Navigating the world of outsourced recruitment solutions can be a daunting task, especially when your search is met with myriad industry jargon. To help you decipher what to focus on when comparing providers and exploring recruitment process outsourcing (RPO) solutions, our talent expert Carla has put together an ‘RPO terminology 101’ guide.
RPO stands for recruitment process outsourcing. It is a business model whereby a company outsources the management of its recruitment function either in whole or in part. These solutions are customised to address specific needs, encompassing tasks ranging from sourcing and shortlisting to interviewing and onboarding, as well as strategic initiatives such as employer branding. RPO models are unique from other recruitment solutions in the way they extend beyond hiring alone; they are strategic, long-term partnerships that drive cost, quality and efficiency benefits.
Because RPO solutions are customised solutions based on your unique goals and requirements, RPO providers often work with Service Level Agreements (SLA’s) to set the partnership up for success. SLAs are formal agreements that outline the expectations and standards for service delivery between you and your RPO provider.
There is no such thing as a one-size-fits-all RPO model. Any model you implement needs to be carefully customised based on a deep understanding of your business needs, organisational capability, culture, and costs. As a baseline, different RPO models exist. They often vary by level of involvement, scale and what stage of the recruitment process they address. For example:
Recruitment Technology refers to the tools and software that enhance various aspects of the hiring process. This includes applicant tracking systems, video interviewing platforms, AI-driven candidate screening, and more. RPO solutions often leverage a customised tech stack to optimise these technologies depending on the partnership.
When exploring RPO solutions, you’ll often find scalability mentioned as a benefit. In RPO solutions, scalability and flexibility refer to the ability to scale your partnership up and down as your business needs change. As your hiring demands rise and fall, you can seamlessly expand or reduce temporary recruitment headcount as needed.
Continue your journey into the realm of RPO with Carla’s RPO 101 series. Click here to understand the different lingo of RPO services, or get to know the roles of the professionals involved in an RPO partnership. Want to talk more about RPO? Click here to get in touch.
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