Recruitment Process Outsourcing (RPO): What It Is And How To Get Started

Recruiting is one of the most challenging aspects of a company’s talent management strategy. 

From sourcing qualified candidates, assessing their skills and fit with the company culture, to interviewing and making hiring decisions, this can take up much time that could be better spent elsewhere. 

In MRI Network’s Recruiter and Employer Sentiment survey, 56% of recruiters said that lengthy hiring processes and the inability to find suitable talent are among hiring managers’ most significant challenges. 

But how can HR professionals overcome these challenges and improve the efficiency of their hiring processes? The answer? Recruitment process outsourcing (RPO)  

In this article, we delve into the intricacies of outsourcing recruitment processes, provide insights into why companies should consider RPO services, and highlight the benefits of using the services of experienced RPO service providers. 

What is recruitment process outsourcing (RPO)? 

Recruitment process outsourcing (RPO) is a form of human resource outsourcing (HRO) that enables organisations to utilise a cost-effective, fully customisable, and scalable workforce solution delivered by an experienced partner. 

RPO is a strategic outsourcing solution that helps companies transfer all or part of the recruitment process to a third-party provider.  

In a traditional “staff augmentation” model, a company advertises jobs, recruits candidates, and then makes offers. With recruitment process outsourcing (RPO), these steps are shifted from employers into the hands of external service providers. 

By using an RPO solution, companies can reduce their recruitment costs and timelines by leveraging the expertise of an external service provider. 

Why should businesses consider RPO? 

According to a study by Glassdoor, 76% of HR managers admit that attracting suitable candidates is their biggest challenge. This means that most companies spend a lot of time sifting through tons of applications from candidates unsuitable for their open positions. 

Moreover, the National Federation of Independent Business found that 87% of HR professionals reported “fewer or no qualified applicants” for the jobs they are trying to fill. 

That said, here are some reasons companies should consider the services of RPO: 

• The Great Resignation 

This describes the record number of people who have left their jobs since the pandemic began. There is still no sign of this trend slowing down, with one in five workers worldwide planning to quit in 2022.  

Therefore, forward-thinking companies need to prioritise talent retention as much as acquisition, which is where RPO comes in. 

• Competitive labour market 

39% of applicants who turn down a job do so because they have received another job offer, and overall at least 74% of recruiters face hiring competition. More than ever, recruiters face a complex hiring environment that requires the services of RPO. 

RPO partners are subject-matter experts and talent acquisition specialists. They combine people, technology, processes, and metrics into a talent acquisition function and can scale their recruitment capabilities as needed. 

Recommended reading: The Ultimate Guide to Employee Outsourcing in Nigeria

What are the types of RPO services? 

RPO is not a one-size-fits-all solution. Services vary depending on the scope of your needs and the size of your organisation. RPO services fall into one of three categories: 

• End-to-End (full-service) RPO. This model includes managing the entire hiring lifecycle — from workforce planning to talent sourcing and assessment to offer presentation and onboarding. 
• On-demand RPO. Contract-based engagement offers individual RPO components for specific functions within a particular timeframe (e.g., the IT department or an entire company division). 
• Project-based RPO. This is a hybrid model that offers the best of both worlds. Project-based RPO provides a rapid response to a talent shortage. It addresses a specific hiring need for a company. For example, if you want to launch a new product, this model can help you find specific talent to help you achieve your goals. 

How is RPO different from traditional recruiting? 

The most noticeable difference is that RPO providers focus on your mission, not just the job you need to fill. In traditional recruiting, the prevailing mentality is often to “fill the job”. While filling the position is essential, that is about it. 

RPO, however, goes deeper. It starts with a thorough understanding of your organisation, taps into the performance of your current teams, analyses their strengths and weaknesses, and identifies the most suitable candidates for each position. 

In addition, recruitment process outsourcing helps companies create an engaging employment brand, manage integrated workflows, and gain access to references and background information. This helps improve the quality of hires. 

Traditional recruiters, on the other hand, do not have the time or resources to learn everything about your business.  

Some services offered by recruitment process outsourcing providers include: 

• Talent engagement 
• Candidate management 
• Recruitment analytics support 
• Workforce planning 
• Pre-employment screening 
• Compliance and risk management 
• Employer brand consultation 

Recommended reading: Talent Development: A Strategy of Necessity

Benefits of enlisting experienced RPO providers 

Some of the key benefits of using an RPO provider include: 

• Better quality and diverse hires 

The primary goal of an RPO provider is to ensure that companies can hire the best people, regardless of challenging market conditions or specific industry needs. With an RPO provider, you can secure top talent, access a vast talent pool of ready-to-go candidates, and benefit from a diverse team. 

A Harvard Business Review study found that diversity unleashes innovation and increases market share. Companies with diverse teams saw a 45% year-over-year gain in market share. 

• Reduced cost per hire and agency spend 

Besides hiring and retaining a diverse team, RPO providers also strive to reduce their clients’ overall cost per hire by improving recruiting efficiency and candidate screening time. 

Zippia estimates that the average vacancy costs employers an incredible $4,129 over a 42-day period — the time it typically takes to fill a vacancy. This equates to $98 per day. 

Leveraging the services of RPO providers allows companies to achieve a higher return on investment while lowering their recruiting and advertising spend. 

• Expert employer branding 

According to a study by LinkedIn on the impact of employer brand on talent acquisition, an overwhelming 75% of job seekers consider employer brand before applying for a job. 

RPO providers help companies develop an effective employer brand strategy. This includes developing a compelling brand story that highlights your company’s culture and increases your chances of hiring top talent. 

In the same study, 55% of hiring managers have a proactive employer brand strategy, and 59% of recruiting specialists are already investing in employer brand. 

• Adherence to compliance and regulatory requirements 

As an employer, you may need to comply with specific compliance regulations, such as the Equal Opportunity Act or the Data Protection Act, which requires you to obtain applicants’ consent before storing their personal information. 

RPO providers help companies comply with employment and compliance regulations in line with local employment policies and best practices. 

• Access to real-time data and reporting 

Recruitment analysis is a crucial business strategy that can help companies meet their hiring needs. According to Deloitte’s Global Human Capital Trends study, 71% of companies prioritise workforce analytics. 

By partnering with RPO providers, you gain access to valuable insights that can help you improve your recruitment and retention strategies, identify market trends, and help your company stay ahead of the competition. 

Need a workforce solutions partner? 

RPO is an affordable and efficient staffing solution that helps organisations optimise resources across the entire recruitment lifecycle and maximise business results. It helps companies reduce time-to-fill, improve the candidate experience, mitigate risks associated with compliance, and streamline operations to better manage the complexities of the modern workplace. 

MacTay’s RPO solutions help companies hire faster and better by combining human expertise and best-in-class technology to deliver intelligent, customisable, and cost-effective staffing solutions to a wide range of businesses in Africa and beyond. 

With over four decades of experience working with some of the world’s largest brands, our team of experts has implemented successful management solutions and manages critical HR functions across a wide range of industries. 

For more information about our talent management solutions and how we can partner with you to meet your workforce needs, please email us at info@mactay.com.