Introduction

Hiring the right talent is akin to solving a complex puzzle for business owners. It's not just about matching skills and qualifications; it's about finding the missing piece that seamlessly fits into the intricate picture of a team and company culture. The task is daunting, to say the least, and mistakes can be costly in terms of time and money.

As a result, more and more businesses are turning to professionals for help. Why? Because the cost of hiring the wrong person can extend far beyond a mere financial transaction. It's an investment in time, resources, and the company's overall well-being. This is where recruitment process outsourcing (RPO) steps in as a strategic process in the Philippines.

In this guide, we'll expound on recruitment outsourcing solutions in the Philippines, highlighting their types and benefits as well as how they can be a game-changer for businesses aiming not just to fill roles but to build successful teams. Continue reading to learn more!

 

Understanding Recruitment Process Outsourcing

RPO is a strategic approach to talent acquisition where businesses delegate some or all of their recruitment processes to external experts. Unlike traditional staffing agencies or search providers, RPO providers take ownership of the entire recruitment lifecycle from design to management, shouldering the responsibility for delivering impactful results.

In the intricate landscape of modern hiring, RPO providers shine as subject-matter experts. With talent acquisition as their core competency, they adeptly navigate the complexities of the recruiting environment. From staying abreast of cutting-edge recruiting technologies to effectively managing and nurturing candidates and hiring managers, they bring a wealth of expertise to the table.

 

Types of RPO Engagements

If you're considering getting outsourcing recruitment services in the Philippines, make sure to familiarize yourself with the following:

 

Full-RPO

Enable seamless recruitment with full-RPO, an engagement where your provider takes the reins of your end-to-end process— from sourcing to assessments to onboarding. This engagement isn't just about filling roles. It encompasses strategic development and implementation, placing your entire internal recruiting function in expert hands.

 

Blended RPO

With blended RPO engagements, companies strike a balance between outsourcing and maintaining control. They can outsource the challenging and time-consuming aspects of recruitment while ensuring they can oversee everything. This model, rooted in business process outsourcing (BPO), offers flexibility as these solutions can be customized based on your needs and preferences.

 

On-Demand RPO

For immediate hiring needs or sudden spikes in recruitment, on-demand RPO is the best solution. A contract-based engagement allows you access to a qualified provider for a defined number of roles within a specified timeframe. Think of it as "leasing" a team of flexible, fast, and industry-specific recruiters.

  

The Cost of RPO: Common Pricing Models

Here are some of the most common pricing models if you're planning to integrate a recruitment outsourcing process in the Philippines in your workflow:

 

Cost per Hire

The cost-per-hire model is considered one of the most preferred options for RPO. With this approach, a fee is incurred for each successfully hired candidate or those offered a position through the program. Ideal for short-term projects or point-of-service RPO, where specific recruitment functions are outsourced, this model provides flexibility and efficiency, ensuring you pay for direct results.

 

Management Fee

Typically paid monthly, the management fee model is a predetermined payment given to the RPO provider for an agreed-upon number of positions. Suited for enterprise RPO and emerging services like white label RPO, this model may be adjusted based on the agreement or modified with increased hires over time, ensuring a stable and continuous partnership.

 

Management Fee Plus Cost per Hire

This is a mix of the two previous pricing models. This combines the fee for the consistent recruiting efforts under the management fee with payments for successful hires. Similarly, this is another cost model appropriate for enterprise RPO and point-of-service RPO.

 

Cost per Transaction

The RPO provider imposes a fee for specific tasks completed, such as initial screening or reference checks. Those choosing on-demand RPO or consulting RPO services may incur charges per transaction, whether based on an hourly rate or for each completed process.

 

How RPO Adds Value to Companies

Still trying to figure out how outsourcing recruitment services in the Philippines can benefit you? Read on to learn some of the various benefits it brings:

 

Better Talent Quality

At the heart of RPO's prowess lies its ability to connect you with highly competent individuals. RPO providers invest time, energy, and resources to curate a pool of top-tier professionals. These companies ensure referral activation, fostering a community of engaged candidates for future hiring. As a result, the talent stream becomes a source of excellence for clients seeking the best fit for their roles, even for openings that need specialized skills.

