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What is recruitment process outsourcing?
The job market is getting tougher day by day. Alongside, there is so much complexity regarding the right strategic techniques for outsourcing the candidates. This is where Recruitment process outsourcing comes into the picture. Recruitment process outsourcing (RPO) is wherein a company carries over its permanent recruitment to any external provider to get the necessary staff, technology, and different recruitment strategies to fulfill the client’s requirements. Nowadays, the recruitment process requires talent, analytics, and innovative strategies for outsourcing any organization that needs candidates.
The working mechanism of RPO
Recruitment process outsourcing (RPO) is dedicated to high-quality end-to-end recruitment and hiring processes. It offers excellent cost-saving talent analytics. Moreover, it plays a great role in assessing, placing, and onboarding the right talent. With great expertise and specialization, RPO solutions can reduce costs, time, and efforts taken in hiring. It does its best job providing a company with high-quality hiring, reporting, scalability, and delivering effective results.
The right RPO model can expand your organization’s team in the right manner. There are four common RPO models which can prove to be helpful for your business:
Recruiter on demand
On-demand RPO can help perform rapid changes in a business that involves constant spikes in hiring. It helps in filling up the positions immediately according to the demands of the business. It offers access to the recruiter who knows all about your company and your processes. You can get the benefit of a recruiter on-demand at the exact time your business needs resources.
This RPO solution is ideal for those businesses which need short-term hires within a specific time framework. It is highly suitable for some business initiatives such as contracts, specific jobs, and product launches.
This end-to-end solution ensures all aspects of the company’s recruitment process, including sourcing, screening, marketing, etc. It can help in understanding the needs of the business and efficiently fulfilling the same.
Hybrid RPO and MSP solutions
This is the perfect solution for a company that needs permanent and contingent labor hiring or management. Herein, the company can be flexible about what is outsourced and what is insourced.
Difference between Business Process Outsourcing (BPO) and Resource process outsourcing (RPO)
In Business process outsourcing (BPO), there is a contract of non-essential business tasks to a third-party provider. The outsourcing can take place either for front office or back-office work. The BPO industry is split into three categories according to the location:
Offshore outsourcing: In this, a third party is hired so that business functions can be carried out outside a country where the products or services are being manufactured.
Nearshore outsourcing: In this, the third party hired is in a neighbouring country to where the business is located.
Onshore outsourcing: The BPO provider is in the same country where the business is located.
Some examples of Business process outsourcing are: Help desk support, infrastructure support, IT applications development, Claims to process, Accounts payable/receivable. While in the Recruitment process, outsourcing, recruitment is provided by a third party recruitment agency which is often used when there is a high demand for staff. It takes time for an RPO provider to learn about the business structure to find the right match for your business.
Difference between Human resource outsourcing (HRO) and Recruitment process outsourcing (RPO)
In Human resource outsourcing (HRO), there is an involvement of duties related to the administration. These duties include the input of data into the HR system, performance management, onboarding etc. HRO helps the company in managing the people with efficiency. Some examples of Human resource outsourcing include Recruitment, Payroll outsourcing, training and employee assistance. While Recruitment process outsourcing (RPO) helps the companies outsource and raises the number of hiring suitable candidates.
Advantages of Recruitment process outsourcing (RPO)
The main benefits associated with choosing an RPO provider are:
Reduction in the cost
Cost-effective is one of the best advantages of RPO. It is beneficial for any company in the long run in terms of budgets.
The RPO provider engages with the best candidate for hire. This, in turn, saves a lot of time in researching the candidates.
RPO provides adjustable according to the needs and requirements of the business. Even if there is a need for expansion or downsizing, they can scale their recruitment team according to the needs.
RPO providers regularly analyze and closely watch every stage of the recruitment process to decide as and when needed.
RPO provider put all their efforts into sourcing, screening, and hiring the perfect fit candidate required for the business. Thus, it fulfills the requirements of the strong candidate effectively.