Advantages of Recruitment Process Outsourcing (RPO)

We thought that globalization would make the world a small and uncomplicated place, but today it is a giant mess – every small town, city, and country being interconnected by the basic forces of demand and supply. The world as we know it is based on two principles that came into consideration after the industrial revolution began – specialization and economies of scale.

Simply put, this means that every party tries to complete a part of the process of production. By ensuring that resources are expended on the creation of only one item, efficiency increases, thereby making it possible to produce more of the specialized product. Besides, the larger the scale of production the lesser is the cost of production.

These two principles together are the reason we have factories and assembly lines chugging out endless lines of products, and probably the only reason that the word ‘consumerism’ exists.

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Process outsourcing works on more or less the same principles – an organization has to perform various processes, widely different in scale and method to make a product or service. Some of these processes are quite tedious to perform on an organizational scale. Hence if the organization delegates that work to another company specializing in providing that special service, the process becomes easier for the company.

Outsourcing is the trend of our times, and one of the pivots of corporate structure in the twenty-first century. Payroll services can also be an integral part of outsourcing your work. Payroll outsourcing is dominating the outsourcing the market currently.

Recruitment Process Outsourcing(RPO) works more or less along the same lines as other outsourcing processes. It creates a win-win situation, for the recruiting company, the outsourced firm, as well as the recruits. It minimizes the hassles of recruiting, as well as increases quality and scale of recruitments. Companies can choose amongst various outsourcing faculties like HR and payroll solutions and outsourcing employees.

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Some of the advantages of good RPO’s are-

1. Reduced cost of recruitment– Recruitment is a process that takes up a disproportional amount of resources, it can be in terms of people, traveling to various institutions for recruitment, time, cost and skills involved in testing and grading the prospective candidates, RPO’s have a dedicated set of substantial time and resources for all of these (that’s specialization, folks!), therefore the costs are reduced when a company outsources recruiting to a dedicated RPO firm. Workforce solutions offer quality employees at a reduced cost.

2. Off-season recruiting– The recruiting season is largely set in stone for most of the companies, as they cannot dedicate time and resources towards this process throughout the year. Hence companies that face off-seasonal demand for labor find it difficult to meet their requirements. This can be solved easily with RPO’s as their dedicated resources come in handy for off-season Hence, with RPO’s there is no need to tethera firm’s labor demands or company policy to a seasonal hiring mechanism.

3. Access to a wider talent pool- For any firm, due to the strain recruitment puts on the natural processes and resources, the recruitment is restricted to a few institutions, while a significant chunk of institutions spread across the country remain RPO’s can cover more institutions, and also hire the best talent and the best fit for the given portfolio, as they have more dedicated resources to expend to reach a wider talent pool. Moreover, from the candidates’ side, more people get opportunities to be selected for a job of their interest and expertise.

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4. Comparative advantage to smaller firms- Smaller firms and start-ups that do not have the necessary manpower or resources to set aside for recruiting can greatly benefit from Recruitment Process Outsourcing. It not only standardizes their recruitment process but also helps them get the talent pool they might have been otherwise unable to get due to resource bottlenecks.

5. Ensures greater availability of jobs- A skilled candidate in search of desired profile is more likely to find a job that is tailor made to his interests and specializations at an RPO firm, than if firms which are not outsourcing their recruitment process. The flip side of greater availability of jobs is that companies have no shortage of talent to hire from at any given time during the year. Assurance of supply of skilled manpower is conducive to any company policy, be it expansion or diversification, hence offers greater flexibility of company policy.

6. Strengthens company infrastructure- Manpower recruitment consultancies increase the overall efficiency of a firm, thereby strengthening company infrastructure in more ways than one. They pave way for greater flexibility of company policy, assure a strong labor force at competitive wages and best optimal selections from the talent pool,and reduce the resource constraint on recruiting. These advantages may even widen the company’s profit margins in the long run.

7. Focus on in-house processes- Recruiting incurs an additional overhead on any company. If the process is outsourced, the manpower and resource overhead used for recruiting can be used to strengthen the in-house company processes. This ensures that there are no overworked employees or resource constraints. This can bolster the growth of the core processes in the firm.

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8. Increased efficiency in recruitment- With a large market and an even larger supply of labor, a firm providing RPO services is more poised to find the right fit for the right job, in the light of talent, efficiency, company requirements, skill set, learning curves, and quite a lot of other factors. Recruiters eliminate the pressure on companies to secure the best talent in the market at the best possible time, as RPO’s with a lot of portfolios can find the right fit for the right job with the right process. Thus RPO’s increase performance outcomes.

9. Standardize recruitment process- Most of the companies develop their own testing and grading mechanisms to rank the students, and also employ existing working personnel for recruitment. A large number of such tests can detract the candidates from what to focus on while developing the requisite skill set for similar job portfolios. A standardized hiring test conducted by an RPO can smoothen recruitment process for a large number of students and can also gauge their talent, skill sets and interests more effectively than a large number of similar and dissimilar tests by various individual firms.

These are some of the advantages of outsourcing your recruitment.

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The world today is intricate and infinitely networked, there is no room for cluttered and inefficient processes. The outsourcing industry has snowballed and RPO’s are here to stay for the same reason. Where efficiency is in demand for recruitment, RPO’s are inarguably the one stop solution. With the right mix of resource hunters and a dedicated set of resources, competitive RPO’s in today’s world are globalizing and standardizing recruitment.

This is in addition to providing the right man for the right job, ensuring more job satisfaction for the recruited personnel, making supply of labor more elastic, and providing more opportunities for employable personnel.

Indubitably, RPO makes the working of myriad firms smoother by a significant margin, and we can hope that this is a trend that is here to stay. After all, anything that is as viable as RPO, with such significant advantages over other alternatives, is also very sustainable.

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