What makes for great RPO?

As RPO (Recruitment Process Outsourcing) – the transfer of recruitment to an external service provider – becomes more common, now is a good time to reflect on why what was isolated practice has now become a trend very much. This is seen as the ideal solution for high volume activity for contingent and permanent needs.

The most obvious (but not necessarily the most important) reason is that of cost. Outsourcing recruitment can be cost-effective, without compromising on the quality of candidates that are recruited. Outsourcing can significantly improve the retention rates of employees and new hires. Of course, high employee turnover is one of the most significant associated costs in recruitment, so outsourcing is an excellent way of reducing the financial burden. Alongside, cost-saving, timesaving is another obvious benefit of outsourcing. Using the service of an external provider will free the organisations team up to focus on other key considerations and strategic initiatives.

To ensure success of RPO it is vital for there to be effective channels of communication. Change management requires dialogue that is ongoing and consistent. Projects are much more likely to be successful when deliverables are defined and measurable. Often it is the lack of clearly measurable deliverables that creates the ambiguity. The more clarity there is, the better the chances of success will be.

To look at the effectiveness of RPO beyond the cost, it is useful to unpick the two most commonly used RPO models: resource based, and performance based.

A resource-based model is usually founded by having a set number of RPO providers, most likely operating on-site. It’s a fixed cost model with performance typically measured by a service level agreement. There is less flexibility offered by this type of resource-based model as any changes to process and structures would normally ned a process of formal approval. On the flipside, this RPO model affords the client a greater oversight of the RPO team members and therefore more input into the decision-making process.

The alternative to a performance based RPO model is designed to offer a greater amount of flexibility overall. Typically, RPO model is designed to offer a greater amount of flexibility overall. Typically, RPO team members will be located 0ff-site and in a performance base model the provider is the driving force. It enables more diverse activity than in a resource-based model and there is greater accountability of the provider. A key advantage of a performance-based model is that the RPO provider responds to changing market and business conditions have more ownership and responsibility, rather than the actual client.

Organisations need to consider which type of model is the most suitable for their needs. RPO can transform an organisation's approach to talent acquisition and allows for greater consistency, control and complete visibility of it.

 

 

Latest Blog Posts

Shutterstock 1432991804

The role of diversity and inclusion in difficult training conditions

The pandemic has presented itself a major disruptor to operations in 2020 and while organisations move towards focusing on survival, numerous comments from thought leaders suggest that organisations need to continue focusing on their D&I efforts as an essential aspect of ensuring they remain as profitable and viable in tough periods.

Read More

Shutterstock 1854821353

What will an upskilled nation mean going forward?

In previous industrial revolutions, the impact on the labour force and various positions has meant major changes to the way we work, and the type of work we do. The Fourth Industrial Revolution or Industry 4.0, is consistently advancing on a daily basis as progression in automation, the scope of the internet and artificial intelligence continue to change the world we live in.

Read More

Shutterstock 1421446100

The driving factors behind innovation in recruitment tools and technology

There are numerous and consistently changing elements of the recruitment process that are influenced by technology, professional habits and practices. The recruitment market and industry has continued to see growth and expansion in its scope over its lifespan and innovation has been shaped by he tools and techniques used.

Read More