Full Guide on Recruitment Process Outsourcing in 2023

Inna Coker
Talent Mapping Specialist

Is your organization looking for speed, agility, and flexibility in its recruiting processes? Are you looking to improve the quality of candidates applying to your positions or help attract the right talent? It is the right time to transfer all recruitment issues to professionals who close skill gaps and build a robust strategy using the latest recruitment technologies and innovations. Next, we talk about the recruitment process outsourcing benefits. 

 

What is Recruitment Process Outsourcing?

Recruitment process outsourcing (RPO) is a model in which an employer or company transfers all recruitment and talent acquisition issues to a third party. An RPO provider typically has on-site outsourced recruiters embedded within the company’s HR or people function and manages permanent recruitment.

An organization’s talent acquisition team, the most recent recruitment technology, and adaptable recruitment procedures are all implemented by an efficient RPO program. An RPO provider can take over the company’s staff, technology, methodologies, and reporting or provide its own. In all cases, RPO is very different from providers like staffing firms and contingent/retained search firms in that it takes ownership of the recruitment process’s design, management, and results.

RPO is a solution with a lot of potential. The expansion of the recruitment process outsourcing market demonstrates this. Businesses that incorporate RPO into their workforce planning strategies stand to gain advantages.

 

How Does Recruitment Process Outsourcing Work?

To consider recruitment process outsourcing as a model, it is crucial to understand how it works and what steps are included. First, there is an example of a recruitment outsourcing process:

First, the RPO company analyzes your current talent force and demand for talent and market compensation according to department, role, and location. If fundamental, the RPO vendor cooperates with your association to foster a labor force plan and technique to gauge future labor force patterns.

The next step is sourcing. Expertise in deep sourcing becomes a crucial part of your recruitment strategy. Recruitment marketing, talent pipelining, screening/assessment, predictive analytics, and talent advisory solutions like employer branding, talent mapping, and recruitment messaging are some of the targeted sourcing strategies developed by RPO providers to meet the requirements of particular functions or industries.

Screening, including expertise evaluations, conduct and character assessments, and meetings, makes a pool of up-and-comers that will be a solid match for the position and your organization. This process also includes screening for cultural fit, ensuring that clients only receive candidates who fit well into the company’s current culture.

The final step is recruiting. Recruitment process outsourcing companies work in selecting both detached and dynamic possibilities to track down the most obviously qualified individual. Next, the provider represents your brand by scheduling interviews, negotiating salaries, maintaining strict quality control, and promoting a consistent brand message.

 

RPO vs. Recruitment: What is Better?

From the first site, these two models look the same, but still, they include different processes and solutions. For example, an RPO requires more strategic and fundamental processes when hiring talent. It ought to take responsibility for the design and administration of the recruitment procedure. To ensure maximum efficiency, it should incorporate the most recent technology, conduct regular data analysis, and provide periodic evaluations of the solution’s efficacy. The IT recruitment process outsourcing provider’s team cooperates closely with their client’s talent acquisition and HR department to learn the organization’s long-term talent acquisition strategy, hiring challenges, and goals.

 

Recruitment Process Outsourcing Benefits 

  • Skilled Workforce

The primary goal of an RPO provider is to ensure that your company hires the best permanent employees, even in notoriously tricky markets. The time, effort, and expertise required to locate, screen, and train new permanent employees with an IT recruitment process outsourcing ensure that a company acquires the best talent. They can also establish talent pools to ensure that a pool of qualified candidates is prepared to join a client’s company in the event of a vacancy.

 

  • Cost-Efficiency

In addition to being more cost effective than traditional recruitment, an RPO provider ensures that you hire and retain the best talent. Since recruitment process outsourcing providers are typically evaluated in terms of time to hire, cost to hire, and quality to hire, it is their responsibility to ensure that permanent positions are occupied only for a short time. As a result, costs go up, and productivity goes down with every day that a job vacancy goes unfilled. These negative factors are kept to a minimum with a fully optimized RPO.

 

  • Easy Scalability

Benefits of recruitment process outsourcing include easy scalability. Hiring is never constant in any business. For example, if your company is starting a new department, it might need to hire hundreds of permanent employees as soon as possible. On the other hand, there may be months without a single hire.RPO providers create structures that are adaptable to any circumstance.

 

  • Latest Technologies

HR professionals need help to keep up with industry innovation. Investing hundreds of thousands or even millions of pounds or dollars in technology for talent acquisition can make even the most ambitious businesses cringe in the face of shrinking budgets. From high-tech VMS platforms to data analysis tools, RPO providers regularly invest in the most recent technology to ensure clients acquire the talent they require to succeed.

