5 Things to Consider Before Hiring an RPO Provider

Changing how you go about recruitment in your company is not a decision to be taken lightly. For many years now, the recruitment function has been the prerogative of HR departments. Lately, however, more and more companies are finding that the outsourcing of this function has some merit. Owing to the great success that has been witnessed by the big Fortune 500 companies that have done, it is only natural that every other forward thinking institution takes the time to consider RPO in its entirety.

Since human resource is one of the most important aspects as far as the success of a company goes, recruitment should take center stage. That is why RPO requires thorough forethought, research and consideration, if at all any company is looking to go this way. That being said, here are the 5 most pertinent questions every institution should ask if they intend to venture into Recruitment Process Outsourcing.

Is RPO a good fit for your company?

This is the most fundamental of questions. Recruitment Process Outsourcing should align with the institutional needs and strategy for it to be worth your time. What this means is that you should be able to see, without any kind of doubt, the benefits of RPO to your organization. Research finds that this process is best suited for companies that need to draw from a large pool of talents without having to stretch its own resources in terms of time and money.

RPO works best if you know that you can clearly outline what your company needs in an employee. Having a well-illustrated image of your ideal candidate will make it easier for you to find the right fit considering your employee selection will be primarily conducted by someone who is, for all intents and purposes, new to your company philosophy, ideals, mission and vision. So answering the question as to whether or not RPO is a good fit for your company should take all this into account. Will this process improve your business performance?

It is not all about just saving money and time. You need to know whether or not outsourcing recruitment will go towards improving your business performance in the long run. Of course, one of the key metrics to take into consideration is the amount of money it saves you and the kind of resources that can be diverted to other business functions as a result of this move.

In addition to all this, you need to set up key performance metrics, measureable, that will let you know whether or not this arrangement is improving the overall business performance. These metrics should go towards demonstrating that your company is attracting better and brighter candidates as a result; that your employer brand is gaining traction because of it and that you are effectively leveraging internal mobility and employer retention while you are at it.

Do the financial projections make sense?

As mentioned earlier, one of the main reasons as to why most companies are looking to go the RPO way is so they can save money. The problem with this is that most companies, both the RPO provider and the ones needing the service, tend to employ ‘wishful thinking’ on this part. The hiring company often does not take the time to take a critical look at the projected figure because they like the bottom-line whereas the RPO provider tends to over-exaggerate some savings so as to drum up business.

It is up to the hiring company to take a closer look at the projected figures and savings. Look for unwarranted assumptions, oversimplifications as well as misleading figures that could inflate the bottom-line one way or the other. The figure should be realistic and they should make sense.

Will this arrangement negatively affect your internal HR capabilities?

Simply put, every company needs some level of internal HR expertise. This means that, even though RPO may take a huge chunk of the human resource responsibilities off your plate, you still need someone to coordinate those efforts with the RPO provider. This is a good way to ensure that your company’s hiring philosophy and vision remains intact. Additionally, you should take time to liaise with the provider and come up with the best strategy for eventually turning back the employees and the entire process once you have established a working system. This will require trust and good hiring practices from both parties.

Are there any permanent cultural ramifications to outsourcing your recruitment process?

Every time there is a change in the way a company operates, the prevailing culture takes a slight hit. In most cases, this change in culture is manageable. But seeing as this entire process may involve the downsizing of your HR department as well as the introduction of new employees and practices into the company, it is imperative that this change is managed with silk gloves.

When looking to hire an RPO provider, this is one of the most essential competencies to take into account. How well they are equipped to manage these cultural ramification could very well determine whether or not this arrangement ultimately works and what kind of rippling effects it will have on your company. That is why it often best to go for more experienced providers. The fact that they have been around that very block for years means that they are better equipped to foresee and manage any ensuing pitfalls that could spell disaster.

Is the final contract reasonable?

In any business contract, it is imperative to take into account the fact that the business atmosphere we operate in is ever changing. What could be highly favorable today might just be absolutely untenable the next. Therefore, the kind of contract you have with your RPO provider should not lock you down to a long term deal with no workable and favorable escape clause both parties should the atmosphere change.

Recruitment Process Outsourcing.

could be one of the best and most streamlined business decisions any business owner can make regarding his/ her human resources. But, as with every major business decision, it requires a deeper look and a weighing of the merits and demerits before jumping in, if at all. These are the pertinent questions that you should ask yourself before choosing this path.

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