Recruitment Process Outsourcing (RPO) is defined as the partnership between an organization and a service provider wherein the entire recruitment process is outsourced depending on the requirement of the company. The benefits of RPO are as follows.
- The fundamental benefit associated with RPO is that it gives better quality of hire (QoA). The service provider is associated with the sourcing, screening, short listing and presenting final set of candidates who will be interviewed by the client company for the final recruitment. The chances of finding a better match increases significantly with this approach.
- Conducting a hiring process from initial stages till the on boarding of a candidate is a costly affair. Both resources and investment are involved in this approach and this needs to be maintained even after the process is completed which adds to the cost. RPO approach helps in reducing this time and effort as the service provider brings in its own team and it is a temporary solution till the requirement lasts.
- It is considered a scalable model as it can be added easily with a company’s existing business structure at any point of time and can be removed when the requirement is over without disrupting regular business operations.
- It is useful towards locating and screening candidates within a limited time frame which is helpful in case of immediate hiring.
- RPO is a useful measure to build up an effective talent pool that can be helpful in the long run.
- The service provider can also be engaged for analyzing the existing recruitment process and suggest measures for its enhancement.
- The service provider performs time to time reporting regarding the process which aids in prompt decision making and facilitates easier audit process.
- With the increased quality of hire and efficient recruitment, the management can utilize this for improving stakeholder engagement.
- The service provider usually has a better knowledge about the labour market and its associated regulations and policies. This is useful towards enhanced talent search and acquisition.
- Lastly, there is no need for direct advertising of job openings which adds to the effectiveness of the service.
Owing to these benefits, certain trends have been observed in recent times in recruitment process outsourcing which is expected to positively impact this segment.
- The RPO service providers have concentrated on building up the talent pipeline as there is an increased pressure to find the right match for a job opening within a limited time frame. This will reduce the time to fill in the critical positions within organizations.
- Technology will play an important role towards the recruitment process across every phase. It will make the entire process convenient and streamlined at the same time to reduce costs.
Big Data and analytics will be extensively utilized in the process in order to understand labour market trends so that right professionals can be attracted towards desired positions in order to make the system more efficient.