RPO Hiring vs Traditional Recruitment: Key Differences

Recruiting the right employees for your business has become more challenging than before. Not long ago, all you had to do was place an advertisement, review some resumes, and choose the best candidate. Nowadays, the employment market is so fast-paced that job seekers have numerous options, and companies must hire quickly if they want to be ahead.

When you decide to build your team, you mainly have two options: stay with the old-fashioned recruitment or switch to recruitment process outsourcing RPO hiring. Each of the two methods offers advantages and disadvantages. 

What is Traditional Recruitment?

This is the method that most people rely on. It mainly comprises an internal HR team or a regular recruitment agency.

When you deploy your own HR crew, they take care of everything from creating job descriptions to conducting interviews. If you go with a normal agency, you pay them a commission for presenting a candidate for a selected position. After this person comes onboard, the agency's task is over.

What is RPO Hiring?

Recruitment process outsourcing (RPO) is a relatively new way of doing things. Instead of just relying on someone else to get you a candidate for a job, you decide to engage an external provider who will take up your entire, or at least a part of, hiring process.

Your RPO partner represents your company. They will not just "put a body in a chair." They will consider your strategic objectives, use their own sourcing tools to get you the best candidates, and guide the applicant through the entire recruiting process.

Key Differences Between RPO and Traditional Recruitment

1. The Goal: Short-term vs. Long-term

The main distinction lies in the focus. Traditional recruitment typically centers around "fire-fighting" scenarios. That is, a vacancy arises, and you have to find a replacement immediately. Basically, it is a one-off deal.

RPO recruiting, on the other hand, considers the overall scenario. An RPO consultant examines your hiring practices, employee retention factors, and the potential for hiring process optimization. Besides, they aim to elevate your "employer brand" such that even superior candidates would desire to be a part of your company.

2. How You Pay

Usually, with traditional recruitment agencies, you are required to pay a "success fee." This simply means you pay only upon hiring someone. Although this may seem beneficial, it might become very costly if you are hiring a dozen or two people at the same time.

RPO's payment scheme is different. Typically, you pay a monthly management fee and a smaller per-hire fee. Cumulatively, this is usually less expensive if you are doing a great deal of hiring. It also leads to better budget predictability on your part.

3. Technology and Tools

Many small and medium-sized companies rely largely on rudimentary hiring tools such as spreadsheets or basic software. On the contrary, RPO companies are bringing out "the heavy artillery." They can utilize costly data tools, AI-based sourcing software, and sophisticated tracking platforms covering each and every candidate.

Since they handle several clients concurrently, they can afford to purchase the best technology. As their customer, you get to use it without having to purchase it yourself.

4. Speed and Scalability

What if your company suddenly experienced rapid growth and you wanted to employ 50 individuals in a couple of months? A regular HR team might be quite hard-pressed. An RPO company, however, is prepared for these situations. They can increase their recruitment activities pretty fast since they have recruiters on stand-by. 

Similarly, if your hiring needs decline, they can reduce their efforts gradually. This means you do not have to maintain an overextended in-house hiring team when hiring demand decreases.

5. Ownership of the Process

With traditional recruitment, the agency often owns the candidate data. So if you decide to break the collaboration with them, you may lose access to the list of candidates they have found. When you opt for the outsourcing of the recruitment process, you get full ownership of the outcomes. 

The RPO company puts together a "talent pipeline" for your firm. So even if you part ways after a while, you are left with the candidate database plus the better processes they produced.

So, Which One is Suitable for You?

Go for Traditional Recruitment if:

• The number of hires per year is only 1 or 2.
• A very efficient, small, but not overworked HR team is at your disposal.
• You have a very specific position, a rare one, for which only a specialized headhunter can find a candidate.

Go for RPO Hiring if:

• Your growth is very rapid, and you need to hire a large number of people.
• Your current hiring is too slow and/or costs too much.
• You intend to raise the quality of your candidates, rather than just their number.
• You are planning to focus on your main business and leave the HR "heavy lifting" to professionals.

Build Your Future with TASC Outsourcing

Interested in revolutionizing your hiring process? At TASC Outsourcing, we make recruitment easy for you. Whether you wish to increase your workforce rapidly or attract top-notch talent that remains, you can count on our staff. We blend local knowledge with global technology so that you will have the perfect team every time. Don't let the slow hiring process be the reason your business doesn't reach its goals. Get in touch with TASC Outsourcing and let's create your perfect team!

Frequently Asked Questions

1. Is RPO just for the big guns?

Not really. Big firms certainly use it a lot, but lots of mid-sized businesses going through a growth period use RPO to gain an edge even against the very biggest players in attracting top talent.

2. Does RPO mean that my HR team will be made redundant?

Certainly not. Most RPO companies usually collaborate with your existing HR team. Your HR staff remains responsible for the overall employee culture and strategy while the RPO provider takes over the more monotonous tasks (such as sourcing and screening).

3. How long is an RPO contract typically?

In general, RPO agreements extend for several years, with 1 to 3 years being fairly standard. However, some RPO providers offer project-based RPO where the organization can hire for a short period of time.

4. Will I lose control over who I hire? 

You will always be the one making the final decision. The RPO team is just the one putting in the effort to locate and assess the suitable candidates for you to pick from.

5. What is the main benefit of recruitment process outsourcing? 

It's talent quality. Since RPO providers have more and better data at their disposal and more time, the candidates they present usually are the ones who will perform better and remain at the company longer.