Recruiting 101: What Is RPO?
What Is RPO?
‘RPO’ stands for recruitment process outsourcing, which means contracting out your organization’s recruitment function to an outside company.
Unlike other types of recruitment service providers, RPO providers take full responsibility for designing and managing how your company recruits. This includes hiring and managing recruiters, outlining processes, selecting technology, providing reports, and delivering results.
Why outsource your recruiting function?
In one word: cost.
RPO saves your company from having to employ recruiting staff. If you don’t have to employ recruiting staff, you save on staffing costs: salaries, benefits, training, payroll taxes, among others. Cost savings are often compounded when the service provider operates offshore (in foreign countries with lower wages).
Other outsourcing benefits:
- Fast setup: Unlike setting up an internal recruiting function, you do not need to develop process from scratch, hire a recruiting team, or purchase software.
- Efficient recruiting: RPO providers specialize in attracting candidates and filling roles.
- Focus on your business: Outsourcing administrative business functions like recruiting – necessary, but non-moneymaking work – frees your company to focus on building your brand and delivering value to your customers.
What type of businesses use RPO?
From construction companies to consumer goods manufacturers, banks to retail chains, and insurance companies to utilities, businesses in many industries choose RPO:
“Medium to large-size companies often choose to outsource their recruiting because they maintain consistent or growing hiring needs but want to find cost efficiencies.”
—Chad MacRae, Founder, Recruiting Social