Benefits of an RPO :
As with outsourcing in general, the major benefits of the RPO model over traditional recruitment models are centered on cost, flexibility, economies of scale and economies of scope. The RPO model offers flexible arrangements – especially on price and scope of services. For example: a client may choose to pay a set monthly fee to have a dedicated resource servicing a portion of the recruitment process that is being outsourced. On the other hand, a client may choose to pay the RPO provider by completed transaction or use a pricing model that incorporates a retainer and payment for completed transaction.
The potential cost savings with RPO over traditional recruiting models can be significant, especially when fees to headhunters and both in-house recruiter salaries along with office overhead costs are taken into consideration. Moreover, an RPO vendor can leverage the size of their existing recruitment operation and candidate database, their investments in specialized recruitment technology such as expensive database and applicant tracking systems and the recruitment expertise of their specialized in-house recruiters to further bring down costs and raise overall quality in the talent acquisition process. Not only does the basic RPO model offer an improvement over traditional talent acquisition methods, it has the potential to offer significant savings.