Recruitment Process Outsourcing (RPO), is a fairly new and trendy method of recruiting that has been widely adopted by companies looking to outsource their talent resource. Statistics from ResearchAndMarkets placed the global RPO market at approximately US$5.9B in 2020, a value that has been projected to grow at a CAGR of 17.3% to hit about $18.2B by the end of 2027.
This may not state why you need to work with RPO providers, but it paints a picture of an industry that is growing at a fast rate because it offers the following benefits:
1. Improved candidate quality
Perhaps the main reason for working with recruitment process outsourcing providers is the higher candidate quality that they offer. A hiring manager or staffing agency may have to rush the process along if they are pressed for time, resulting in lower candidate quality.
On the other hand, trusted RPO recruiters like Kinetix keep building their talent pipeline with candidates that are already vetted, making it easier to fill positions faster. Additionally, they have the expertise, tools, time, and personnel to reach out to high-quality candidates across various target personalities.
2. Better cost efficiency
While the majority of traditional staffing agencies charge roughly 20-30% of the salary of each successful placement, RPO providers charge a fair 10-16%. This means that you’ll save about 40-60% when you use an RPO service provider as opposed to staffing agencies.
What’s more, you’re likely to benefit from indirect cost savings such as improved time to hire, decreased turnover, and others.
3. Reduced turnover
RPO experts are well experienced as far as sourcing candidates who are a good fit is concerned. They strive to have a good understanding of your company’s cultures and values, making it easier for them to know when they’ve come across the right candidate.
On the flip side, they will want to understand what it is that most candidates value. Such factors may include:
- A good salary
- Good growth opportunities
- Adequate health and wellness benefits
- Sufficiency work-life balance
- Enough flexibility at work
- Family support and employee assistance services
By understanding the requirements and expectations of both parties, they can try to align the most compatible, resulting in stronger candidates who are happier and will want to remain with your company for longer terms.
4. Higher scalability
RPO gives you peace of mind knowing that you can still handle your recruitment needs even in times of rapid market fluctuations and adjust your resources both quickly and cost-effectively.
This makes RPO service providers a great choice for the growing companies that are scaling at an increased rate but also comes in handy for the larger companies that may need to tone down or even halt their hiring due to unforeseen circumstances.
5. Reduced time to hire
Failure to have a consistent and reliable hiring process can ruin your chances of being effective during recruitment. That’s because there will be more confusion, and your hiring processes will generally be lengthier and tiring for the candidates, resulting in a negative experience.
RPO providers resolve this issue by establishing a consistent process of sourcing, screening, and picking the right candidates. With hiring processes that are consistent across all departments, it is easier to cut back the overall hiring times for your company.
Explore these and more benefits with Kinetix
Kinetix is a leading RPO provider in the recruitment space that offers access to the above-mentioned benefits and more. So if you are looking to streamline your hiring processes, make sure to contact the team at Kinetix.