In a detailed RPO guide, Manpower describes the business thinking behind an increase in RPO popularity:
Working as the organization's internal recruitment function, an RPO provider can leverage market knowledge, industry expertise and access to talent to improve quality of hire, speed of delivery and cost containment. These are aspects of the recruiting process that organizations often struggle with on their own, and rightly so, given that they are typically more focused of their own core business. By outsourcing the recruiting function, companies can dedicate more time and resources to their strategic initiatives, ensuring they can focus on key strategic initiatives.
As competition for qualified talent heats up, organizations will rely on their RPO providers more than ever to supply them with the employees needed to meet organizational objectives. The paradigm for what companies will need from their RPO provider will continue to change, and RPO providers will undoubtedly rush to keep up and deliver new services to improve their clients' ability to hire qualified talent. While many of these changes have already taken effect, it is clear that the RPO environment will continue to change dramatically in the coming years. The challenge for organizations, then, is to select an RPO provider that not just supplies talent, but can also meet the changing needs of the organization through innovative solutions to address their most complex recruitment needs. In today's business environment, the best RPO providers are delivering in three main ways. Specifically, they are: 1) tapping into Big Data, 2) micro-targeting talent, and 3) acting as a test lab for their clients' recruiting functions.
It comes down to balancing the overall cost against the potential benefits. Many organizations opt for more of a hybrid RPO. Utilization of a hybrid RPO means the desire of hiring an outside vendor to assist internal personnel, rather than fully taking over a particular function or completely replacing current recruitment staff. Keep an eye out for next week's article for a more extended description of hybrid RPO differences and benefits.
According to service provider PeopleScout, The Case for Recruitment Process Outsourcing comes by way of:
Flexibility & Scalability
Opportunity to Leverage ATS Technology
Companies can utilize RPO for process management, reference checking, sourcing and screening, onboarding, or any other function in the talent management realm and reap any one of the benefits highlighted above. Organizations facing a merger or acquisition, those with rapid expansion plans, possible global initiatives, or any number of other circumstances should be evaluating the impact an RPO strategy may have on their current processes and the bottom line.
Traci Kingery, PHR is an HR Professional and freelance writer based in the Midwest, specializing in immigration and talent management. When she's not improving unemployment, she keeps busy with her husband and four children.