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3 Key Business Outcomes to Expect From Recruitment Process Outsourcing

3 Key Business Outcomes to Expect From Recruitment Process Outsourcing
From Recruiter - July 27, 2016

Recruitment process outsourcing (RPO) sounds like the promised land of talent acquisition, with its ability to improve efficiency, streamline recruitment, and enable you to hire higher-quality talent. But like all business investments, it needs to be directly tied to measurable outcomes for it to be right for your organization. Its not enough to go RPO just for the sake of creating a better hiring experience for candidates and hiring managers. In addition to improving constituent experience, you have to predict and deliver substantive gains that will directly impact the business financially as a result of the improved experience.

Look Further Than Cost Savings

Until fairly recently, RPO was primarily a strategy to realize cost savings in recruiting through decreased agency job promotions spend and an overall reduction in cost per hire (CPH). While decreased cost can be a key business outcome of a good RPO engagement, what you really want to focus on is value creation. Reducing cost is definitely something to strive for, but in some cases it may not actually be possible given the increasingly complex work associated with driving a high-quality recruiting organization.

In addition to decreasing overall CPH, seek to turn recruiting from a cost to a revenue center. With an increasingly level playing field across industries, the ability to differentiate now comes down to people. The only way to deliver game-changing products, strategies, and customer experiences is by having the best people on board todo the work. By strategically investing in recruiting (versus primarily seeking to drive cost down), you can use RPO to create true business value.

Three Ways RPO Can Create Business Value

A good RPO will create value through improved efficiencies, better quality candidates, analytics, improved employment brand reputation, and overall better hiring experiences for candidates and hiring managers. These, in turn, drive three predictable business outcomes:

1. Revenue Generation

Your ability to transact in businessincluding mergers and acquisitions, global expansion, and developing new productsis directly enhanced or hindered by the quality of the people you attract and hire. When you hire better people, the doors of possibility swing farther open for your company and for what you can do for your customers.

In addition, the cost of an inefficient hiring process has direct negative impact on revenue generation. By quickening your average time to hire for revenue-generating positions by even 10 percent, you can significantly increase revenue-generating days and customer retention. As you consider going the RPO route, zoom out and look beyond the hiring process experience to the broader businessall the way to the impact on the customer. By tracking the actual revenue-generating impact of hiring better people faster, you can prove value.

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