What Is an RPO Company and How Can Working With One Benefit Your Business?

Recruitment process outsourcing (RPO) is a growing trend in the business world where companies delegate the responsibility of sourcing, vetting, and onboarding new employees to external specialists.

By taking the pressure off your in-house recruitment team and leveraging the expertise of RPO providers, you can streamline recruitment, improve hiring quality, and achieve better results.

This article will explore the role of RPO companies, examine their services, and detail some of the benefits and challenges of working with these firms. We’ll also cover some must-haves when looking for the perfect partner.

What Is an RPO Company?

An RPO company is a specialized service provider that manages all or part of an organization’s recruitment processes. By delegating recruitment to a third-party service, you can benefit from their optimized hiring strategies, large pool of high-quality candidates, and efficient processes.

RPO services can be tailored to meet specific needs but are generally classified into four main types:

Full-cycle RPO

End-to-end or full-cycle RPO covers the entire recruitment process. This includes everything from:

• Job requisition management
• Candidate sourcing and screening
• Interviewing
• Offer management
• Onboarding

Outsourcing your entire recruitment lifecycle is ideal if you want to completely revamp your hiring process and achieve significant long-term improvements.

Partial cycle RPO

Partial cycle RPO services involve outsourcing only specific parts of the recruitment process. For example, you might outsource candidate sourcing while keeping the interviewing and onboarding responsibilities within your in-house team.

This approach allows you to address particular pain points without relinquishing full control.

Project RPO

Project RPO is a time-bound, scope-specific recruitment solution for addressing short-term or ad hoc hiring needs. 

Whether it’s a recruitment drive for a newly launched product or seasonal hiring surges, project RPO providers offer the flexibility and agility to manage temporary spikes in hiring demand.

On-demand RPO

On-demand RPO provides recruitment services as needed, typically for a certain volume of roles or specific business departments. 

It is a highly scalable, effective solution that companies can use to address sudden (and sometimes unexpected) increases in hiring requirements without committing to a long-term contract.

What Services Does an RPO Company Provide?

RPO companies offer comprehensive services that can often be custom-built to meet your unique needs. Here are some of the most common:

Strategic planning and consulting

Outsourced recruitment professionals work closely with your organization to understand your business goals, hiring needs, and workforce planning strategies. 

They offer expert advice on improving the talent acquisition process and help create a robust recruitment strategy—not just for today but also for building a talent pipeline to meet your future goals.

Talent sourcing

One of the core functions of recruitment outsourcing is to attract high-quality candidates who may normally be out of your reach. 

RPP providers use advanced sourcing techniques, leverage external networks and talent pools, and help build your employer brand to reach a diverse group of potential hires.

Screening and assessment

RPO companies often take over the screening and assessment processes to ensure candidates meet specific requirements and fit with your company culture.

This can include initial resume screenings, phone or video interviews, technical skill assessments, and behavioral evaluations.

Interview coordination

Outsourced recruiting agencies can schedule interviews between candidates and hiring managers, prepare interview materials, and coordinate feedback sessions—leaving your internal recruitment team to focus on evaluating the candidates without worrying about the logistic burden.

Offer management

Negotiation and presentation of job offers are sometimes handled by RPO companies. They ensure that offers are competitive and meet industry standards while addressing candidate expectations. Their expertise increases the likelihood of offer acceptance and helps target top talent.

Employer branding

RPO companies also help build and enhance your employer brand to attract higher-quality candidates. They may manage company career pages, create compelling job descriptions, develop social media recruiting strategies, and ensure a positive candidate experience throughout.

How Does an RPO Company Find Talent?

Top talent isn’t easy to find. Skilled RPO professionals use a combination of technology, experience, and industry best practices to find candidates.

Talent pooling

RPO companies create and maintain extensive talent pools—pre-screened and pre-qualified candidates who can easily be contacted for new job opportunities.

By keeping these pools up-to-date, they can rapidly respond to hiring needs without starting from scratch every time.

Social media recruitment

Social media channels like LinkedIn, Facebook, and X can help engage with candidates and promote job opportunities.

Likewise, niche networks like GitHub for developers, Dribbble for designers, and Behance for visual artists can be great places to recruit candidates.

