A subset of Human Resources Outsourcing (HRO), Recruitment Process Outsourcing (RPO) is the contracting out of the recruiting function within the HR department. Simply put, RPO transforms all the functions of an in-house HR department into a solid, productive external recruiting function. By providing the tools, resources, and technology to serve as a client’s virtual recruiting function, RPO services allow companies to grow and focus on their core competencies.
Utilized by companies in all fields and of all sizes, RPO has benefited companies for a number of years. Although they may not know it, any company that uses staffing agencies or 3rd party vendors is outsourcing their recruiting efforts. In fact, according to studies, more than 90% of HR managers at mid-sized to large companies turn to staffing agencies or outside vendors to help with their recruiting efforts – enabling them to focus their resources on higher value activities. The concept isn’t new – it just hasn’t been labeled RPO until fairly recently.