Recruitment process outsourcing (RPO), can provide many benefits as well as limited risks to your business.

And, as you will see, Recruitment Process Outsourcing comes in different “sizes” to meet the needs of companies both small and large.

The two most common flavors are Enterprise RPO and On-Demand RPO. Let’s take a look at these two options and discover the benefits and risks of each.

Enterprise Recruitment Process Outsourcing is a way that a growing business can outsource their staffing administrative and recruitment processes, at a significant savings. This essentially eliminates the need for a full in-house HR team to be on the payroll. Enterprise RPO is also known as Full-Scale RPO, or just simply RPO.

There are several benefits to using the enterprise RPO model:

* Decrease time to hire.

* Decrease cost of each hire.

* Improved quality of hire.

* Hiring against targeted competencies.

There are also some risks associated with the enterprise Recruitment Process Outsourcing method:

* Over-dependency on the recruitment agency.

* Recruiting structure that is not efficient.

* Poorly matched or unseasoned recruitment team.

* Lack of control over sourcing and recruitment activities.

* Contracts that are expensive and hard to get out of.

On-demand Recruitment Process Outsourcing is an alternative and often better method of managing the staffing needs of a growing business. In this manner of recruitment, the company partners with a reputable team of seasoned recruiters who become an extension of the existing HR or recruitment department. On-Demand RPO is also known as Limited RPO, Partial RPO, Sourcing RPO, or Project RPO.

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Here are the benefits of using On-demand Recruitment Process Outsourcing for Hiring:

* Supplements, not replaces, the company’s existing HR or recruitment team.

* Recruitment support can be turned on or off depending on company needs.

* No long-term commitments or surprise charges.

* Decreased time-to-fill and lower cost-per-hire.

* On-demand RPO offers the option of hourly based services.

* Highly scalable and adaptable to the business fluctuations.

Potential risks of the On-demand Recruitment Process Outsourcing model include:

* Learning curve to understand the uniqueness of the business.

* Communication challenges if there isn’t a clear process.

The good news is that the US economy is on the mend in most parts of the nation. According to the US Department of Labor and Statistics, the gross national domestic product is projected to grow at 3.3 percent each year for the next five-years. By 2020, there are estimated to be more than 65 million more jobs available for working professionals in the top growing industries. That means companies need to plan ahead for the shift in hiring needs by establishing a relationship with a quality On-demand RPO Recruiting firm like ContractRecruiter. The benefits of an On-Demand RPO method (also called Limited RPO, Partial RPO, Sourcing RPO, or Project RPO) for recruiting and staffing allow your business to expand in a carefully managed way, with the support of a team of recruiters who understand your business needs with customized services.

Recruitment Process Outsourcing Demystified

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