Beyond Traditional RPO, It’s Time to Go for Smart RPO

And that’s precisely where RPO (Recruitment Processing Outsourcing) comes to the fore. The RPO market is predicted to grow at a CAGR of 17.4% until 2027. Currently, worldwide RPO spending is estimated to be worth $25 billion.

Beyond Traditional RPO, It’s Time to Go for Smart RPO

Smart leaders understand just how important it is to invest in the right talent to drive their business in the right direction. Along those lines, they also realize that scouting for new talent and assessing how they will fit into the organization comes with a unique set of challenges that require strategic thinking and an eye for finding better ways to bring out the best in people.

And that’s precisely where RPO (Recruitment Processing Outsourcing) comes to the fore. The RPO market is predicted to grow at a CAGR of 17.4% until 2027. Currently, worldwide RPO spending is estimated to be worth $25 billion.

 Since the ground-breaking findings of the Hawthorne Experiments that affirmed a positive correlation between job satisfaction and participation in decision-making, organizations are focusing on offering more transparency, autonomy, and control to employees at their workforce across the various people processes

 Traditional RPO models may no longer be enough to help organizations in the digital age, where everything from the way people communicate to how they think, learn and act is changing every day. To that end, Smart RPO has evolved as a way for organizations to continue to put their people first.

Let’s understand these concepts and outline why businesses should opt for Smart RPO.

Recruitment Process Outsourcing

RPO or recruitment process outsourcing is delegating the recruitment process to a third-party service provider. This allows the organization’s HR department to focus on other tasks that cannot be outsourced and thus, prioritize their attention to the people who can make a critical difference to the success of their business.

As such, companies are opting for these services for a more robust and streamlined process without delays in case the in-house team is occupied.

How does the RPO process work?

For RPO to work efficiently, the third-party providers try to understand the actual requirements of the business. This involves understanding the corporate culture, role requirements, and hiring needs.

Here is a quick view of the RPO lifecycle:

  • Job description formalization

  • Screening for the role

  • Technical assessment

  • Interview process management through selection

  • Background verification

  • Offer management and candidate engagement till onboarding

  • Onboarding and orientation support

RPO’s benefit is delegating the hiring responsibility. This can lead to an unbiased and fluidic process. In fact, standardized recruitment can be an efficient way to grow the team with minimal effort.

The significant difference between typical recruitment and RPO is the involvement of experts. Third-party HR service providers possess the know-how to surf through the pool of candidates to shortlist the most fitting talent.

The issue faced with the RPO partner not being an integral part of the Organization to understand its culture and values, is mitigated with the new process of having resources on Ground models where the Organizations can opt for having RPO partner resources on premise.

Let’s discuss the Smart RPO and its benefits in detail.

Smart RPO

Beyond the normal RPO, there is Smart RPO, which yields better results when it comes to recruitment. Wherever the RPO process falls short, Smart RPO stands out as a solution.

Here are a few of the benefits of Smart RPO and how it can aid the entire process:

  • Tech-Enabled Solutions: With Smart RPO, the recruitment partner uses latest technologies like AI and analytics to power sourcing methods and find the right candidate. This allows them to filter beyond the conventional methods used in RPO.

  • Candidate Satisfaction: Smart RPO allows extensive focus on each candidate. This enables following a more effective hiring procedure and ensuring candidate satisfaction throughout the screening.

That said, Smart RPO works on three different models, which are ideal for every business based on their specific needs. These models include:

 Project RPO

Project RPO is suitable for organizations that need the helping hand of expert talent acquisition managers. This is ideal for specific project based sourcing with very tight deadlines. Recruitments of these kinds are done by a team of recruiters who support the in-house HR team for quicker and easier bulk sourcing.

 Enterprise RPO

Enterprise RPO is an ideal way to embed the right talent that suits the present culture and values. The provider team understands the requirements and participates and manages in the entire recruitment process. These engagements can be ideal for companies who are comfortable and exposed to third-party providers for recruitment lifecycles for specific engagements and hence can transition the entire process to the partner.

 RPO and HRO

This model is the ultimate answer to all the recruitment and engagement needs of an organization. If businesses want to delegate permanent employee recruitment and vendor management, then this might be the right solution. In such models, third-party providers take care of the entire lifecycle and employee life cycle management – be it contractual, part-time, or permanent.

 In a Nutshell

Recruitment Processing Outsourcing houses great potential. But down the line, as industries move online and physical boundaries get blurred, the traditional RPO model will get obsolete. Smart RPO is the next logical step in this process and will be in demand.

 That said, finding the right partner for all your recruitment needs is the right move to scale up your workforce while focusing on other cultural aspects of the organization.

Contact us to know more about our People Practice and how we can empower your team with the right tools and cutting-edge technology.


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