Let’s face it- recruiting agencies get a bad reputation. Many companies avoid enlisting the help of an agency to find talent because their methods can be expensive and inefficient. However, with the shift toward new recruiting methods, such as Recruitment Process Outsourcing (RPO), your business can now benefit from a flexible and dedicated solution. Unlike traditional recruiting, RPO isn’t about simply filling positions, but developing a hiring strategy for the employer brand’s long-term success.

Below we’ve listed the top 5 benefits of RPO.

1. Cost Savings Compared to Staffing Agencies

Traditional agencies charge 20% to 30% of the salary of each placement they make, some charging even higher for specialty positions. Therefore, if an agency is tasked with making a placement for a position with an $80,000 salary, they would charge between $16,000 and $24,000. On the other hand, RPO will cost between 10% to 16%. This means RPO can save you between 40-60% compared to staffing agencies, enabling you to save on recruitment costs and allocate resources to other areas of the business.

2. More Resources and Improved Tools

When you hire an RPO provider, you may choose to hire them strictly for specific tasks. They can also act as your entire recruiting function if you decide you want that level of engagement. This means you’ll have an entire team of people dedicated to finding the best hires for your company. In addition, RPO providers have access to the latest recruitment technology and use analytics to properly track hiring. This makes it easier for your company to understand and evaluate your hiring processes and candidate selection.

3. Consistent Processes Will Reduce the Time to Hire

Not having a consistent and reliable hiring process in place can be detrimental to any business. It can create confusion and become an overall lengthy process for the candidate, leading to a negative interview experience. To avoid this, RPO providers establish a process of sourcing, screening, and selecting candidates. RPO procedures ensure hiring policies are consistent across all departments, and ultimately reduce the overall time to hire for your company.

4. Scale According to Your Company’s Needs

One of the greatest things about RPO is the ability to scale up or down according to your company’s needs. This is especially helpful for small companies that are growing rapidly. But it is also helpful for companies with unforeseen circumstances who may need to halt hiring. RPO providers are able to adapt to any situation, making them highly flexible. Whether your company is growing or downsizing, this solution is built to accommodate and offer scalability.

5. Improved Candidate Quality from a Broad Talent Pool

Perhaps the most significant benefit of using an RPO provider is the increased candidate quality. While a hiring manager may be pressed for time and rush the recruitment process along, an RPO provider typically has a rigorous screening and selection process in place to ensure that only the most qualified and suitable candidates are presented to the hiring company. They have a dedicated team of recruiters with industry expertise and access to advanced recruiting technologies, which allows them to source and attract the best candidates for a given position. Additionally, because RPO providers often handle recruitment for multiple clients in a particular industry, they have a deep understanding of the talent landscape and can provide valuable insights into market trends and top performers.

Benefits of RPO

RPO solves the traditional recruiting problem by providing a high-value solution at an appropriate cost. It signals the recruiting industry is evolving and recognizing the need for a more flexible recruitment model. With all the benefits of RPO, including advanced resources, scalability, cost savings, and a consistent process, it’s no wonder recruiting agencies and businesses are taking advantage of this method.

If you’re interested in learning more about how RPO professionals can help your company, reach out to us.

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This article was originally published on June 27, 2022; it has since been updated to reflect January 19, 2023.