Five Questions to Ask When Building a Recruitment Process Outsourcing Strategy

Yankee Group
August 17, 2006
4 Pages - SKU: YANL1370897
License type:
RPO Emerges as an Option for Companies Looking to Shed Some or All of Recruiting Process One of the most important questions companies should be asking themselves is how critical the recruitment process is to their business. As one recruitment process outsourcing (RPO) executive recently stated, “RPO is a science and an art.” Most companies would like to think they have a core differentiation that attracts candidates. Those same companies believe they have a well-defined recruiting process. But, in most cases, the recruiting process provides no differentiation or competitive advantage to the business.

RPO has emerged as an option for companies that prefer to shed some or all of their recruiting process. Some of these outsourced recruiting processes include:
  • Requisition management
  • Interview scheduling
  • Recruitment management
  • Hiring processing
  • Resume processing
  • Post-offer checking
  • Pre-screening
  • Onboarding
  • Skills and behavioral assessment
  • Training
Although contingent staffing and placement services firms have been around for a while, only recently have companies considered outsourcing all or some of their recruiting functions. RPO is a new concept and most companies are experimenting with it. RPO as a business model requires companies to learn what, how and why to outsource the recruiting function.

Cost savings has been the prevailing factor when considering an RPO strategy. The ability to take out expensive costs—such as retained search, travel and advertising—associated with the recruiting process can be compelling. Other factors that are increasingly weighed in an RPO strategy include increased corporate and regulatory compliance, improved service quality and speed of the hiring process, management of diversity initiatives, and access to worldclass technology and recruiting best practices. Ultimately, companies should decide what their recruitment process requires and leverage economies of scale to those processes deemed non-core to the business.