Recruitment Process Outsourcing is a means by which a company outsources their talent acquisition department. One might ask how RPO is different from the function performed by regular staffing companies. RPO is a complete solution to all your staffing problems including the designing and the management of recruiting process. The RPO takes the full responsibility of the recruitment process including the results achieved by the employees recruited by them. When a service provider acts as a company’s internal recruitment function for all its jobs, it is termed as an RPO.
The concept of outsourcing talent acquisition has its roots in Silicon Valley’s highly competitive market. Fast growing technical companies require new talent all the time. Owing to the high demand of employees, companies began looking for technical specialists for which they have to bear some nominal expenses or recruitment fees. It started with talent companies providing the list of potential candidates to the employers. With the passage of time, the concept of RPO slowly evolved as the cost reduction in terms of the time and effort required by the companies became evident. In the 1990s, when companies started outsourcing important processes associated with taxes, benefits or payrolls, they also recognised the need to cut recruitment cost. All this has lead to the advent of RPO. RPO is favoured by many even during the recession periods.
Cost cutting: Recruitment process when in-house is comparatively more expensive than when outsourced. With efficiency, comes the quality as the RPOs become an expert in providing the right pool of potential candidates, being in constant touch with them; and effectively negotiating the requirements of both the parties.
Business optimization: It results in the optimization of the entire recruiting process and hence various business processes. The success of any company depends on its employees. Thus, right talent acquisition is the key to a company’s success.
Effective recruitment strategy: RPO providers can help the company expand its workforce effectively. For example, if a company is venturing into a new space, say, a new country, RPO can provide them the complete recruitment solutions. It makes the company free to take risks and concentrate their energies and expand in new areas effectively.
Social Media sourcing is the latest concept in RPO. It is a process of approaching the candidates who are not actively looking for jobs, but are skilled and are high in demand.
Social Media, which is a powerful channel to get the profile and information of millions of people, needs to be explored properly. Facebook, a social networking site has more than one billion users and is the largest free pool to hunt for the right candidates. Companies must use consistent strategies through social media to increase the number of candidates recruited.
Eye for detail: A recruiter needs to understand the needs of the client and also should be able to understand whether the candidate would be the right fit for the job profile or not.
Apply right marketing skills: Recruiters should be able to market their company well. If they have a great pool of candidates but are not able to convince their clients to hire them, then it is definitely of no use. RPO is seeing an upward trend in the market with more and more organisations opting for it to rightly tap the required talent. Thus, it is currently serving many employers and employees all around the world.
Now that RPO has finally started and has become a highly accepted mode of recruitment, it is looking to broaden its horizons in the form of long-term partnership with their employers. Taking responsibility of the employer’s mission and target accomplishments, they want to become an integral part of the organisations. The service provider will then become the sole proprietor of the entire process.