Recruitment Process Outsourcing (RPO)
Today many firms, large and small, see recruitment process outsourcing as an attractive alternative for permanent hiring. RPO is particularly effective for high volume recruiting and hiring. Among core staffing buyers, 32% use RPO.
RPO is the partial or full outsourcing of the internal recruitment function to a third-party. RPO serves to provide the necessary skills, activities, tools, technologies, related recruitment supply chain partners and process methodologies to assume the role of the client’s recruiting department by owning and managing its recruitment process and related recruitment supply chain partner relationships.
The benefits to the clients are that they are able to outsource the recruitment process a la carte, or partake of the entire process which includes:
Sourcing – Candidate recruiting, professional resume review, and pre-qualifying
Screening – Skill & behavioral assessments, interviews, and background/drug tests/credentialing
Onboarding – Offer letter generation, new hire paperwork, and new hire orientational training
Traditional MSP pricing is market driven and based on a percentage mark-up over wages. On the other hand, RPO pricing is based on estimated delivery costs for “in scope” skill sets and billed based on client preference for a fixed management fee, a variable fee per hire fee, or a combination. Other pricing options can include new hires, billed at a payrolled rate and then converted at no charge.