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The Key Differences between RPOs and Recruitment Agencies

Published 12th January 2023
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The Key Differences between RPOs and Recruitment Agencies

Published 12th January 2023

We are often asked to explain the benefits of Macildowie RPO compared to our award winning, heritage Recruitment Consultancy Value Proposition. Most businesses have a preferred supplier list of Recruitment Agencies these days, but many either haven’t considered the benefits of an RPO Partnership or think that they are too small to warrant outsourcing their recruitment.

What is RPO?

The Recruitment Process Outsourcing Association (RPOA) defines RPO as “a form of business process outsourcing where an employer transfers all or part of its recruitment processes to an external provider.”

What does an RPO involve?

RPO firms essentially serve as an extension of a company’s human resources department and can manage all or specific parts of the recruiting process. 

RPO services differ from those offered by staffing companies and contingent or retained search providers in that RPOs assume ownership of the design and management of recruiting processes and responsibility for the results. 

Outsourcing your Recruitment Processes means that you have one dedicated supplier, who is contracted to fill all (or an agreed selection of) your vacancies.

An RPO provider ensures consistency of brand messaging meaning that each and every candidate receives the same experience. An RPO provider will understand your EVP intimately and pro-actively take it to the market.

An RPO provider will reject unsuccessful candidates in such a way that still feel well treated meaning that your employer brand is protected.

A successful RPO will reduce the amount of time you spend on the process aspects of any recruitment.

An RPO provider will consult and advise on onboarding, induction and ongoing retention support to help reduce staff turnover. The first 100 day experience/s are super critical to employee engagement.

With an RPO you will pay a monthly fixed consultancy investment to secure a dedicated Account Director who will ensure that the relationship is successful, KPI’s are being met and that you are benefiting strategically from an end to end talent strategy. Your Account Director will ensure that your EVP is central to the recruitment process in order to create a great first impression with the aim of helping you to become a ‘go-to’ employer with positive and recent Glassdoor reviews.

What do Recruitment Agencies do?

Whilst RPO Recruiters are essentially an extension of your Employer Brand, focusing only on identifying, sourcing, attracting and on-boarding candidates for one business, Agency Recruitment Consultants (360 Recruiters) can select which vacancies that they want to fill and at which companies.

Agency Recruiters are more often than not in competition with other Recruitment Agencies all trying to find the best fit candidate for one client meaning that speed, rather than quality, is paramount.

The industry average placement percentage for a Contingency Recruitment company is 23%. That means that 67% of time is wasted on work that they don’t get paid for.

Macildowie’s Recruitment Consultants average conversion is 44% - whilst this is almost twice as good as the rest of the market, it’s not as good as the Macildowie RPO Conversion of 99%!

The Long Term benefits of an RPO compared to a Recruitment Agency

Depending on the level of service and monthly fixed RPO investment that you choose, Macildowie’s on-site Account Director will:

  • Handle the whole Recruitment Process including:
    • Line Manager brief
    • Candidate Attraction (searching Macildowie database, CV boards & Linked In, advertising, head-hunting etc) 
    • Sifting CVs
    • Doing 1st interviews
    • Arranging interviews for Line Managers
  • Support On-boarding, inducting, training, supporting new hires
  • Contact all unsuccessful candidates to protect the Employer Brand & GlassDoor score
  • Ensure that there is a joined up L&D plan.
  • Assess Leadership development options & Manager Capability.
  • Carry out ambition 1-2-1s to help retain your best people.
  • Ensure that there is transparency around career progression.
  • Design and feedback on Employee Engagement Survey to capture “pain points” on a half yearly basis.

Choose the best fit for your business 

RPO takes a more personal, hands on approach and if successful should feel like an extension of your own Employer Brand. The business and economic landscape has evolved and will continue to change in the coming years. It is therefore important for you and your company to stay abreast of all talent acquisition options in order to gain a competitive advantage in what has become an acute war for talent.

An RPO can provide consistency, scalability and quality in hiring practices that your internal team may be unable to achieve. Most importantly, an RPO can help you find people who are a better fit in a fraction of the time and the cost compared to competing Recruitment Agencies.

To learn more about Macildowie's Recruitment Process Outsourcing, visit our website today.

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