Recruiting Process

Recruitment process outsourcing (RPO) is a form of business process outsourcing (BPO) where an employer transfers all or part of its recruitment processes to an external service provider, according to the Recruitment Process Outsourcing Association (RPOA). An RPO provider can provide its own or may assume the company’s staff, technology, methodologies, and reporting. In all cases, RPO differs greatly from providers such as staffing companies and contingent/ retained search providers in that it assumes ownership of the design and management of the recruitment process and the responsibility of results.

How does RPO work?

RPO services typically start with a recruitment process outsourcing agreement, which outlines the scope of the project, timing, cost and more. Often, the HR management (HRM) staff and the RPO service provider meet to create or discuss job descriptions. Then, the RPO team spreads the word about the job opening using its own recruiting methodologies and technology or the client’s techniques and systems. Social media recruiting is a large part of RPO.

As resumes arrive, the RPO service provider assesses the candidates and may circle back with the employer if there are disconnects that might mean the job description needs to be tweaked. The RPO team will gather and screen applicants and may shepherd likely candidates through pre-employment assessments if required. If the RPO process is successful, the employer will merely need to interview a small number of highly vetted candidates and make a choice.

Benefits of RPO

Organizations that outsource recruitment hope to reduce cost, save time, improve compliance and get better access to more qualified candidates. In a tight labor market or with specialized fields, RPO in recruitment can help an employer stand out.

RPO can also provide companies with people analytics on hiring practices. Another benefit of RPO is the way it supports globalization: As organizations expand into other countries, it’s important to standardize sourcing, hiring and onboarding processes. Replacing multiple recruitment outposts with a centralized RPO provider can help companies achieve this aim.