3 Ways RPO Reduces Cost
Will RPO lower your cost per hire?
Given today’s economic environment, greater operational cost efficiency is an organizational imperative. The recent recession has driven a significant change in hiring demand and requirements for most businesses, causing companies to reevaluate their recruitment process and cost structure. Following are three ways that outsourced recruitment can help to reduce costs while adding business value.
1. Cost Reduction Through Shared Risk
When a business downturn hits and recruiting needs suddenly drop, so does a company’s need for recruiting staff. Likewise, when the business is expanding into another product category or region of the world, recruiting needs may suddenly spike. Outsourcing the recruitment function allows a company to pass along the cost risk of those resources to the business partner. Recruitment Outsourcing firms like Hudson RPO take on the responsibility of efficiently adjusting resource levels when hiring fluctuations happen so the client does not bear the burden of carrying unnecessary staff, or conversely, being short when greater resources are required.
2. Faster Time to Hire
Time is money and hiring new professional level employees takes a lot of both. From sourcing resumes to conducting interviews and negotiating offers, acquiring a new employee taxes your internal resources. Plus, each day a job requisition remains unfilled, your business loses the benefit of that employee’s contribution and wastes recruiting and budgetary resources that could be dedicated to other initiatives.
Outsourcing all or part of your internal recruitment function can reduce your time to hire dramatically by leveraging:
3. Streamlined Recruitment Processes
One of the most common problems we see with the recruitment lifecycle is that it’s a disjointed and uncoordinated multitude of practices—good and bad—across organizational functions, departments, divisions and regions. Often, this causes overlap in advertising purchases, training and on-boarding procedures, as well as poorer hiring decisions and ultimately higher operational costs.
Procuring an RPO project gives you the opportunity to rethink these processes. The RPO vendor will help examine your recruitment process workflow(s) to determine where overlap, excessive cost, and inefficient practices may exist. Then, an outsourced model can be created for you, providing you with service levels and success metrics that exceed the status quo.
These practices have been shown repeatedly to yield increased efficiency and satisfaction with the recruitment lifecycle, resulting in overall cost reduction for your company.
All of these factors contribute to achieving lower cost per hire – your ultimate goal.
- A global database of thousands of screened, specially skilled professionals and sourcing channels that significantly increases your talent pipeline.
- Access to a greater amount of recruiting and screening professionals than you can carry on your own staff, who can scale their volume of work with the requisition load.
- Vendor and process management that allows you to focus on making hiring decisions while leaving the less strategic administrative duties to your RPO partner.
See if Hudson RPO can Reduce Your Cost Per Hire
If you feel your company can benefit from these recruitment solutions, request a proposal from Hudson RPO and see how we may be able to save you time and money on every new hire.