Recruitment Process Outsourcing (RPO)

Recruitment process outsourcing (RPO) involves an employer turning the responsibility of finding potential job candidates over to a third-party service provider. An outgrowth of business process outsourcing (BPO), the recruitment process outsourcing method is designed to bring qualified candidates to a potential employer with minimal involvement from HR staff. An employer looking to fill open positions could sign a contract with a recruitment process outsourcing firm, giving it responsibility to find, screen and assess suitable candidates.

Recruitment process outsourcing is primarily used by medium and large-sized companies and is often a popular choice for employers needing talent acquisition in specialised or technical areas. In a tight labor market where it can be difficult to attract potential new employees, RPO can bring different perspectives, skills and attention to the problem, while, at the same time, freeing HR staff to focus on internal tasks.

How does RPO work?

RPO services typically start with a recruitment process outsourcing agreement, which outlines the scope of the project, timing, cost and more. Often, the HR management (HRM) staff and the RPO service provider meet to create or discuss job descriptions. Then, the RPO team spreads the word about the job opening using its own recruiting methodologies and technology or the client’s techniques and systems. Social Media Recruiting is a large part of RPO.

As resumes arrive, the RPO service provider assesses the candidates and may circle back with the employer if there are disconnects that might mean the job description needs to be tweaked. The RPO team will gather and screen applicants and may shepherd likely candidates through pre-employment assessments if required. If the RPO process is successful, the employer will merely need to interview a small number of highly vetted candidates and make a choice.

RPO vs. typical recruiting

In many ways, an external recruiter working for an RPO firm operates exactly like an internal recruiter, but there are some significant differences.

Few companies have HR departments large enough to support full-time recruitment teams, so busy HR staff members often have many other tasks besides recruitment. Recruitment process outsourcing firms provide professionals who are full-time recruiters with deep industry knowledge, which they use to help reach hard-to-find candidates. An RPO firm is more likely to know which specialised websites or social media can attract talent, and it also has access to the latest tools and trends in recruitment, which in-house HR professionals may not be familiar with.

Benefits of RPO

Organisations that outsource recruitment hope to reduce cost, save time, improve compliance and get better access to more qualified candidates. In a tight labor market or with specialised fields, RPO in recruitment can help an employer stand out.

RPO can also provide companies with people analytics on hiring practices. Another benefit of RPO is the way it supports globalisation: As organisations expand into other countries, it’s important to standardise sourcing, hiring and onboarding processes. Replacing multiple recruitment outposts with a centralised RPO provider can help companies achieve this aim.

What happens when you work with an RPO consultant?

RPO consultants always start off by getting to know your HR team. They will learn about your business, your culture, and the specific requirements of each open position. This is also a chance for your HR professionals to learn more about recruitment best practices from an expert.

What happens next depends on your agreement with the RPO firm:

• If you need a limited number of hires: Your consultant will begin by focusing on the requirements for each vacancy and building job descriptions.
• If you need ongoing support: The RPO consultant will review your hiring process and recommend ways to improve.

Once you’re up and running, an RPO consultant will get to work on expanding your team. The consultant will take you through the following steps:

1. Build out job descriptions

Perfecting the job description is the first step towards hiring a great candidate. In some cases, this may involve elements of job design, as your RPO consultant helps map out a realistic set of responsibilities for each job role.

Having a great job description will make it easier to attract candidates. More importantly, it ensures that your recruitment process runs smoothly. When all stakeholders have signed off on the job description, it’s easier for hiring managers to make rapid decisions about candidate suitability.

2. Submit initial round of candidates

RPO consultants have a whole toolbox of techniques for finding great people. They’ll use their connections to reach out to passive candidates – those who are interested in opportunities but not actively job-seeking. Today’s RPOs also know how to search for remote candidates from other cities, or even from other countries.

Only around 48% of new hires  come from advertisements, such as career sites and job board listings. The rest come from diverse channels, such as referrals, agencies, and targeted recruitment campaigns. An RPO consultant knows which tactics are needed to secure each candidate.

3. Fine-tune the job description and requirements

When you review the first round of candidates, you will most likely need to review your job description, including the requirements for skills and background. Common changes at this stage include:

• Lowering the minimum experience needed
• Changing requirements for education or certification
• Adding additional skills, such as soft skills or IT know-how
• Re-calibrating the list of job duties
• Defining which attributes are must-have and which are nice-to-have

This fine-tuning is a normal part of the process. Each time you finesse your job description, you get closer to finding the right person.

4. Review the final list of candidates

Now that the RPO consultant has a firm idea of who you need, they can start assembling a list of resumes. This long-list of candidates will only include people who meet your must-have requirements.

At this point, it’s up to your hiring manager (or the relevant stakeholder) to make a decision. They’ll work with the RPO to turn the candidate long-list into a shortlist. Once you’ve whittled things down, it’s time to start contacting people.

5. Conduct initial screening

The next step is to contact the candidates and screen out anyone who is unsuitable. Screening generally begins with a short phone interview, which your RPO can conduct. This chat will establish some basic facts, like their salary range and whether they’re interested in the role.

RPO consultants can also help with other forms of screening, such as aptitude tests. They’ll work with your team to develop a consistent screening methodology, so that each candidate is judged on an even playing field.

6. Interview and assessment

Employers often miss out on great candidates because their hiring process takes too long. Your RPO consultant can offer guidance on building an effective interview process. They’ll talk you through things like:

• How many interviews to schedule
• What to ask in each interview
• How to collate and share interview feedback with the hiring team
• How to demonstrate your culture and make a positive impact on candidates

If you get this part right, you have a much greater chance of landing your dream candidate.

7. Process review

At this stage, you will have filled the open vacancy. But what happens next time?

An RPO consultant will work with you throughout your hiring process, helping identify potential improvements. The goal is to help you develop a recruitment methodology that will consistently deliver the right person at the right time.

If you have an ongoing relationship with your RPO consultant, they’ll develop a deep understanding of your business needs. With your vision and their expertise, you’ll be on your way to building a dream team.

Ready to get started with RPO?

The Principle Group has been helping companies to build their teams for over 10 years. Our consultants don’t just find candidates – they seek out people who can enrich and enhance your culture.

Ready to get started? Book a no-obligation consultation call today and find out how RPO can solve your recruitment headaches.