountability
- High administrative costs
- Recruitment team is not filling positions in a timely manner or finding quality candidates
- Fixed third-party recruitment fees
- Positions are difficult-to-fill and in high demand. May have limited access to market analytics on compensation and job requirements.
- High turnover
Client Benefits of Using RPO
- Decreases cost per hire
- Creates a standardized hiring process to meet time, quality and efficiency service level expectations
- Reduces administrative time
- Dedicated recruitment team has access to a larger sourcing pool, recruits higher quality candidates and is able to fill difficult positions
- Flexible performance pricing
- Analytical data on market compensation and demand
- Designed to reduce turnover by sourcing and hiring candidates that align with company goals and job requirements
RPO Benefits for PEO’s
- Highly valued service offering
- High-margin revenue stream
- Minimal upfront costs
- Branded as the company
- Highly profitable business model
- Performance and compliance metrics including EEOC
- Easy to scale
- Flexible program
- Improve client retention