All Blogsvector-7 Recruitment Process Outsourcing

Why Should You Consider Hiring an RPO Company for Your Recruitment Needs?

December 28,2023

Why Should You Consider Hiring an RPO Company for Your Recruitment Needs?

Businesses are bending toward strategic solutions like Recruitment Process Outsourcing (RPO) to overcome the complexities of hiring. RPO companies are becoming a key asset in revolutionizing how organizations build their teams. 

In this blog, we will take you through the details of the recruitment process, exploring the benefits and complications of RPO companies and how outsourcing recruitment functions can redefine your talent acquisition strategies. We will also discuss the process and pricing model of the Recruitment Process Outsourcing.

What does Recruitment Process Outsourcing (RPO) mean?

Recruitment Process Outsourcing (RPO) is when a company hires an external RPO provider to handle its recruitment process. These RPO companies are experts in searching for and hiring the right people. These RPO providers might handle all aspects of hiring or just some parts of it as per the business needs.

Initially, Recruitment outsourcing was mainly connected with big companies, but things have changed. The RPO industry now offers services that can meet the recruitment needs of both small businesses and large corporations.

RPO vs. Staffing Companies

Smaller businesses go to staffing companies for occasional recruitment help. However, it is essential to know that staffing companies and RPO providers offer different services. RPO providers are experts in talent acquisition, while staffing companies only help in recruitment.

A staffing company can be a good choice if you have specific roles to fill quickly or need people for temporary workload increases. But if you want strategic solutions to improve your overall talent acquisition process, going for an RPO provider might be the better option.


Recruitment Process Outsourcing is a component of Business Process Outsourcing (BPO).
BPO involves a company outsourcing specific business processes or functions to another company with core expertise in those particular areas.

Advantages of Recruitment Process Outsourcing for Small and Medium-sized Businesses

1. Cost-effectiveness

A small Business cannot afford the in-house recruitment team, given its much smaller volume of hires. Recruitment outsourcing gives small businesses a much more affordable option to accommodate a recruitment team tailored to their unique needs.

2. Quality Talent

RPO providers bring valuable experience to the table when finding suitable candidates. This means they can help you attract top-tier talent, including individuals from diverse backgrounds. They also ensure a pool of potential candidates is ready whenever a new position opens up.

3. Employer Brand

As per Glassdoor, 69% of employees want their employer to have a brand they can support. RPO companies can be helpful for small businesses struggling with limited marketing budgets, primarily when recruiting. They find candidates and handle job marketing aligned with your employer brand, using their expertise to help promote your brand effectively.

4. Up-and-Down Scalability

Hiring requirements often fluctuate for small businesses. They recruit multiple individuals in one month and none for the next two to three months. The flexibility of RPO allows for scaling and helps meet these variable recruitment needs. This approach avoids the expenses of maintaining a full-time, in-house recruiter who may face periods of high demand and periods with minimal workload throughout the year.

5. Technology

A reliable RPO provider comes equipped with modern recruitment technology, making hiring more efficient and cost-effective. They use tools like applicant tracking systems (ATS), candidate sourcing software, and onboarding software to streamline and automate different parts of the recruitment process.

6. Candidate Experience

A positive candidate experience is a stepping stone for building and preserving your employer's brand, but it can be time-consuming. With an RPO provider, you get complete candidate experience management, covering everything from interviews to offer management and onboarding.

7. Compliance

Employment laws change frequently, and keeping up with compliance can be challenging. A reliable RPO company stays updated with these changes, making sure your recruitment process follows all the rules and regulations.

8. Strategy

A reliable RPO provider provides market intelligence and equips you with analytics tools and expertise to analyze the data. These resources offer strategic guidance, helping you anticipate and plan for future talent needs.

How Recruitment Process Outsourcing Works?

A recruitment process outsourcing company offers talent acquisition functions for your business.

The RPO arrangement you implement will be based on your specific needs. Some general RPO engagements are:

  • Full RPO: In a full RPO partnership, your RPO provider handles all aspects of your company's hiring process, from sourcing and assessments to onboarding. This type of collaboration includes strategic development and implementation to ensure effective recruitment.

  • Blended RPO: Within this arrangement, businesses only outsource specific functions or responsibilities and hand over the rest of the work to their in-house team.

  • On-demand or project RPO: Generally, RPO tends to be a long-term arrangement. On-demand RPO offers you short-term access to RPO services, typically addressing immediate hiring needs or providing assistance during periods of increased hiring activity.


Selecting an RPO Service Provider

Selecting the right provider when looking to outsource HR services is essential. Here are some simple yet professional tips for choosing the right RPO (Recruitment Process Outsourcing) partner:

Scalability: Make sure the RPO provider can flex their services based on your hiring needs. Whether you're hiring a lot or scaling down, they should be adaptable.

Support Team: A good RPO company has great recruiters and provides a solid backup with a competent support team.

Tailored Approach: Your business has unique needs, so find an RPO company that tailors its approach to your specific requirements.

Strategic Solutions: Look for an RPO partner who collaborates with you strategically. They should bring their expertise and work with you, not just follow instructions.

Cultural Fit: The RPO provider should vibe well with your company culture. This means they understand and align with your values, making the collaboration smoother.

RPO Pricing Models

Employers typically adopt various payment structures for Recruitment Process Outsourcing (RPO), including:

Cost-per-hire: Employers pay a set fee for each hired candidate, varying based on the position's level.

Cost-per-resource: A fixed monthly rate is charged for each resource dedicated to a client.

Hybrid: Blended models combine both cost-per-hire and supplementary, resource-based pricing.

Transaction-based: Employers are billed for specific actions such as interviews or background checks.

Among these options, the cost-per-hire model is commonly favored by employers due to its flexibility. It allows recruitment expenses to adjust in line with fluctuations in hiring volumes. Conversely, a transaction-based approach may prove costly for businesses dealing with a high number of candidates.


Recruitment Process Outsourcing (RPO) is a valuable solution for businesses, providing cost-effective, scalable, and strategic approaches to talent acquisition. RPO helps small and medium-sized companies overcome recruitment challenges efficiently, offering a streamlined and cost-effective approach to acquiring top-tier talent while sticking with evolving employment laws.

Collar Search is a leading RPO company in India, known for transforming talent acquisition with dedicated RPO recruiters. Our efficient process ensures superior hiring outcomes, saving time and costs while enhancing your brand.

Let’s reshape your recruitment strategy!