How Much Does RPO cost? Models and Comparison!
RPO, also known as Recruitment Process Outsourcing, involves an employer outsourcing the responsibility of finding candidates to a third-party service provider. Knowing RPO prices is crucial before you choose any one method of outsourcing recruitment processes and related RPO charges.
Recruitment Process Outsourcing (RPO) – General Overview
The recruitment environment is complicated. To effectively recruit the top talent, you must manage a tight labor market. And if you don’t have the right talent acquisition strengths, you will end up hiring mostly mediocre or wrong-fit employees. RPO service providers know how to navigate the recruitment environment while staying relevant to the latest trends.
Recruitment Process Outsourcing is a type of business process outsourcing where an employer transfers all or part of their recruitment processes to an external service provider. An RPO service provider will manage the staffing and recruitment processes assigned by the employer.
Key RPO Models and Comparisons
Full RPO or Enterprise RPO
In full RPO, it is essential to consider the RPO cost. In this model, the RPO provider offers a company’s entire internal recruitment function. It is an RPO model where every piece of the company’s recruitment process is included in the contract.
It also ensures that each element of the organization’s recruitment tasks is executed by a company specializing in outsourcing recruiting and recruitment processes. Full RPO means the provider will offer the organization access to its full expertise. It often comes in handy to recruit talented professionals.
Function-based RPO may be ideal if your company has one or two divisions for which talent acquisition is complicated or competitive.
In function-based RPO, the RPO service provider usually assumes the responsibility of a specific division’s recruitment. When properly implemented, function-based RPO ensures the division will get the recruits. Function-based RPO is also beneficial for streamlining the performance of your HR department. Opting for this RPO model will be ideal if you are a large-scale organization.
On-demand RPO services providers are an extension of your hiring team and can allow the HR department to function seamlessly. The RPO service providers will assume the increase in or difficult staffing needs that arise suddenly or unexpectedly. You can get on-demand recruiter services from the RPO agency.
A project RPO can come to your aid if you are opening a new branch or office or launching a new project, or expanding a project for which you need to hire whole teams. A project RPO also offers great flexibility and scalability when it comes to acquiring permanent, temp, remote, or cross-border staff.
Modular RPO works well for companies wanting to outsource one or more specific processes within talent acquisition. Modular RPO service providers often supervise screening, interview scheduling, and sourcing processes.
With modular RPO, you can select what support you require from dedicated teams to manage certain tasks. Modular RPO services are suitable and offer a commitment-free scalable service.
How does RPO Help Reduce HR Talent Acquisition Costs?
One should be aware of the recruitment process outsourcing pricing to know the relevant details. If you are unfamiliar with the rapid changes in recruitment, opting for RPO will be ideal. Companies sign a contract-based engagement with a qualified RPO service provider. These are the general benefits of RPO.
1. Reduce Investment in HR Talent Acquisition Infrastructure
One of the key highlights of an RPO service provider is that it helps reduce HR talent acquisition infrastructure. But you should be aware of the recruitment process outsourcing fee structure to leverage RPO services properly.
The RPO service provider uses its infrastructure to hire talented employees for your company. Hence, you don’t have to incur additional costs in building infrastructure to recruit talent. It is great for various companies. You would be able to recruit talented individuals even without a talent acquisition department.
2. Reduce Investment in Upgrading, Purchasing Latest Recruitment Technology, and Systems
An RPO service provider leverages its technology and recruitment methods to fine-tune the hiring process. With an RPO service provider, it becomes easy to save costs on upgrading and buying the latest recruitment technologies and tools, which add a high yearly cost to the recruitment budget.
3. Eliminate Unproductive, Waste Recruitment Processes, and Related Time and Costs
Now you can eliminate unproductive and wasted efforts in recruitment with RPO services. With an RPO service provider, it becomes easier to streamline your HR processes. Over a year, you would have saved thousands of man-hours of work and cost that was spent on unproductive processes, only adding to costs but not yielding many results.
4. Reduce Time to Hire and Related Costs
Usually, in-house recruitment efforts require various platforms to hire the right talent. Moreover, it would be a waste of resources if the in-house team of recruiters fails to offer you the right results. But with an RPO service provider, you can get results faster. Being experienced, the RPO service providers decrease hiring time and associated expenses.
5. Get In-Depth Insights Into Spend Per Position Types, Divisions, Seniority Levels, Etc.
One of the key highlights of an RPO service provider is that they will offer you detailed insights into the costs related to every recruitment activity, and this transparent monitoring of costs per activity helps track expenses and spend and continually control costs. Over time, this insight-driven cost management leads to up to 30% cost savings.
Hiring RPO services from our RPO agency will be ideal if you want to stay relevant in this competitive business world. We are very flexible in considering a recruitment process outsourcing fee structure that best suits your company. Our vast resources and expertise enable us to offer the most affordable RPO prices or RPO charges for different kinds of RPO models that can be customized to meet your specific scenarios.
Alliance Recruitment Agency
Alliance Recruitment Agency is an RPO agency with experience recruiting a diverse workforce for various companies. We serve as an ideal RPO service provider that takes care of every concern and addresses the challenges you face with utmost efficiency. Finding people to build better teams, optimize business performance, and win more clients. RPO prices are far less than all the investment, resources, and effort required to manage talent acquisition processes internally.