Recruitment Process Outsourcing Benefits

A recruitment process is a model that is organization-specific on how new employment sourcing is undertaken. The recruitment process is typically a Human Resources function, although this may be different depending on a specific organization.

Business process outsourcing involves contracting the operations and responsibilities of a business process to an external service provider.

Business process outsourcing or BPO is a form of outsourcing of a business process where part or all of the recruitment processes of an employer are transferred to a third party. A business process outsourcing provider may provide its own staff, methodologies, technologies, and reporting, or assume that of the company itself.

In today’s business environment Human Resources or Procurement leaders are required to come up with ideas on how to more strategically recruit and manage talent in an organization. The pressure on HR leaders to optimize a talent supply chain is immense, particularly in companies where fixed costs for recruitment has saddled the company with unnecessary overheads. This is where outsourcing recruitment to an external service provider may be a potential solution.

Recruitment process outsourcing is fundamentally different from staffing companies or retained/contingent search providers as it assumes ownership of the management and design of the recruitment process, as well as responsibility for results. A continuum of scope and scale exists in any engagement with RPOs. An experienced RPO firm can deliver solutions across a wide range of possibilities, each representing a different amount of risk, potential reward, and cost to your business. Some examples are:

– Recruitment Projects
– Recruitment Process Outsourcing
– Contingent Workforce Solutions
– Consulting services

Ways To Lower Cost Per Hire With RPO

Increased operational cost efficiency in today’s economic environment is an organizational imperative. During the recent recession significant changes in hiring demand forced companies to re-evaluate the recruitment process and cost structure they used and find ways to reduce costs while increasing business value. There are three ways in which outsourced recruitment can help with these objectives:

1. Reducing costs through shared risks.
When a downturn hits recruitment needs drop suddenly as companies cut back on staff and stop recruiting. On the other end of the scale, when a business expands due to a new product category or international expansion, recruiting needs will suddenly spike. Recruitment outsourcing allows a company to share the cost risk of resources to a business partner. Recruitment process outsourcing firms will take on the task of efficiently adjusting human resource levels during fluctuations so that the company does not have to bear the burden of unnecessary staff on its own. Or being caught short-staffed and new resources are required.

2. Faster Hiring Time
Sourcing and hiring new employees takes a lot of time and money. Depending on the type of employee, “the recruitment process can be long and difficult – from sifting through resumes to conducting several interviews and finally negotiating offers” the recruitment of a new employee can be extremely taxing on internal resources. In addition, each day a position remains unfilled the business is deprived of the benefit of the contribution by the required employee. Not to mention the wasted recruitment resources that could have been dedicated to other initiatives. Outsourcing part or the entire recruitment function will significantly reduce the hiring time by leveraging streamlined recruitment processes.

3. Streamlined Recruitment Process
Outsourcing recruitment processes eliminate the most common problems with the recruitment lifecycle. The process is often disjointed with a multitude of uncoordinated practices, whether good or bad, across functions, divisions, departments, and regions. This often causes overlaps in advertising purchases, on-board procedures, and training programs. The result is poorer hiring decisions which ultimately translates into higher operational costs. An RPO provider will examine the recruitment process workflow to expose overlaps, inefficient practices, and excessive costs and create an outsourcing model with excellent success metrics and service levels. This streamlined process has repeatedly been shown to yield satisfaction and increased efficiency in the recruitment lifecycle, resulting in an overall cost reduction to the company.

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