Commonly Used Engagement Models For Recruitment Process Outsourcing (RPO)
Recruitment process outsourcing (RPO) is a form of business process outsourcing (BPO), where an enterprise outsources parts or all of its recruitment services to an external staffing agency. Staffing firms provide a myriad of recruitment related services – starting with sourcing of candidates based on client requirements, screening, testing, coordinating interviews and all the way through to helping manage the client’s on-boarding processes for the finalized recruits.
RPO is a defined process, where an enterprise has related expectations in terms of time and performance which will provide it with a predictable and customized recruiting engine for it’s operations. An RPO provider is responsible for design and management of the recruitment process based on client needs and accountable for it’s results.
Many often confuse RPO with headhunters or placement agencies. RPO is an agreement where recruitment services are outsourced to a third party vendor for the entire enterprise, a specific hiring drive or a specific project. It can either replace the company’s entire internal recruitment team or augment it’s existing resources.
For an enterprise that is new to Recruitment Process Outsourcing, one of the first considerations when assessing RPO staffing partners, is the relative cost of outsourcing staffing services vis-à-vis the in-house recruitment process. Although this could vary widely based on the type of RPO services provided, here are some commonly used engagement models by staffing firms:
1. Management fee model
Under this model, the client pays its staffing partner for a pre-decided number of placements. However, the fee may vary as per the agreement or if there is an increase in the number of hires over a period of time.
2. Cost per hire model
In this model, the staffing firm is paid for each candidate that is hired by the client.
3. Hybrid model
It is a combination of the above two models – consistent recruitment effort under the management fee with payment per successful recruit.
4. Cost per slate
In this sourcing model, the staffing agency charges the client for a set number of sourced, screened and qualified candidates that it provides for each position. These candidates are then passed on to the internal client recruitment team for further recruitment and hiring processes.
5. Cost per transaction
In this model, the staffing partner is paid after completion of a specific process, such as initial screening or reference checks.
If the right engagement model is selected based on the client’s outsourcing needs, it can benefit them in terms of scalability, talent quality and cost in the long run.
Rishabh as an experienced RPO provider understands the importance of quality hiring and has a strong track record of providing outstanding RPO services. Call 1-877-RISHABH (1-877-747-4224) or fill in the form, to talk to our experts on what staffing solutions and engagement model may be right for you.