Recruitment process outsourcing (RPO) firms offer big benefits for companies in terms of quality hires, data analysis, and outsourced labor. But is it really worth the dollar investment when you could be handling recruiting in-house? The real story on the value of RPO can’t be gained by looking only at what you’re spending versus the services received. You also need to look at what you’re not spending.
Recruiting Costs More than the Salaries of Your Recruitment Personnel
Recruiting costs big dollars. It’s not just the salaries of your recruitment personnel. Companies also spend on all the details of the recruitment process itself. Here’s a breakdown of what you won’t be spending money on when you switch to RPO:
- Advertising
- Employee referrals
- Travel expenses
- Relocation costs
- Administrative support
- Hiring delays resulting in lost work hours
- Agency and job board fees
Sorting through resumes, interviewing candidates, and narrowing down the field of prospects all takes time, and when a candidate doesn’t pan out, the recruiting process has to start again. RPO takes over these dollar-eating tasks and reduces the investment companies must make in the recruitment process.
Less Obvious Ways You’ll Save
RPO removes the concrete costs from the recruiting process, but it’s also cost-effective in less overt ways.
- Hiring downturns—When your company’s recruiting needs diminish, you won’t lose money by paying a larger-than-needed recruiting staff. You also won’t find yourself scrambling for personnel when a hiring surge happens.
- Expert recruiting knowledge—RPO firms have the data and know-how to hire the right person quickly. You’ll see a higher quality candidate pool, and you’ll see it more quickly than you could pull that information together in-house.
- Lower cost per hire—Intelligent RPO firms make it their business to know the recruiting industry inside out and to find a candidate who fits well with your company environment. They have access to sourcing information and channels that allow them to screen candidates more quickly and more effectively, getting excellent results at a lower cost.
Outsourcing your recruiting is a smart move if you choose the right firm to handle your hiring needs. By eliminating both the overt and the hidden costs of hiring, companies can save an average of 15% to 40% by switching to an RPO firm. High-quality candidates in less time than you could do it yourself and an overall reduction in costs? You bet it’s worth the investment.
