RPO: The Scalable and Cost Effective Recruiting Alternative
Before getting into why an RPO Solution is an excellent choice for your company’s hiring needs, let’s start with a quick “RPO 101.”
RPO stands for Recruitment Process Outsourcing, which simply means that recruiting, in part or whole, is transferred to an outside partner. RPO programs can vary greatly based on the wants/needs of a company, but the essence of an RPO is that you get recruiting resources without actually adding head count to your organization. One quick point to note with an RPO solution is that it is almost always focused on direct hire needs.
So why would an RPO Solution be the right option to augment your company’s hiring demands? The three main value-adds to any RPO are scalability, expertise and cost.
With regard to scalability, the peaks and valleys of business make it difficult to predict needs from one day to the next. Going out and adding a Staff Recruiter, or two, this month might see like a viable option, but what happens six months from now when hiring needs are down and you’ve got these people sitting around with nothing to do? That’s right, you are going to have to lay these people off. In addition, contract recruiters only solve the human part of the recruiting equation; they do not come with job board licenses, Applicant Tracking Systems, social media recruiting abilities and / or back-office functions.
The second value-add of an RPO solution is expertise. You get the experience of a seasoned Recruiter along with the infrastructure behind that Recruiter. Another inherent problem with going out and hiring your own Recruiter(s) is that great Recruiters don’t grow on trees (or at least that’s what I’m told), and they also don’t come with the training, technology and resources like an RPO Recruiter.
While percentage-based fees for direct hires are an excellent option in some circumstances, they can also get very expensive with respect to volume. A conservative estimate on just 20 direct hires under a standard percentage fee scenario will run you at least $200,000. Compare that to an RPO solution, which could easily come in at a quarter of that for the same number of hires. And with cost savings on those levels, you’ll be up for employee of the year!
The next time you are looking for a solution to support an increase in your company’s hiring needs, I challenge you to think differently and consider RPO as an option.
The scalability, expertise and cost savings inherent with an RPO solution make it a solution worth digging into. STS Technical Services provides custom RPO programs for numerous Fortune 500 companies, and I would be more than happy to discuss how this model can be tailored to fit your the unique demands of your organization.