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Outsourcing Recruiting in Latin America

outsourcing recruiting

Introducing the Recruitment Process Outsourcing Model

Today, savvy multinational corporations are outsourcing their recruiting efforts to cut costs and improve their hiring results across Latin America. Formally these solutions are called recruitment process outsourcing solutions or just RPO. While RPO solutions have been used successfully in many other countries for some time, they are still relatively new to Latin America.

Some companies outsource their entire recruitment function, others outsource a particular job family or department, and other companies blend their permanent and contract roles into an RPO solution. Whatever the shape your RPO solution takes, the benefits of outsourcing recruiting are:

  • Reduced hiring costs,
  • Better quality of candidates hired,
  • Reduction in role vacancy time,
  • An improved perception of your employer brand among candidates,
  • Recruitment consistency within all locations,
  • The ability to use more or fewer recruiters as your recruitment needs change, and
  • The efficiencies of remote hiring

Let’s take a closer look at each of the benefits.

Benefit 1: Reduced hiring costs. Many organizations spend a significant amount of money on recruitment through a heavy reliance on agencies, high use of online job boards and significant investments in underutilized recruitment technology. A significant advantage of a formal RPO solution is cost reduction associated with developing efficient robust recruitment processes, driving direct proactive sourcing strategies and focusing on quality of hire for every hire.

Benefit 2: Better quality candidates hired. Attracting and sourcing talent is an RPO recruiter’s core expertise. With centers of expertise across technology, sourcing, recruitment process design, employment branding and reporting, RPO providers are optimally positioned to attract, source and assess quality talent for every role. Through the application of rigorous assessment and selection methodologies and a strong partnership with HR, RPO providers are able to positively impact retention and performance of all new hires.

Benefit 3. Reduction in role vacancy time. The longer a vacancy remains open, the longer that the tasks associated to the role do not get completed. A lot of open vacancies can have adverse effects on an organization’s performance. Reducing time to fill is a key deliverable under an RPO model. By driving efficiencies in the recruitment process and developing superior talent attraction strategies, an RPO delivers significant reductions in the time a role is vacant.

Benefit 4. Enhanced employment brand. An RPO provider tightly manages every aspect of the recruitment process to ensure that core company messages are consistent and that the recruitment process goes smoothly. This diligence consistently drives higher levels of candidate satisfaction. The candidate experience is critical to driving the perception of an organization as a place to work - done well an RPO solution positions an organization as a magnet for prospective talent and helps createa  proactive recruitment environment.

Benefit 5: Scalability & flexibility. RPO provides a recruitment model that can be scaled up or down in line with an organization’s recruitment demands. The client has the benefit of a core team of recruitment experts during business-as-usual hiring with access to additional skilled consultants from RPO talent pools or shared services centers during periods of higher recruitment demand.  In other words, you don’t have to hire more people on your team during high demand periods, only to have excess staff when hiring levels dip. Instead, the RPO model adapts to fluctuating recruitment needs without compromising speed, quality and brand or burdening your team with the costs of staff layoffs.

While all five benefits can really boost your bottom line, your brand and the quality of candidates hired – all while cutting costs – I believe a hidden “gem” benefit of an RPO for a Latin American-based company is the sixth benefit of Remote Hiring.

We all know that finding the right candidates for your Latin American roles can be challenging. The traditional, relationship-based Latin American hiring model involves the candidate and recruiter being in the same office for a face-to-face interview. When people are flying from city to city, the travel costs associated with hiring add up quickly.

With the increase in availability of video chatting and other communication technologies, remote sourcing and hiring has become much easier.  There are many benefits to this practice, including:

  • Decreased Travel Costs. Latin American employees can be hired remotely from the United States or a strategically placed recruitment "hub" within Latin America. The recruiter can leverage the phone or Skype during the initial interviews.
  • Cost & Operational Efficiencies. Rather than hiring multiple local recruiters to perform the same tasks on site, companies can realize cost and operational efficiencies by hiring one bilingual or trilingual recruiter to handle interviews remotely.
  • More Productive, Happier Recruiters: Given Latin America's notorious traffic congestion and long commute times, working remotely means less time sitting in the car, which in turn increases employee productivity and satisfaction.

Core to successfully outsourcing recruiting in Latin American is choosing a provider that understands the cultural differences in countries across the Americas. At Hudson RPO, we’ve helped clients achieve excellence in both their US and Latin American recruitment efforts. If you’d like to learn more, please contact our team, and we’ll be happy to assess if an RPO solution is the right step for your organization.  

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Hudson is a global talent solutions company. We help transform the workplace and unleash the full potential of organizations and individuals. Our expert team and proprietary tools provide you with unique insights and services that help you maximize your success. Across 20 countries, we deliver a range of recruitment, talent management and recruitment process outsourcing solutions to get you and your business where you want to be.