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Gregory Gary on Leveraging RPO for Your Business

Recent movements such as the “Great Resignation,” rage quitting, and the pandemic have made hiring increasingly difficult in the past few years. In fact, new research from Broadleaf shows the number one challenge organizations are facing is the quality of the talent pool with an overwhelming 54% of respondents agreeing. The solution to this problem? A relationship between your company’s talent acquisition team and a recruitment process outsourcing (RPO) organization. Broadleaf’s Senior Director of Business Development Greg Gary spoke with HRO Today to discuss the benefits of sourcing talent through RPO and the different ways to achieve these benefits.

How does RPO provide support to organizations during a talent shortage?

 To put it simply, RPO provides another opportunity to find talent, or as Gary describes it, “a second arm to look into other areas that a team does not typically look into.” Talent shortages have pushed organizations to become less concerned with finding a candidate to fill a specific role or position within the company. Instead, RPO teams source any kind of talent and will find a way to get that individual involved with the organization. Through RPO, an organization can also utilize direct sourcing and the development of a custom talent pool of candidates who are interested in working for the company. Direct Sourcing looks at alumni and “silver medalists,” candidates who were qualified, but who in the end were not chosen for the role. e. RPO teams help find the best talent, no matter where it is coming from. The other part of Direct Sourcing is that it looks at qualified candidates no matter what type of work they’re looking for, whether that be full-time or temporary work. Organizations can find the best candidate and then address their preferences including those seeking full-time and contingent work.

Secondly, the statement “time kills all deals” is certainly relevant to the staffing and recruiting industry, and an RPO eliminates this potential issue. An RPO team’s connections, ability to communicate and a large pool of quality candidates enable positions to be filled quickly and efficiently.

Additional benefits of leveraging RPOs

 Client relationship: With large search firms, candidates are not solely exclusive to one client. They are often presented to multiple organizations because firms generate revenue based on how many candidates they can present. With RPO, all recruited candidates are exclusive to their clients.

  • Diversity and flexibility: RPOs’ exclusive relationship with their client allows them to explore many different avenues and industries to get a candidate hired.
  • Cost containment: RPO is more cost-effective than traditional recruitment. Companies that reach out to search firms for candidates are charged between 25% to 35% for each provided candidate. RPO costs per hire are typically somewhere between 5% to 12% of the position’s first-year salary.
  • Technology and tools: Companies typically choose between two and three different types of technology or tools that they utilize to attract and retain candidates. RPO finds new talent by assessing what tools the company uses well and brings in additional tools that the company may not have access to for help. For example, RPO prioritizes CRM practices that their client may no to source new talent. Today, RPO is increasingly utilizing artificial intelligence tools to capture new talent from different databases and combine them into one.

Different types of RPO models

 Scalable solution model: A position is needed to be filled quickly. Recruits are in demand and they are often placed for a few months.

  • Enterprise model: This occurs when all processes, beginning to end, regarding the recruitment of a position, are outsourced. RPO teams see every detail associated with talent acquisition from end to end.
    • This is most often done by small or medium-sized organizations that recognize the importance of filling a certain position and understand that trying to recruit on their own would not bring them success in the time frame that they must operate within.
  • Project-based model: This model essentially follows the roles of a permanent hire, just on a different basis. They typically supplement the team for the duration of the project.
  • Total talent management model: This approach looks at RPO from both the direct and contingent angles. This model sources both permanent and non-permanent talent and fits them into an organization. Clients are continuously getting the best possible candidate for the job, no matter the classification.

Ensuring a successful RPO partnership?

 A business should take the time to diligently assess its existing recruiting strategies, processes, and goals. They must examine the goals it has not yet reached and determine the best path forward.  An RPO partnership is a mutually integrated relationship. There must be a mutual investment on the client-side to understand that changes should be made and a willingness to see these changes through. On the other hand, RPO is an extension of the company. The team must be engaged and knowledgeable so that it can talk about and understand areas of customization well. A relationship based on trust, engagement, and issue resolution processes is vital.