Recruitment Process Outsourcing: is it worth it to choose such a scheme?

Anna Medvedeva
Anna Medvedeva April 21, 2022

recruiting, recruitment, recruiter

How to recruit and hire now, in the new reality? Unfortunately, now the lives of many Ukrainians changed, businesses have had to rebuild their processes, and recruitment is no exception. So what do recruiters and IT recruitment agencies can act right now?

Our company is working more and more according to the PRO scheme.  It seems that this is an excellent idea, not only for now but also for the future.

What is RPO?

RPO (Recruitment Process Outsourcing) is a complete or partial outsourcing of another company's recruitment. This service is most often used in case of a temporary increase of necessary hires and when companies have no opportunity to close vacancies by themselves. It is also very convenient to use this service when the company does not have a recruiter at all, because it is very long (and expensive) to look for a qualified recruiter, and taking such a person from the agency means that you get high expertise and good technical base.

Why is Recruitment Process Outsourcing becoming more popular, and what pains does RPO solve?

  • The recruiter is deeply involved in client's processes and culture (up to All-hands meetings, internal mailing and presence on work channels like Slack, Trello, etc.), which allows the recruiter to manage the whole hiring process.
  • The database of candidates can be maintained on the client's side, or at the end of the cooperation can be uploaded from the internal database of the agency.
  • If desired, the external recruiter can work on behalf of the client's brand, using corporate mail and internal accesses.
  • The recruiter takes care of all communications with Hiring Managers, which saves the time of the person who is an intermediary. This is especially useful for companies that do not have a recruiter at all, and all these tasks had been done  by the CTO or Engineering Lead.
  • The recruiter acts as a Business Partner and can help build the recruitment process in the company.
  • Reduction of financial costs for hiring a large number of people. 

Describing the advantages of this approach for customers, these are such pros:

  • The first (and for many, the most important one) is the budget savings on the hiring process. Analysis of customer data for the last year showed that the average cost per hire when working with RPO is at least 30% lower than when working via the classic scheme with a fixed rate fee.
  • Recruitment planning takes you to a new level, allowing you to better adapt to changing market, and you always have the agency's analytics and internal candidate base available to you.
  • For companies without a recruiter, this is an opportunity to see the work of such a person and understand how much it is needed, and of course, not to "pause" the hiring process while looking for such a person.
  • Ability to work with strong recruiters and use all the technical tools of the agency (paid use of LinkedIn, access to databases and other tools the client does not pay for).
  • Saving the time of the Hiring Manager or internal HR, which spends it on information transfer. The recruiter learns all the information directly or sees it in the internal systems.
  • Ability to adjust workload (give more vacancies or stop work when there are no positions). And in this case, the client does not need to pay an agency when there are no vacancies,
  • It is a great option if the company does not have a recruiter in a particular region or he/she is needed temporarily, for example, to hire a team of developers for a new office. Recruiters from the agency will do it faster and better, with knowledge of the local market.

But RPO is not for everyone. It also has some disadvantages. When won't the PRO scheme bring the expected results?

  1.  If you are not used to delegating and transferring part of the work tasks to third parties.
  2. If you are not ready to be open and share the "internal kitchen" with external companies (this problem is often solved by signing the NDA).
  3. If you are not ready to share the responsibility for hiring with RA. Lots of stages of the interview, incomplete feedback (or absence of them), pickiness in the selection of candidates. All these factors will lead to a long hiring process. And the final bill for the service will be high, so you will not spend less money than expected.
  4. If you are not ready to pay recruiters for work, but only for successful hiring (here everything is the same as with your internal recruiters: you pay them not only a bonus, right?). 

How does the RPO format look like in reality?

We'd like to share our real case on how to work according to the RPO scheme. For more than a year now, our IT recruitment agency EvoTalents has been offering its clients the RPO (Recruitment Process Outsourcing) service. And on our example we want to show you how to work according to the following scheme:

  • Keep a timesheet showing how many hours you spent on each vacancy and what activities were included (or connect time trackers). Also, set estimates for the week ahead so that the customer can easily plan expenses.
  • Find a comfortable formula that will help calculate the cost of this service, and do not forget to consider how many hours it takes to work effectively on one vacancy.
  • In contracts we also recommend prescribing a Notice Period (for how long you need to notify in advance of changes or termination of cooperation).
  • Hold periodic sync-up hiring planning meetings with clients, as well as weekly meetings where you will share the results or difficulties you have encountered during this time and think together about their decisions because you are interested in efficient and quality hiring no less than your customers!

Below you can see the benefits of working with RPO scheme on the example of the case described above:

recruitment, recruiter

This format just started to appear on the market, but it is clear that this work format is very promising and can bring excellent results for both parties, especially now. So, if after reading our article you feel that it would be good to try this option of cooperation, we advise you to try it.

And if you need help finding candidates, in particular via the RPO scheme, the IT recruitment agency EvoTalents will help you with this because we have a team of 10+ experienced and creative recruiters who know how to find candidates, even if they are not on LinkedIn :)