RPO 101: How Much Does a Recruitment Process Outsourcing Program Cost?

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Posted by Harold Alarcon

May 20, 2014

piggy_bank_1.jpgDecided whether to maintain your in-house talent acquisition resources or outsourcing recruiting isn't an easy decision. But, one aspect of Recruitment Process Outsourcing is gaining serious momentum. 

Recruiting not only requires qualified personnel, it requires significant investment from the company. Agency fees, advertising fees, employee referral fees, job board costs, travel expenses, relocation costs and the additional “hidden” costs associated with overhead and administrative support all add to the cost of hiring.  Not to mention the costs, both from a financial and a team aspect, when there is a delay in filling an already vacant position. Turnover is too expensive for the process to not be fully understood.

What works with Recruitment Process Outsourcing (RPO), is that it removes these additional costs while ramping up the entire recruitment process. The company no longer needs to advertise, interview, overload its HR staff with additional tasks, or go through a rigorous, resource-consuming process that may or may not result in a qualified talent pool.

By reducing the overhead and extraneous costs, RPO has been proven to reduce overall recruitment costs by 15-40% on average for companies of all sizes. And while many companies are rushing to outsource recruiting, they lack the basic knowledge enabling them to select quality providers.

A properly managed RPO will improve a company's time to hire, increase the quality of the candidate pool, provide verifiable metrics, reduce cost and improve governmental compliance.


Topics: Staff Management, RPO

RPO Definition Cost Models & Goals


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