Recruitment Service Outsourcing (RPO). Why Needed?

Why Recruitment Process Outsourcing (RPO) Has Become An Essential Part of HR services?

Recruiting process outsourcing - (RPO)

Recruiting new stars in an environment that is dynamic and full of talents may not be a cakewalk. With the emergence of the booming Recruitment Process Outsourcing (RPO) industry, even vital positions can now be effectively filled without much delay. RPOs are attracting tremendous interest from companies as one of the leading recruitment tools available today.
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Role of RPO
We are living in a Dynamic and unpredictable world today, and so one has to be prepared to handle the subsequent uncertainties. A star performer in your business could step down at any time so you cannot afford to have a vacuum in the structure of the organization. Choosing for outsourcing of a recruitment process is perhaps the most efficient strategy for hiring top-notch marketable talent. Actually, recruiting a RPO team takes a big weight off your back. The RPO team manages effortlessly from identifying the suitable candidate to ensuring that he / she joins your esteemed organization. This gives you an upper hand in comparison to your competitors who rely solely on the internal team to chase candidates.

RPO service is not just a hiring of an employee
When it comes to talent, RPOs actively try to give you creamy layer of candidates. They streamline recruiting operations and ensure that you have ample flexibility to work on key tactics to grow your market. This could be an expensive affair and may not yield desired results binding with a recruiting firm for the unique vacancy. Needless to mention, recruiting a squad of full-fledged RPOs committed to the business is always better than the employees.

Quality Guaranteed:
RPO companies deliver tailored recruiting approaches that meet the needs of even niche sectors such as aerospace and chemical engineering. With years of experience in the recruitment task and the resulting network developed, the RPOs always seem to have a pool of qualified candidates ready, which means that the turnaround time to fill a position might be less. An RPO can deliver even a senior candidate within a specified time frame.
 
Let us now show you with help of an example why RPO is need of the hour :
65% of corporate work force consist of passive talent who are not actively looking for job

• From all the Job seekers only some percentage of candidates is actively looking for a job or job change. Let’s assume the number of candidates who are actively searching for a job is 500. The percentage for same is 100%.
• From the active and passive candidates who are open to new opportunities are 35%. Out of 500 candidates only 35% i.e. 175 active and passive candidates apply for a job opening which is published. Top channels which candidates use are online job boards (60%), social professional networks (56%), and word of mouth (50%).

 
35% of active and passive candidates are open to new job opportunities:
 

• From all interested candidates only 40% of the candidates are qualified or skill set match with the particular job profile. So, the number of interested candidates is 70. There are many factors which influence candidate interest in particular job/company. These factors are Location, commute time, benefits, and employee’s reviews. Brand value of a company plays an important role. Social Media presence and a company that encourages good work-life balance leaves a positive vibes in the mind of candidates
• Next step is screening of candidates whose skill set match the job profile and are qualified for the job opening. Only 20% of total interested candidates are qualified and fit for the desired opening. The total candidates which are finally shortlisted for a particular job opening are 14.

 
The primary reason candidate change job is career opportunity:
 

• Recruiter need to identify the “must-haves” and the “nice-to-haves” for the role company is hiring. The reason for low number of shortlisted candidates can be minimum qualifications for the candidates, less salary offered, mismatch of skill set, specific experience required etc.
• Out of shortlisted candidates 71% are able to reach hiring manager round. One out of three candidate either not able to clear HR round or not able to reach for an interview due to personal/ professional reasons. Total number of candidates who actually attend the hiring manager round/ final round is just 10.

 
The key factors in accepting a new job offer are compensation, professional growth & development, and better work/life balance:
 

• After hiring manager round final selection of the candidates is made. The rate for final selection is just 20%, so out of 10 only 2 candidates are made offer after salary negotiations with them. This step involves great involvement as salary is the crucial part of every job. You need experts who have knowledge of market trend and what should be offered to a candidate with particular experience.
• Acceptance of offer is also one of the major steps in completion of hiring process. Only 50% of candidates accept the offer from final selected candidates. The reasons for non acceptance is better salary offered in previous organization, long notice period, have got better option or persuasion/counseling done by manager etc. Finally 1 candidate accepts the offer and joins the company.

Conclusion:
So, for hiring a single candidate we need to evaluate almost 500 profiles need to be evaluated. Say on an average it takes 40 to 50 seconds to look at a profile. For 500 profiles we require around 350 minutes, which is approximately 6 hours, which an employee works in a day on an average. An employee day is spent in first step only, you can understand how much effort, time and money is required for the next step. It is advisable to use RPO services from the firm which understand your need.