Difference between RPO and Traditional Recruitment: A Brief Overview

Employees are the backbone of a company and the whole reason it functions smoothly. So, when it comes to recruiting, employers should make a decision while having the progress and future of the firm in mind. The very first question that would arise in any boss’s head is how and from where to find employees with the best capabilities. Traditionally, employers hired recruiting agencies that would hire on behalf of the firm. Currently, most entrepreneurs^[1] or business folks outsource their staff from RPOs. But what is the vital difference between RPO and Traditional Recruitment? Let’s find out.

Difference between RPO and Traditional Recruitment

By understanding the difference between RPO and Traditional Recruitment, it’s easy to find the good-to-go choice. The primary goal of a traditional recruiting business is to link employers and candidates. Their service costs are dependent on the number of people they have effectively recruited for the business, and these agencies typically conduct their hiring procedure under the employer’s brand. It suggests that a company can hire a recruiting agency to help them identify the types of individuals they need rather than depending on employee recruitment programs or posting openings on internet job boards. When the recruiting agency finds the ideal individual and is hired by the business, the agency is paid.

However, when the company develops and flourishes, this tactic might not be very profitable. It is due to the actuality that, despite its ability to assist you in hiring swiftly, it won’t offer you the long-term recruitment services your company requires during growth. More essential, you will want excellent staff members who stay connected to the business over the long term.

RPO, or recruitment process outsourcing, is a way to contract out your company’s operations to other parties. In this situation, the company delegated all or a part of the recruiting procedures to an outside recruitment firm. These companies are frequently referred to as RPO Partners.

In contrast to a disorganized contractual search provider or employment agency, the RPO partner assumes complete accountability for the entire cycle from conceptualization and design to administration and administration of the hiring procedures. Furthermore, they are liable for the outcomes of the proceedings.

What are Some Advantages of RPO over Traditional Recruiting Agencies?

An RPO service can handle each step of the hiring process. The extent of this largely relies on the requirements of your company. RPO companies will take a hands-on strategy regardless of whether you need an end-to-end approach or a plan to handle an unexpected hiring need. They will provide you with advice and reviews related to your recruitment situation. They will also help you prepare for the interview and carefully evaluate each applicant to make sure they are a perfect match.

Pocket-Friendly

A prime difference between RPO and Traditional Recruitment is the expense. Each successful candidate’s compensation will have a fee charged by a recruitment company. So, when you employ an applicant, you compensate the service as well as your own recruiting staff. RPO companies adopt a totally different strategy. You pay a monthly charge whether you outsource all of your hiring to an RPO or just a piece of it. It reduces the cost by 65% to 70% and gives your own staff more time to work on other projects.

More than just Recruitment

Only postings are made through recruitment agencies. To complete the transaction, they market the applicants’ skills and use placement assurances. The hiring manager’s satisfaction, promoting your brand, or showing concern for prospects are not their top priorities. In addition, hiring managers may transfer work to your internal team, like writing job descriptions and other recruiting-related duties. It implies that even though you pay the recruiter, your HR staff will still have to put in a lot of effort.

On the other side, outsourcing the hiring process controls the entire hiring process. Additionally, the provider will look after your staff, workflow, technology, and hiring approach. They will be in charge of creating the job description, selecting the candidates, and enhancing employee engagement and management experience. RPO providers create long-term diplomatic relations.

Potential Ownership

The applicant you employ is owned by a recruiting firm. It implies that a company cannot rehire an employee who had previously worked for them without compensating the recruiting firm. When the agreement between the corporation and the organization ends, this posture will become a problem. The hiring procedure is somewhat complicated as a result. Whether they acquire the leads either directly or indirectly, RPO businesses do not own the prospects the company employs.

RPO Reports and Analyses

Traditional employment firms are sometimes a temporary fix, which provides little time for data use or in-depth study. The main responsibility of agencies is to replace positions as quickly as possible; they are not responsible for evaluating how to improve your hiring procedure.

RPO companies establish long-term relationships with your business in order to collect crucial information for evaluating your hiring practices. It entails gaining knowledge of both what is working and what needs improvement. You may receive a comprehensive overview of hiring time and expense, staff turnover, and applicant satisfaction with accurate data. Future recruitment will also improve as a result of this thorough approach.

The Bottom Line

The focus is on the quality of personnel, whether it’s an RPO or recruiting firm. RPOs and conventional recruiting firms clearly differ from one another, as can be seen above, to summarise the distinctions. An RPO has a plethora of benefits for any business, including yours, from candidacy ownership to find the greatest option rather than just a substitute, going above postings and providing guidance, and extending it.

Now, you are well aware of the difference between RPO and Traditional Recruitment. Compared to a regular recruiting firm, RPOs are more equipped to meet all types of criteria because of the specialists they hire.

Business considerations and requirements should come first when deciding between the two. Finally, it’s your decision to make. If you are looking for recruitment process outsourcing solutions, you can contact our recruitment consultants and specialists.

Read our Article: Creative Ways to Recruit Employees & Recruitment Strategies