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The Growing Popularity Of RPO

Third-party management, flexibility, and standardization all help recruitment process outsourcing chip away at the cost of traditional recruiting approaches.

By Paul Davies

As chunks of recruitment have been outsourced for decades, you might be wondering what RPO is all about. Those that see a strategic advantage in retaining recruitment in-house typically aren’t interested in considering outsourcing their recruiting process, and those that call a placement agency when they have openings are already outsourcing to some degree.

This raises the question of the principle difference between in-house recruitment, the use of a placement agent, and recruitment outsourcing.

RPO delivers a scope of recruitment activity not included in typical placement services, delivered with a level of efficiency not achievable in-house. This can range from effective handling of unsolicited applications and non-hire screening to administrating the full on-boarding process. It can also include performance tracking, activity reporting, and loading new employee data into the HRIS.

Additionally, RPO delivers an agreed-upon, controlled process. For those who do not value systematic recruitment methods, this may not be a benefit over the traditional agent. However, for those who believe in the efficacy of a recruitment funnel governed by statistically valid gates, it allows the processes that in-house recruitment specialists use to be outsourced without losing effectiveness. RPO standardizes and deploys these processes including screening rules, testing, assessment, interview structures, and regulatory compliance. Buyers that do not favor a particular process can benefit from the adoption of the RPO providers’ standard process and tools or take advice regarding tailoring a specific solution.

Along with the recruitment activities, RPO can deliver related third-party management, in some cases directly in a sub-contracting relationship and in other circumstances as a vendor manager. This can reduce costs where combined client volume allows preferential pricing to be negotiated. Equally importantly, it can simplify the order and invoicing processes by introducing a single-order placement workflow and consolidated invoicing.

Other areas of staffing that can be bolted onto RPO are contractor management and the sourcing and administration of temporary staff. When well integrated, the RPO approach brings a total resourcing solution sandwiched between a single electronic requisition-to-order workflow and consolidated billing. For resources that are not employees, the RPO solution also provides ongoing administration.

Such a solution, once agreed upon and packaged, can be rolled out regionally or even globally, leading to standardization of a controlled staffing process.

The direct recruitment part of the solution is flexible enough to be administered centrally in the offshore shared-services model favored by HRO, generally, or it can be set up through locally based recruiters. Different providers may have different preferences in this regard depending on their own local network or technology strengths. The sub-contracting part of the solution can be tailored to match the recruitment needs of each location and can be a combination of local and regional contracts.

One outcome of such deployment is consolidated reporting across the enterprise at every stage and in every area of the staffing process: from control over the number and costs of recruits, to the tracking of unsolicited application volumes, pipeline effectiveness, and application-to-hire ratios.

Additionally, consolidated metrics such as cycle times are available and are usually made the subject of service-level agreements. While some organizations apply the effort to maintain such control internally, those that don’t, or those that no longer want the administrative strain, can find a solution in RPO.

RPO pricing is typically more flexible than in traditional outsourcing recruitment models. RPO seeks to reduce cost through the use of specialized technology, volume-based management of candidate pools, preferred-supplier approaches, streamlined methodologies, and centralization. It applies as many of the HRO cost-cutting measures as the buyer’s recruitment strategy will stand, ranging as far as low-cost offshore service centers supported by online application and assessment.

RPO arrangements lend themselves well to cost-based pricing and ongoing price reductions based on the control of cost. Where the service and quality expectations are also met, this alone can be a powerful incentive for adopting RPO.


Paul Davies is an independent advisor in HR services and outsourcing. He can be reached at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it .
 
For more information on outsourced driver recruiting solutions from MTS contact us at
866-256-6900
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Direct Placement is a contingency-based program designed to tie your hiring expenditure to our recruiting success. This means that if we are unable to find your driver we do not charge you.

» Learn more about Direct (Contingency) Placement
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For fleet managers who wish to minimize the employment burdens associated with recruiting commercial truck drivers, MTS offers Contract and Contract-to-Perm recruiting programs.

Unlike temp agencies who rely on a pool of casual truck drivers who are often unreliable and scarcely fit your idea of an ideal candidate, MTS conducts a targeted search for qualified truck drivers who match your specifications, where and when you need them.

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