Wednesday, February 19, 2014

The pros and cons of Recruitment Process Outsourcing (RPO)

Recruitment Process Outsourcing is here to come.

Recruitment proves to be a tenacious task when it comes to small and medium sized businesses. The reason for this, being recruitment requires large scale efforts in terms of money and man-power. So recruitment is now-a-days outsourced to organizations which specialize in recruitment processes. These RPO firms serve to hire the right candidate at the right package.

The RPO providers ease the work of the HR department of organizations which usually is involved in taking care of the internal corporate relations. RPOs go through heaps of resumes, schedule interviews of shortlisted candidates and perform the joining formalities as well as the induction programs.

The various opportunities which work well with the RPOs are-
Economies of Scale
Economies of Scope
Variable Cost

As the scale of recruitment in RPO organizations is markedly larger as compared to the HR department of small and medium sized businesses, the costs of recruitment in an RPO is low. The scope of recruitment is also high as compared to the internal HR department. The fixed costs of recruitment is claimed to have changed to variable costs due to the quality and volume of recruitment handled by RPOs.

The various challenges faced by RPOs are communication between the RPO and the sponsoring organization as well as the communication between the candidate and the RPO is a major risk undertaken. Going through the expectations of both sides is a tricky situation. An outside provider may not be able to conform to the specifications of the HR and the right perspective of hiring the candidate. Finding the right candidate is a process which acts on mutual trust which can be easily broken by the RPOs. Some RPOs do cheat on short term gains and so are more involved in scrupulous means.

So in order to provide a cost and time effective solution to end-to-end recruitment, we must give a try to RPO providers.