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How can HR teams achieve cost savings by partnering with an RPO specialist?
Are you considering outsourcing your recruitment function to help your team save costs? Outsourcing the recruitment process is a major strategic consideration that will help you identify, secure and retain your company’s greatest asset – it’s people. From talking with our clients around the world, one of the top ways clients have improved their business performance is by partnering with an RPO specialist to help reduce their costs. How does it work?
1. Reduce cost to hire.
Working with an RPO partner significantly decreases the average cost-per-hire, often by more than 50 percent. A tailored RPO solution can supplement hiring and helps you drive quality, efficiency, reduced costs and a reduction in the time to hire. There are different ways an RPO partnership can reduce costs:
Faster time to hire.
Time is money and hiring new professional level employees takes a lot of both. From identifying candidates, 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. Recruiting and budgetary resources are pulled away from other high-value initiatives. Outsourcing all or part of your internal recruitment function can dramatically reduce your time to hire, sometimes as much as 80%.
Quality of hire
Many clients are in a niche sector and need scarce skill sets. Leveraging formerly untapped sourcing channels, to access additional candidates is one of many benefits of outsourcing recruitment. Hudson RPO is highly experienced in candidate sourcing and has a range of multilingual talent sourcers available to meet client’s needs anytime, anywhere. Our award-winning, onsite sourcing team has helped reduce our client’s agency reliance from 92 to 7 percent, while also improving the interview process and implementing a campus hiring program.
Enhanced employer brand
Utilizing Hudson RPO’s experienced recruiters as an extension of your team provides accessibility to deep candidate networks and reduces time to engage those candidates. Hudson RPO can also include employer branding into your tailored solution to help you further improve your employer brand. As well as creating a better candidate experience, a strong employer brand makes your organization more attractive to candidates and positions you as the employer of choice in your market or industry.
2. Reduce risk in an unpredictable market
When a business downturn hits and recruiting needs suddenly drop, so does a company’s need for in-house recruiters. Likewise, when the business is expanding into another product category or region of the world, recruiting needs may suddenly spike. In both cases, the flexibility and scalability provided by an RPO provider will prove beneficial.
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Cost reduction through shared risk.
Outsourcing the recruitment function allows a company to mitigate some of the financial risk of those resources to the business partner. Recruitment outsourcing partners accept the responsibility of efficiently adjusting resource levels when hiring fluctuations happen. As a result, you don’t have to bear the burden of carrying unnecessary staff. Similarly, you face a lesser chance of being short-staffed when greater resources are required. -
Ability to flex and scale
An RPO solution allows your organization to flex talent acquisition headcount up and down as hiring needs change. Measuring and tracking performance through regular reporting, alongside talent data that is easily translated to insights, you will increase efficiencies, identify improvements, and better forecast future hiring needs.
3. Reduce operational costs
One of the most common problems we see with the recruitment life cycle is that it can be a disjointed and uncoordinated number of practices—good and bad—across organizational functions, departments, divisions and regions. Often, this causes overlap in media buying, training, and on-boarding procedures. It leads to poorer hiring decisions and higher operational costs.
Piloting an RPO project gives you the opportunity to rethink these processes. The RPO vendor will help examine your recruitment process workflows to determine where overlap, excessive cost, and inefficient practices may exist. Then, an outsourced model can be custom designed, providing you with service levels and success metrics that exceed the status quo. These practices yield increased efficiency and satisfaction with the recruitment life cycle, resulting in overall cost reduction for your company. Questions or ready to get started? Speak to one of our experts today.
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