Recruitment Process Outsourcing (RPO) is a form of business process outsourcing (BPO) where an employer outsources or transfers all or part of its recruitment activities to an external service provider.
To quote the Recruitment Process Outsourcing Association, "Recruitment Process Outsourcing is when a provider acts as a company's internal recruitment function for a portion or all of its jobs. RPO providers manage the entire recruiting/hiring process from job profiling through the on-boarding of the new hire, including staff, technology, method and reporting. A properly managed RPO will improve a company's time to hire, increase the quality of the candidate pool, provide verifiable metrics, reduce cost and improve governmental compliance."
A clear demarcation between RPO and other types of is Process. In RPO the service provider is the fulcrum of the process, while in other types of staffing the sane is part of a process controlled by the organization buying their services.
1 RPO offers improvement in quality, cost, service and speed.
2 Economies of scale enables the providers to offer recuritment processes at lower cost while economies of scope allow them to operate as high-quality. Economies of scale and scope are said to arise from a larger staff of recruiters, databases of candidate resumes, and investment in recruitment tools and networks.
3. RPO solutions are also claimed to change fixed investment costs into variable costs that vary with fluctuation in recruitment activity. Companies may pay by transaction rather than by staff member, thus avoiding under-utilization or forcing costly layoffs of recruitment staff when activity is low.
If a company failed to define its overall recruitment strategy and hiring objectives, then any recruiting program may fail to meet the company's needs. This is especially true for outsourced programs like RPO. RPO can only succeed in the context of a well defined corporate and staffing strategy.
As with any program, a company must manage its RPO activities. A company must provide initial direction and continued monitoring to assure the desired results.
1 The costs charged for recruitment transactions may total more than the cost of the internal recruitment department.
2 RPO service providers may fail to provide the quality or volume of staff required by their customers.
3 Placing all recruitment in the hands of a single outside provider may discourage the competition that would arise if multiple recruitment agencies were used.
4 An RPO solution may not work if the company's existing recruitment processes are performing poorly.
5 An RPO solution may not work if the service provider has inadequate recruitment processes or procedures to work with the client.
6 RPO may not resolve difficulties that organizations have hiring staff when the organization is perceived negatively by potential employees. This will instead require improved branding and an adjustment of image.
Source- wikipedia and google images together and edited sufficiently.
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