How can RPO reduce business costs, and why do people prefer an RPO provider over a hiring manager? Keep reading this blog to discover the answers. Approximately 95% of businesses in the US and UK are small or medium-sized enterprises. It’s a common misconception that only large companies benefit from Recruitment Process Outsourcing (RPO), but that’s not entirely accurate. Small and mid-sized organizations can also benefit from flexible hiring with an RPO provider.
What Does an RPO Provider Do?
An RPO acts as a dedicated recruitment partner who manages the entire talent acquisition lifecycle on behalf of a business. An RPO provider is responsible for the following roles.
- Strategic Guidance
- Sourcing and attraction
- Screening and selection
- Onboarding support
- Technology integration
- Employer branding
6 Ways RPO Helps Reduce Business Costs?
If you want to discover the 6 valid reasons to argue how an RPO provider reduces business costs, then you’ve landed at the right place. Continue reading to learn how.
1. Reduced Cost-per Hire
This is one of the most important reasons why most companies prefer an RPO provider. An RPO provider is responsible for the entire hiring process. From job posting and candidate sourcing to scheduling and onboarding, they do it like a pro. Instead of maintaining a permanent in-house recruitment team with its associated salaries or spending on job ads and campaigns, an outsourcing firm is a cost-saver because businesses only pay for services when.
2. Time Is Money
If your job vacancies stay unfilled for a long period, it can be costly for your business. Recruitment Process Outsourcing (RPO) providers have access to data on hundreds of trusted candidates, which helps organizations quickly find the right candidates and meet hiring deadlines.
3. Scalability & Flexibility
If you’re launching a new project or expanding into a completely different field, an RPO provider can be a valuable partner for your business. An RPO partner allows businesses to quickly scale hiring efforts up or down to meet fluctuating demands, which avoids the financial burden and risk of hiring permanent staff for temporary needs.
4. Reduced Risk of Turnover
Sometimes, after having a successful recruitment process, some employees end up leaving the company, or may not be a good fit for the position. This itself is a stressful situation for the company and has a huge impact on the company, such as cost loss or wasted time. But this can be easily resolved after partnering with an RPO provider, as they will provide you with a trusted candidate more quickly.
5. High-Quality Candidates
Hiring managers often have multiple responsibilities beyond recruitment, so they may not spend much time evaluating candidates. Instead, RPO providers handle this thoroughly. They carefully review candidates and their resumes, using the right skills and resources to do it flawlessly. As a result, an RPO partner delivers competitive candidates in less time.
6. Access to Technology
RPO providers use recruitment technology such as applicant tracking systems (ATS) and AI-powered tools, which makes the sourcing, screening, and interviewing process smoother. They are always updated with the latest technology, which enhances their hiring process. They use advanced recruitment solutions to help clients find top talent.
Final Words
An RPO provider lowers the overall cost for each new hire and streamlines the process by eliminating inefficiencies using their expertise. They have the ability to present the company positively to the market, which attracts more top talent. Moreover, they minimize the hidden costs associated with ineffective candidate screening, unqualified applicants, and the overall productivity loss from unfilled roles.