What is RPO (Recruitment Process Outsourcing) recruiting?
Spencer Bratman
Head of Product Growth
October 22, 2024
•
5 mins
As the name might suggest, Recruitment Process Outsourcing is about outsourcing recruiting processes to experts. This can include various services such as candidate sourcing, reviewing resumes, interviewing, job advertising, negotiating offers, onboarding and more.
RPO can offer a more tailored approach to talent acquisition since you can choose which services to use. You can work closely with your RPO provider to handle as much or as little of your recruitment process as needed, depending on your company's needs.
RPO vs. Staffing Agencies
RPO providers are different from staffing companies in a few ways. Staffing companies are primarily focused on recruitment and nothing else. In other words, they don't typically offer customizable solution like RPO. Staffing agencies can be useful for quickly filling temporary, contract or full-time positions on an as-needed basis, but RPO companies can completely revamp the talent acquisition process to create a better experience for both employers and candidates, can provide data, analytics and market research. In other words, RPO companies take a more holistic approach while staffing companies typically have a narrower focus.
RPO vs. BPO (Business Process Outsourcing)
While both RPO and Business Process Outsourcing (BPO) involve outsourcing business functions, BPO can apply to any business process or function. With a BPO service, you can outsource functions like customer service, IT, accounting or whatever else you might need. RPO companies are specifically focused on the hiring and talent acquisition process.
RPO companies can offer several benefits to enterprise companies, small businesses and startups, including:
Scalability and Flexibility
The right RPO company can scale recruitment efforts based on your current hiring demand. Small businesses and startups typically have fluctuating hiring needs, needing to do a hiring push when they grow rapidly. There may be other times when you don’t need to hire for months. An RPO company provides the flexibility to access end-to-end recruitment services without requiring an in-house, full-time team or a lengthy inflexible contract that doesn’t scale with your needs.
Access to Expertise and Technology
Using an RPO company allows you to get instant access to deep industry expertise. Startups and small business founders might handle hiring on their own or delegate to team members who aren’t recruiting experts either. With an RPO company, you work with professionals who know how to find and place top talent, and they are equipped with the latest recruitment and talent acquisition software. Instead of having to pay for or learn these technologies, you can just let your RPO provider handle hiring while you reap all the benefits.
Improved Candidate Quality and Experience
RPO companies don’t just focus on filling positions with qualified candidates. They specialize in attracting and finding top-tier talent that aligns with your company’s long-term needs and goals. They know how to source and thoroughly screen talent to find the best fit possible, improving the overall quality of your candidates.
On top of this, they can also improve the candidate experience. This helps you build a positive reputation in the job market including building your employer brand as a reputable and fair place to apply. Meaning you continue to attract top talent in the future.
Compliance and Risk Management
There's a range of legal and compliance requirements to keep in mind when hiring, such as data protection, DEI, labor law regulations and more. RPO providers stay up to date with these regulations and compliance requirements so you don’t have to. This is particularly important for companies that offer remote work opportunities to candidates in different states and countries.
Strategy and Analytics
One major benefit that RPO companies have over staffing agencies is their comprehensive involvement in your hiring processes. Instead of just getting you some quick hires, they can offer expert strategy and insight into your hiring pipeline. They can also deliver analytics to show you metrics about candidate experience, candidate drop-off rates, time-to-hire and other useful data points that can help you improve your hiring processes.
Cost-Effectiveness
From a cost perspective, RPO services can be much less expensive than in-house recruiters and other recruiting options. This can depend on the pricing model of the RPO (more on that later), but it can generally be cost-effective for startups, small businesses and companies of all sizes. It also helps cut costs by reducing time-to-hire, reducing churn by improving hire quality and giving you access to top-notch recruitment technology and resources, as mentioned earlier.
RPO providers can offer flexible arrangements depending on what you need. The types of RPO recruiting arrangements include:
Full RPO
A full RPO engagement allows your RPO provider to take over the entire recruitment process end-to-end. This means they manage sourcing to onboarding, and you can have very little involvement if you choose. This engagement typically includes strategizing and implementing processes tailored specifically to your business, making it more of a long-term engagement.
Blended RPO
Blended RPO engagements are great for businesses that want to maintain control over certain recruitment processes. This model allows you to outsource specific parts of recruitment while you manage the other aspects internally.
On-Demand or Project RPO
On-demand and project RPO is a short-term engagement you can use whenever you have a spike in hiring needs. This works when you have specific hiring projects or seasonal recruitment that don’t require a long-term contract. It makes it easier to scale quickly during periods of rapid growth or unexpected demand.
Choosing the right recruiting agency
Not every RPO company is going to offer the same arrangements or pricing, so you’ll need to weigh your options and choose a company that fits the needs of your business. You should consider factors like the provider’s experience working with your type of business. For instance, an RPO company might be more experienced with startups or they may be more experienced with enterprise-level businesses.
You should also seek an RPO company that has a strong track record. Find one that emphasizes a partnership-based approach that promises to work with your team and build a hiring process that maximizes value. Finally, you should also consider your budget and the pricing model of the RPO so you choose something you can afford.
While it may seem like finding the right RPO company is a long process, it doesn’t have to be when you choose Dover. Dover is a top recruiting solution for businesses of any size with any budget. With Dover, you can go to our Recruiting Partners marketplace to find connect with top, experienced recruiters in minutes. These recruiters can work with you as an end-to-end recruiter or help you with an aspect of your recruiting needs like sourcing, screening or interviewing. If you need affordability, flexibility, and quality, Dover is your answer.
Recruitment Process Outsourcing FAQs
Choosing how you handle recruiting is an important decision. It’s best to weigh your options so you can find the best one for your company. With that in mind, here are some common questions executives have about RPO companies compared to other recruitment options:
What makes RPO different from other types of recruiting?
RPO differs from in-house recruiting and staffing agencies because RPO providers take a more holistic and tailored approach to your hiring needs. RPO companies can take control of any aspect of your your talent acquisition processes, while staffing agencies usually just focus specifically placing candidates in open roles.
What types of RPO providers are there?
RPO providers generally fall into three categories:
Full RPO, where the provider manages the entire recruitment process
Blended RPO, where specific functions are outsourced and
On-Demand RPO, which offers short-term support for immediate hiring needs
How much does RPO cost?
The cost of RPO services varies based on your needs and the provider's pricing structure. Some common RPO pricing models include:
Cost-per-hire - a fee is charged for each hired candidate
Cost per transaction - a fee is charged for certain aspects of the recruitment process, like when an interview is conducted
Fixed monthly fee - You pay a flat fee each month for RPO services
Work with Dover’s expert recruiters to hire top talent fast!
Dover offers a unique approach to recruitment that combines the comprehensive and flexible approach of an RPO with pricing that's ideal for startups. Our Recruiting Partners marketplace connects you with experienced, proven freelance recruiters. Using our marketplace, you can find recruiters who specialize in hiring for startup or niche roles.
Also, our recruiters work on an hourly basis. This is ideal for startups because you can use a freelance recruiter’s services as often or as little as you need them. Once you connect with a recruiter, you can also customize their level of involvement. If you need them to handle end-to-end recruitment or simply a few of your processes, they can step in and deliver. They’ll act as your recruitment partner, seamlessly integrating with your team without the cost of an in-house recruiter.
Ready to see how Dover can help you hire top talent fast? Connect with your recruiter on our Recruiting Partners marketplace today!
