Guest blog spot by Alex Patton, Sourcing Specialist
While the labor market, workforce, and economy continually change, there is no surprise that businesses are adapting to these changes in order to develop a more reliable and efficient talent acquisition process. Specifically, small to mid-size companies lacking the revenue to employ internal recruitment teams have turned to Recruitment Process Outsourcing (RPO) solutions. Recruitment Process Outsourcing is a form of business process outsourcing (BPO) where an employer transfers all or part of its recruitment processes to an external service provider. As the economy improves, the ability to hire is gaining momentum. In fact, more RPO deals were signed than ever before in 2012.
Benefits of RPO
An RPO partner can help onboard talented and motivated candidates to the respective company, with desired transparency, allowing for more focus on business goals and growth, which has ultimately, according to the Human Resource Outsourcing Association, created a $1.5 billion RPO market worldwide.
Partnering with an RPO solutions vendor to decrease time-to-hire, reduce costs, and increase quality in candidate pools, while having the ability to create collaborative solutions from scratch, has become increasingly relevant in today’s job market. However, according to a survey conducted by HRO Today, of 3,500 HR executives just sixteen percent considered themselves ‘highly knowledgeable’ about the RPO business process.
With a singular focus, and a wider reach of recruiting expertise, RPO partners like CBI Group are able to greatly increase the quality and quantity of potential candidates. For thriving businesses, talent acquisition needs are constantly growing, and a move to an RPO model gives companies the ability to rapidly scale their recruiting efforts, with additional recruiters, pipelines of potential candidates, or both. More specifically, a solution can be jointly created to ensure particular components of hiring needs are met to benefit the client most effectively.
For example, GE Money, a leading provider of banking and credit services, was experiencing staffing challenges, and decided to try an RPO solution. Main challenges included: inconsistent interview practices; variable candidate quality; average cost per hire more than $9,000; time-to-fill typically exceeding three months; and overstretched HR resources (GE Money, Tammy Grisham). According to Tammy Grisham, Talent Acquisition Lead, the average cost per hire was reduced from as high as $10,847 to as low as $3,300, after implementing the RPO solution which best suited the company. Moreover, Grisham notes an average recruiting cycle time reduction from 115 days to thirty-seven days was realized. While GE Money chose to incorporate a complete solution, there are other forms of RPO solutions that can be of great benefit to specific hiring situations.
Types of RPO Solutions
In most cases, RPO solutions are broken down into three different components, each segueing to the next step of the solution. For example, the simplest component, sourcing qualified resumes to be submitted to the client, is often referred to as Project RPO, which does not include any candidate pre-screening or interviewing provided by the RPO vendor. Additionally, the next step further engages the candidates, and the qualified individuals are contacted and screened according to the client’s requirements and qualifications, followed by submission to the company’s HR point of contact, also known as Partial RPO. While solutions can be broken down into separate components, Full RPO is a solution which encompasses all aspects of recruiting; from sourcing, to screening, interviewing, offer negotiations, and finally, hiring. Of course, implementing the right form of RPO for a specific talent situation is essential for success; however; with a collaborative, customized, and creative solution, a productive partnership should be attainable.
While bottom-line benefits are openly represented, underlying assets can also contribute to the validity of RPO solutions. The RPO partner has the ability to gain knowledge of the client’s culture and encompass the idea of the company’s long-term goals. In turn, creating an understanding and trust in the transparent relationship, laying the groundwork for a successful engagement. For instance, recruiting efforts of an RPO partner conveys the client’s brand instead of marketing individuals to several companies as is usually the case with traditional staffing agencies. Ultimately, Recruitment Process Outsourcing can not only make a substantial positive difference for a company’s Human Resources department, but can be an exceedingly viable solution for the entire business.
To find out more about CBI Group’s RPO solutions, contact one of our Managed Staffing team members at 302-266-0860.