How Does RPO Reduce Recruitment Costs?

Today’s world of work is fast-paced, ever-changing, and unpredictable. However, one thing that remains the same is that recruitment is costly. Many companies are now turning to recruitment process outsourcing for their hiring solutions and the main reason for doing so is that it reduces costs. The streamlined approach allows for faster, more efficient hiring as well as access to high calibre candidates. This means RPO brings added value combined with financial savings for your current and future business goals. Here, we explore the top ways that RPO can help reduce your organisations’ recruitment costs.

Accelerating time to hire

We all know the saying ‘time is money’. It can certainly be applied to recruiting, where the longer your strategy takes, the more it will cost. Each area of recruiting – from sourcing candidates and setting up interviews, to onboarding – takes time, and costs can add up quickly. Every day that goes by where you don’t have a position filled means your organisation is losing out financially, as well as wasting time that would be better focussed elsewhere. RPO providers have processes ready to go and already have access to a talent pipeline. Each step of the process is sped up by using expertise to increase efficiency. Plus, RPO identifies weak points in your existing strategy, enabling you to hire better and faster in the future.

Sharing the risk

Every organisation has periods where they need to scale back on recruiting, or times when hiring becomes a sudden need. Partnering with an RPO provider means sharing the risk of these resources. RPO providers take on the responsibility of adjusting resource levels whenever your hiring needs change. Your organisation doesn’t suffer from being overstaffed or short-staffed – all this is taken care of by RPO. Whether you need new employees fast, or must stop hiring during a slow period, this agile solution allows for a swift response to your shifting business needs.

Streamlining the process

Businesses of any size can struggle with ensuring their recruiting is smooth across the board. Each department, region, or division is often dealt with separately, leading to incohesive hiring and added costs. RPO providers are experts with vast experience in creating strategies that work with your organisation’s specific needs. They will carry out in-depth analysis of your current recruitment process to identify inefficiencies. A holistic hiring solution is then created that reduces costs, while enhancing performance.

Decreasing cost per hire

Being able to measure all costs involved in your recruiting is essential in creating a strategy that adds value to your business, instead of wasting resources. RPO gathers and analyses data to develop a clear picture of your recruiting history. This enables you to address areas within your strategy which result in overspending – for example, outdated candidate screening tools, or ineffective marketing. By making sure each step of the hiring process is optimised, cost per hire is lowered.

Planning enables saving

Because RPO models usually charge on a monthly basis, you can plan your budget with ease. There are no hidden costs, plus the RPO provider is responsible for each part of the process. This means you don’t risk costs building up through developing your infrastructure, adjusting salaries, or implementing tools on your own. Because RPO presents a clear plan, with a fixed payment, your organisation can save resources that can either be allocated elsewhere within the company or set aside for the future. This gives you greater control of your recruiting, while allowing you to invest in enhancing your organisation as a whole.

Cutting costs doesn’t mean lowering quality. RPO is a long-term solution which will help you reduce costs by streamlining your recruitment processes. Each step involved in hiring is optimized, meaning you recruit faster and better while saving resources. By enhancing your recruiting, you not only save financially, but benefit from expertise to take your business further.