With any business purchase, it's important to build a solid understanding of what you are buying into. Investing in Recruitment Process Outsourcing (RPO) is no different, but this customized service offering tends to produce more questions than most purchases do. Keep reading this blog for an explanation from our Total Talent experts into the complex world of RPO definitions, cost models and goals.
Many organizations are continuously looking for ways to increase their recruiting capability and effectiveness. While some start by taking matters into their own hands and restructuring their internal recruiting processes, other organizations come to the conclusion that they cannot do it all themselves. That's when they turn to Recruitment Process Outsourcing.
It's important to understand there are several types of RPO programs you can choose from depending on your organization's talent acquisition needs. Here we have provided a brief introduction on this subject, but for a full breakdown, download and save our eBook on RPO Definitions, Cost Models and Goals.
What is RPO?
From a baseline level, Recruitment Process Outsourcing (RPO) refers to the process by which a company outsources part or all of its talent acquisition functions to a third party talent supplier. This includes a wide range of components such as candidate sourcing, screening, interview scheduling and logistics, offer execution, system compliance, HRIS (human resources information systems) data entry, onboarding/offboarding, etc.
RPO Cost Models
Depending on the RPO program that an organization selects, there are many different ways a provider can charge for its services. As such, there are a number of RPO Cost Models that you can select from, including:
- Management Fee Model
- Cost-Per-Hire Model
- Management Fee Plus Cost-Per-Hire
Each RPO Cost Model supplements a different hiring need. So, how do you choose? The RPO provider can recommend the appropriate model and cost structure, however keep in mind you will have to provide some data upfront so they can understand the needs of your organization. This helps to establish realistic program goals and ensure an ROI on your RPO program.
Goals for an RPO Program
One of the first steps to take when considering the implementation of an RPO program is to understand what is motivating you and your organization to make a change in the first place. Again, your chosen RPO provider should be instrumental in walking you through this process. Often these goals establish the foundation of the business case for implementing an RPO program.
Here are a few common questions to ask yourself when establishing goals for your RPO program.
- What is our ultimate talent acquisition goal?
- How ready and eager is our organization for change?
- Has the organization outsourced similar functions in the past? If so, were the results successful?
- How will we measure the success of our RPO program?
Total Talent Solutions that incorporate RPO programs continue to gain popularity as the talent market evolves year after year. Organizations have been realizing the benefits of implementing short- and long-term RPO programs into their talent acquisition strategy.