Hiring staff is expensive. According to the specialist recruitment magazine HRreview it can cost up to £30K for the whole process of hiring new staff. Even though many large companies have their own HR departments, outsourcing recruitment is often a more cost-effective process.
Recruitment Process Outsourcing (RPO)
An increasing number of companies are turning to RPO in order to source new staff. Agencies have always been more responsive to market demands and are also familiar with a wide pool of candidates’ skills and aspirations. Traditional big business HR departments aren’t always aware of the diversity of potential candidates for their brand. There are many competitive benefits of fixed fee recruitment, and RPO can be effective for both candidates and employers.
A conventional big business HR department isn’t always aware of all the changes that take place in the global candidate market. An interviewee that attends a meeting with a major brand needs to be able to demonstrate flexibility, and agility of thought, rather than simply a thorough knowledge of your brand. Skills shortages are constantly being reported in the media and an experienced RPO can deliver candidates through a proactive process that attracts the very best talent. A busy company HR department might not have the time to carry out this function.
The most successful RPOs are those that use technology in a bid to source and attract the brightest and the best candidates. Gone are the days of simply placing an advert in a newspaper or posting a message on LinkedIn; not that these methods aren’t helpful, they’re simply not sufficient. Psychometric testing plays a large part in the RPO process as this method can deduce as much from what a candidate doesn’t say as the information that can be gained in interview or on a CV.
Outsourcing recruitment is growing
A recent article in the US magazine Workforce highlighted the growing acceptance of RPO within big business. It suggests that many industries, including construction, will soon be facing what it terms the ‘mass exodus’ of retiring baby boomers, meaning highly technical senior-level positions will become vacant. That will create a large talent gap, and that could equate to a recruitment crisis on their hands. RPO is gaining in popularity as it does have the ability to ‘attract the right candidates to the organisation.’
Saving time and money
Outsourcing can save a firm money. By focusing simply on the needs of your company and by having a large number of candidates on their books many RPO companies will be able to cut down the number of hours that are often spent trying to source the right candidate for a job. This means that your company will have to spend less on temping staff to cover the unoccupied position, the vacancy advertising costs will be absorbed by your RPO service and your interview time will be reduced as a result of placing the process in the hands of professionals.