Employers everywhere have been feeling the strain of labor shortages and realize that recruitment takes a lot of time and energy. It’s not as simple as posting an ad or jumping on Indeed anymore!
Recruitment process outsourcing, or RPO, is the process of handing off the recruitment processes to a third-party provider. RPO companies specialize in all aspects of the talent acquisition process and can take over all functions, or only certain parts.
Many businesses tend to think that RPOs mostly service large, enterprise-type companies, but smaller businesses are now finding that an RPO can meet their needs cost effectively. Most small business owners spend around 40% of their working hours completing tasks that are non-income generating. Recruitment and hiring only adds to that figure.
There are many reasons why outsourcing recruitment activities makes good business sense – financial and otherwise.
8 Benefits of Recruitment Outsourcing
1. Cost Efficiency. Not all businesses can justify a full-time in-house recruitment team, especially for a smaller volume of hires. Larger businesses also sometimes find that their cost-to-hire rates and time-to-fill are significantly above the industry average, suggesting that their recruitment teams need some expert help.
2. Quality Talent. Although sourcing candidates has moved significantly beyond the local help wanted ads, many businesses do not have the resources and talent pipeline that an RPO partner can offer. This includes sourcing diverse and underrepresented talent that organizations need advance in the global market.
3. Marketing. The fact is, it is a job-seekers market right now. Companies who do not have a highly visible brand and great marketing might find themselves being passed over in the job search. RPO companies often have better marketing and higher visibility to attract more candidates.
4. Scalability. Talent needs are rarely consistent – they come in waves, up and down. This makes it difficult to justify a full-time recruitment staff that might sit idle for part of the year. RPO companies can scale both up and down and meeting needs as they develop and grow.
5. Technology. Software systems, such as applicant tracking systems (ATS) are a key component of today’s recruitment processes. Without these systems, manual processes and spreadsheets can eat up a recruiter's time, making their efforts much less effective. The latest ATS systems often require a significant investment. RPO partners have modern, streamlined processes that reduce the time required to source candidates and fill openings, making the whole process much more efficient.
6. Candidate Experience. When candidates have many opportunities open to them, a cumbersome application process or slow communications with a potential employer can cause them to move on.
7. Compliance. Employment laws, both state and federal, are always changing. RPO companies make it their business to stay on top of compliance issues and regulatory changes, shouldering the burden of maintaining compliant hiring processes.
8. Strategy. RPO companies use a targeted strategy rather than a shotgun approach. By combining market intelligence, analytics tools, and experience, the RPO can find the resources needed to establish a talent pipeline.
Is your business feeling recruitment frustration? ECS Virtual Support is ready to be your RPO partner in the search for your new talent. Take a moment to contact us, and we will set up a consultation to assess your business needs, develop a strategy to fulfill those needs, and have you hiring qualified candidates in no time!