7 Recruitment Process Outsourcing Benefits Every Business Owner Needs to Know

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Hiring and recruitment are crucial to organizations of every size, in every industry. However, in the midst of a global talent shortage, filling vacancies is harder than ever – but with RPO, it’s more than possible. And, the advantages of RPO don’t stop with hiring. Companies are enjoying numerous recruitment process outsourcing benefits across several avenues of their operation.

This is because Recruitment Process Outsourcing, or RPO, is a powerful opportunity for companies to overcome their hiring and human resource challenges while remaining focused on developing core competencies and business functions.

“RPO gives companies access to elite, experienced recruitment and hiring professionals without having to make heavy internal investments in their own HR department, allowing them to focus on growth and operations.” says Ruffy Galang, CEO and founder of Remote Employee. “And, this is just one of the many, many benefits our RPO clients experience.”

In an earlier article, we discussed the definition of RPO and how it works. We shared tips to help leaders understand if RPO is right for them.

In this article we’ll explain the advantages of outsourcing recruitment, share real-world examples of how companies benefit from working with an RPO, and discuss tips to help you evaluate RPO providers based on your needs.

What is the Benefit of RPO?: 7 Recruitment Process Outsourcing Benefits Explained

Optimizing and enhancing your hiring and recruitment processes is a primary benefit of outsourcing recruitment services. And, that’s just the tip of the iceberg. Here are 7 more RPO benefits for you to enjoy.

Source Top Talent

RPO services excel in allowing companies to tap into qualified, global talent pipelines, granting access to highly qualified candidates they might not find on their own. This expansive reach is crucial in competitive sectors where specialized skills are in high demand or where local talent is in short supply.

Through RPO, businesses can secure top talent that aligns with their specific needs and organizational culture, ensuring a perfect match that drives success.

Reducing the Cost of Labor

Outsourcing recruitment processes leads to significant cost savings, with many enjoying up to 70% off labor costs. Beyond talent wages, companies can reduce the amount of time and money a company spends on other hiring tasks, such as advertising, screening, and interviewing.

Additionally, RPOs often have streamlined processes and economies of scale that further lower labor costs. This allows for internal resources to be allocated to more strategic areas of the business, such as product development or engaging new markets.

Shorten Time-to-Fill Rates

The average time to fill a vacant position is 42 days, which is a timeframe that can greatly impact operations and morale. RPO can help shorten time to hire – and ensure it’s filled by quality talent.

RPO providers have an ongoing pool of available candidates to source from. This means positions are filled faster, reducing downtime and making internal transitions to new talent less stressful.

RPO solutions are able to shorten time-to-fill rates with:

  • Advanced sourcing techniques
  • Recruitment technology
  • Streamlined interview and onboarding processes

Increase Hiring Elasticity

RPO offers the flexibility to scale recruitment efforts up or down based on current business needs without the burden of maintaining a large in-house recruitment team.

This adaptability is especially valuable for companies in industries with fluctuating demand or those experiencing rapid growth. It ensures that recruitment capabilities can quickly adjust to market changes, helping businesses stay agile and responsive.

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Ethical Hiring Practices

RPO providers adhere to high ethical standards and fair hiring practices, ensuring that the recruitment process is inclusive, equitable, and compliant with local and international laws.

This commitment to ethics not only enhances a company’s reputation but also attracts a diverse and talented workforce motivated by values and integrity.

Ethical hiring practices foster a positive organizational culture, ensure a company meets labor and compliance laws, and contribute to long-term business success.

Decrease Employee Turnover

A strategic RPO partnership leads to better candidate-job matches, which in turn, enhances employee satisfaction and retention. This alignment of expectations and reality means employees are more likely to stay, reducing turnover rates.

With an RPO, you can outsource complex human resource tasks crucial to ensuring best-fit candidates are found. These include:

  • Comprehensive candidate assessment: Ensures a good fit with the company culture.
  • Effective onboarding processes: Helps new hires integrate smoothly, increasing job satisfaction.
  • Ongoing support and development: Opportunities encourage employees to grow with the company.

Reach New Talent Pools

RPOs break geographical barriers and connect companies with a wider array of candidates. This global reach is instrumental in finding niche skills and diverse perspectives that enrich the workplace and drive innovation.

It also helps overcome local talent shortages. With RPO, you don’t have to settle for who’s available in your area. Rather, you can source the best-fit talent to help your business grow. They just might live in a different region or country than where you’re located.

