RPO Vs. Staffing: Which One Is Right For Your Recruitment Strategies?

For the question “RPO vs. Staffing, which is better,” you will need to carve out the proper conceptual knowledge. The RPO providers manage the entire recruitment cycle for the client. When it comes to the labor market, it is vital to acquire a highly effective talent acquisition team, including comprehensive strategies for your firm. And as many firms plan to outsource this process to get better results, it raises a few questions: How do organizations choose when it comes to RPO vs. Staffing, etc.

The major difference between the two is the level of commitment and engagement they provide to the organizations. When comparing RPO vs. Staffing, RPO takes on a bigger role. RPO positions the team as the long-term partner rather than a more transactional vendor. Their job is to work closely with the HR teams to modify the strategies that fit the precise requirements of the firm. In addition, RPO provides a wider range of capabilities that has technology solutions, candidate experience, employer brand, and total talent technique. Well, it is not the whole concept of RPO vs. Staffing, as a whole lot of strategies and benefits complete the idea. 

 

 

What is RPO (Recruitment Process Outsourcing)?

It is important that you understand both the terms separately to choose between RPO vs. Staffing. Outsourcing the recruitment process to a third-party service provider is the first step in the RPO. The recruitment process outsourcing method is an offshoot of business process outsourcing (BPO) and is intended to hire qualified individuals for a future company. All of these procedures must be completed, nevertheless, with little assistance from HR professionals. An employer looking to fill open positions could enter into a contract with a recruitment process outsourcing company, assigning it the duty of locating, screening, and evaluating qualified candidates.

If you are wondering which one is better between RPO vs. Staffing for medium or large-sized firms, here is an explanation for you. Medium- and large-sized businesses are the main users of recruitment process outsourcing, which is frequently a well-liked option for employers looking to hire people in specialized or technical fields. RPO can offer alternative perspectives, talents, and attention to the issue in a competitive labor market where it might be challenging to recruit potential new employees. At the same time, it frees up HR professionals to concentrate on internal activities.

How Does RPO Work?

RPO services commonly start with a recruitment process outsourcing, which traces the scope of the project, cost, timing, and whatnot. Most often, the HR management staff and RPO service provider meet to build or discuss the job descriptions. Next, the RPO team handles the job advertisement using its own methodologies. Here, take social media recruitment, for instance, as it is a large part of RPO outsourcing when compared to RPO vs. Staffing.

As resumes for a vacant job arrive, the RPO service provider performs the screening for the candidates. And may circle back with the employer if there are disadvantages that might mean the job description requires to be tweaked. The recruitment process outsourcing team will gather and screen applicants and may recruit likely candidates via pre-employment estimates. In case the RPO process is successful, the employer will simply need to interview a small number of highly vetted candidates and make a choice. 

What are the Benefits of RPO?

Companies that outsource recruiting do so in an effort to improve compliance, cut costs, and gain greater access to applicants that are more qualified. RPO in recruitment can let a business stand out in a competitive labor market with specialized fields. For a better perspective of RPO vs. Staffing, you have to understand the beneficial features of both services.

RPO can offer businesses people analytics about hiring procedures. Another advantage of RPO is how it helps with internationalization. As businesses grow internationally, it's critical to standardize the sourcing, hiring, and onboarding procedures. Companies can accomplish this goal by replacing numerous recruitment outposts with a centralized RPO service.

Here are a few pointers that will help you understand how recruitment process outsourcing works when it comes to selecting between the correct one, “RPO vs. staffing.”

1. Adaptable Solutions: RPO works on the principle of an expandable and flexible solution. It means a business will only need to pay at the time of service requirement and for the service they require. 
2. Reduced Cost and Time to Hire: Recruitment process outsourcing providers follow strict timelines to meet the requirement. In addition, RPO can offer at least a 30% reduction in the cost-per-hire in the long run. 
3. Analytics and Reporting: RPO providers analyze, measure, and highlight the insights from every stage of the process to enable effective decision-making. 
4. Quality of Hire: RPO providers’ role involves designing and following extensive protocols to hire those people who meet the exquisite demands of the company.

With its ever-increasing popularity, RPO is quickly replacing all other models of the requirement to offer a more holistic workplace. When it comes to RPO vs. Staffing, RPO provider and company go hand-in-hand. There is a potential to create a win-win environment for managers, employers, and HR, including the candidates. 

What is Staffing?

There is a fine line difference between RPO vs. Staffing. Usually, people take staffing as the secondary phrase for the recruitment process. However, they both differ in many ways. Through Staffing, you can easily fill a role that is currently open at your firm. Typically, staffing is referred to as short-term positions, such as providing a precise service during a project or hiring people to help you at an event.

