Navigating the world of outsourced recruitment solutions can be a daunting task, especially when your search is met with myriad industry jargon. To help you decipher what to focus on when comparing providers and exploring recruitment process outsourcing (RPO) solutions, our talent expert Carla has put together an ‘RPO terminology 101’ guide.
Recruitment Process Outsourcing (RPO)
RPO stands for recruitment process outsourcing. It is a business model whereby a company outsources the management of its recruitment function either in whole or in part. These solutions are customised to address specific needs, encompassing tasks ranging from sourcing and shortlisting to interviewing and onboarding, as well as strategic initiatives such as employer branding. RPO models are unique from other recruitment solutions in the way they extend beyond hiring alone; they are strategic, long-term partnerships that drive cost, quality and efficiency benefits.
Service Level Agreements (SLA’s)
Because RPO solutions are customised solutions based on your unique goals and requirements, RPO providers often work with Service Level Agreements (SLA’s) to set the partnership up for success. SLAs are formal agreements that outline the expectations and standards for service delivery between you and your RPO provider.
RPO models
There is no such thing as a one-size-fits-all RPO model. Any model you implement needs to be carefully customised based on a deep understanding of your business needs, organisational capability, culture, and costs. As a baseline, different RPO models exist. They often vary by level of involvement, scale and what stage of the recruitment process they address. For example:
- Project RPO
Project RPO is an RPO model wherein a team of experts are engaged to manage specific projects or hiring initiatives within a designated time frame. Designed for quick implementation and ease of delivery, this model is ideal for companies that need to fill multiple roles across numerous regions and global markets at once. For example, an expansion into a new territory or the launch of a new product. - Enterprise RPO
Another type of RPO model is the Enterprise RPO solution. An Enterprise RPO solution looks after the complete end-to-end recruitment process, taking care of every piece of the talent puzzle – attracting candidates, screening and assessing them, scheduling interviews, offer negotiations and onboarding colleagues, monitoring compliance, and conducting exit interviews. - On-demand RPO
As the name suggests this model is when you need to rapidly scale your recruitment team to meet short-term demand. An RPO can swiftly deploy a team of talent experts to support companies for any recruitment-related need in a short time frame including sourcing, recruiting, screening, interviewing or technology.
Recruitment Technology
Recruitment Technology refers to the tools and software that enhance various aspects of the hiring process. This includes applicant tracking systems, video interviewing platforms, AI-driven candidate screening, and more. RPO solutions often leverage a customised tech stack to optimise these technologies depending on the partnership.
Scalable RPO solutions
When exploring RPO solutions, you’ll often find scalability mentioned as a benefit. In RPO solutions, scalability and flexibility refer to the ability to scale your partnership up and down as your business needs change. As your hiring demands rise and fall, you can seamlessly expand or reduce temporary recruitment headcount as needed.
Continue your journey into the realm of RPO with Carla’s RPO 101 series. Click here to understand the different lingo of RPO services, or get to know the roles of the professionals involved in an RPO partnership. Want to talk more about RPO? Click here to get in touch.
