RPO stands for “Recruitment Process Outsourcing,” meaning that an employer transfers all or part of its recruitment activities to an external vendor. Those recruiting activities can include sourcing, screening, testing, interviewing, background checks, coordinating offer letters, and orientation.
- Cost savings – RPO is cost-efficient, saving up to 50% when compared with contingency search fees.
- Extra resources – Some corporate human resources departments do not have the internal resources to devote to recruiting large numbers of employees at one time. When hiring needs outpace recruiting capacity, RPO can make sense for a company.
- Focus– This allows the company’s managers and human resources staff to focus their efforts on the company’s core business while also ensuring a supply of high-quality staff members for all positions.
- Access to industry best practices – RPO firms are in the business of recruiting. Accordingly, they have certain tools and processes that many companies may not have.
- Diverse candidates – An ancillary benefit of RPO is that it aids in accomplishing diversity objectives.