Recruitment Process Outsourcing vs Recruitment Agency: How do you know what’s right?
The current talent market is as competitive as it’s ever been. The combined pressure of the great resignation and the lack of high-quality talent has led to businesses struggling to find the staff they need to expand and thrive.
Knowing which staffing models will be the best fit for your recruitment goals can be difficult, as is understanding the differences, benefits and downsides between Recruitment Process Outsourcing (RPO) or Demand Recruitment Services and a more traditional staffing agency model.
Briefly, Recruitment Process Outsourcing is where the employer transfers delivery of some or all of its recruitment to an external service provider. With RPO, you enter into a partnership to evolve and attract high-quality candidates. In addition, working with an RPO provider lets you scale up and down as required and can cover everything from niche roles to high volume requirements.
On the other hand, traditional staffing agencies specialise in finding candidates for a specific vacancy. So, if your team needs a little temporary support for a tricky role or low volume hiring, they are a good option. They can also offer a good solution for temporary staff or temp to perm and contract opportunities.
Here are some advantages of each model so you can assess which is best for you.
Recruitment Process Outsourcing
45% of companies have planned to increase their outsourcing since the pandemic, often focusing on finding skillsets they can’t access in-house. Currently, the business process outsourcing market alone is set to increase in value by around 8.5% between 2021 and 2028. Experts like PWC even believe outsourcing is finally “coming of age” in a world where companies need more flexibility in their access to talent.
With demand recruitment services, your RPO team can act as an extension of your in-house talent management team and become a strategic partner, helping them to create a talent acquisition program.
There are several options for how they can work with you – on-site in your offices, remotely, offshore or a combination of these. As your partner, they will get to know your business and understand what you need from a recruitment partner.
For many companies, the top five recruitment priorities are improving quality of hire (52%), increasing retention rate (24%), improving time-to-hire (23%), growing the talent pipeline (22%), and diversity hiring (22%), all of which can be achieved when you have an RPO provider who works with you to evolve your talent acquisition program.
Demand recruitment services take control of the entire process
RPO recruiters are equipped and have the infrastructure in place to provide an end-to-end recruitment solution. They will generally be involved in every aspect of your recruitment requirements from, in some cases, writing job descriptions or at the least advising on what should be included to guiding you through the interview process and providing recommendations.
Additionally, they’ll spend more time researching the candidate’s background and confirming their suitability through multiple tests. In addition, the main reason for outsourcing for 70% of companies is cost reduction, as outsourcing lowers the costs associated with hiring in-house staff.
Help to build an employer brand
RPO recruiters typically handle far fewer clients than a traditional recruitment agency, so they typically have more time to devote to their clients. This allows them to fully immerse themselves into your brand and become intimately familiar with your company’s culture and values.
As RPO recruiters are the ones who make the first impression on candidates, this thorough background knowledge allows them to answer candidate questions and represent your brand as you would yourself and project the right message to candidates.
Talent Pooling and Quality of Hire
A significant advantage of the long-term relationship with an RPO Partner is their ability to create talent pools. A talent pool is a collection of active and passive candidates available when new opportunities arise. Speeding up the time-to-hire and simplifying the process of recruitment.
RPO providers will, of course, screen candidate resumes and conduct first-round interviews. However, to ensure you are getting only the best, most diverse candidates, the best RPO Providers will conduct talent assessments to identify high-performing candidates with the right skill set for your organisation.
Source candidates and fill jobs
Recruitment agencies will typically be the model that is best suited to working on a vacancy-by-vacancy basis. They will source, pre-screen and introduce appropriate candidates to a client, often the hiring manager who contacted them. The client handles the interviewing and job offer if the candidate is successful.
Recruitment agencies will also liaise with the candidate giving and receiving feedback and presenting the offer to the candidate.
They don’t typically have the time or resources to intimately get to know your company and build lasting relationships.
Work with multiple companies concurrently
Recruiters at recruitment agencies will work on several vacancies simultaneously, sourcing candidates for each role often to tight deadlines. As a result, they tend to expect more from their clients, including providing a job description for the position they want filled to allow the Recruiters to focus solely on finding suitable talent.
As this type of recruitment is typically on a commission basis, they are constantly looking for ways to refine the process and speed up sourcing candidates, interviewing and offers. Given this, they are an excellent choice for one-off recruitment needs and emergency recruitment, where you don’t need a strategic approach but only to fill the position quickly.
Specialist recruitment providers
Though many staffing agencies are generalists and work in many sectors from construction to hospitality or healthcare, many staffing agencies have specialised concentrating on just one sector.
This specialisation allows them to focus on one industry, attracting candidates who are only qualified and interested in working in this area and understanding clients’ requirements within that specialism.
Their specialism will consequently attract both clients and candidates to them when they are seen as the experts in this area.
Staffing Agencies are sales orientated
A large part of the work in a traditional staffing agency is sales orientated. This sales activity ranges from business development for new roles and new clients to servicing existing clients and their vacancies.
Consultants will sell their agency services to potential new clients and sell jobs they are recruiting for to candidates so they can send across their CVs. Typically, these roles are in part commission based, so the better they are at sales, the bigger their pay at the end of the month.
How do you know which is right for you?
The two models satisfy very different needs. The staffing agency model is ideal for on-off recruitment and low volume needs. This may work for you if you’re struggling to fill a specific role or just want to sort out a couple of hires or have some temporary/contract roles.
The RPO model is when you want to develop a long-term relationship, integrate the RPO provider into your organisation, and become an extension of your team. For example, if you know you have several different recruitment needs over the coming months and want to outsource the process to a trusted, credible partner, then the RPO model is the right option.
The staffing agency model and Recruitment Process Outsourcing are both excellent options but have very different use cases. If you want your recruitment to be smooth and effective, it’s essential to recognise which option will suit your current needs.
We recognise that not everyone will initially need a full RPO solution, and as an organisation, you have to trust that an RPO provider can provide what they promise.
As part of our service, we can also offer contingency solutions (pay on placement) to help you in the short term, and you can get to know us and see how we operate. Call us on 01252 624 699 or email email@example.com for more information or check out our contact page for all of our details, and even see what our clients say over in our testimonials.