RPO recruitment – what is it?

RPO, or Recruitment Process Outsourcing, is an increasingly popular solution in the world of contemporary recruitment processes. Currently, companies around the world are facing the challenges of finding talent, rapidly changing labour market demands and increasing pressure for efficiency and speed of hiring. The pandemic and digitalisation have further accelerated changes in the way recruitment is done, forcing companies to look for more flexible and automated solutions. In this context, the RPO model becomes the answer to many of these problems, offering comprehensive support in managing recruitment processes. What is RPO recruitment, what benefits does it bring to companies and why is it becoming popular right now? In this article, we take a closer look at this phenomenon, analysing its impact on today’s labour market.

From this article you will learn:

• What is an RPO?
• What is RPO recruitment?
• What makes RPO different from working with a recruitment agency?
• What are the benefits of RPO outsourcing?
• RPO recruitment – for whom?

Recruitment process outsourcing (RPO) what is it?

What does RPO stand for? RPO, or recruitment process outsourcing, is an outsourcing model in which a company contracts an external provider to manage all or part of its recruitment processes. This means that instead of recruiting internally, the company works with an external partner who specialises in recruitment and has experience in finding and hiring suitable candidates.

What does RPO recruitment involve?

The RPO recruiter takes responsibility for the entire recruitment process – from analysing staffing needs, searching and selecting candidates to finalising employment. This can also include publishing job offers, pre-screening applications, conducting interviews and even negotiating terms and conditions of employment. RPO is a strategic solution that allows companies to optimise their recruitment processes, ensuring access to the best talent and flexible adaptation of activities to the current needs of the organisation.

RPO is the perfect solution for the IT industry, mainly due to the specific needs of this market, such as the high competition for talent, the rapid development of technology and the need to hire highly qualified professionals. In IT, many projects have limited timeframes and finding the right talent at the right time can sometimes be crucial to their success.

Differences between the RPO and the agency model

The differences between RPO (Recruitment Process Outsourcing) and the agency model lie mainly in the level of involvement, responsibility and approach to managing the recruitment process and the remuneration model. Below are three main areas of difference:

1. Responsibilities:

• RPO: In the RPO model, an external provider takes complete responsibility for all or part of a company’s recruitment processes. The RPO functions like an extension of the company’s internal HR department, managing not only candidate sourcing but also other aspects of recruitment, including strategy, technology, analytics and administration. These processes may even include long-term talent management.
• Agency model: Recruitment agencies usually operate on an ‘on-demand’ basis and only deal with the selection of candidates for specific positions. In practice, it looks like the agency presents the company with a certain number of candidates from which the company selects an employee. They do not manage the entire process nor are they responsible for the company’s recruitment strategy.

2. Relationship with the company:

• RPO: RPO providers are more integrated into the company and act as a partner. They often have access to the company’s internal resources, technology and recruitment systems. The RPO becomes a long-term partner, collaborating across many facets of HR.
• Agency model: working with a recruitment agency is more like a transaction. The relationship usually lasts only for the duration of the recruitment for a specific position and then ends once the employee is hired. Agencies do not get involved in the internal HR activities of the company.

3. Remuneration model:

• RPO: Remuneration in RPO is often based on a subscription model, where the company pays a fixed fee to manage the entire recruitment process for a set period of time. This may be a monthly cost depending on the scope of activities.
• Agency model: recruitment agencies typically operate on a commission basis, charging a percentage of the salary of the employee recruited or a set amount for each successful hire. There is no fixed fee here – the cost only arises on successful recruitment.

Benefits of ROP

Wondering what the benefits of the RPO model are? Here are five of the most significant benefits that, from our point of view, can make a difference to the quality of recruitment in your company:

1. Time saving

With RPO, you will significantly reduce the time it takes to find suitable candidates. The third-party provider has a well-developed network of contacts and advanced recruitment tools, which speeds up the process. By specialising in recruitment, an RPO company can move faster than traditional in-house HR teams. Additionally, if a company needs to recruit a large number of employees quickly, the RPO model provides adequate scalability and the ability to manage a large-scale recruitment process without involving additional internal resources.

2. Cost reduction

Unlike commission-based models, where recruitment agencies charge a fee per employee recruited, RPOs often have a fixed subscription fee model. The company pays a set amount to manage the recruitment process, which allows better control of the budget. RPO also minimises the risk of hiring unsuitable staff, avoiding costly turnover and adaptation problems for new hires. There is also no need to create a new full-time position in the employer’s recruitment team, as the recruiter needed will be hired rather than employed.

3. Access to expertise and technology

RPO providers are experts in recruitment, with extensive knowledge of labour market trends, effective talent acquisition strategies and the latest technology tools. As a result, companies using RPO have access to knowledge that is often lacking in internal HR departments. RPO companies use state-of-the-art ATS (Applicant Tracking Systems), candidate assessment tools, HR analytics and candidate management platforms. This allows for better management of the process, more precise candidate matching and more effective communication.

4. High quality candidates

RPO allows for an in-depth screening of candidates in terms of their skills, fit with the organisational culture and motivation to work. Thanks to advanced selection methods such as psychometric tests, behavioural interviews, the RPO provider is able to select the best candidates. In addition, RPO has a wide network of contacts, which makes it possible to reach out to so-called passive candidates – i.e. people who are not actively looking for a job but may be interested in new career challenges. Traditional recruitment methods often do not allow for this approach.

5. Flexibility

The RPO model allows companies to flexibly adapt their recruitment processes to the company’s changing requirements. Depending on seasonality, company growth or projects, RPO can quickly increase or decrease the intensity of recruitment activities. RPO will also be an excellent solution for companies operating in global markets.

For whom is the RPO?

Recruitment outsourcing is an ideal solution for companies that want to increase the number of employees quickly and effectively – e.g. in situations of increased recruitment, when opening new branches or carrying out large projects. It will also be great for companies that have a fluctuating demand for employees (e.g. during the season or during expansion). RPO is also a way to reduce recruitment costs – RPO allows you to optimise costs by eliminating the need for an in-house recruitment team, while providing specialist services in a more predictable financial model. If a company doesn’t have an extensive HR department or the knowledge and tools to recruit effectively, it’s also a reason to tap into the knowledge and expertise of an external partner. Finally, it’s ideal for companies looking to recruit in specialist industries – such as IT or technology industries, where competition for talent is high and recruitment requires