Recruitment Process Outsourcing (RPO) is often pitched as the ultimate fix for hiring problems.
Proponents of RPO tout its benefits — faster placements, lower costs, and access to better talent — to teams and companies in dire need of effective recruitment solutions.
But what’s the full picture? If you’re new to RPO, you’ve likely only heard the polished version. And is it really that effective?
In this post, we’ll debunk some popular myths and explain what most experts don’t tell you.
But first:
A textbook definition of RPO
Recruitment Process Outsourcing (RPO) is when a company transfers all or part of its recruitment functions to an external provider. This partner acts as an extension of your internal HR or talent acquisition team, managing everything from sourcing and screening to interviewing and onboarding.
It’s not a new concept, but it has evolved to suit modern hiring demands, especially in fast-growth industries.
Not entirely sure if it’s for you? Here are the key signs that your team or company may need RPO:
- Consistent delays in hiring and often takes months to fill one role
- Frequent bad hires due to ineffective candidate screening
- Lack of follow through during candidate communication and nurturing process
- Recruitment ability is stymied by lack of resources (e.g. staffing, expertise)
- Reactive hiring due to lack of overarching recruitment strategy
- Launch of new product or business unit requiring new hires fast
- Quick expansion into new markets or geographic areas
Common Misconceptions About Recruitment Process Outsourcing
Depending on who you ask, there are a lot of misconceptions about how RPO works. Let’s clear the air and demystify the common points of confusion around this subject.
Misconception #1: RPO is the same as a recruitment or staffing agency
You may be thinking: How is an RPO any different from traditional staffing agencies? They’re probably the same, just with a different packaging, right?
Staffing agencies typically work on a per-hire basis, filling positions as they arise. They also operate independently from your internal processes.
On those two points alone, there’s already a big difference.
On the contrary, RPOs take a more strategic approach to hiring. RPO providers will go in-depth to understand your hiring needs and pain points. From there, they’ll create tailor-fit solutions that make sense for your business goals.
Additionally, RPO providers work with you, embedding themselves into your company’s workflows and help manage recruitment from end to end.
Misconception #2: You’ll lose control of your hiring process
While RPOs will recommend how you can improve your hiring, it’s not true that you’ll lose grasp of the entire hiring process. At the end of the day, you’re still the one calling the shots and making the final decisions.
What you do outsource though is execution. Implementing hiring strategies effectively is one of the key selling points of RPO providers. But before anything else, a good RPO partner works alongside your HR managers to align on goals and metrics, then uses their expertise to deliver better results.
Misconception #3: RPOs can replace your entire HR team
If you already have a recruitment and HR team, RPOs work best when they augment your ability to scout and hire good talent. Here are some of the ways RPOs adapt to your needs:
- Handling all volume roles so your team can focus on strategic hiring
- Supporting hiring in specific geographies or departments
- Owning just the top-of-funnel, while in-house HR oversees interviews and onboarding
- Providing tech, analytics, and compliance support your team lacks
However, if you don’t have recruitment and hiring expertise, it’s not uncommon for RPO providers to act as your entire HR team. This is common among startups or companies in the middle of a major transition.
The bottom line is that there’s no one-size-fits-all solution when working with RPOs. They provide a flexible solution based on your immediate and long-term hiring goals.
Misconception #4: Recruitment process outsourcing is only for large companies
This misunderstanding stems from the fact that the RPO model originally started with enterprise-level firms during the 1990s. Companies like Accenture and ManpowerGroup were some of the early RPO pioneers.
However, much has changed since then. Today’s RPO model is quite flexible and can fit in any organization. RPO providers can work with startups and mid-sized businesses.
Here are some common RPO setups that you’ll come across:
- Full RPO: Without a full-fledged recruitment and HR team, the RPO provider manages the entire recruitment process from start to finish.
- Blended RPO: This approach combines internal recruitment efforts with external RPO services for specific functions. Highly effective when your internal HR team has a clearly defined hiring gap that will benefit from third-party execution.
- On-demand RPO: Similar to what traditional staffing agencies offer. However, with an RPO, the provider will not deviate from your internal hiring processes.
How recruitment process outsourcing actually works
If you’re seriously considering working with an RPO provider, here are the key things that you should know before diving in.
Implementation and results take time
What most RPO vendors don’t say up front is that it takes time to see results. Be wary of providers who say otherwise or over-promise.
During the initial ramp-up, effective RPO providers really take the time to understanding your company, culture, job profiles, and workflows. So depending on the scope of service, expect a 30–90 day implementation period depending on the scope.
However, if your hiring needs are more straightforward — say, volume hiring for entry-level roles that need to be filled ASAP — then expect faster results.
You’ll see improvements to the candidate experience
It’s standard for RPOs to use advanced tools and automation to ensure faster communication and better candidate follow-ups. Plus, with dedicated recruitment experts onboard, you’ll have more bandwidth to ensure consistent candidate treatment.
When potential hires are saying good things about your hiring process, this can lead to a net positive brand image for your company — which makes it even more likely for the best candidates to come to you, instead of you seeking them out.
RPO can lower cost-per-hire over time
RPO doesn’t always cost cheap upfront. Think of it as a long-term investment.
Streamlined processes and strong execution on hiring goals may not immediately pay off, but given enough time these improvements add up.
When you’re reducing the likelihood of bad hires and employee attrition, you’re avoiding costly mistakes that ultimately amount to a lot of resources.
Simply put, an effective RPO provider helps you find people that stick around for longer and grow with your business.
Get Hire Manila as your RPO provider
RPO is a strategic partnership that can evolve with your hiring needs — whether you’re scaling fast, struggling with cost-per-hire, or want a more consistent candidate experience.
Want to see how we can work together?
Get in touch at +6328.284.8789 to get started. You can also send a message here.
