WHAT IS RPO?
Strategic Implementation - An Alternative to In-House Recruiting
In today’s dynamic and competitive market, acquiring talent that is both efficient and cost-effective can be tedious and challenging. As organizations focus on improving their overall HR department, many have found recruitment outsourcing to be a proven, reliable, and alternative solution to traditional recruiting methods.
A subset of Human Resources Outsourcing (HRO), Recruitment Process Outsourcing (RPO) is the contracting out of the recruiting function within the HR department. Simply put, RPO transforms all the functions of an in-house HR department into a solid, productive external recruiting function. By providing the tools, resources, and technology to serve as a client’s virtual recruiting function, RPO services allow companies to grow and focus on their core competencies.
Utilized by companies in all fields and of all sizes, RPO has benefited companies for a number of years. Although they may not know it, any company that uses staffing agencies or 3rd party vendors is outsourcing their recruiting efforts. In fact, according to studies, more than 90% of HR managers at mid-sized to large companies turn to staffing agencies or outside vendors to help with their recruiting efforts – enabling them to focus their resources on higher value activities. The concept isn’t new – it just hasn’t been labeled RPO until fairly recently.
Currently a $20 billion a year industry, the future of RPO looks extremely promising. Growing at a staggering rate, RPO is the fastest growing trend in the HR industry and is expected to reach $80 billion by the year 2008. Proven to reduce costs and increase productivity, RPO will continue to be utilized by companies of all sizes as an effective strategy – allowing them to focus on their core business.