The Ultimate Guide To RPO In Recruiting (Benefits & Models)


RPO in recruiting is a workforce solution in which an external RPO firm supports an employer's talent acquisition. RPO in recruiting is a good way to source both offshore and in-house staffing according to the particular business needs. For example, RPO in recruiting may only cover the sourcing and screening of top candidates, or it may cover the overall recruiting cycle from receiving the hiring manager's request to presenting and negotiating job offers to job applicants. In this complete blog, we will teach you the basics of RPO recruiting and how it benefits firms in order to level up their business.

What Is RPO In Recruiting?

RPO in recruiting refers to the process of delegating hiring and related tasks to a service provider, whether it is about domestically or offshore. In RPO (Recruitment Process), the service provider source workforce through recruitment and headhunting, RPO service provider helps their clients in order to screen and hiring teams on their behalf by taking care of everything needed to operate, including the latest technology and tools.

5 Different Models Of RPO In Recruiting

The RPO in recruiting does not just employ a single form of hiring for their clients. The service providers work according to what would perfectly fit their client's needs. An RPO may use one or multiple models for recruiting staff. Read below to know:

Model 1: On-Demand RPO

On-demand model of RPO in recruiting, also known as "recruiter on-demand," is used by firms that have incontestable hiring needs. This model of RPO in recruiting can help firms with a cost-effective solution in order to achieve sudden large-scale hiring needs or downsizing of a particular firm too.

Model 2: Function-based RPO

Function-based (or selective RPOs) take a certain component in a firm's hiring needs. For example, in this model of RPO in recruiting, a recruitment team always stays focused in order to find top candidates for a department that needs a massive as well as a complicated hiring process.

Model 3: Project-based RPO

Project-based RPO in recruiting fits well with firms that wish to retain in-house recruitment for their day-to-day hiring. Those such firms are the ones that work in the short-term, having their specific timelines and goals to achieve. A perfect example of a project-based RPO in recruiting is when a firm decides to hire for a new branch opening or a new product launch.

Model 4: Hybrid RPO

Hybrid RPO in recruiting is the most compatible choice for a firm that needs permanent workforce solutions. Having this model of RPO in recruiting gives those such firms more flexibility in order to manage both in-house and outsourced jobs. In a hybrid RPO, the providers generally take care of all compliance regulations for the hired team. This way, the business gets able to focus on other core business concerns.

Model 5: Full-Scale RPO

Lastly, a Full-scale or end-to-end model of RPO in recruiting is responsible for covering the overall recruitment process. The source and screen job applicants. Also, they hire, train, and onboard employees for accurate job roles. Having a full-scale model of RPO in recruiting can help firms focus on more crucial tasks like providing their employees better benefits as well as achieving company goals.

What Are The Benefits Of RPO In Recruiting?

RPO in recruiting is a solution that has vast potential. And the growth of the RPO in recruiting market in recent years is proof of this. A part of many new ideas, there are a few buzzes that cloak RPO. There are also tons of clear benefits for businesses that embed RPO (recruitment process outsourcing) in their hiring plans. Following are the benefits of RPO in recruiting

Benefit 1: Hiring Top Candidates

The main purpose of RPO in recruiting is to ensure that your firm gets the best and top permanent hires. Even in today's competitive market where the process is seriously difficult. By giving proper time, energy, and expertise, the RPO in recruiting works in order to source, screen as well as onboard new permanent staff. They ensure that your business gets top talent. The process of RPO in recruiting also creates talent pools in order to make sure that if a new position becomes vacant.

Benefit 2: Cost-Effective

The service provides or RPO in recruiting does not just ensure that you hire and retain the best talent, But, it is also more cost-effective than other traditional hiring methods. As we are discussing RPO in recruiting, you must know that RPO providers are most often measured on cost-of-hire, time-to-hire, and quality-of-hire as well. The role of the RPO service provider is to ensure that permanent job vacancies should not remain open for a few months. Every day that a vacancy remains open leads to increased costs and decreased productivity. A fully optimized RPO ensures that these negative factors remain at a minimum.

