Recruitment process outsourcing (RPO) is a powerful approach to hiring executive and upper-level talent at organizations around the world. However, the complexities of recruiting for such high-level positions require a specialized approach—which is where RPO excels.
In a nutshell, recruitment process outsourcing is a business model in which a third party takes on the search and recruitment tasks of another company. When framed specifically for executive search, this allows in-house recruitment teams to avoid complex, time-consuming, and often confidential tasks.
Instead, they’re handled by talent acquisition specialists who are up-to-date on talent acquistion trends, who have perfected their executive recruitment processes, and who bring expertise, discretion, and a wide network that makes the process more efficient and effective.
An RPO provider is an outsourced service provider that takes on several tasks associated with the hiring process for one or more roles in another company. RPO is an ideal option for when bringing in top-level talent, such as C-Suite, director-, and upper-management-level roles. In general, outsourced recruitment includes:
There are several types of RPO providers whose basic approach differs based on how they perform their recruiting function. These include:
While executive recruitment outsourcing works in different ways, it’s most often seen as a way of removing the burden of hiring from your company’s shoulders, instead trusting that process to known experts.
An RPO provider partnership works by offering placements that meet your business needs in exchange for payment. This can take place in multiple ways, including:
In any of the above scenarios, recruiters are likely to post jobs, check job boards, use an applicant tracking system and other recruiting technology to keep tabs on open positions, conduct interviews and background checks, and provide hiring services.
Whatever the exact form the recruitment solution takes, it will accrue several benefits to the company using it.
There are many known benefits aside from the fast timelines and talent pools an RPO provider offers. These include:
A good recruitment firm will be able to offer you hard metrics about how recruitment costs stack up internally vs using an agency. If a prospective agency can’t offer numbers, or if the numbers aren’t convincing, look elsewhere.
To bring in the best talent, you need to be swimming in top talent pools. With an RPO firm on your side, you have on-demand access to the systems and relationships they’ve forged over years or decades.
Long-term retention is an absolute must in executive leadership roles, as high turnover rates can disrupt organizational stability both inside and outside the company. RPO relies on in-depth expertise and a robust network to identify the right candidates with the skills, experience, cultural alignment, and visionary leadership needed for long-term candidate success.
The high-quality candidates you’re seeking for top-level roles aren’t actively looking for a new position. For this reason, they’re less tolerant of cumbersome or mismanaged interview processes. Using an RPO provider, whose talent acquisition process is streamlined through years of experience, is crucial in engaging, attracting, and retaining top talent.
Your brand is your biggest asset, and it must always be protected. High-quality RPO providers double down on this promise by respecting your brand name and reflecting positively your organization's image; and also by conducting thorough research to present only those candidates whose personal and professional backgrounds align seamlessly with your organization’s mission and vision, safeguarding the brand's integrity.
As experts in hiring and onboarding, recruitment agencies and RPO providers are able to offer crucial regulatory compliance support, ensuring all legal and industry standards are met. This not only streamlines your own hiring and onboarding processes, including executive salary negotiation, but also protects against potential legal or compliance risks.
There exist a number of different pricing models for outsourced recruitment firms. It is important to assess the best type of pricing model depending on what your business requires from the service provider.
Considered in a vacuum, recruitment costs may seem steep. For example, paying 20% of a $100,000 salary is $20,000. However, there are several benefits that you receive in return, including access to high-quality talent; filling the position significantly faster; and statistically longer-retained hires. Plus, your internal recruiting team keeps their workload free to handle standard day-to-day operations.
Economies of scale also play a role. If your company provides legal services, manufactures equipment, or sells imports to boutique stores, then chances are good you don’t have a ton of recruiting expertise. Working with a company that does – and that has all the staff on hand to carry out its duties – can be much less expensive than hiring an HR team of your own or struggling through the hiring process with the people you already have on hand.
Working with a recruitment firm is flexible, beneficial, and cost-effective, but that doesn’t mean any firm can meet your recruiting needs. Take your time to review the metrics of potential firms, including time-to-hire, candidate satisfaction, and length of time in the industry, which is a major indicator of recruitment expertise.
Finding the right company will help ensure that you hire top talent and gain a competitive advantage over others in your industry. Look for an RPO company that offers a range of hiring solutions, is flexible, meets the client’s needs, has a global reach, provides data-driven results and metrics, and helps companies like yours grow.
TDS Global Solutions is exactly such a company. We offer unique and premium services, helping you fill positions in various industries, at a range of levels, with efficiency and expertise. Feel free to schedule a call or get in touch to learn more today.