RPO and It's Models | 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.

rpo model
RPO model

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
  •  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

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
  • 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.

  1.  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.
  2. 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.
  3. 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.
  4. 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.
  5. 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
  • 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.