is internal recruiting cost efficient?

In many instances, organisations shy away from hiring an outsourced partner due to the misconception that outsourcing the recruitment function would result in huge differentiated costs, which would directly impact the profits of the business.

Amplifying strategic partnerships in recruitment

During times of low volume, organisational recruitment is hamstrung by a high, fixed cost structure and during periods of high volume, there is always the risk of incurring very high costs given the longer time needed to fill open positions.

A comprehensive RPO engagement enables organisations to reduce their fixed costs through a scalable model that flexes to handle changes in hiring volume. RPO lowers fixed costs during low-volume periods and scales up to offer enhanced cost benefits during high-volume intervals.

While recruitment teams take all functional direct costs of recruitment into consideration, seldom are the indirect costs factored in when making strategic RPO decisions.

An RPO partner implementing advanced tools and processes provides complete visibility into the direct and indirect costs involved.

Though there are multiple RPO delivery models, savings on end-to-end RPO are huge and can be observed over a period of time, growing over a 3 year horizon and projecting optimal returns by the 3rd year. For example many large companies have benefited from an ROI of 20% to 40% after deploying an end to end RPO model.