What is RPO? A Definition
Recruitment process outsourcing (RPO) is a specialty within recruiting where an external provider (i.e. Hudson RPO) acts as a company's internal recruitment function for a portion or all of its jobs. Typically the recruiters are deployed to the client's business premises on a fully outsourced, hybrid or project basis as follows:
- Fully Outsourced Basis:
the client outsources all recruitment. The outsourced team manages end-to-end recruitment solutions for some or all roles across their business.
- Hybrid Basis:
the client retains their own in-house recruitment team, however, they need a partner on an ongoing basis to manage the roles they cannot fill themselves. This may be caused by "peaks" of recruitment demand, technical complexity of the roles, lack of geographical coverage or performance issues within the internal team.
- Project Basis:
the client engages an outsourced provider for a specific period of time to complete a start-to-finish recruitment project. The nature of the engagement is time bound and relates to a specific need, generally by the type of role and/or geography
What RPO services do you offer?
We can manage any or all of the following recruitment tasks for the client:
- Recruitment forecasting
- Recruitment advertisement creation and placement
- Application response
- Candidate sourcing programs (web crawling, internal recruitment, employee referrals, alumni programs, networking, social media, etc.)
- Conducting & scheduling interviews
- Psychometric and behavioral assessments
- Reference and background checking
- Offer management
- Vendor (3rd party supplier) management
- Technology selection, configuration and management
- Management reporting
- New starter onboarding
How RPO Solutions Will Benefit Your Company
- Scalability and Flexibility
this refers to our ability to increase or decrease the number of recruiters we deploy to a client depending on their recruitment volumes. As the recruitment volumes go up, we grow the number of recruiters deployed. As the recruitment volumes go down, we deploy the recruiters to other solutions we manage, thereby reducing the cost for the client.
- Reduced Time-to-Hire
measured from the date we receive the new role to the time when a candidate accepts a job offer. We typically reduce the time it takes to recruit a new hire by 30-50%. Hiring good people faster and reducing down time can substantially help productivity.
- Cost Reduction
the amount of cost reduction will depend on what recruitment model the client has used in the past and what type of new model they are implementing. If a client has solely relied on recruitment agencies in the past to fill all roles, then cost savings can be in the 30-50% range on a cost-per-hire basis. Clients moving from an in-house model to an outsourced model may not save as much, but they will achieve other benefits (i.e. reduced time-to-fill, scalability and flexibility, increased quality of hire).
- Quality of Hire
Hudson RPO has proprietary processes and assessment tools that ensure the optimal fit between the role, person and organizational culture. We start by creating a comprehensive job and person brief, we find talent from a wide range of sources (internal employees, employee referrals, internet, job boards, networks etc.), and we conduct behavioral interviews, psych testing and reference checks to assess candidate fit and make the offer on behalf of the client. We also stand behind the quality of hires we place through offering extended guarantee periods for the period of the placement. This means if the person leaves within this period, we will replace them free of charge.
- More transparency around recruitment via enhanced reporting
Hudson RPO will ensure the right technology and processes are deployed to provide the organization with highly comprehensive reports on total recruitment activity, making it far easier to understand what is happening, what is working/not working and how things can be improved.
What differentiates your recruitment process outsourcing from others?
- Our focus on professional level hires
- Our capacity to source talent globally on behalf of our clients, both in existing and emerging markets such as Latin America, China, India and Eastern Europe
- Our willingness to custom build solutions that will work for clients – whether it is a full outsource, hybrid model or project, we take time to truly understand the clients needs and design a recruitment solution that will work for them.
- Our focus on providing excellent relationship management & delivery on a local or global basis as required. In addition to the recruiters deployed to the client, a senior account manager manages the relationship with every client, ensuring their strategic recruitment needs are addressed, as well as their operational needs. Strict SLAs are used to measure our performance and our pricing models underpinning our commitment to deliver quality solutions.
- Our experience providing "blended" RPO solutions, where we manage both the permanent and temp/contract recruitment for the client. This is different than most RPO providers who are strong in one category or the other.
How do your RPO pricing models work?
We have three basic models:
- Annual management fee, charged monthly, which is tied to the number and cost of recruiters allocated to your business
- Fee per placement (fixed fee or % of salary) payable on successful placement of the candidate
- Combined management fee, plus reduced placement fee
Do we as the client retain control of the ultimate selection decision?
Yes, we find and shortlist suitable candidates, but the client retains control of the hiring decision.
Do we get a say in which recruiters work on our behalf?
Yes, typically our clients co-interview shortlisted potential recruiters with us to ensure they have both the technical competency and culture fit required to recruit effectively for the organization.
What technology do you recommend?
We are technology agnostic, meaning while we have experience with a range of different technologies we are not wedded to any one technology. We can work with your chosen technology, or help you choose the right technology, to suit your individual circumstances (i.e. hiring volumes, budget, geographical spread and language requirements etc).