Recruitment Processes

What is Recruitment Process Outsourcing (RPO)?

RPO as it commonly called is a form of business process outsourcing (BPO) where a company or an employer sublets a part of the total recruitment function to an external HR Agency. An RPO may or may not use the client’s infrastructure, processes, and reporting methodology. Generally, there is a prime difference between an RPO service provider and a placement and a recruitment agency. A recruitment agency is held responsible for the results while an RPO vendor is just following the processes and systems downloaded upon it. Recruitment process outsourcing (RPO) is a recent business service model. Recruitment being a professional activity; while the descendants model of human resource outsourcing because companies found that recruiting correct and skilled manpower is a significantly costly exercise and a challenging activity. However, RPO has migrated to a much more complicated relationship between the outsourcing recruiting as an outside agency, although it is considered as two-thirds of the bonding factor between the two parties. RPO is an association between the hiring company and the (RPO service provider) where the branding is taking place of the hiring RPO buyers rather than of the RPO providers.

Recruitment Process Outsourcing Definition

The Recruitment Process Outsourcing is defined as “a method of business process outsourcing where a hiring company or the RPO buyer handovers the entire or a part of its recruitment cycle to a peripheral vendor. Recruitment Process Outsourcing agencies are allowed to control the complete recruiting/hiring process, or can control one or two parts of the procedure, principally aiding as a logical extension of the hiring company’s HRD”. This description demonstrates that RPO facilities are not subcontracting in the customary sense, as operating along with an RPO provider is far more consultative and time-consuming as compared to the conventional method of recruiting.

What are the different types of RPO Services

Occasionally RPO providers will take on a client’s entire recruitment function, as the RPO buyer would like to have some control under their purview. On a regular basis, RPO providers agree to extend specific services that are programmed to increase what the RPO buyer or the client is already doing in this recruitment function, or an RPO provider may also choose to work with the RPO buyers recruiters to give an impetus to their hiring team. We have enlisted a few of the major services an RPO provider will offer to its client base;

•  Candidate sourcing: This is the typical vanilla service where the RPO provider sources relevant matching cv’s for its client either from their own database or a portal subscription provided by the client.
•  Compliance tracking: As the name suggests there are many procedures and processes which need to be followed in the recruitment cycle. This activity can also be outsourced to an RPO provider.
•  Reporting and Audits: MIS reporting on the recruitment function and its effectiveness along with cost control and auditing the processes followed.
•  Hiring Manager Training: Training how to interview, screen, shortlist, and induct new recruits is also another activity that RPO in Pune and its consultants perform as an external agency on behalf of their clients.
•  Process Mapping: This is another activity that the client may consider outsourcing to an RPO so as to keep track of the overall effectiveness of the recruitment process. Redundant processes may be identified and removed and kaizen improvement in the processes may be implemented in consultation with the RPO buyer.
•  Technology Consulting: Applicant tracking systems and many other HRM MIS, SAP & ERP systems are available nowadays and clients are quickly adopting technology to have better decision-making abilities.
•  Third-Party Vendor Management: There are many functions of the HR department wherein external vendors are involved. The entire vendor management, billing, service quality and product quality auditing can be outsourced partially or wholly to an RPO provider

RPO providers normally accept total responsibility for the recruitment process and its outcomes. Therefore an RPO provider will not only stretch beyond limits for a client company it will also coordinate with the in house recruitment resources to improve upon the effectiveness of the recruiting processes and recruiting results. Thus easing the task for the clients to hold the RPO agency liable to recruit relevant candidates for the company, and not just filling in the vacant positions.

What an RPO do not represent?

Recruitment Process Outsourcing is often misunderstood and does not mean that the RPO buyer is conducting the recruitment function remotely. It also should not be presumed that the RPO buying company is shrugging its recruiting responsibilities to someone else because of a lack of interest or time or any other factor. A RPO in Pune agency is not a plug and play solution for all recruitment needs, nor does it replace solution, in-house recruiters or HR Team. By outsourcing some parts of the recruiting function to an RPO provider, the in house HR department is not washing its hand from its recruitment responsibilities. The approach has to be top to down and by merely onboarding an RPO consulting company it does not imply that a company is committed to improving its recruitment vertical. With such a thought process an RPO should not be signed up.

What are the indicators that a company should sign up with an RPO

The services of an RPO should be only sought for when a hiring company is looking for a hiring solution other than the standard headhunting or executive search placement method. Under these needs will tying up with an RPO make sense. This is because an RPO in Pune as a  service provider is a serious empanelment methodology than the standard placement sourcing contract. It is like a company that is partnering with some external agency for a critical resource. It is not only a commercial agreement. It involves a lot of commitment from both the RPO provider and the RPO buyer towards each other to make the association a win-win one. The relationship so formed has to be committed to creating an employer branding process which will enable the hiring company to attract and retain talent rather than just increasing the headcount with qualified members.