How to Choose the Right RPO Model for Your Business

“Sometimes you make the right decision, sometimes you make the decision right.” – Dr. Phil, American Philanthropist

Before we talk about the ideal RPO model, we need to have a look at the ongoing trends in the job market. Even with the presence of multiple online job platforms, it seems that the job market on a global scale is becoming harder and harder to navigate. According to a LinkedIn study, it was revealed that around 70% of the global workforce are passive candidates. This means that around 70% of qualified, working-age adults are actually not actively looking for new positions. While they may be gainfully employed, they are not looking for something ‘better’.

This presents a particularly challenging circumstance for companies that are on the hunt for candidates to fill positions. On the other side of the equation, on job platforms like LinkedIn, you might find a job posting receiving thousands of applicants, but the question once again becomes: ‘How many of them are truly qualified for the position?’ This is not to say that there are no talented potential candidates, rather it’s an observation of how hard talent acquisition really is in today’s job market.

So, how does the modern HR department juggle all these factors? If we’re being honest, it would make more sense not to. This is not to say that you should give up on recruitment, rather it’s a suggestion pointing towards better avenues that, as a business, you should consider exploring and investing in. As a business, the point is to run operations as smoothly and efficiently as possible. This means delegation of workloads, which extends even to the HR department. Recruitment Process Outsourcing (RPO) is one such avenue to help ease the pressure on your recruitment department.

There are 5 main models that you should analyze when it comes to RPO services.

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What Does RPO Bring to the Table?

As the name suggests you can basically outsource your recruitment activities to a third-party firm that handles multiple facets of the process. With recruitment process outsourcing you can outsource candidate sourcing, screening, offer extensions, interviews, and so much more. One of the main benefits of hiring an RPO partner is that the process is fully customizable, so you can choose to outsource a certain part of the process or the entire thing from top to bottom. You can choose the level of support you need. Now, that’s an investment worth every buck!

However, it would serve well to keep in mind that not all recruitment process outsourcing services are of the same standard or quality. You need to make sure you’re hiring an RPO agency’s services that has access to a highly integrated network so as to ensure high-quality hires. This will help take the pressure off your HR department, while also giving you a better talent pipeline.

RPO Models to Consider

Before we dive into it, you need to keep in mind that the RPO partner is not a replacement for your acquisition team or HR department. They are an extension of your company’s pre-existing team. With that said, there are different degrees of RPO services that can provide you with the right type of help. So, without further adieu, let’s get into it.

1) On-Demand Recruitment Model

It’s never a certainty what your hiring needs might be in any given financial year. There could be cutbacks, unexpected turnover rates, or a sudden need for project-staffing on short notice. Many businesses experience these unexpected spikes. That’s where this particular model comes into play.

The On-demand RPO model helps you tackle these sudden spikes in hiring while also helping you manage the rapidly changing needs. Through this model, you will have immediate access to the resources of a dedicated recruiter who knows what your company needs, the message you wish to communicate, and the processes of the business.

You also could potentially gain an on-site agent of the firm that is in direct touch with the RPO firm, which means better in-house integration. This has great benefits for those who seek that synergy and quick-response aid. It’s also relatively cost-effectively considering the level of service you would receive through this model.

2) Project-Based RPO Model

As the name suggests, this type of RPO is for when a company wants to bring in some extra hiring muscle for a particular project. This is a great solution for businesses that want to keep their in-house team aside for the day-to-day hiring but also need to hire for a separate project. Rather than shift the internal team’s focus, bringing in some help will help ease the pressure while also getting both jobs done at the same time.

This model is ideal for business initiatives such as product launches, contract renewals, targeted job searches, and so on. This type of recruitment process outsourcing partnerships are undertaken when there is a need for short-term hiring with a specific task to accomplish and that within a fixed time-frame.

One of the main benefits of this model is its duration and quality. On the one hand, you get to use this as a trial of sorts to see if outsourced recruitment really works for your company, alongside existing practices. On the flip side, this model brings in specialists for that particular project that can show you how it can be executed in the most effective way possible. Whichever way you choose to look at it, it’s a win-win.

“Look for your choices, pick the best one, then go with it.” – Pat Riley, President of the Miami Heat

3) Hybrid RPO Model

This model is similar to the previous model, in that, it brings in support to take care of some of your particular talent needs while still giving you control over your other recruitment needs. Through the hybrid recruitment process outsourcing model, you can gain support from your RPO partner and set it up in such a way that they work hand in hand with your internal recruitment teams.

Parallelly, the RPO partner will represent themselves as being part of your organization when reaching out to candidates to maintain a consistent brand image.

You can easily outsource specific market-level or department-level needs that can be arranged for completion under predetermined sets of service-level agreements that match up to the processes carried out by your internal teams. This model gives you the benefit of added support while also optimizing existing processes within the organization.

4) Enterprise RPO Model or Full-Service RPO

This model is an all-encompassing approach that allows your business to outsource the full talent lifecycle to the recruitment firm. These outsourced recruitment services cover everything from candidate sourcing, to screening efforts, interviewing, and the navigation of the hiring process itself. The benefit of this model lies in the fact that your RPO partner will guide you and hand-hold the process execution every step of the way. This can enhance your operational efficiency, take a huge weight off the internal team, and still maintain a certain degree of cost-effectiveness. Additionally, the candidacy quality is maintained throughout. This model is ideal for companies that are looking to elevate or completely revamp their existing recruitment tactics.

RPO can handle anything from a portion of the recruitment process, to the entire thing. It depends on what you need.

5) RPO + MSP Model

This is like one of those family combo offers you receive at restaurants. It combines all the great aspects of a 360-degree RPO service with the services of Managed Service Programs (MSPs). This model is more of a recently emerging trend in the outsourced recruitment industry, where the company in question not only gains the expertise and muscle of the RPO firm in the hiring process but also the management efforts of the MSP provider.

This allows the employer to take a more hands-off approach as all complete hiring processes and the oversight of the same is handled by these two entities. This is a great solution for large companies that don’t have the time or the resources to spread thin over a particular recruitment process, including the managerial department. The results — a diversified approach to hiring that is of high-quality and cohesive nature!

Outsourcing is not for everyone, but for those who need it, RPO firms can be a great boon to the business’s goals and efforts. Whether you are looking for a one-off outsourced job or are looking for a long-term partnership, RPO agencies are the way to go as they can give you a multitude of options to choose from. However, at the end of the day, as the business owner, you need to decide which approach is best for the health of your company and move forward accordingly.