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Article: Recruitment Process Outsourcing: A Beginner’s Guide by Marisa Kacary

When Alexander Mann Solutions was founded in 1996, the concept of outsourced recruitment did not really exist. Today, recruitment process outsourcing (RPO) is a major industry in its own right with Nelson Hall estimating the global market as being worth as much as $7bn (£5bn).

RPO grew rapidly in the boom years of the late 1990s as a way of boosting productivity and driving efficiency in large corporations. The industry has grown so quickly, and in so many different ways, that it is not feasible to give the term a straightforward definition. , RPO can however be summarised as the transformation and delivery of the entire recruiting process, from onboarding to exiting, run across the whole resourcing lifecycle. 

The practicalities of RPO vary depending on the provider and on the specific requirements of each client. Generally however, providers embed a recruitment team to work in-house with the client. This enables the recruiters to quickly get a feel for the business and ensures that the hiring process is not remote from the rest of the business. These in-house teams are often supported by shared service centres giving the embedded teams access to greater resources as well as specialist expertise in areas such as resourcing communications and technology consultancy. All recruitment processes are also typically client branded to ensure continuity in the applicant and hiring manager experience.

When the RPO industry was first emerging, many HR departments were initially wary of outsourcing their recruitment. Outsourcing was traditionally associated with remoteness and a loss of control. Today, it is widely recognised that, rather than simply being a restructuring of the recruitment function or a ‘giving away’ of control to an outside company, RPO is actually an add-on of knowledge and expertise. Having a trusted partner that is able to manage the end-to-end hiring function, frees up HR departments, allowing them to focus resources on managing and engaging the talent already in the organisation, thereby adding real value to the business. Businesses are therefore much more open to re-organising their internal recruitment functions and accommodating outsourcing options in order to improve service levels and quality, within a range of budgets.

As well as reducing costs through increased efficiency, an outsourced recruitment solution offers the added benefit of scalability. If an organisation needs to rapidly increase its workforce, perhaps to cope with a sudden increase in business, a RPO provider can upscale its services to meet this requirement and quickly get the right talent onboard. Equally, if business slows and an employer needs to slow or halt its hiring processes, RPO solutions can be scaled back to ensure that no resources are wasted. RPO providers can also help when businesses need to reduce the workforce, providing an efficient rightsizing and outplacement function. RPO also ensures businesses have access to the latest best practice and developing recruitment and social media technologies, as well as providing an accountability and ROI process supported through objectively measured outcomes.

The changing view of talent management during a recession has ensured continued demand for RPO services throughout the downturn. In the current climate, there is an increased recognition among HR and recruitment personnel that getting the most talented people, with the right skills and experience into your organisation, and then having the ability to engage and retain them, is the best way to help the business come out of the recession strongly and in a good position to benefit from the upturn.

Marisa Kacary is Director of Marketing & Communications for Alexander Mann Solutions, the leading global provider of recruitment process outsourcing.

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