Recruitment Agency Vs. RPO: Which One Should You Choose?


Suppose you want to hire a new candidate for your team. Some companies are regularly working with recruitment agencies. Also, some companies accepted the chance provided by the RPO team. What would you like to do? 

How would you be able to differentiate between these methods? Recruitment agency vs RPO, which one would be best for you? In this complete blog, I am going to explain the benefits of RPO and recruitment agencies. You just need to read the entire blog till the end. You will yourself find the way to your questions.

What Is A Recruitment Agency?

A recruitment agency is well known for putting job seekers in place. But, they do it only for limited job needs. Companies have the option to turn these temporary candidates into permanent job roles. But there is a condition. These employees will have to fill their roles for a specific time. Moreover, you might also see a recruitment agency by another name. These names are temporary placement agencies, staffing agencies, etc. 

Recruitment Agency: How Does It Work? 

We need to think of a recruitment agency as a bulk offering. They charge to place, but not much more. Thus, they always look to get your hire done as soon as possible. They are perhaps paid based on per hire. Therefore, if they do not get you the correct candidate, they know that someone else could. Because of this, these agencies already have candidates. This way, they will be able to do the quick placement. 

Whenever you need a recruitment agency, they will be there for you. They will be able to get you the proper placement within a few days. This process does not take weeks or months. 

Recruitment Agency (Advantages & Disadvantages)

Here are a few advantages of a recruitment agency:

  • All the temporary candidates work as an employee. They work under the business direction. 
  • A recruitment agency takes care of the candidate's insurance. They also cover other costs.
  • A recruitment agency pays the worker and takes out payroll taxes. 
  • Using a recruitment agency can be beneficial for you. This way, you can get the ability to enhance yourself. Before making a long-term commitment, a recruitment agency observes their skillset and work habits. Also, they look after the interaction with full-time employees. Therefore, it can lower hiring risks. 
  • Suppose a contract candidate becomes sick during this pandemic. Thus, the recruitment agency will be responsible for taking care of the whole family. 

Here are a few disadvantages of a recruitment agency:

  • It is costly to work with a recruitment agency.
  • Suppose you want to hire a recruitment agency to work in a specific role. But you will be surprised to know that they will not advertise your brand as a whole. 
  • Sometimes you find a recruitment agency that has lacks communication. A few statements from candidates include that they apply for jobs and do not hear back. They might have contacted about irrelevant job roles.
  • Recruiters sometimes do not listen to what candidates actually want. 
  • Sometimes the lack of communication happens because of external problems.

These were the most important advantages and disadvantages of a recruitment agency. After knowing everything about the recruitment agency, you will be able to decide on your own. You will be known of the fact whether a recruitment agency is helpful for your firm or not. 

What Is An RPO?

RPO - recruitment process outsourcing. The recruiters at RPO always work with the planning. They can expand the internal hiring process. They can work with you by understanding your work culture. 

Your contract with an RPO firm is an ongoing process. And, this process is not only the times you need to hire quickly. RPO generally focuses on permanent talent, not temporary candidates. 

RPO: How Does It Work?

Suppose you are getting a new RPO team. It would be like you are doing your own hire. You will tell the RPO team about your business. Also, about your work model, culture, and needs. They will spend a lot of time in discussions. In addition, they will help you check your recent talent gaps. The RPO team helps you with plans so that you can fill those talent gaps. 

RPO will be known about every part of your hiring cycle. They know everything about employer branding, interviewing, advertising, and onboarding. In addition, they can help in every way of your recruiting process. RPO team still remains part of your team after you have made a hire too. RPO team helps you so that you can handle the entire candidate experience. From sourcing a candidate to hiring them, they help you in the right way. 

RPO (Advantages and Disadvantages)

Here are a few advantages of RPO:

  • RPO is a resource that works as per your business needs.
  • If you use a high-quality RPO team, they can 100 percent build excellent candidate experience in your firm. Thus, your company will always be known for the good things. Not the bad experiences. 
  • By hiring an RPO team, you can focus on your core business. Mostly startup firms when everything seems tough to handle. 
  • An RPO team is skilled. They figure out what is needed to make a hiring process more suitable, especially for your company's needs. Therefore, they can find the inabilities in the process.

