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Today’s competitive job market requires companies to find the most efficient and effective methods to recruit, manage, and retain top talent. Using a recruitment processing outsourcing (RPO) provider or traditional staffing methods can help optimize the recruitment process.
Understanding the similarities and differences between RPO and traditional staffing helps determine which is right for your organization. Forming a long-term RPO partnership lowers recruiting, onboarding, and training costs for a healthier bottom line.
How Do You Know if an RPO or Traditional Staffing is Right For You?
What Is RPO?
Recruitment processing outsourcing (RPO) involves partnering with an RPO provider to handle some or all of the company’s recruiting or talent acquisition needs. The provider might combine its recruiting power and delivery capabilities to offer in-depth RPO services to manage the recruitment lifecycle, including candidate profiling, sourcing, screening, interviewing, onboarding, and ensuring compliance. The RPO provider also might focus on certain recruitment areas based on your needs, such as employer branding, talent sourcing, or managing recruitment technology.
An RPO partner can provide the following services:
- Integrate with internal recruitment processes and culture
- Create and implement tailored recruitment strategies aligned with business goals
- Manage the recruitment lifecycle from talent sourcing to performance management
- Screen and interview talent
- Provide data-based insights and reports to optimize recruitment practices
- Remain onsite to manage talent sourcing, interviewing, onboarding, and engagement processes
- Serve as an extension of the business
What Is Traditional Staffing?
Traditional staffing involves recruiting, screening, and placing workers in diverse employment arrangements. Examples of traditional staffing include:
- Contingent placements: Workers are placed for a set time, typically to cover leaves of absence or provide specialized skills for short-term projects.
- Contract-to-hire placements: Workers are placed for a set contract period with the potential to become full-time employees.
- Direct placements: Candidates are placed in permanent roles.
Traditional staffing connects companies with talent who possess relevant knowledge, skills, experience, and accomplishments and fit the company’s culture. Staffing agencies use internal databases of vetted candidates or traditional recruitment methods to quickly match candidates and fill vacancies.
How Do RPO and Traditional Staffing Differ?
Recruitment processing outsourcing (RPO) and traditional staffing differ in the following ways:
Recruitment approach
RPO provides a strategic, holistic approach to recruitment. This comprehensive method focuses on technology, scalability, and turnover rates to develop a robust recruitment strategy:
- Key recruitment processes are outsourced to a third-party partner.
- The RPO partner handles multiple parts of the recruitment process, such as candidate sourcing, candidate pipeline management, and talent acquisition strategy development.
- These activities increase recruitment efficiency and effectiveness while aligning with the company’s values and goals.
In contrast, traditional staffing focuses on filling individual roles. This approach emphasizes developing job descriptions, posting job openings online, and choosing qualified candidates:
- The company’s human resources team partners with a staffing agency.
- The staffing agency uses candidates’ education, skills, experiences, and achievements to create matches with job opportunities.
- The process is transactional.
- Fees are contingent on successful candidate placement.
Process optimization
Technologies help streamline and improve the recruitment process in RPO. The third-party providers leverage advanced technology solutions, data analytics, and industry expertise to optimize the recruitment process and provide high-quality talent.
In contrast, traditional staffing might not use the same level of technology and process optimization. The results can include inefficiencies and higher recruitment costs.
Scalability
RPO typically is used for large-scale, high-volume recruitment, especially for fluctuating talent demands or during times of rapid growth. An RPO partner also might be beneficial for companies lacking the expertise or resources to efficiently manage recruitment processes. For instance, an RPO partner that provides managed service provider (MSP) programs offers total workforce solutions by integrating the talent acquisition function for permanent and contingent workforces under one delivery team.
Conversely, traditional staffing typically is used for filling short-term projects or niche roles. For instance, a company might request contingent workforce solutions to complete projects requiring specialized skills to save time and money on recruitment.
Goals
Employers seeking a strategic, long-term approach to talent acquisition typically choose an RPO partner. The streamlined processes and scalability support a shorter time-to-hire and time-to-fill.
In contrast, employers who need to fill immediate or short-term recruitment needs typically choose traditional staffing. This option also attracts employers in larger organizations who desire more control over recruitment decisions.
Costs
RPO and traditional staffing costs depend on a company’s circumstances and needs. For instance, RPO can be more cost-effective because external providers offer economies of scale and access to specialized technology and resources. In contrast, traditional staffing can cost more due to advertising, interviewing, background checks, skills tests, and related activities.
What Are the Similarities Between RPO and Traditional Staffing?
Recruitment processing outsourcing (RPO) and traditional staffing have many similarities:
- Market knowledge: RPO and traditional staffing require an understanding of current job market trends and specific job salary ranges.
