This is a process of Business Outsourcing where all parts of an employee’s recruitment activity are transferred to other external service providers. RPO providers manage everything from recruitment to job profiling by hiring new staff, technology, and reporting. A good RPO team will help to save company’s hiring time, increase the quality of the employees.
The process was first used in United States when Human Resource outsourcing was gradually becoming common in most companies.
There are various benefits of Recruitment Process Outsourcing involve:
· RPO satisfies both economies of scale and economies of scope as it provides recruitment processes at lower cost as well which operate as high-quality specialists.
· It transforms the fixed investment cost into variable cost keeping parity with fluctuation in recruitment activity.
· RPO provider and a client enjoy a commercial relationship, which is likely to be based on specific performance targets.
Following are the services provided by an RPO to an organization:
- Candidate research
- Compliance tracking
- Reporting and Audits
- Hiring Manager
- Training Process
- Mapping Technology
- Consulting Third Party
- Vendor Management
There are certain areas one must look into to select an RPO service provider. The first thing involves a proper assessment of the RPO staffing partners. The commonly used engagement models are:
- Management Fee Model: in this process the client or the organization pays RPO or its staffing partners for assuming the number of placement.
- Cost per Hire Model: RPO or the staffing partners is provided for each candidate it supplies.
- Hybrid Model: combination of the above two models with a payment for per successful candidate.
- Cost Per Slate Model: The staffing partners charge the client or the company for each set of successful candidates sent by it for each position.
- Cost Per Transaction: the staffing partners are paid for the completion of a specific process.