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The 10 benefits of Recruitment Process Outsourcing (RPO)

Recruitment Process Outsourcing is a solution that is proving beneficial for businesses across the globe. But what makes RPO so great, and why should businesses embrace it?

The growth in the RPO market over the past decade has come during a period in which organisations are sharpening their focus on strategically optimising business processes. 

At the same time, hiring managers are operating in an economic environment with record low unemployment, a lack of quality candidates and widening skills gaps. Talent acquisition has never been so difficult for HR professionals. No matter how much time and money is spent promoting jobs on the ever-increasing number of job boards, the pressure to find qualified candidates is intense. 

In such a situation, the benefits of recruitment process outsourcing make it a logical choice for businesses looking to attract, hire and retain quality permanent talent. From optimising recruitment processes to reducing talent acquisition spend, improving candidate experience to accessing untapped talent pools, an RPO solution has many advantages. Here are ten.

What is RPO? | Learn the basics from Guidant Global

Benefit 1: Efficient recruitment processes 

Within large organisations, recruitment is often approached independently in different parts of the business. While an IT division may rely on expensive, ad hoc recruitment agencies, another may choose to use their internal HR function. Both of these approaches are inefficient, with one producing excessive spend and the other laying burden on HR departments that are increasingly under pressure to deliver results.

Under a full, end-to-end RPO solution, hiring processes are more efficient – with all permanent hiring centralised. Because RPO providers work with businesses across the globe, they also have the knowledge, experience and best practices required to deliver the best results for a client. Rather than relying on disparate internal approaches, an RPO ensures exceptional delivery of talent throughout a business.

Benefit 2: HR is freed up to focus on strategic goals

The role of an HR professional is tough. There are more expectations and responsibilities than ever, and yet still, few people get a seat at important board meetings. Add an overcooked talent market into the mix, and it’s clear that the job of attracting permanent staff is becoming the most difficult and time-consuming task within HR teams. With this in mind, choosing an RPO solution has clear and obvious advantages.

As RPO providers take care of all permanent recruitment and provide an end-to-end service, they take a big chunk of responsibility outside of the HR sphere. This gives HR professionals the added time and space necessary not only to keep on top of other parts of their job, but also to develop their skills, adapt to technological change, and perhaps even get a seat at the top table.

Benefit 3: Reduction in talent acquisition spend

Outsourcing recruitment through an RPO solution is one of the most effective ways for businesses to reduce their talent acquisition spend. Finding talent is a time-consuming process, even for the best talent acquisition and HR professionals. This is especially the case when recruiting for hard-to-fill roles.

As every business knows, time is money. According to Glassdoor, unfilled jobs in the US tech market add up to a total value of $20.1 billion, and that’s just the tech market. For every position that remains vacant within an organisation, a business is losing money. RPO providers, however, are able to quickly fill even the most difficult roles thanks to their dedicated expertise, and their ready-made talent pools.

Benefit 4: Attract passive and underutilised talent pools

The race for talent is more competitive than ever before. To attract the best people, businesses need to look to passive and underutilised talent pools. But doing so is far from simple. RPO providers have databases of talent throughout the globe, as well as schemes to attract previously ignored talent.

As an example, Guidant Global engages with ex-offenders, people with disabilities and people who are neurodivergent. These groups are often disregarded when searching out candidates. RPO providers are able to ensure that these talent groups are treated in the correct manner during the recruitment process – leading to greater trust, higher retention, and ultimately, improving the client’s reputation for diversity and inclusion (D&I).

Another important consideration is the value of diverse teams. Research from the Harvard Business Review indicates that companies who focus on diversity perform better: 45% reported market share growth from the previous year. RPO providers who engage diverse talent pools offer big boosts to businesses.

Benefit 5: Global compliance

Compliance is of huge importance for global businesses. With work-related legislation changing all the time (take the recent IR35 upheaval in the UK), staying on top of what is and isn’t compliant can be a tough order. But when your company is global and has workers across all four corners of the globe, knowing every single law and piece of legislation is virtually impossible. 

By choosing an RPO solution, businesses can utilise the provider’s global expertise to ensure that every single permanent employee is compliant with local laws. Whether it be a call centre worker in India, an IT director in Singapore, or an engineering professional in the US, your RPO provider will ensure all will be adhering to local laws and working practices.

Benefit 6: Agile, scalable permanent recruitment

Though businesses can predict the permanent talent they’re likely to need throughout a year through strategic workforce planning, hiring still has the habit of throwing a spanner in the works. One week you’ll have your ideal workforce, the next you’ll need to hire twenty new, hard-to-fill roles.

Recruitment process outsourcing providers are built in order to scale their solutions around a client’s needs. This gives businesses the certainty they need when a sudden burst of hiring activity comes to the fore.

Benefit 7: Benefit from the latest technology

Keeping up with industry innovation is difficult for HR professionals. With budgets tightening, investing hundreds of thousands or even millions of pounds or dollars in talent acquisition tech can make even the most ambitious companies wince. 

The solution? Recruitment process outsourcing. RPO providers regularly invest in the latest technology to ensure that clients acquire the talent they need to succeed – from high-tech VMS platforms to data analysis tools.

Benefit 8: Enhanced candidate engagement 

HR professionals understand the significance of candidate engagement (CX). Research by Harris Interactive found that 42% of people in full-time employment would never seek employment at a company with a negative application experience. Meanwhile, 22% would tell others not to work there and 9% would tell others not to buy products or use services from that company.

Getting the candidate experience right, however, is no easy feat. Though significant, it’s time-consuming and often takes HR departments away from their primary objectives. An RPO provider offers the experience and in-house expertise to fully optimise the candidate experience for a business. Not only does this increase the chances of attracting top talent, but it also impacts a business’ ability to grow its market share within its industry.

Benefit 9: Expert employer branding

Employer branding is key to attracting the best talent in the market. 72% of recruitment leaders worldwide agree that employer branding has a significant impact on hiring. 

Though hugely important, HR and talent acquisition professionals seldom have the time to engage with their employer brand. Concurrently, not all businesses have the in-house expertise to create an engaging employee value proposition, never mind build a truly impactful employer brand strategy.

The best RPO providers help businesses really define their value to potential candidates. With experts solely devoted to EVP creation and employer brand strategists within their ranks, they are able to market a business to candidates – even in difficult, traditionally challenging industries.

Benefit 10: Better strategic insight

In the twenty-first century, data science is the foundation of any strategic decision. The same goes for any business looking to ensure that their hiring process is effective. While HR and internal recruitment teams are often aware of this, a number of things continue to hold businesses back. 

For one, technology is expensive, and HR tech often finds itself low down the priority list. Secondly, HR professionals don’t always have the technical expertise necessary to adequately analyse data. Finally, the data a company holds is only related to the company itself and doesn’t take the wider outlook into account.

A recruitment process outsourcing solution helps in all these respects. With the latest technology and data analysis expertise, an RPO provider can assess historical industry and company data to strategically predict future talent needs. With talent being the most important aspect of any business, these insights provide highly valuable business intelligence.

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