A Beginner’s Guide to RPO – Understanding the Basics and Making an Informed Decision

| Updated on February 26, 2024

As your business changes and grows, you need to be able to identify the best talent on the labor market and move quickly to add them to your team. There are numerous challenges to overcome when it comes to hiring and with so much competition around, finding the most efficient option isn’t always easy.

Recruitment Process Outsourcing (RPO) is a method used by countless businesses across a wide array of industries because it offers the ideal solution to the employing problem. Here we discuss more what RPO is, the benefits it can offer, and what to look for in a reputable RPO provider.

What is Recruitment Process Outsourcing?

Recruitment Process Outsourcing (RPO) is a process that involves a business transferring all or part of its recruitment process to an external provider. The external provider either provides its own staff or utilizes the company’s staff and infrastructure to help achieve the required hiring targets.

The RPO recruitment provider essentially takes over the entire management and design of the enrollment process, making it significantly more effective than standard methods arranged with external agencies.

How is RPO Recruitment Different from Other Types Of Recruitment?

Traditionally, businesses work with an external hiring agency that will work to find suitable candidates for the role. On the surface this sounds like RPO recruitment, however, the major difference can be seen in the long-term partnership developed from working with an RPO.

Another key difference between these two models can be seen in the data analytics made available through an RPO team. This can prove useful not only for the recruitment process but for improving employee retention across the business, helping you to keep hold of the proficient ones for longer. Having access to multiple hiring tools also helps to produce better outcomes that could make your business even more productive.

Three Main Types of RPOs

Have you got an idea of three types of RPOs? If not, read below:

Enterprise RPO:

The first kind of recruitment process outsourcing is also known as full-service RPO or fully outsourced RPO. The enterprise RPO is chosen since the organization doesn’t have a dedicated HR team. It comprises a team that becomes an extension of yours. Although, manages elements of a talent acquisition strategy.

Project RPO:

The second type of RGO provides an agile recruiting solution. And in top of that, Project RPO is cost-efficient and rapidly scalable on the other hand. This can opt for specific project hiring objectives for a new project line. However, it is generally assumed that it’s a great way to test-drive RPO.

Contingent RPO:

The last type of RPO unites the power of RPO with contingent hiring. This RPO is strategically built around the needs of unique contingent talent. This can result in forming a strong partnership with workforce solution providers. Moreover, Contingent RPO appeals to new talent and occupies talent pools such as retirees, alumni, and referrals.

Why Should You Use RPO in Your Organization?

The recruitment market is more competitive than ever, with candidates savvier and more aware of their worth and an ever-growing variety of employing channels available to them. 

This makes things even more complex for businesses looking to recruit the skilled, as you need to navigate the labor market and adopt new technologies while managing candidates and internal hiring teams.

If you are thinking of working with an RPO recruitment provider, some of the benefits to consider include:

Agile and Scalable

An RPO recruitment provider’s sole focus is recruitment, allowing them to remain up to date with the latest technology and offer services that can be quickly ramped up as required. Every business goes through unexpected changes and if a new team or special talent is required it needs to be able to respond and move quickly. An RPO recruitment team can help with this scaling, initiating structures that give you more flexibility in the respective environment.  

Worldwide Talent Pool

If you are setting up a satellite office in another country or continent to expand into new territory, you need to be aware of the local recruitment laws to remain compliant. For example, there will be different legal requirements in South America compared to the UK. RPO recruitment providers can keep on top of this and track changes to compliance requirements as they happen so you are never caught short.  


When it comes to hiring, you also need to factor in a budget for advertising. The costs can quickly add up, especially if you are not receiving applications from high-quality staff who are suitable for the role. These costs can be cut down by working with an RPO recruitment provider, who will have an active database of prospective employees who could be the right fit. It can save time and money and ensure the vacancy is filled with the right person without unnecessary delays.

Better Candidate Engagement

Recruiting the best talent is more than simply advertising the role, interviewing, and hiring. The candidate’s experience is important, and they should be made to feel they are valued throughout the process.

It can prove difficult to dedicate this sort of time in smaller HR departments or when resources are stretched, which can see good quality candidates slip through the net. An RPO recruitment provider, on the other hand, can help to optimize the employee experience and offer the specialist expertise needed at every stage.

How to Choose the Right RPO Recruitment Provider?

When it comes to choosing the right RPO recruitment partner, there are a few factors that need to be weighed up. The ability to attract, engage and ultimately hire top talent is mandatory when choosing an RPO recruitment provider. You should ask more about their track record and credentials to see if they are a good fit for your organization. Some initial questions to ask include:

  • What is their annual loss rate of employees?
  • Do they hire, train and manage employees of their own?
  • How happy are their employees working with their employers?

You should also develop a clear idea of what you need within the organization and rank them in order. For example:

  • Can the RPO source and deliver hard-to-fill positions?
  • What kind of technology and solutions do they have to offer?
  • How flexible can they be without compromising on quality?

How the RPO aligns with the values of your organization is also something to consider. Ideally, they should be able to keep candidates warm, factor in diversity programs, manage managers, and any other specific requirements of the business.

This all funnels into an ability to customize assigning solutions that fit with your commercial and cultural goals. A good RPO recruitment provider will have industry-specific expertise that can be applied to pain points to produce long-term solutions.

Final Thoughts

In summary, RPO recruitment can have a significantly positive impact on your commissioning process, helping to streamline your strategy, while saving valuable time and money. By investing more in your hiring goals and key targets, your organization can reap the benefits of a long-term partnership with an RPO recruitment provider, helping you to grow and strengthen your market position.

John M. Flood

John is a crypto enthusiast, Fintech writer, and stock trader. His writings provide guides to perform your best in the crypto world and stock planet. He is a B-Tech graduate from Stanford University and also holds a certification in creative writing. John also has 5 years of experience in exploring and understanding better about the FinTech industry. Over time, he gained experience and expertise by implementing his customized strategies to play in the crypto market.

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