Benefit 3: Reduction In Ad Cost

Job ads are particularly expensive, especially when a specific firm tries to attract the most decent permanent staff. Buying the solution in the form of RPO in recruiting handover the pressure on finding the top candidates for the service provider. This way, spending more money on ads is eliminated. So, this is how the reduction in ad cost is one of the best benefits provisioned by RPO in recruiting.

Benefit 4: Enhance Candidate Engagement

Recruitment leaders or hiring managers understand the point of candidate engagement. However, getting the candidate's experience right is not that easy. The process of RPO in recruiting offers the experience and in-house expertise in order to fully optimize the candidate experience for a particular business. RPO in recruiting not just increases the chances of attracting top candidates even. It also impacts the specific firm's ability to perform better in the market.

Benefit 5: Best Employer Branding

You must know that employer branding is the key in order to attracting top talent in the market. More than 70% of leaders of RPO in recruiting worldwide agree that employer branding has a powerful impact on hiring. The best providers of RPO in recruiting help firms actually define their value to the best and potential candidates. The best RPO service providers are always able to market your business to candidates out there, no matter if it is in difficult and traditionally challenging industries.

RPO In Recruiting & Other Forms Of Recruitment (A Comparison)

Generally, apart from the RPO method, firms have different ways in order to hire employees. These methods are staff leasing, in-house, and hiring an employer of record (EoR). In this section of this blog, we will be comparing all these hiring methods with RPO in recruiting methods.

RPO Vs. In-House Hiring

As we compare RPO in recruiting to the in-house recruiting method, RPO helps firms to hire top talents without any limitations of the locality as well as resources. RPO service providers basically offer all-in-one solutions as per their budget. But still, they constantly try to maximize the best services they may give to their clients.

RPO vs. EOR (Employer of Record)

An employer of record, abbreviated as EoR, is usually tapped by firms in order to overtake legal duties. On the other hand, the method of RPO in recruiting only serves as "employers of record" for the hiring team. Every candidate hired by the team of RPO in recruiting will be the responsibility of that particular firm that the recruitment team represents.

RPO vs. Staff Leasing

The staff leasing recruiting method and RPO in recruiting method have almost similar features in order to hire and manage employees. Staff leasing directly provides outsourced staffing services that employers can manage, Whereas RPO usually handles the overall recruitment process. The employees hired via RPO might be listed as the client's staff. This method can also be used for in-house staffing, depending on their agreements. 

Final Words

RPO in recruiting is one of the most commonly outsourced services nowadays. It is a big thanks to modern technology, along with firms and hiring teams who are constantly giving their best to find ways in order to make their recruitment process better. So, are you too looking for a permanent and effective workforce solution that exactly meets the selection criteria for your firm? Don't know where to start? We E global Soft Services are available 24/7 to offer integrated services to both small and large businesses worldwide. I hope now you understand that only the right RPO (recruitment process outsourcing) provider can ensure how the specific company will get the best out of their ways of functions.

RPO stands for recruitment process outsourcing. It is a business model or a process where a firm outsources the management of the hiring function to a third-party expert in order to drive cost, efficiency, quality, service, and other scalability benefits.

Primary benefits of effective RPO in recruiting and selection processes include accurate qualification screenings and a strong pool of applicants. Also, adapting the RPO method provided us with proactive strategic alignment with company goals, reduced turnover, as well as high morale.

In easy terms, RPO (Recruitment Process Outsourcing) is a form of Business Process Outsourcing abbreviated as BPO. in this process of RPO in recruiting, an employer transfers all or part of the duties of its recruitment processes to an external service provider which is also known as a third-party service provider. On the other side, BPO is about contracting non-essential business tasks to a third-party service provider.

The cost to adapt services from an RPO in recruiting depends on the salary of the position a particular firm is trying to fill. Also, it can be decided by the percentage of a new hire's first-year salary (commonly between 15% and 30%).

Cost Reduction is one of the prime advantages of RPO (recruitment process outsourcing). It is important to know that every day that a vacant job position remains unfilled costs a company more. RPO helps in filling the vacant job vacancies fast, which is better for productivity. Also, it reduces the cost of HR resources spent in order to recruit top candidates to a particular firm.