The RPO offers many benefits, if the outsourcing is made properly. The outsourcing is not a one way solution; it is a real close business partnership. The outsourcing provider becomes part of the organization, has to share the corporate culture and manage operational recruitment on behalf of Human Resources. It has risks, but it offers many benefits.
Main benefits of the recruitment outsourcing are:
- Headcount decrease in HR and performance improvement
- Strategic Management of the Recruitment and Staffing
- Pure focus on the strategic recruitment agenda
- Benefiting from the recruitment market best practice
- Reduced investment into the recruitment tools development
- Recruitment and Staffing Cost Management
Honestly, the need of the headcount reduction in Human Resources drives the selection of the recruitment process outsourcing. The top management requires functions to eliminate the non-core and non-strategic agenda. The recruitment is not a strategic agenda for many modern organizations. They build strong and robust systems of the internal development of young talents. They need to source just junior positions, and they develop senior specialists and managers internally.
HR dedicates many resources on the operational recruitment processes. The operational recruitment does not add any value to the development of the HR team. It is the repetitive process, and HR Recruiters want to be promoted as soon as possible. Their fluctuation is high and HR Managers have to focus on their motivation. The outsourcing of the recruitment is highly beneficial as HR does not have to focus on the large population of its employees.
The strategic recruitment agenda is critical for the development of the sustainable competitive advantage of the organization. The outsourcing vendor cannot build the advantage; the vendor has to follow the approved recruitment strategy. However, the outsourcing allows HR to focus on the strategic recruitment. The strategic part of the recruitment is about setting right channels, the job advertisement alignment with the corporate culture. Usage of social media for the promotion of the company on the job market and other strategic stuff. The internal HR employees can focus on the proper analysis of the environment, and they can design right and efficient recruitment strategies. It is a massive benefit of the RPO.
The outsourcing provider delivers the same service to many non-competing organizations. The provider can transfer the best practice from other companies. The provider wants to cut costs of the operational recruitment and introduces many changes to the process. The provider wants to reduce costs and labor intensity, as the recruitment becomes faster and cheaper than it was. It is a benefit of the outsourced recruitment. The contract has to be flexible, as the provider can introduce changes and gains are shared between the organization and the provider.
The modern recruitment process needs to be supported by the recruitment software. The outsourced recruitment cancels investments into the development and maintenance of the recruitment software. Most providers implement their own recruitment software solution, and they design and implement interfaces into HRIS of clients. Most HR Functions do not have enough resources to develop and enhance the current HRIS solution. The introduction of the outsourced recruitment can be an enormous benefit for the organization, as it does not focus highly valuable IT resources. The provider leads the improvement of the software. The provider writes all change requests, and the organization just approves significant changes, which could affect the strategic recruitment processes.
The efficient recruitment outsourcing manages costs of the recruitment. The contract specifies all payments and conditions. The management of recruitment costs is difficult, and the right provider guarantees many recruitment services included in the basic flat fee. The management of costs is an enormous benefit of the recruitment outsourcing.