Effectively Managing RPO (Recruitment Process Outsourcing) | DCR Workforce Blog

Effectively Managing RPO (Recruitment Process Outsourcing)

All the vision, passion and energy behind an organization would fail to yield the right results if the company fails to attract the right human capital to its fold.  The use of recruitment process outsourcing, or RPO as it is popularly known, is a good choice for companies, which may not have the time or resources to build relevant recruitment skills or the right brand image in the recruitment space. An expert recruiter who provides the required services can ensure the success of the organization in reaching its goals; but the best of them also fail, if the organization does not adopt certain procedures, which we shall consider here.

The organization needs to provide a clear mandate on the parameters governing the work to the recruiter, specifying its particular requirements as well as acceptable and unacceptable attributes. If it was seeking to meet its diversity goals, such information should also be specified at the outset. The best way to ensure that these stipulations will be adhered to is to incorporate the SLAs (or Service Level Agreements) into the contract.

Setting SLAs:

Some of the usual SLAs that govern the outcomes of a recruitment contract include the following to ensure that the recruiter/service provider delivers valuable talent to the organization, with built-in penalties for any failure to do so.

  • Guarantee on Position: This ensures that the position stays filled for a minimum time and if for any reason the candidate chooses to leave, the recruiter undertakes to provide the replacement at no additional cost – going by the premise that the short tenure of the first candidate is the responsibility (or fault) of the recruiter.
  • Time to fill: The recruiter needs to commit on the time frame in which the position would get filled.
  • Fill Ratio: This SLA is relevant for organizations which employ a large number of people, where the recruiter commits to hire a percentage of required hires.
  • Guarantee on Candidates: The recruiter commits to line up a certain number of vetted candidates against a given vacancy.
  • Approval of the Hiring Manager: This is the litmus test for any recruitment effort and is essential to establish any recruiter in a preferred list of providers. The SLA ensures that minimum standards are met with the services provided by the recruiter.
  • Candidate Satisfaction: Surveys are conducted to establish the candidate’s experience with the recruiter during the recruitment process.

Managing the RPO:

The management of the relation requires the identification of a specific point of contact within the organization to who sets a process and schedule in to interact, monitor and collaborate with the recruiter on a regular/daily basis depending on the quantum of work assigned. The various stakeholders within the organization need to be kept in the loop of developments and participate in the assessment process to measure the performance against the SLAs; and provide inputs and suggest action points to remove the process pain points and ensure improved delivery standards and impose the penalties, if required. The measure of the ultimate success of the outsourcing effort will be directly proportionate to the such investments of time and effort.

The content on this blog is for informational purposes only and cannot be construed as specific legal advice or as a substitute for competent legal advice. They reflect the opinions of DCR Workforce and may not reflect the opinions of any individual attorney. Do contact an attorney for advice specific to your issue or problem.

One response to “Effectively Managing RPO (Recruitment Process Outsourcing)”

  1. A decision perhaps linked with the need for faster progression and movement in the early stage of careers in order to get on the property ladder and start a family.

Lalita is a people/project manager with extensive experience in operations, HCM and training and development across industries like banking, education, business consulting, BPO and information technology. She believes in a dynamic approach to life and learning as change is the only constant.