An internal recruitment process is not a good option if you are in need of a large manpower with high qualifications and necessary skills. This is the main reason why more companies are hiring outside agencies for Recruitment Process Outsourcing (RPO) to save on valuable time and resources; and to let their human resource department focus on corporate policy compliance and staff development.
Basically, RPO is a type of business outsourcing where a company hires the services of an outside firm to process recruitment for manpower needs. The recruitment process normally begins when the company and the external service provider agree with the terms and conditions to get successful hires. The main role of the recruitment company is to deal with all the manpower pooling; from creating a database of resumes to conducting the pre-hire interviews. Their function is similar to the recruitment role of a company’s human resource department.
With the recruitment outsourcing contract, the recruitment agency can impose additional requirements and qualifications other than the company pre-requisites to ensure quality of applicants. The agency can also save on overheads and develop strategies for legal compliance. Alternative recruitment support such as transitory management, emergency manpower needs and staff development could also be provided by recruitment agencies.
The primary distinction of traditional recruitment to Recruitment Process Outsourcing is that the RPO take up the whole process of recruitment while internal hiring is just part of the process performed by the company itself. Supporters of business recruitment outsourcing agree that this business solution could enhance the company’s production quality, service, efficiency and overheads. Aside from this, the production process of your company can be made cost-effective and you could offer better services and high quality products at more affordable rates. The savings for the recruitment process could also provide the chance to increase compensation and benefits for the employees.
The business solution offered by recruitment outsourcing is also viewed as a way to save money intended for lengthy hiring process. Companies could shoulder the expenses through transactions with the recruitment agency instead of paying for valuable hours to look for qualified staff. With this, the company will avoid losses of internally recruiting manpower when the process cannot search for needed staff.
Of course, there are also disadvantages with RPO. For example, if the company fails to define the entire recruitment process, any attempt to hire will pool manpower that won’t meet the company demands. It could only be effective in the framework of a well-defined company and recruitment process. Hence, like all other jobs being outsourced; your company should continue to oversee the operations and the process of recruitment including initial guidelines and regular supervision. Another downside of recruitment outsourcing is the involvement of excess cost intended for manpower connections. The total cost of the recruitment with an external provider could exceed the actual cost of corporate hiring. Generally, recruitment process outsourcing is a major challenge and a big decision for the management to make. It could turn out effective and successful according unique business needs.