Home > Hiring Strategies, RPO > Can RPO be an Effective Tool in Your Hiring Process?

Can RPO be an Effective Tool in Your Hiring Process?

December 16, 2009

swiss-army Perhaps, if:

  • Low hiring volume doesn’t justify an internal recruiter on permanent payroll
  • You need to focus on your business’ core competencies
  • You have a need for scalability, to only pay for what is needed, when you need it


  • You can’t justify the investment on the technology/sourcing tools you need to find the best candidates
  • Internal recruiters/HR are overloaded & hiring managers are frustrated and under pressure
  • The cost of contingency fees (usually 20%+) warrants looking at other options

What is RPO?

To put it simply, Recruitment Process Outsourcing (RPO) is a form of Business Process Outsourcing, in which a company offloads all, or part, of its recruiting functions to an outside service provider.  Examples include an organization that finds its HR department short-staffed and needs assistance in a particular part of the hiring process, or perhaps finds itself in a growth spurt and must quickly ramp up with a certain number of employees quickly (i.e. a team of developers).  An outside firm can be brought in on a per-need basis to supplement the internal business unit.

Do you know the answers to these 10 questions?

  • What is your average cost per hire over the past year?
  • How much are you currently spending on candidate sourcing (i.e. job-board memberships, job fairs, employer branding, etc.)?
  • What is your average rate of vacancy, per month, for open & budgeted positions?
  • What did vacancies cost you last quarter in sales or profit/productivity?
  • What are your most effective channels for producing solid candidates and effective hires?
  • What is your average time to fill a position?
  • How often are candidates withdrawing from the recruiting process after being interviewed
  • What is your average turnover in the first 90 days of employment?
  • Have you calculated the cost of recent mis-hires?
  • What are the top three reasons why employees leave your company?

Adding an RPO service provider to your team can be an effective way of maximizing your hiring budget.  Knowing the answers to these questions will go a long way toward identifying potential weak spots, so that a solid partner can help you acquire, retain and promote an A-player staff.

Image: http://www.flickr.com/photos/xjara69/ / CC BY-SA 2.0

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