This particular company is more than half way proficient in background and post hire activities but well below
proficiency in Advertising – Interviewing.Once degrees of competency are established, the RPO takes the helm and fills the gap with the goal of reaching 100% efficiency. Once optimum efficiencies are met, not only are headcount objective met, but also a myriad of additional benefits are accomplished including: increased employee retention, decreased cost per hire, improved candidate experience, shortened hiring cycles and more.
As demonstrated in the above Graph B, utilizing a staffing company provides the client with candidates. The focus and responsibility of the staffing company is to find candidates via advertising or direct recruitment, pre-screen them and perform first round interviews. If these are the only areas the client company needs assistance with then staffing companies could be the correct choice. However, augmented RPO, or what People Science terms RPI (Recruitment Process In-Sourcing), can also be utilized to meet these objectives and, as noted in the following Table 1, the benefits of forming an RPI partnership as compared to a typically staffing company partnership often provides a much bigger value while reducing cost considerably.
Table 1: RPO/RPI – Contingent Staffing Comparison
*not all of the services listed are supplied by all RPO companies
Finally, whether or not an RPO/RPI partnership is the best choice will depend greatly on the amount of hires the client company intends to make and their internal ability to fully grasp a lower cost but at least partially fixed pricing model. RPO pricing models samples include: