Recruitment Process Outsourcing vs. In-House Recruitment: 7 Reasons RPO Is Better For Your Business

The global market for recruitment process outsourcing (RPO) has grown immensely over the past few years. In 2019, industry analysts estimated the RPO industry to be at $5.48 billion. They also projected that this number would rise at a compound annual growth rate of 18.5% in the next seven years. This data shows that there is a growing demand for RPO solutions.

Changes in the economy and job market due to the COVID-19 outbreak are among the reasons for this growth. The pandemic has necessitated businesses to find new ways to recruit workers, leading job applicants to change their recruitment expectations. Although many companies still opt for in-house recruitment, the year 2021 may be the time to embrace a new method: recruitment process outsourcing.

You may be asking yourself, “What is RPO? And why isn’t traditional in-house recruitment enough?” In this article, we’ll discuss and navigate all of these questions. We’ll also cover how you can find your ideal provider of RPO staffing.

Recruitment process outsourcing or RPO is when a business transfers its recruitment process, whether as a whole or only in part, to an external provider. The RPO staffing provider will then act as an extension of the company’s Human Resources department, taking charge of the company’s hiring process.

In traditional recruitment, companies have an internal team that manages the whole recruitment and hiring process. Some prefer this recruitment method because they believe that an in-house team will better understand the specific culture and goals of the company better than a provider of RPO solutions.

Many in-house teams face the problem that they sometimes lack the resources, broad access to skilled talents or technological capabilities that RPO staffing providers have. In the next section, we’ll discuss the advantages of the recruitment process outsourcing in more detail.

Now that we understand the critical differences between RPO vs. in-house recruitment let’s talk about the former’s advantages over the latter. Here are the benefits of choosing recruitment process outsourcing:

According to the Harvard Business School, more than half of Americans rely on gut instincts when making decisions. Although intuition can help spark new ideas, data is valuable for verifying and assessing whether an idea is actionable and realistic. 

In fact, one study by PwC found that businesses that use data and analytics in their decision-making processes are 5% more productive and 6% more profitable. This tells us that using data and research enables companies to make better decisions, and recruitment process outsourcing providers understand this fundamental insight.

When making recruitment and hiring decisions, RPO staffing teams don’t rely on instinct. Instead, they provide real-time metrics and analytics, including data on applications processed, time to fill, and candidates hired. A reliable, technology-driven provider of RPO solutions tracks every stage of the process, providing detailed insights and information for better decision-making.

Since RPO staffing providers rely on data-driven solutions, they also utilize performance-based assessments and psychometric testing in their hiring processes. Psychometric testing is an objective and unbiased way to assess whether a candidate is a good fit for a role. These assessments often include personality questionnaires and tests that measure someone’s critical thinking, verbal reasoning, or other skills related to the job post.

No matter the industry, psychometric testing can be valuable for selecting and retaining top talent. When you work with a reliable recruitment process outsourcing company, the team will make sure to use these metrics to find the ideal candidate for your business. RPO solutions providers can match skill set, personality, and company culture when making the selection.

In a survey of Talent Acquisition leaders, 52% say that screening a large applicant pool to find the right talent is the most challenging part of recruitment. The good news is that this time-consuming and often tedious part of the process can be automated through artificial intelligence, and providers of RPO solutions often use this technology for screening.

When you partner with a recruitment process outsourcing firm, you no longer have to manually check each application and resume in a large pool of candidates. AI and machine learning technology can auto-screen applicants, speed up the process, and narrow down your search to top candidates based on metrics you set.

Having high turnover rates can be costly for businesses. The hiring process takes an average of 36 days to be completed, costing companies precious time. At the same time, backfilling a position can cost about 20% of that role’s salary in hiring and onboarding expenses.

Although many factors can cause high employee turnover, one of the top reasons could be mistakes in the hiring process. And this can be reduced by opting for recruitment process outsourcing. 

Some employees leave because they feel that the company is not a good fit for them; others are not qualified enough for the role. By working with a reliable RPO staffing company, you can avoid these problems and find workers who are a good match, both skill-wise and company culture-wise.

As we discussed earlier, recruitment is a long and challenging process. Instead of taking so much time and resources away from your main business operations by creating an in-house team, why not consider outsourcing recruitment to professionals?

By working with a recruitment process outsourcing firm, you can worry less about the nitty-gritty details of hiring and onboarding and concentrate on what you do best. Focusing on your core competencies gives you a competitive edge, helping you stand out and attract more customers. All the while, you can rest assured that an experienced team of outsourced recruiters is meeting your hiring and onboarding needs.

When it comes to business, the adage “time is money” is accurate. A position that remains unfilled for a long time can cost a company so much. At the same time, the process shouldn’t be rushed at the expense of finding quality hires. This is where partnering with an RPO solutions provider can come in handy.

Through recruitment process outsourcing, you can save on costs and time while ensuring that only top-quality candidates get hired for your business. RPO services can help you with resource optimization, achieving the results you need at the budget and timeframe you set.

Another advantage of choosing recruitment process outsourcing is the flexibility of their recruitment model. Whether it’s expanding or downsizing, the right RPO provider can adapt according to your needs, scaling their team up and down when necessary.

In addition, the right RPO staffing company will provide customizable solutions, meaning that they will identify your organization’s specific needs and goals and make plans based on those.

Since you now understand the advantages of recruitment process outsourcing over in-house recruitment, finding the right RPO provider is the next step. Your workforce is the backbone of your organization, so make sure that the RPO staffing company you choose can deliver proven results.

If you’re looking to maximize every growth opportunity for your business, trust the expert team at SuperStaff BPO. For more than a decade, SuperStaff has been a leader in off-site recruitment, helping companies of all sizes build their talent pool efficiently and cost-effectively. Reach out to learn more about our RPO solutions!