The labor market has been rapidly growing and evolving for the past several decades. Amidst these changing times, every organization wants to hire top-notch employees for their company.

The need to find innovative solutions for recruiting and sourcing candidates has become one of the top priorities for modern organizations today. Organizations want an efficient and cost-effective recruitment process that enhances the quality of hires and increases retention. 

Due to the turbulent global economy, organizations today are normally under intense pressure to continuously improve their processes and shift their focus to their core business competencies.

 

Recruitment Process Outsourcing: The New Age of Recruitment

Organizations need to objectively evaluate the components of the recruitment process to determine what their company can do best internally and what should be outsourced to an expert third-party recruitment firm.

As a result, recruitment firms all over the world are under immense pressure to find top-notch talent that will fill in the organization’s vacancy more effectively. This demand gave birth to the rise of the RPO (recruitment process outsourcing) industry.

Recruitment firms have found a cost-effective and efficient solution to source, vet, interview, and hire candidates by engaging in a strategic partnership with RPO companies. With the help of their RPO partners, recruitment firms now have a scalable recruiting and sourcing workforce that is available to serve them 24/7. 

RPO refers to the entire recruitment process or several critical elements of it. This industry has been around for several decades already. However, the ongoing “war for talent” in the labor market has made the practice gain more popularity in recent years.

A recruitment firm’s RPO partner provides greater recruitment efficiencies with best practice processes and improved sourcing techniques. RPO solutions offer a unique approach that provides a cost-effective and results-driven alternative for recruitment firms and even for a company’s in-house recruitment team.

However, it should be noted that RPO is not just for big staffing firms with a high demand for recruitment needs. Julie Meyer, senior talent acquisition manager at West Monroe Partners in Chicago, said, “No matter how small if you have a consistent stream of hiring needs, an RPO might be a good fit. Numbers don’t matter; it’s all about flow.”

Here are several FAQs regarding the RPO industry that you need to know:

FAQ 1: What do RPO services entail for organizations?

RPO service providers are equipped to take over the entire recruitment function of their clients. RPO providers would often offer to enhance their client’s recruitment efforts and be the third-party arm that will improve their recruitment sourcing strategies. RPO services usually include the following: candidate research, sourcing, applicant tracking, background checking, screening, pre-employment testing, selection management, employment offers, strategic consulting, vendor management, and onboarding.

FAQ 2: How will RPO service providers help your organization recruit top candidates?

An RPO partner will help your company by offloading the tedious tasks of the recruitment process, such as looking for profiles of passive candidates, vetting potential candidates, and managing Applicant Tracking Systems (ATS). With their specialized recruitment expertise, your RPO service provider will save a significant amount of time for your recruitment efforts by pre-screening candidates of your behalf.

FAQ 3: Why should organizations outsource their recruitment processes?

Here are several reasons why it’s beneficial for companies and recruitment firms to engage with an offshore RPO provider:

  • Transparency

Every RPO firm has a clear set of standard recruitment processes. As candidates engage in several rounds of the interview process, there is increased transparency so that chances of partiality will be lowered. Recruiters from RPO firms abide by a strict code of recruitment processes to avoid preferential treatment for candidates. 

  • Focus on the company’s growth

Recruitment firms are engaging the help of offshore recruitment providers to keep up with the demands of the industry. RPO providers can help in growing your company by executing strategic recruitment plans and building a strong recruitment workforce that will source top-notch candidates for their clients.

  • Outsourced services to specialists

RPO providers are seasoned recruiters that are skilled in sourcing top-notch candidates for specific industries. Their technical expertise and recruitment network can help with shortlisting the most qualified candidate for a particular job opening.    

  • Manage the entire recruitment process

RPO providers can help both organizations and recruitment firms in managing their firm’s recruitment process by having a recruitment partner that’s readily available 24/7. Your RPO partner can easily manage job boards and update social media channels, but most of all, they can help stay in touch with potential candidates for you. An RPO provider’s innovative and efficient recruitment techniques can help improve your overall recruitment services. 

 

FAQ 4: How can RPO services lower recruitment costs and reduce time to hire?

Recruitment firms would often engage with RPO providers to gain a competitive advantage by eliminating fixed recruitment costs. In fact, staffing firms are expected to earn as much as 20-30% operational savings through an RPO partnership.

RPO partnerships give scalability for staffing firms to reduce recruitment costs by utilizing innovative recruiting strategies, rich databases, and competent recruiters that only RPO services can provide. Additionally, the best offshore RPO providers can also dramatically cut a firm’s costs per hire. A study by a leading offshore RPO firm in the Philippines showed that staffing firms could save up to 31% on their cost per hire by partnering with an offshore provider. This is made possible by offshore RPO providers that offer significant cost-efficient services.

FAQ 5: What makes an ideal RPO service provider?