Here are a few disadvantages of RPO:

  • An RPO team is usually not fully connected to the culture of your business. You need to get rid of this problem. You should provide the RPO team with everything that they need to understand your work culture. This way, they make sure it's reflected in their candidate pipeline. 
  • The RPO team might be good at the hiring business. But, sometimes, they could miss someone's nuanced industry insights because only someone working in your firm could understand.
  • Lack of communication is also one of the disadvantages of RPO. You need to make sure that the service provider is regularly communicating your brand's message. Also, o not forget to determine if an RPO team is upholding the firm's culture or not. Suppose they are considering regular status reports or not if they are check-ins with the team or not. 

Key Differences Between RPO And Recruitment Agency

  • RPO is all about having control over the recruitment process as a whole. RPO takes responsibility for everything which is related to recruitment. Your RPO team always understands what your business requires. Whereas in addition, the recruitment agency is generally engaged with multiple firms. Their work is to source suitable candidates for their clients. 
  • RPO is best for the long-term hiring process. RPO build long-term partnerships with their clients. Therefore, they make sure there should not be any emergency in the future. RPO maintains a regular and focused delivery of resources. Moreover, a recruitment agency focuses on identifying candidates for specific positions. When required, they always tend to fill the vacant job role. 
  • A recruitment agency works to get the people in the place very quickly. In comparison, an RPO service provider helps you to enhance the quality. Therefore, you can nurture your candidate funnel. Also, they help in sourcing candidates who best fit your business needs for the long term. However, we can say that an RPO strategy can take time. 
  • A recruitment agency can cost you a good amount to in turn your work. A recruitment agency only works with your firm until you find a hire. In contrast, on the other hand, an RPO is an ongoing expense. You will need to spend your amount month after month. 

Final Words

It's time to wrap up! First of all, you need to ask yourself a simple question. Do I need to hire a candidate as a permanent or as a temporary employee? If you are looking for a long-term and qualified employee, an RPO would be the best option. Also, if you wish to have some control over the process like sourcing, interview, and hiring, then again! An RPO service provider is a better choice.

Moreover, suppose you are looking for short-term hire. You are not looking for a long-term partnership with any hiring agency. This way, a recruitment agent will better fit this situation. 

So, you need to decide as per your business need. I hope this blog has accurately helped you.

An RPO service provider's main work ensures that your business gets the top candidates as a permanent hire. Even in the markets, which are actually difficult. With an RPO service, the time, energy, screening, expertise in sourcing, and onboarding new permanent staff ensure that your business gets the best hires.

These are some of the advantages and disadvantages of an RPO service provider:


  • An RPO is a scalable and adaptable resource.
  • RPO includes a positive candidate experience.
  • You can focus on your core business. Especially if you are running a startup business.  
  • It helps you find the best candidates.
  • RPO services provider gives you meaningful insights.


  • Cultural clashes 
  • Long-term buy-in
  • Lack of communication 
  • Long-term buy-in

A recruitment agency is popularly known as an external firm. A recruitment agency finds suitable candidates for a particular firm. Employers task them to find candidates for vacant job positions within their firms. Therefore, they can save time and money. Also, you will be able to access the extended candidate that a direct company network cannot reach.

The biggest difference between Recruitment Agency and Employment Agency is whom they provide. A Recruitment Agency works from a specific employer. In addition, an Employment Agency works for the particular job seeker.

Following are some of the reasons why companies use a recruitment agency:

  • A Recruitment agency has the ability to identify talent. 
  • They help the firm in advertising their job roles.
  • Handles the whole recruitment process, including negotiating salaries.
  • Interview applicants.
  • A recruitment agency gives businesses the benefit of increasing or decreasing their employee levels as needed.