And when it comes to a staffing agency, it is a company that gathers a huge pool of human resources. The force of big human resource management is applied to fulfill the short-term recruiting requirements of other companies. The staffing management places the candidates in the vacant positions at the time of need. Recruitment agencies charge as per the number of successful confirmations of employees to the employer company.

In the short term, staffing can be appealing for companies or people who are out of work. They are also known as active candidates. Someone who already has a job is not likely to quit it in favor of staffing employment. Businesses frequently turn to agencies for their workforce requirements. Most agencies already have a database of people that are ready to start right away and looking for a temporary job. The agency evaluates and interviews these applicants before giving you a list of the best options. 

Simply choose the person you want and notify them of any details about the job they should be aware of beforehand. Staffing has the benefit of avoiding some of the requirements of recruiting. For instance, there is no need to worry about taxes or to offer benefits to employees. Furthermore, you might be able to escape thorough background checks.

How Does Staffing Work?

It is definite that human resources are among the most important for any firm. It is because they enable the effective and efficient use of all other resources like money, machines, materials, etc.

Because of this, each and every employee must be placed in the ideal position inside the company. And employees should be one that best suits their skills, aptitude, and areas of specialization.

Here are a few pointers for a better understanding of RPO vs. Staffing:

1. Your company has a short-term or contract role to fill.
2. The requirement of the vacant role demands specific skills or unskilled labor.
3. You have an urgent requirement to fulfill the vacant position.
4. There is a requirement to fulfill several positions, for instance, during an expansion. 
5. Staffing can provide minimal arrangements if you require training for a particular role. 

What are the Benefits of Staffing?

The benefits of an effective staffing function can be described as follows:

1. Right service at the right time: The staffing process helps in getting the right people at the right time. Here, the staffing function helps the management in determining the number of employees required for the organization. And it also helps with ensuring the qualifications and experience of the employees required for the firm. 
2. Improved Organizational Productivity: The hiring process contributes to increased organizational productivity. As a result, the business can improve its workforce's quality by careful hiring, and it can raise its workforce's performance level through thoughtful training.
3. Maintains Job Morale and Work Satisfaction: It assists in ensuring job satisfaction for the workers and so maintains their morale. The personnel become more motivated, more effective, and more confident in their ability to grow in their careers with the help of an effective training and development program.

Key Differences Between RPO Vs. Staffing Agency 

It is quite clear that both options, “RPO vs. Staffing,” are required to save time and effort in conducting the recruitment process within a firm. Now, we need to understand the key differences between RPO vs. Staffing to understand which one is right for you.

1. Goal: The two procedures, RPO vs. Staffing, have quite different goals, and this is the main distinction. The successful delivery of the workforce in a short amount of time is the main emphasis of staffing. Finding qualified applicants who are the best fits for the particular job role is the primary goal of an RPO contrast.
2. Candidate Sourcing: Typically, when we compare RPO vs. Staffing, staffing companies use their networks to discover candidates. It excludes corporate hiring practices, including staff recommendations, brand marketing, and other direct engagements. An RPO, on the other hand, makes use of every available method to locate the most suitable individuals for the company. They cover all bases, from their outlets to the business' employee referral programs. They find the right talent pool by investigating several options, including employer websites, online job search portals, etc. As a result, they also assist in raising the employer company's brand value.
3. Overall Cost Management: In the context of RPO vs. Staffing, a staffing firm charges 25% to 30% of the salary of a job position. For instance, if a job role has a salary of Rs. 50,000/-, the staffing agency asks for the amount within 12,500/- to 15,000/-. It means the overall cost for that particular job role is now up to 62,500/- to 65,000/-. However, RPO providers work based on monthly payment management instead of charging payment per recruitment. So, considering the long-term benefits, hiring an RPO seems convenient when comparing RPO vs. Staffing. 
4. Accountability: The staffing agencies do not hold themselves accountable for the recruitment results. On the contrary, RPO providers own the responsibility for the entire recruitment process along with the result. Therefore, after partnering with recruitment process outsourcing firms in India or elsewhere, the employer company can unwind. Thus, RPO differs from conventional staffing firms in this way. To sum up, you can consider staffing solutions if you need urgent recruitment for a brief period of time. However, you must rely on the recruiting process outsourcing approach to meet long-term objectives for locating qualified candidates.

Final Verdict

When comparing RPO vs. Staffing, RPO remains the profitable choice for modern business. Given effective cost management, RPO holds the root of the most preferred way to hire the best talents in the market. However, if you require a short-term position in your firm, staffing might be the better option to consider. RPO vs. Staffing both are services that offer different requirements. So, choose as per your need. For your RPO service requirement, do contact our sourcing and recruiting experts at E Global Soft Solutions. We will help you find the right talent for your brand strengthening.