A successful partnership with an offshore RPO provider requires proper goal setting and long-term thinking for both the client and the RPO partner. Doing so means that recruitment KPIs need to be continuously measured and updated. All recruitment services, processes, and procedures need to be clearly defined and properly executed.

FAQ 6: What are the benefits of offshoring RPO services in the Philippines?

The Philippines is said to be in an excellent position to capitalize on offshoring opportunities. Here’s why:

  • High literacy rate and English proficiency.

The literacy rate in the Philippines is relatively high as 95.9% of the total population can read and write. This is advantageous for Western-based staffing firms since they can easily communicate with Filipino recruiters. Communication is a vital aspect in the recruitment industry and choosing an offshore RPO firm that will communicate fluently and smoothly with clients and potential candidates are very important. 

  • Affinity in Western culture

The affinity of Filipinos in Western culture has given them a better understanding of Western trends, nuances, idiomatic expressions, and work ethic. By embracing Western culture and having a firm grasp in the English language, Filipinos gain the advantage of being a competent RPO partner. Since it is more practical to work with people who can understand not just your language, but also the context and nuances beyond words.

  • Supportive government programs and policies

An Asian Development Bank report showed that the Philippine government has been strongly supportive of its BPO industry since 2001. Combined with the various policies and training programs by the government, the Philippine labor market has the right tool to process recruitment data by having knowledgeable people in charge of the RPO industry. They are equipped with better skills to communicate with clients and better resources to work with teams at home and abroad.

  • Industrialization

Due to the assistance of the Philippine government, industrialization, in terms of modern IT, is fast improving in the country. Rapid industrialization has made it possible for RPO providers to offer 24-hour recruitment activities. While the foreign staffing firm rests at night, RPO providers in the Philippines can continue with the recruitment processes and work 24/7. With double the work being done, staffing firms will have a higher recruitment velocity.

FAQ 7: What differentiates Sysgen RPO from other RPO service providers in the Philippines?

Sysgen RPO is one of the Philippines’ most recognized IT staffing providers since 1991. Being in the industry for 28 years has helped them gain access to a network of highly-skilled recruiters. In 2013, the company started to venture into the offshore RPO industry and take advantage of their two decades of recruitment experience to assist US staffing firms. Sysgen’s main differentiator among RPO companies is their established roots in the recruitment industry, which eventually evolved into an offshore RPO firm. Most offshore RPO firms in the Philippines started out as BPO companies without having a real background in the recruitment field.

Let us help you with your staffing needs.

With more than 28 years of experience in the industry, Sysgen RPO is one of the premier RPO staffing companies in the Philippines. We can help you provide unparalleled recruitment support and give you a cost-effective service that will fill in your recruiting requirements with top-notch candidates.

If you’re interested in partnering with an RPO firm or if you have any questions regarding the RPO industry, don’t hesitate to leave a comment down below.

References: 

Grossman, R. J. (2012). How to Recruit A Recruitment Outsourcer. HR Magazine, 57(7), 51–54. Retrieved from http://search.ebscohost.com.ezproxy.upd.edu.ph/login.aspx?direct=true&db=bsu&AN=77635029&site=ehost-live

Meskanich, P. (2009). Critical Success Factors for Recruitment Process Outsourcing (RPO). Utility Automation & Engineering T&D, 14(6), 8–11. Retrieved from http://search.ebscohost.com.ezproxy.upd.edu.ph/login.aspx?direct=true&db=bsu&AN=42832186&site=ehost-live

Reasons to Hire an Offshore RPO. (2019). Recruitingblogs.com. Retrieved 2 June 2019, from https://recruitingblogs.com/profiles/blogs/5-reasons-to-engage-an-offshore-rpo-provider

Roa, J. (2018). Benefits of Offshoring Recruitment Process to the Philippines – RPO. Sysgen RPO. Retrieved 2 June 2019, from http://sysgen-rpo.com/benefits-of-offshoring-recruitment-process-to-the-philippines-rpo/ 

Roa, J. (2018). How Offshore RPO Companies Lower Recruitment Cost. Sysgen RPO. Retrieved 2 June 2019, from http://sysgen-rpo.com/offshore-rpo-companies-lower-recruitment-cost/

Stranathan, I. (2019). What is a RPO?. Staffvirtual.com. Retrieved 2 June 2019, from https://www.staffvirtual.com/blog/what-is-a-rpo-recruitment-process-outsourcing 

Value of Recruitment Process Outsourcing (RPO) for Recruiters. (2016). Noon Dalton. Retrieved 20 June 2019, from https://www.noondalton.com/why-it-is-valuable-for-recruiters-to-use-recruitment-process-outsourcing-rpo/

What is the recruitment process for outsourcing (RPO)? – Quora. (2019). Quora.com. Retrieved 2 June 2019, from https://www.quora.com/What-is-the-recruitment-process-for-outsourcing-RPO