A Real-World Example of RPO

Recruitment process outsourcing is transforming the way businesses approach hiring and human resource management. Let’s take a look at one way an RPO is helping companies in search of accountants take charge of their recruiting and hiring processes for the better.

Tackling the US Accounting Shortage

No company can be truly fiscally responsible without a good accounting team on their side. Yet, in 2022, there werenearly 190 000 unfilled accounting positions in the United States. Key factors contributing to this shortage indicate this shortage isn’t going to be resolved soon and may even get worse.

“This shortage of crucial talent makes it very difficult for companies of all sizes to staff qualified accountants. And for many, not having a certified accountant puts their business at risk for serious compliance and regulations violations,” says Ruffy Galang.

One way companies can overcome this critical accountant shortage is to work with an RPO that has a broad talent pool outside of the United States.

Ruffy Galang continues, “At Remote Employee, we have access to a very healthy talent pool of high-quality accountants in the Philippines. The American firms we pair them with are always impressed with the level of professionalism and experience our accountants bring – and are grateful to have reliable accountants on staff again.”

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What are the Disadvantages of RPO?

As we’ve discussed in detail, there are numerous advantages of RPO including cost-savings and increased employee retention rates. But, it might not be right for everyone. Let’s take a minute and look at what limitations and potential disadvantages you may encounter with a RPO.

Reduced Control Over Hiring Process

Some companies may view having less control over hiring practices a benefit, while others can view it as a negative. The goal is to work with an RPO that is clearly transparent about hiring practices and lets you determine how much control you want to have over your recruitment processes.

Cultural and Communication Challenges

One common misconception of working with offshore talent is that language and cultural barriers can create misunderstandings and misalignment, not an enhanced workplace. However, quality RPOs, like Remote Employee, ensure talent is deeply fluent in English and are available to work during a company’s preferred business hours.

What Makes a Good RPO? Tips to Find the Right RPO

Below is a concise table of the key factors to consider when selecting an RPO for your hiring and recruiting needs.

Key Considerations When Seeking an RPO What to Keep an Eye Out For
Access to Talent Seek providers with a global reach, ensuring access to a diverse talent pool.
Cost Effectiveness Look for services that promise significant savings on labor costs without sacrificing talent quality.
Cultural and Communication Alignment Ensure the provider has a strong track record of overcoming cultural and language barriers.
Flexibility and Scalability The ability to adjust recruitment efforts according to business needs is crucial.
Ethical Hiring Choose providers committed to ethical practices and compliance with international hiring standards.
Comprehensive Support Services should extend beyond hiring to include HR management and candidate support.
Industry Expertise Preference for providers with specialized experience relevant to your business sector.

Reap All the Benefits of RPO with Remote Employee

With the right RPO partner, you can transform your business’s hiring and talent management solutions so they are more cost-effective, efficient, and seamlessly deliver top-tier talent in minimal time.

At Remote Employee, we help American businesses connect with highly-skilled, motivated, and affordable talent in the Philippines. We also ensure your candidates have the tools, technology, and support they need to drive the results you’re looking for – we provide comfortable working environments and supply the technology.

And, we’re an ethical employer. Your team in the Philippines are paid fair wages, have access to benefits and healthcare, and are provided long-term opportunities.

Ready to learn more about RPO? Contact our team today.

Author Bio: Ruffy Galang

CEO and Co-Founder, Remote Employee

Ruffy Galang is a dynamic and forward-thinking leader in the remote work industry, currently serving as the CEO and Co-Founder of Remote Employee. With his leadership beginning in May 2022, Galang has been instrumental in steering the company towards innovative solutions for remote work challenges. His expertise in business development and management, honed over several years, has been pivotal in Remote Employee's growth and success.

In addition to his role at Remote Employee, Ruffy is the Co-Founder and Managing Partner at CORE Solutions since June 2018.

Before founding Remote Employee, Galang had an impressive career at Cloudstaff, where he demonstrated his prowess in business development. He climbed the ranks from Account Manager to Vice President of Business Development, a position he held from January 2020 to October 2021.

With a Master's degree in Business Administration and Management and a Bachelor of Science in Information Technology from Angeles University Foundation, Galang’s solid educational grounding has provided him with a deep understanding of both the technical and managerial aspects of running a successful business in today's digital world.

Ruffy's unique perspective on business is also shaped by his diverse cultural background. Having grown up in the United States until graduating high school, he then moved to the Philippines to pursue his college education. This bicultural experience has equipped him with an in-depth understanding of both Western and Philippine cultures, enabling him to effectively assist clients in creating successful offshore teams that are culturally attuned and efficient.