Tuesday, November 23, 2010


RPO's promoters claim that the solution offers improvement in quality, cost, service and speed.
  • Quality and Cost - RPO providers claim that leveraging economies of scale enables them to offer recruitment processes at lower cost while economies of scope allow them to operate as high-quality specialists. Those economies of scale and scope arise from a larger staff of recruiters, databases of candidate resumes, and investment in recruitment tools and networks. RPO solutions are also claimed to change fixed investment costs into variable costs that flex with fluctuation in recruitment activity. Companies may pay by transaction rather than by staff member, thus avoiding under-utilization or forcing costly layoffs of recruitment staff when activity is low.
  • Service and Speed - The commercial relationship between an RPO provider and a client is likely to be based on specific performance targets. With remuneration dependent on the attainment of such targets, an RPO provider will concentrate their resources in the most effective way - at times to the exclusion of non-core activity. Traditional internal recruitment teams are less likely to have such clearly defined performance targets.

Organizations with efficient hiring process that are viewed as employers of choice by potential staff may stand to gain benefits from an RPO process.

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