Top 10 Recruitment Process Outsourcing (RPO) Providers

Recruitment Process Outsourcing on the surface seems to be the same as traditional recruiting practices. Traditional recruiting and staffing, involved locating talent and pretty much acting as a “match-maker” so to speak. The company did all of the interviewing and then made the decision as to whether or not an individual would be hired.

Today many companies rely more and more on Recruitment Processing Outsourcing to find and hire talent. The RPO provider doesn’t just find talent. They actually design and manage the entire process and are responsible for the result.

Common Recruitment Process Services Outsourced

Job descriptions
Evaluate and collect resumes from prospective candidates
Post job requirements
Determine the best candidate for the client

Recruitment Process Outsourcing – Business Process Outsourcing

Also known as RPO, this form of outsourcing is when a company looking to hire top talent in its industry hires a third party to locate and hire new employees. RPO will typically control the entire process or just a portion of the process.

Statistics

According to industry statistics, 90 percent of all resumes submitted to RPO providers are inappropriate for the position they are looking to fill.
A survey conducted by Future Step found that Only 39 percent of companies surveyed gave their RPO experience a Good or Very Good rating.
When participants were asked if their company outsourced recruiting, 59 percent said n, 39 percent said yes and 8 percent were not sure.

Facts

Almost half of U.S. companies use some aspect of recruitment process outsourcing to fill open positions.
U.S. companies are considering returning to in house recruiting due to the slow economy.
Many companies opt to use RPO providers, because they would rather focus on their core business and let a third party deal with all of the hassle of hiring new employees.

Current Trends

The future of Recruiting Process Outsourcing depends on who you ask. RPO providers will say it is an industry that continues to evolve and grow. Companies are on the fence. Many have developed positive relationships with RPO providers. Others have not had such a great experience.

The Pros

Cost Savings. RPO providers based their services on economies of scale due to their large database of quality talent, resumes and large quantity of recruiters and technology. This allows them to lower costs to the client because of reduced need of resources.
Higher level of potential job candidates. Because RPO providers focus all of their efforts on acquiring the best talent. They have the advantage over companies trying to hire on their own, because they spend a lot more time qualifying and researching their database of talent.
Faster Turnaround. The provider can pull from their extensive database of talent that have already been pre-qualified. They don’t have to waste time searching on job boards, arranging interviews…etc…They already know what they are dealing with. This speeds up the process for their client tremendously.

The Cons

Although RPO providers cite the economies of scale has a factor in cost reduction for their clients, it doesn’t always translate that way. The cost of using RPO can in some cases, actually cost more than a company would spend if they did the hiring process themselves. However, the convenience that RPO providers offer makes it appealing for companies and worth the higher price.
Practically anyone can claim to be a top level PRO provider. Unfortunately this happens a lot. Companies pop up in droves, offering their service at much lower costs than their reputable competition can afford. While the cost is cheaper the level of quality is very poor.
Trust Issues. Due to poor operators, it makes it tough for companies to trust RPO providers and may opt to stick with in house recruiting.

Offshore vs Onshore

Providers can be offshore or onshore. U.S. companies have several onshore companies to choose from as well as offshore. Which option they choose may depend on the kind of RPO that is needed. There is IT Outsourcing-RPO, Adminstrative-RPO and end to end RPO. The latter is when a company gives the provider complete control over the entire hire processing, start to finish. This arrangement is rare.

RPO providers offer another way for companies to stay competitive by doing all the heavy lifting when it comes to finding the most qualified employees. It is still evolving, but as more and more companies become comfortable with the process and learn to manage it better, Recruitment Process Outsourcing should continue to grow.

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