Networking

Professional networking is a critical component of RPO talent acquisition. Recruiters attend industry events, conferences, and meetups to build connections and get referrals from working professionals.

Database mining

Top RPO companies can access proprietary and third-party databases containing detailed candidate profiles. They mine these databases to identify individuals who meet specific job criteria and contact them directly.

Headhunting and executive search

For specialized or high-level positions, RPO companies employ headhunting and executive search strategies to identify and approach highly qualified candidates who may not be actively seeking new opportunities. 

They use their industry connections, proprietary databases, and networking skills to discreetly reach out to top talent.

Ensuring confidentiality is crucial, especially when dealing with high-level candidates. RPO companies know how to handle negotiations discreetly, maintaining privacy and professionalism throughout the process.

Passive candidates sometimes need a more lucrative compensation package to draw them away from their current role, but sometimes, a better company culture is enough to entice them to make the switch. That’s especially true of Gen Z workers, with 87% saying they would be prepared to quit their current job if they more closely aligned with the values of a new company.

Benefits and Challenges of Partnering With an RPO Provider

Partnering with an RPO company can result in several benefits, like:

• Streamlined recruitment: Reduced time-to-hire for critical positions, minimizing disruptions.
• Cost efficiency: Outsourcing recruitment can be more cost-effective than managing it with an internal team. RPO companies leverage economies of scale to reduce recruitment costs and protect against lost productivity.
• Improved candidate quality: Rigorous candidate screening and assessment ensures that only the best candidates are put forward for open positions.
• Access to advanced technology: RPO companies invest in state-of-the-art recruitment technology and tools, so you don’t have to. Applicant tracking systems (ATS), candidate relationship management (CRM) tools, and AI-powered sourcing platforms all help them find you the best possible candidates.

But there are also some significant challenges that you’ll have to face. Things like:

• Loss of control: Outsourcing recruitment can lead to a perceived or actual loss of control over the hiring process. Companies might feel disconnected from key decisions.
• Integration issues: Integrating the RPO provider’s systems with your existing HR infrastructure can be complex.
• Dependency risk: Over-reliance on RPO can create dependency risk, where your organization lacks the internal resources or capacity to manage recruitment independently if the relationship ends.
• Hidden costs: While significant cost-per-hire savings can be realized, some providers may charge hidden or unforeseen expenses.

Working with a transparent, reputable partner who is up-front about costs, processes, and outcomes can mitigate all of these challenges.

What Should I Look for in an RPO Company?

To find that ideal partner, here are a few key factors to consider:

Industry experience

Look for a provider with extensive experience in your industry who will understand the unique recruiting challenges, compliance requirements, and candidate pools relevant to your business.

Track record

Evaluate an RPO company’s performance history by reviewing case studies, client testimonials, and success stories. A proven track record is a good indicator of the provider’s capabilities.

Varied services

If you need a company that offers a broad range of recruiting services, be sure to factor that in. Sometimes, you might need end-to-end recruitment; other times, you might need contingent recruitment. 

The perfect partner should be able to tailor a service to your requirements.

Flexible contracts

Review the contract terms and ensure they’re flexible and reasonable. Look for options that let you modify the scope of service, adjust commitments based on performance, and terminate the agreement if necessary.

Clear, fair contract terms protect your interests.

How Much Does RPO Cost?

There’s no single dollar figure attached to RPO services. The cost varies between providers based on the scope of work and different pricing models. 

Some providers may charge a fee per hire or per interview. Others may have a fixed-fee model, for example, based on a monthly retainer or average volume of hires.

Companies like Near offer a flexible and risk-free structure with no up-front costs. For example, with Near, you can start interviewing for free and only pay when you make a hire.

Final Thoughts

Recruitment outsourcing can revolutionize how your company approaches talent acquisition. By leveraging external expertise, the advantages of advanced technology, and flexible cost structures, your recruitment process will be a competitive advantage rather than a resource drain.

If you’re curious about the range of RPO services that are available, check out our curated list of the top 12 RPO companies.

Each company listed offers a unique approach to talent acquisition, even for the most niche markets. Don’t let outdated or costly hiring practices hold you back—take the first step towards a more efficient and effective recruitment strategy today.

‍