Hiring a new employee could set back companies of any size around $4,129 on average, according to a 2016 report by the Society for Human Resource Management’s (SHRM). And, the recruitment process would normally take up to 42 days. No wonder many companies are turning to recruitment process outsourcing these days. Recruitment process outsourcing or RPO can benefit a company in many ways other than save costs. Here are seven of them that your company may want to consider.
#1 RPO gives companies the domain expertise they badly needed for faster and more reliable talent acquisition.
It's fine to bring your talent acquisition efforts in-house when you're looking to hire less then 10 people for rank-and-file positions. But, the going gets tough when the objective is to hire 50 people or a hundred of them for a big volume account in the outsourcing industry. It's even more difficult to find quality talent for hard-to-fill positions, such as C-level executives and technically skilled workers.
With recruitment process outsourcing, companies get a dedicated team of HR professionals who will work only for them. The process can be time-consuming, especially when the number of people applying for open job positions may number hundreds, if not thousands.
#2 RPO providers can help companies match their recruitment strategies with the current trends and the available technology.
The recruitment process has evolved because of the widespread use of smartphones and the popularity of social media networks. These days recruiters don't just wait for job seekers in their comfy offices. They've taken the initiative to scour online job sites and social media sites for passive candidates -- people who are currently employed but are also interested in job positions that offer them better pay and opportunities for growth.
#3 RPO takes away the burden of searching for qualified job candidates from your managers.
Recruitment isn't the only thing that HR professionals do for a company. The breadth and scope of human resources management is wider than most people think. Rather than cause your HR team unnecessary grief over your hiring process, why not outsource it to a team that's as competent (or even more so) as your employees? With the time-consuming search for talent lifted from their shoulders, your managers can focus more on fulfilling your core business initiatives.
#4 Partnering with a reliable RPO provider can help minimize turnover costs and perhaps reduce your turnover rate.
A recruitment process outsourcing company with a proven track record can help companies improve their turnover rate, and at the very least reduce the costs of replacing employees. According to the Work Institute's Retention Report published in 2017, the replacement cost is $15,000 per person for an employee earning a median salary of $45,000 a year.
One of the main reasons that employees leave their jobs is mismatched expectations of job responsibilities. Employees either misunderstood the job description or the job listing itself was incorrect. During interviews, the recruiter may have failed to explain the job's duties and responsibilities to candidates. This mistake can be avoided through recruitment process outsourcing.
#5 Staffing during peak season or during periods of rapid growth can be challenging for an in-house recruitment team.
Companies that hire seasonal workers by volume or must hire new employees within a short period of time will need the help of a competent RPO provider. A dedicated team of HR professionals can immediately work on finding capable workers to take over as extensions of or substitutes to regular staff.
Moreover, RPO providers have more experienced recruiters and access to advanced recruitment technology. They also use up-to-date methods, including social recruiting, to meet the demands of unusual patterns in recruitment activity.
#6 RPO companies not only provide talent acquisition services but also onboarding for new employees.
You can improve employee retention by integrating the onboarding process for newly hired workers into your recruitment efforts. This provides consistency in training new employees and ease of adoption for the new hires who will be introduced to a new corporate culture. It also fills the gaps usually seen in mismatched methods used during recruitment, orientation and training.
#7 RPO provides a strategic business advantage for companies looking for top-tier talent in specialized industries.
Companies in the software development industry showed the world that outsourcing can get them the much needed talent they need to boost their intellectual capital. When the manpower is sorely lacking in skills at home, it's time to look elsewhere, and RPO companies can definitely help you with a global recruitment initiative.
With a recruitment outsourcing company as your partner, you'll have someone to rely on during tough times. A company with RPO expertise can also help you weed out the undesirables and find top-tier talent even for hard-to-fill positions. And, best of all is the familiarization with the culture and world of technology that the current generation of workers grew up in.