How Does Recruitment Process Outsourcing (RPO) Reduce Cost?

Posted on November 3, 2015

Do you want to know how recruitment process outsourcing can reduce cost? Read this blog post to find out the three ways by which a RPO service can help you save on cost.

With the recent recession, there has been a huge change in the recruiting demand for most businesses, causing enterprises to re-assess their cost structure and recruitment process.  Here are three ways by which recruitment process outsourcing (RPO) can help your business reduce cost, while adding business value.

1.Reduced cost through shared risks

During a downturn, the recruiting needs may suddenly drop, while minimizing a company’s need for recruiting staff. Similarly, when a business expands into a new region in the world or a new product category, recruitment needs may spike up. Outsourcing RPO can enable your company to pass along the cost of the risk of the resources to the service provider. Your RPO firm will take on the entire responsibility of adjusting the resource levels, during hiring fluctuations, so that the your company does not have to bear the burden of being short when more resources are needed or carrying unnecessary staff during business downturns.

2. Faster time to recruitment

Time equals to money and recruiting new professional level employees can cost you more in terms of both. Right from sourcing resumes to carrying out interviews or negotiating new offers, acquiring a new employee can take its toll on your internal resources. Also, if a position remains unfilled, your company can lose the benefit of that employee’s contribution. You could also be wasting resources that can be dedicated to other business initiatives. Outsourcing RPO services can help you reduce your time and cost.

3. Streamlined hiring processes

Most companies deal with a disjointed and uncoordinated recruitment process across their departments, divisions, regions and organizational functions. This often leads to an overlap in training, advertising and on-boarding procedures. It could also lead to poor recruitment decisions and high operational costs.

Outsourcing RPO services can help you examine your current recruitment process, find out where you are spending excessive cost and get to know the inefficient practices that may exist. An RPO service provider can assess such problems and provide you with a solution to reduce your overall cost.

Recruitment process outsourcing can increase reduce your cost with every hire. Read more about how RPO services can benefit your organization.

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