Beyond admin: the scope of outsourced recruitment is expanding
Organisations were initially uncertain about the value and efficiency of the RPO model. In the early days, they tended to outsource admin-intensive recruitment functions, such as arranging interviews and pre-employment screening, or those high-volume areas of recruitment that are impacted by hiring cycles. As their confidence grew, they increasingly scaled up the scope, proportion and strategic significance of the recruitment activity that they were happy to outsource.
Our latest Recruitment Outsourcing Insights report attributes such growth entirely to the value that organisations derive from working with an expert RPO provider.
The benefits can be significant and varied:
- Cost savings
Organisations can reduce their internal headcount by outsourcing to a provider that can deliver services on a transactional basis, meaning it only charges for the delivery of specific services. This ensures that no costs are incurred during a period of headcount freeze. If such cost saving initiatives are rolled out into other areas of the business, other geographies or business units can also experience similar benefits.
- Service quality and specialist expertise
The enhanced quality of service delivery enabled by working with a leading RPO provider can ultimately contribute to an improvement in the calibre of hires and hence to an organisation’s overall competitive advantage. The expert monitoring and analysis of retention rates and appraisal feedback, for example, contribute to hiring managers’ understanding of candidates’ aims and preferences.
- Timeline efficiency
Streamlining the recruitment process is an important priority for hiring managers and candidates alike. An advanced RPO should incorporate technologies within their overall solution that minimise time to hire, increasing the likelihood of engaging the preferred candidate. For example, electronic signature solutions can cut the time taken to issue a formal offer.
- Technology investments
Where in-house teams might struggle to make the business case for trialling new solutions, an RPO provider is fully incentivised to bring the most effective technologies to the forefront of the recruitment process. Investment and expertise in this area provides a powerful source of added value, over less well-equipped competitors or the in-house recruitment function. Such investment can also provide organisations with standardised reporting solutions to obtain deep insight into their recruitment efforts globally.