RPO and It's Models | Recruitment Process outsourcing

RPO AND IT's Models, TYPES

Recruitment Process outsourcing

The beauty of using recruitment process outsourcing is that it’s completely customized to your organization’s needs. In other words, a RPO and it’s models can manage your entire process from end-to-end, take care of just part of the process, or anything in between.

Although each RPO has their own service offerings, this is generally what you should be able to expect from any recruitment process outsourcing firm.

Broadly all RPO can be categorized in the above categories. But as RPO need to be client driven
there are few more model types explained in the latter part of report in brief.

Key Points and Different type of RPO

Enterprise RPO

AKA full-service RPO or fully outsourced RPO Company-wide outsourcing of all or most of the recruiting functions
Long-Term • Can be position or location specific
a) Long-Term Enterprise RPO
Company-wide outsourcing of the recruiting function and department
Usually “end-to-end” recruiting through onboarding
Ownership of process, technology and results
All jobs, exclusively
Team at provider site
Customer branding
Contract length: Years
b) Position/Location Enterprise RPO
Job family or geographic outsourcing of the recruiting function
Examples: An R&D business unit/location, call centers, plant, corporate
headquarters
May or may not include use of client’s technology
Ownership of process and results
Otherwise same as Long-Term Enterprise RPO

Who is the ideal client for Enterprise RPO?

Very familiar and/or comfortable with outsourcing as a company culture or strategy.
Companies that have a large, sustained need for recruiting – typical enterprise RPO
contracts last two to three years.
Large companies (i.e. thousands of employees, Fortune 1000 companies).
Companies that have multiple locations and want to standardize their recruiting
processes, and/or some locations don’t have adequate recruiting resources.
Mid-sized companies experiencing aggressive growth or expansion.
Remote location for which client do not have exposure.

Project RPO

Specific project with specific term
EX: hire a sales force, fulfill a set number of hires, or help processes or locations that don’t
have enough resources
Agreement reflects the scope needed and the metrics that are relevant to the project
Less responsibility overall on behalf of the provider – possibly shared with client
Contract lengths tend to be shorter (e.g., 6-12 month contracts) or until hire volume is
fulfilled.

Who is Ideal Client for Project RPO

Any company needing a specific recruiting need met (i.e. certain number of hires, hiring
for certain positions, helping one location or with one part of the recruiting process)
Any company needing recruiting help for just a few months
Not the best for 25 hires, but would be better for 50+ hires. However, this is not absolute.
Good for those that are looking for a structured process to meet recruiting goals – need
consistent results and sustained activity
Good for companies not comfortable with total outsourcing.

Point-of-Service RPO

Better known as limited RPO or selective RPO
RPO provider is taking responsibility for one component of the recruiting process
Examples: applicant intake, applicant screening, social media outsourcing/recruiting, or
putting this data into the applicant tracking system
• Similar to project RPO, but length varies (both short and long)
Hand-off to client HR or internal recruiting staff

Who is the Ideal Customer for POS RPO?

Companies large and small that have a consistent volume of recruiting work
Any company that needs to outsource in a certain area
Companies that experience fluctuations in volume, where scalability would be tough to do on
one’s own
Mid-sized and large companies are more likely to have the volume and the need to outsource
one area
Companies with a defined process in place – no need for the RPO provider to design a
program or process for the client

Consulting RPO

Company simply seeking the knowledge an RPO provider has on recruiting and improving the
process.
RPO provider may offer advice on how to improve their processes, on what tools should be
used, on how to do social media recruiting etc.

Who is the ideal customer for consulting RPO?

Anyone setting up a recruiting process or an HR department
Larger companies that are looking to consolidate their processes or to find someone to look
at their overall picture
Those that are going through a merger or an acquisition, where different processes and/or
employment brands need to be evaluated
Startups that are experiencing growth, and would need help with recruiting as well as setting
up the process

Emerging RPO Services

Contingency/On-Demand RPO
Branded/White Label RPO
Co-sourcing

Other than that the modal of Delivery can also be of different types

On-Site– Recruiters are at the client’s location, sitting at a desk and recruiting directly.
Virtual –Provider has a hub or off-site location for the recruiters, but they are dedicated
to the client. Recruiters are not on site.
On-Demand– This is for contingency/on-demand RPO, where essentially the service (or
services) is delivered when the client asks and in the way that the client wants.
Supported –This means that the recruiters are not dedicated to one client, but this
delivery option is designed for scalability. More recruiters can be added, or taken away,
when needed.

RPO Cost Models

One of the most common questions about recruitment process outsourcing is how much it will
cost. After all, organizations are looking for a solution that will cost their current hiring costs.
Unfortunately, we can’t give you a definitive answer because RPO provides custom solutions for
each client.
And that means that there will be a different cost for each client, depending on their goals and
their specific needs. There isn’t a set industry-based fee for specific RPO services. What we can
talk about is RPO cost models. The five most common RPO cost models used in recruitment
process outsourcing.

Cost Per Transaction Model
This RPO cost model is usually used for on-demand RPO services or consulting services that
charge per transaction or at an hourly rate. In this pricing model, the vendor charges for a
specific process to be completed, like candidate screening or background checks.
Cost Per Slate Model In this type of cost model, the RPO charges a fee for a specific number of sourced, screened, and qualified candidates for each job. Once this slate of candidates is provided, the organization’s internal recruiters take over the hiring process.
Cost Per Hire Model This is the RPO cost model where a fee is paid for each candidate that is successfully brought through the hiring process and either offered the position, or hired, by the client. This type of cost model is generally used when the client needs recruitment process outsourcing for a short-term project or when they only want to engage the RPO for a few months.
Management Fee Model As the name indicates, this RPO cost model is when a monthly fee is paid to the RPO partner for managing the hiring process for a specific number of positions. While the fee is set in the agreement (which can also be paid quarterly or bi-annually too), it may change if the needs of the organization change. For example, needing to increase the number of hires will also increase the management fee.
Management Fee Plus Cost Per Hire Model
With this RPO cost model, the provider combines the management fee model and the cost
per hiring model into a hybrid of both. Under this type of plan, the partnership includes
consistent recruiting efforts and management, along with fees paid for successful hires.

What’s New for RPO?

Infusion of AI with RPO

Involving Automation in HR – Automation has evolved so much that it has revamped
amazing recruitment solutions. About 74% of employers have shown interest in
implementing automation in most parts of the HR department in the coming decade. This
will eventually result in fewer human errors, manual workloads, and smoother HR
processes.
More use of analytics – Using data-driven tools has helped many recruiters to simplify the
complex process of hiring skilled talent. Recruitment process outsourcing services are more
efficient when the hiring team decides to recruit with the help of analytics and data.