Recruitment Process Outsourcing – a new trend in HRFriday, May 18, 2018
Recruitment Process Outsourcing , commonly known as RPO has been a familiar term among recruiters and recruitment organizations. However for Organizations not in the recruitment, this is a new trend which many Organizations are currently exploring for their manpower recruitment process. There has been a growth in the RPO industry in the recent past and in 2018 it is poised to surge at 11-12% in the global market. Apart from being a cost effective model, this brings in agility in growth prospect for the organization and enables them to focus on their core business goals while leaving recruitment of the core growth drivers to an external partner. In today’s cost effective economic environment all organizations are looking forward to have a higher productivity with minimal operational cost. The current economy has seen many a start-ups mushrooming who would not like to build their HR until they reach a certain level and that is when RPO helps. Below are some of the reasons why RPO is going to be the best choice for corporate recruitment.
Quick Hiring Process
Most of the organizations find it difficult to fulfil a vacant position within a short time span and this costs them a deficiency in their productivity. Searching new candidates, posting ads on the job boards, screening the CVs, conducting interviews etc are time consuming affairs. RPO firms makes it easy specially if RPO is taken from a firm with Global footprints. RPO firms have an established process, large candidate database and well connected network making it productive in the shortest possible time.
Simplified Recruitment Process
Most of the companies’ recruitment cycles run slow due to lack of a properly coordinated architecture. This may lead to faulty hiring decision that in turn increases operational costs. RPO is the right solution for this kind of a scenario. They have a fully structured and simplified recruitment cycle and an organized advertising of the vacancy, training and on-boarding procedures. This feature leverages the recruitment problem off the board and allows organizations to focus on their core services.
This is a major reason why organizations are opting for RPO projects. There can be scenarios where an organization may go through a bad financial phase and not able to do recruitments, and another one where there is an expansion in business and there is a sudden requirement of manpower - in both the scenarios RPO is the best cost effective solution.
Lower Attrition Rate
Increased attrition rate is a big reason for worry in MNCs. A resource dropping out from an organization increase the entire cost that has been spent on him/her from screening till onboarding. This has given a spike in the recruitment process outsourcing market in India. Attrition is directly liable to the RPO service providers hence it is their prime object to screen a proper resource that can fit the role for which s/he has been hired for. We are living in the era of digitization and artificial intelligence and the recruitment sector has also been influenced by technological advancement. Below are some of the points that will illustrate how technology is helping the recruitment sector to grow. Evolvement of recruitment software that can interact with candidates in a more personalized approach and can send them promotional articles. Products like CRM integrated with live chat support and social media connectivity will be a trending software for RPO firms. Artificial intelligence will play a great role in searching good talents for millions of candidates. This will help a recruiter to focus more on a high value candidate who are apt for a particular job role. Big Data Analysis is another technical medium that is going to be a good tool for scaling and screening qualified candidates according to their potentiality and job tenure. This tool can also be used as a predictive tool to determine candidates willing to switch job. Mobile technology brings opportunity in all sectors and with no exclusion in the recruitment field. This has been observed that most of the candidates uses mobile devices to browse job opportunities, get email alerts, and research potential employers. Mobile apps also influence employer branding and better connectivity opportunity. Tech-savvy candidates may lose interest in a company whose website takes more than a few seconds to load onto their mobile device. For companies looking at agility with efficiency and attrition-proof HR services, Recruitment Process Outsourcing (RPO) is the way to go.