 

  • Better Strategic 

Any strategic decision is based on data science. Although HR and internal recruitment teams are frequently aware of this, numerous obstacles persist for businesses. In this case, a solution for outsourcing the recruitment process is helpful. With the most recent innovation and information investigation skills, an RPO supplier can survey verifiable industry and company information to foresee future ability needs decisively. With ability being the central part of any business, these bits of knowledge give exceptionally significant business insight.

 

Recruitment Process Outsourcing Companies

If you decide to go with IT recruitment process outsourcing as a solution for your business development, consider getting a vendor. There are many top recruitment process outsourcing companies worldwide. We prepared a list of leaders in this service:

  • Qubit Labs 

It is an IT outstaffing company with more than ten years of experience in the IT and recruitment industry. Qubit Labs provides deep expertise in RPO, talent mapping, talent acquisition, etc. In addition, we have access to the most prospective and fast-growing IT hubs with multiple software engineers of all tastes.

 

  • HR Bit

It is an IT recruitment company that provides services such as IT recruitment, recruitment consulting, talent mapping, talent acquisition, RPO, and more. Due to their great experience and rich expertise, they are trusted by many tech companies worldwide. 

 

  • Randstad

Randstad is the HR services industry’s global leader. They have experience in diversity, equity, and inclusion (DEI) recruitment practices and are a technology-enabled, results-driven Recruitment Process Outsourcing (RPO) company.

 

  • ManpowerGroup

ManpowerGroup stands out due to its proficiency in the design of recruitment processes. Their team will investigate your recruiting procedure, examine every aspect, and then suggest and implement enhancements to improve its overall effectiveness and outcomes.

 

  • Lucas James Talent Partners

Was established as an alternative to the standard model of contingent recruiting. They employ only the most qualified talent acquisition professionals to create the most valuable solution for their client partners. In addition, they offer technology and sourcing and selection practices at the forefront of the industry.

 

  • Orion Talent

The metrics are met by Orion Talent’s technology and experienced recruiting staff. You can anticipate improved candidate quality and decrease hiring costs with their assistance. 

 

Recruitment Process Outsourcing Rates

There is no set price range for RPO services, and there is no one-size-fits-all fee based on the industry. Instead, the RPO provider and an organization’s specific requirements and objectives will influence the cost of an RPO solution.

Recruitment process outsourcing rates are typically between 5% and 10% of salary per hire, depending on the payment model, compared to the 15% to 30%  that a contingency firm charges. For example, an RPO typically has a cost per hire of $2,500 to $5,000, assuming the previous salary was $50,000.

 

Recruitment Process Outsourcing Fee Structure

As we mentioned before, there are only partially fixed costs or rates for PRO. But, there are a few typical fee structures and models that help you to consider which one would fit better to your business: 

  • Model of Management Fee (typically monthly)

The RPO provider receives payment for working on a predetermined number of positions. The fee may have escalation factors or alter according to the agreement if the number of hires rises over time. Enterprise RPO services and some newer RPO services, like white label RPO, are linked to the cost model.

 

  • Cost Per Hire

Each candidate who completes the program and is hired (or offered a position, for example) by the customer incurs a fee. For short-term project RPO, the cost-per-hire model can be used if the solution is based on getting specific results or only needs to be used for a few months. Point-of-service RPO, in which a particular recruiting function, such as filling the candidate pipeline, is outsourced to the provider, also fits this model well.

 

  • Cost Per Slate

For each open position, the recruitment process outsourcing provider charges a set fee for a set number of sourced, screened, and qualified candidates. The candidates are then given to internal recruiters so that the hiring and recruiting processes can continue. Another cost model that works well for point-of-service and short-term project RPO solutions is the cost per slate.

 

  • Cost Per Transaction

The RPO provider charges a fee for a particular service, like initial screening or reference checks. In addition, buyers who select consulting RPO services or on-demand RPO services may be charged per transaction at an hourly rate or per successful candidate or process.

 

Final Thoughts

Recruitment process outsourcing improves enrolling viability and gives an association an upper hand when executed accurately. By enhancing recruitment and hiring, an organization can put the right people in the correct positions, resulting in a win-win situation: executives achieve their goals, employees are happier, management is more effective, and the organization as a whole is better positioned for success.

Suppose you are still looking for a suitable vendor. In that case, Qubit Labs offers expertise in IT recruitment process outsourcing, understands your business needs, and builds a strategy for successful and long-term hiring.

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Inna Coker
Talent Mapping Specialist
I believe that the IT sector is one of the most promising fields in the world. That’s why I have been researching for skilled IT professional and analyzing different IT markets and tech hubs worldwide for more than 3 years. I enjoy analyzing information and creating it into sapid articles.