A Beginner’s Guide to How RPO Works In HRM

July 28, 2022

According to a 2019 study, it was estimated that the RPO industry would grow by 18.5% in the next seven years. Adding to that prediction, the pandemic outbreak necessitated businesses to find new ways to recruit workers, eventually turning companies to opt for RPO. If you’re a business looking to benefit from RPO for your organization, here is a beginner’s guide to how it works in an HR system and what you can expect from it.

What Is It?

In simple terms, RPO (Recruitment process outsourcing), as the word implies, is a workforce solution where an organization can outsource part or the entire recruitment process of its HRM function to a third-party service provider.

In other words, another organization that is specialized in recruiting talent for different industries and their respective needs will take the responsibility of sourcing potential candidates for your company based on your specific recruiting requirements. This third-party service provider can be based onshore or offshore.

What Do They Do?

The RPO service providers will design and execute the entire recruitment process for your company. They do this by aligning their strategies and techniques to your personalized recruitment goals and challenges. They also ensure their recruitment processes can be upscaled or ramped down based on the hiring demands allowing better operational agility and safeguarding sustainability.

What Do You Get?

Qualitative Talent

As RPOs are specialised and proficient in dedicating their time, resources, and creativity to help companies enjoy the benefit of top talent, they know what exactly works for a given industry and position.

They will expertly source, screen, and present the best talent that meets company requirements. Most importantly, their detailed global databases let them provide quick talent for vacancies reducing the hiring time by roughly 40%.

Cost Efficiency

Although many see RPOs as expensive, they don’t seem to look at the bigger picture, which contributes to significant cost reduction and savings in the long run. You can easily measure this ROI by taking the time, cost, and quality of hire and running them through relevant HR management software.

RPOs ensure your company will not have to experience any vacancies for a long time by giving the most apt talent, which they believe reduces recruitment costs which is a major part of HR expenses.

Improved Candidate Engagement

With the increasing steps and stages involved in a typical recruitment process to filter the best talent, it has become rather difficult to ensure good candidate experience. This comes with the cost of foregoing candidate engagement, which is essential to ensure they pass the recruitment stages as they should with enhanced convenience and no ambiguity.

Losing this engagement means it’s easy to slip out potential candidates. On the other hand, RPO professionals handle all their projects with candidate engagement in mind, which goes a long way in attracting good talent and giving them a convenient recruiting experience.

Global Reach

With the concept of a global village expanding across HR systems, it has become extremely easy to reach the global market in search of the right talent. However, it is challenging to achieve global compliance. This is where RPO companies can be of great help as they are updated with the changing employment laws and trends of different countries.

They will ensure your company is hiring people who comply with local regulations. Being legally compliant when sourcing talent from other countries is crucial to avoid legal consequences and penalties, which often come with a hefty cost.