Recruitment Process Outsourcing (RPO) – this is a term I have come to live and breathe day in and day out, as I work with clients at MAU. Like so many of us do in our various industries, I have become familiar with the industry term RPO and how it works. So familiar, in fact, I forget that many don’t know what RPO is! So, before I offer any more helpful tips on selecting the right RPO provider, let me take a step back and answer the question, “What is this thing you call RPO?”
On the surface, RPO is a simple acronym for Recruitment Process Outsourcing. I know what some of you may be thinking… outsourcing – that’s where we ship jobs overseas somewhere and lose out here at home, right? I am happy to tell you that it’s quite different than what you might have heard. In its simplest form, outsourcing is the process of obtaining goods or services from an outside supplier versus making the goods or performing the same services in-house. Companies can outsource functions to suppliers right here at home, and in some cases, right down the street. In fact, many of us outsource aspects of our personal lives – event planning, pet care, lawn care, the list goes on.
Many companies turn to a variety of outsourcing options now, only one of which is Recruitment Process Outsourcing, or RPO. Essentially, what these companies have chosen to do is to focus on their core business, whether that is making widgets or providing a service, and they have elected to outsource other pockets of their business to trusted partners that specialize in those critical, yet non-core areas. Essentially, they turn to experts in those areas, much the same way that you and I turn to experts in our personal lives for outsourcing the areas mentioned above.
But let’s be clear, RPO is not simply turning to another party when you need recruiting assistance. A true RPO model is more of a marriage between two trusted partners; the provider and the client. The solution focuses on the RPO provider owning and driving the talent acquisition strategy for the client company where the brand of the client company is pushed, versus the brand of the RPO provider. RPO models are completely scalable and customizable. They can encompass many areas of a company’s business from the straightforward sourcing and recruiting activities, to process management, brand management, workforce planning, talent mapping, analytics and reporting, and many other services.
In and of itself, RPO is a fairly young concept. As the Recruitment Process Outsourcing Association (RPOA) reports, service models have matured greatly over the past ten years, especially with the growth of performance-based metrics and social media platforms. This evolution of models has led to significant growth in the RPO market segment. RPO continues to surge in popularity in international markets, as well. The Everest Group reported an overall growth rate of 13% in 2014, with even higher growth rates in the EMEA and Asia-Pacific regions. Continued substantial growth is forecasted through 2018, and models will certainly continue to evolve along with the dynamic talent market. Keep in mind that there are many RPO providers across the global landscape, some specializing in certain industries or certain size solutions.
Hopefully this has given you some insight into what RPO truly is and some of the components you may find in those solutions. If you have questions or would like to know more about the solutions that MAU provides, please let us know. We are just a click or phone call away!
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