 

Ability To Scale Up Services

Flexibility is the cornerstone of RPO's adaptability since the RPO model changes accordingly as companies navigate peaks and dips in staffing. Whether scaling up for expansion or downsizing during a hiring freeze, RPO providers adjust recruitment teams as needed. Clients can only pay for successfully filled vacancies— nothing more, nothing less. RPO providers offer a dynamic solution, accommodating every situation with pricing based on closed positions.

 

Advanced Recruitment Software

RPO providers revolutionize recruitment through advanced software, meticulously tracking and tracing every stage of the process. Real-time reporting and detailed insights facilitate prompt decision-making, streamlining the recruitment journey. The comprehensive data capture also serves future audits, ensuring transparency and efficiency in recruitment activities.

 

Cost Reduction

Cost-effectiveness is one of the main reasons why many companies opt for RPO. By scaling recruitment activity based on clients' fluctuating hiring needs, RPO providers optimize time and resources, ultimately reducing costs. The focus on time, expenses, and quality is at the center of RPO, delivering meaningful cost reductions by eliminating waste and enhancing efficiency across the organization.

 

Quickly Fill In Vacancies

RPO's internal resource models are highly efficient, helping meet tight time-to-hire deadlines. Established models ensure swift and efficient talent acquisition, reducing the opportunity costs associated with prolonged vacancies. RPO providers leverage industry expertise, technology, and recruiting acumen to effectively minimize time-to-fill, ensuring organizations don't lose their competitive edge.

 

Important Tips for Choosing a Recruitment Process Outsourcing Company

Keep in mind the following reminders when getting in touch with an RPO company:

 

Identify Where You Need Help

When selecting an RPO partner, start by identifying your needs. Clearly defining your objectives and the role you're trying to fill will guide you in choosing a recruiter with the right background to meet your unique requirements. This helps significantly shorten the time it takes you to select a service provider since some companies specialize in a specific industry.

 

Assess the Firm's Capability To Scale Up Services

Scalability is crucial in the dynamic landscape of recruitment. Inquire about the RPO provider's ability to scale up services based on your changing staffing needs. A provider equipped to adapt to expansion or downsizing ensures a tailored solution. Understanding their track record and flexibility in scaling recruitment teams will give you confidence in their ability to meet your evolving requirements.

 

Check Their Industry Experience

Industry experience is a must in selecting an RPO provider, so make sure to look into their history of success and specialization. A provider familiar with the intricacies of your sector— training, technology, and standard practices— brings invaluable insights to the recruitment process. Ask about their results, including the average time to fill a role and the percentage of successful hires that have stayed for an extended period.

 

FAQs About Recruitment Process Outsourcing in the Philippines

Is RPO a Part of BPO?

In essence, RPO is a kind of BPO. RPO involves entrusting recruitment processes to an external agency, often for high-volume or specialized hiring needs, while BPO encompasses outsourcing non-essential business tasks.

Furthermore, RPO extends beyond mere hiring, optimizing the entire recruitment process. In contrast, BPO includes a broader spectrum of functions, categorized as offshore, nearshore, or onshore, depending on the outsourcing location.

 

What Are the Responsibilities of an RPO Provider?

An RPO provider is an extension of a business's internal recruitment team, streamlining the hiring process. Responsibilities include creating job descriptions, utilizing diverse recruiting methodologies, and leveraging technology.

The provider assesses and screens candidates through an applicant tracking system, presenting top contenders for employer vetting. The RPO team often facilitates the interview process, extends initial offers, and manages early onboarding. Through a well-defined agreement, RPO services offer exclusive access to recruited applicants, providing employers with a highly vetted pool of candidates.

 

Why Do Companies Use RPO?

Companies invest in RPO to ensure efficient and cost-effective hiring. Service providers help streamline the recruitment process, manage existing agency relationships, and deliver direct hires. For businesses expanding rapidly, RPO even shifts the focus from reactive to strategic hiring, aligning workforce plans with broader business goals.

RPO partners also enable HR managers to prioritize strategic projects. They give companies access to a talent pipeline and ultimately expedite recruitment, enhancing candidate experience and strengthening employer branding.

 

Conclusion

RPO is the key to unlocking a seamless, strategic, and efficient hiring process for your business. From navigating complex recruitment landscapes to optimizing costs and ensuring cultural alignment, it offers a comprehensive solution for all your problems.

If you're ready to elevate your recruitment strategy and reshape how you build your team, we have you covered. Contact Q2 HR Solutions today to explore how our recruitment outsourcing processes in the Philippines can be tailored to meet your unique needs.