What Is Recruitment Process Outsourcing (RPO)?

Recruitment process outsourcing transfers defined recruitment activities or outcomes to an external provider.

Recruitment process outsourcing, or RPO, transfers defined recruitment activities or outcomes to an external provider. The provider may manage part or all of sourcing, screening, coordination and hiring operations under the client's employer brand.

Which services can RPO include?

  • Workforce and requisition planning
  • Candidate sourcing and marketing
  • Screening and interview coordination
  • Assessment and offer administration
  • Onboarding support
  • Recruitment analytics and technology

RPO vs. staffing agency

An RPO provider operates an integrated recruitment process for the client, often across multiple roles and periods. A staffing agency commonly supplies candidates or temporary workers for specific needs. Models can overlap.

How is RPO priced?

Pricing may use management fees, recruiter capacity, cost per hire, transaction fees or performance components. Compare total cost and retained client responsibilities rather than one rate alone.

What should governance cover?

Define roles, requisition approval, candidate data, hiring authority, service levels, diversity requirements, background checks, subcontracting and compliance. The client should retain clarity over employment decisions.

What should be measured?

Track time to fill, quality of hire, candidate experience, hiring-manager satisfaction, offer acceptance, retention and cost. Metrics need consistent start and end points.

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