- Client consultation: Both services involve talking with clients in depth to understand their recruiting needs and candidate profiles.
- Candidate sourcing: RPO and traditional staffing use networking, referrals, job boards, and related methods to find talent.
- Candidate screening: Both approaches include resume reviews, phone interviews, and skills assessments to evaluate talent.
- Compliance: RPO and traditional staffing adhere to employment laws and regulations for talent selection and hiring practices.
How to Choose the Best RPO Partner for Your Organization
Choosing the best recruitment processing outsourcing (RPO) partner for your organization supports business success. RPO services offer a strategic framework and broad insights to produce qualified hires.
Consider these factors when choosing an RPO partner:
- Industry expertise: Your RPO partner requires extensive knowledge of your industry’s dynamics, jobs, and recruitment challenges to source and evaluate talent.
- Cultural fit: Because your RPO partner becomes an extension of your talent acquisition team, finding one that aligns with your values supports successful recruiting and onboarding.Top of Form
- Communication: Find an RPO partner who openly communicates, provides regular updates, and collaborates with your internal team for decision-making.
- Candidate experience: An RPO partner who provides a positive, engaging candidate experience reflects well on your employer brand.
- Technology: Your RPO partner’s technology platform and ability to manage the recruitment process, including sourcing, screening, and tracking candidates, is essential for success.
- Scalability: Ensure your RPO partner can scale their services to adapt to your recruitment needs.
- Track record: Evaluate an RPO partner’s performance with similar companies, including the ability to deliver quality hires within the desired timeframe.
- Cost structure: Understand the pricing model, which might be based on a per-hire fee, retainer, or blended approach, to ensure it aligns with your budget.
How Anserteam Can Help with RPO
Anserteam unites a network of staffing firms to help with recruitment processing outsourcing (RPO). We combine international reach (U.S. and Canada) with local accessibility to provide customized contingent workforce solutions and management solutions across virtually all industries. Whether you want to streamline your contingent workforce program, fill gaps in your supplier network, or build a new program, your team can count on ours to provide total workforce solutions.
Industries served
Anserteam offers tailored solutions as a Women’s Business Enterprise National Council (WBENC)-certified alliance of diverse staffing suppliers. Our team provides the most cost-efficient, highest quality, and lowest-risk total talent management program.
We serve the following industries:
- Facilities Management and Hospitality: We ensure your teams are qualified, trained, and ready to work front of the house, back of the house, and every place in between.
- Manufacturing, Logistics, and Industrial: We use our expertise and resources to manage complicated minimum wage laws, union regulations, and strikes while limiting exposure and minimizing production downtime.
- Information Technology: Our relationships with specialty suppliers bring you the best talent with the required coding, technical, or software experience.
- Finance and Accounting: Our team provides screened, highly skilled finance and accounting professionals.
- Professional and Executive: We ensure you have the right leadership for business success.
- Administrative, Call Center, Retail, and More: We provide professional, experienced customer service representatives.
Managed service provider
Anserteam’s managed staffing services build the team, bring the technology, and provide the expertise needed to succeed. As your Managed Staffing Service Provider (MSP), your dedicated team is a single point of contact to manage your complete contingent labor program from sourcing through separation.
Whether onsite or offsite, our MSP staffing services let you consolidate your talent acquisition spend, manage suppliers, and access the best talent at the best rates. The benefits include:
- Faster access to quality talent: Create a pipeline of vetted talent ready to work when needed.
- Increased visibility and control: See where your labor spend works well and where it can work harder.
- Reduced costs: Eliminate inefficiencies and maximize return on investment.
Vendor management solutions
Anserteam assists with selecting, integrating, and optimizing innovative technologies. We conduct research and build partnerships with forward-thinking technology organizations.
Our Vendor Management Solutions (VMS) technologies are easy to implement and use to bring total visibility and accountability into your labor management program. The benefits include:
- Improved talent quality: Consistent vetting and candidate talent pools ensure you have access to the best available talent.
- Reduced costs: Wage analysis, streamlined pricing models, and process optimizations lead to substantially lower expenses.
- Accurate tracking and forecasting: Real-time data analytics help quantify spend, increase investment return, and more accurately forecast upcoming labor needs.
Consulting and outsourcing
Whether you need to supplement your internal recruitment process or want total end-to-end solutions, Anserteam offers a range of flexible, scalable consulting and contingent workforce solutions. Our innovative approach provides a more efficient recruitment process and helps your company recruit, manage, and retain top talent.
Make Anserteam Your RPO Partner
Outsource some or all of your recruitment process to Anserteam. Contact us to discuss your unique recruiting needs today.