FAQs
Your Questions Answered
- What types of resourcing models are open to me?
- Why do organisations implement a recruitment managed service?
- What are the key benefits of Recruitment Process Outsourcing?
- What steps need to be taken in order to ensure the success of RPO?
- How does RPO maintain the personal interaction between hiring managers & agencies?
What types of resourcing models are open to me?
The current recruitment market supports a number of Resourcing and Selection models. One of the largest growth areas is the deployment of either a Master Vendor model, or a RPO Service.
The key recruitment models available today are as follows:
'In-House'
A traditional recruitment function, managed internally by HR/Line Management with candidate sourcing via third party suppliers and direct channels. All selection activity is carried out by HR/Line Management.
Master Vendor or Managed Agency
A single supplier managing all recruitment via its own recruitment fascias and a second tier of alternative suppliers. Some selection activity may be carried out by the supplier.
Master Vendor solutions are largely used within the volume and/or temporary arena where there are large numbers of the same role being recruited, with base line price being the primary driver.
Recruitment Process Outsourcing
A comprehensive and objective solution to Recruitment and Selection via a single business partner.
- A single supplier managing all aspects of recruitment
- The solution to each job requirement is objectively determined ensuring the best candidates are sourced from the market at all times.
- All attraction channels are managed via a single point of control.
- Channels will include contingency and search suppliers, direct attraction, internal markets, speculative CVs and referrals.
It is important when choosing a supplier to understand their abilities to provide a screening and selection service. Many suppliers only provide a process management service and add little value to selection.
Resource Management offers a market leading solution in this space. Contact us to find out more about our services. Or click here to find out more about our out-of-the-box RPO solution, RM Rapid.
Why do organisations implement a recruitment managed service?
In our experience, there tends to be a combination of key drivers for any organisation considering an RPO solution. They are as follows:
- Reducing over-reliance upon 'expensive' third party (agency) suppliers
- Treating recruitment as a specialist discipline in order to attract the best quality people in an increasingly competitive market
- Ensuring proper control and compliance in terms of cost, process and behavioural fit by implementing a standard recruitment model
- Direct and in-direct cost control - in terms of cost per recruit and reducing the time spent by Managers/HR within the resourcing process
- Concerns around the quality of the existing workforce or levels of attrition
- An underused internal recruitment market leading to high levels of attrition
- Reducing the unnecessary amount of time spent on the recruitment process by Managers and HR
- The development of a recruitment brand to ensure more effective direct attraction
- To reduce the use of inappropriate (and expensive) resourcing and selection methods e.g. excessive use of 'Search and Selection' (Headhunting) solutions or inappropriate on or offline advertising media.
- To reduce recruitment 'cycle time' and ensure that critical roles do not remain unfilled
- To provide effective Management Information and benchmark recruitment against clearly defined Key Performance Indicators
What are the key benefits of Recruitment Process Outsourcing?
Customers using an RPO Solution can expect to receive the following benefits:
- No static costs. If you are not recruiting then you incur no cost (i.e. a 'pay as you go' model)
- A standard and effective selection process that is fit for purpose
- A 'Direct Attraction' strategy to reduce reliance upon third party suppliers, therefore significantly reducing the cost per head
- Your own 'Headhunting' strategy by networking across all candidate response
- A unique and ring fenced candidate database
- A 'recruitment brand' for your organisation
- Improved candidate quality and retention
- Management of all direct and indirect recruitment costs and therefore greater visibility of cost
- A saving of at least 60% of all Management and Human Resources time spent currently on Resourcing and Selection which can either be measured as a cost saving or an efficiency gain
- Reductions in recruitment cycle times
- A flexible supply chain fit for purpose and not restricted by limited market knowledge and suppliers own brands
- An up-to-date view on employer-employee markets enabling an intelligent response to critical Recruitment and Resourcing issues
- Regular and accurate management information
- Appropriate technology to ensure that all stakeholders remain informed at all times
What steps need to be taken in order to ensure the success of RPO?
- A full audit of all resourcing and selection methods takes place, ensuring that all base line data and costs are agreed beforehand and that any process improvements can be clearly measured
- That the service required is clearly defined from the outset
- That the service is fully mandated and supported at board level
- That the service is fully communicated internally and endorsed by Senior Management and that the service continues to be communicated until fully embedded
- That the service provider is managed by a senior level Vendor Manager
- Issue resolution is swiftly resolved via a clearly defined escalation process
- All SLAs and KPIs are agreed at the outset and are continually measured
- Regular review meetings take place between the service provider, Vendor Manager and key stakeholders
- That the service provider is embraced as a genuine Business Partner
How does RPO maintain the personal interaction between hiring managers & agencies?
Hiring managers can remain as close to the process as they wish, but we would suggest that as confidence in the service provision grows they become less involved in interacting with suppliers/agencies.
It is important that Hiring Managers are allowed to get on with the job of managing and not be overly concerned with managing third party supplier relationships which is both time consuming and potentially very costly.
If your question has not been answered or you would like further clarification on any of the points raised then please contact Ben Merrison, Managing Director at ben.merrison@resource-management.co.uk.
