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What is Recruitment Process Outsourcing (RPO)?

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Recruitment Procurement Outsourcing (RPO) is a solution in which a business transfers its recruitment functions to an external provider. An RPO provider is typically embedded within the HR functions and is responsible for managing the recruitment process of the organization/business. The RPO industry has enormous potential as more and more companies are working with RPO solution providers. 

“The most significant difference is that RPO doesn't end with filling a position. RPO will also look at turnover rates, technology, scalability, and how much time it takes to fill a position,” says Rahul Kumar, Delivery Partner Engagement and RPO Services Senior Manager at nTech Workforce. 




There are many advantages for businesses working with RPO solution providers:  



RPO ensures that your organization gets the best talent when the markets are highly competitive. RPO has expertise in finding, screening, and onboarding new talent to ensure businesses get the most talented staff. Sometimes, they also create talent pools that provide a ready-made line of talented employees to fill the position as it becomes empty. RPO has databases of skilled individuals and have well-tested strategies to attract talent. 



Sometimes, positions may remain vacant for months straight. RPO is useful in this case as compared to traditional recruitment. Every day a position remains open; results in higher costs and decreased productivity. RPO optimizes the hiring process and makes hiring more predictable. 

RPO is measured in metrics like cost-of-hire, time-to-hire, and quality-of-hire; t the better these metrics are, the better RPO is considered to be.



Secondly, working with RPO saves the company's advertisement expenditure. Advertising jobs is an expensive venture. Companies can spend hundreds of thousands of dollars on recruitment marketing without a guarantee that they will find the right candidate. RPO providers take this pressure off businesses as they use their pool of resources to find the right candidates. 



Hiring needs are rarely consistent throughout the year. Months may pass without a single hire. Other times, your company is in dire need of new permanent staff. For instance, if your company is opening a new department, it might need hundreds of permanent staff at once. In such a case, RPO providers can facilitate a quick and scalable hiring process to ensure those positions do not remain vacant for a long time. 



Non-exempt and exempt employee labor, employment, and tax laws are highly localized and can be difficult or costly to navigate for scaling businesses. An RPO provider with a national presence brings a team of attorneys and accountants to ensure compliance with statutes and regulations. While your business may have the necessary team in place, RPO solutions bring an opportunity to redistribute resources into the core of your business.




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Candidate engagement is essential to the success of any company. However, it can take some work to provide the best candidate experience. It is a time-consuming process for human resources to engage candidates. Often RPO has in-house expertise and experience to optimize the employee’s experience. 




According to Kumar, there are many considerations for selecting an RPO partner: 

  1. "Find a partner that can scale to meet your needs. 
  2. Take a close look at their technology and capabilities.
  3. Insist on collaboration and accountability.
  4. Make sure the vendor has deep, industry-specific expertise.
  5. Ask about implementation timelines."

At nTech, we help businesses find talented candidates and retain and engage them for improved productivity. We provide customized staffing solutions provide innovative and customized staffing solutions that cater to your business needs.

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