Common Mistakes Companies Make While Buying Recruitment Process Outsourcing

HR Tech Outlook | Monday, July 05, 2021

More than half of the RPOs polled say they've had problems with vendors who aren't qualified to offer the client's solution.

FREMONT, CA: Recruitment Process Outsourcing (RPO) is one of the most popular types of outsourced service, and when done effectively, it can be one of the most effective, giving much better results than in-house alternatives. Meanwhile, there are far too many anecdotes of failed projects and delivery challenges; in fact, nearly half of all Recruitment Process Outsourcing initiatives get completed in less than a year.

The truth is that all too often, mistakes are made at the start of a project, faults that sabotage the initiative's ability to prosper and deliver the undeniable benefits promised.

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Selection: It may seem self-evident, yet a project is unlikely to succeed if the incorrect partner/supplier gets chosen. Despite this, more than half of the RPOs polled say they've had problems with vendors who aren't qualified to offer the client's solution.

  • Too Much Focus on Cost Savings

The advantages of looking at facts include speedier recruiting, higher candidate quality, less time for new hires to get up to speed, and increased production and profitability.

In short, if one looks at the broad picture, an RPO may provide the organization with a slew of benefits at a fraction of the expense of an in-house solution. In contrast, if companies solely focus on cost savings, they will likely end up with a small pool of candidates of dubious quality and fierce competition.

  • Relationship Management

Successful Recruitment Process Outsourcing necessitates strong leadership, executive sponsorship, and support at the highest levels. Even with this in place, many businesses fail to guarantee that their RPO provider has established effective governance connections. A designated account manager responsible for maintaining open discussion and involvement from the client-side is required for an RPO to succeed. There must also be explicit KPIs and metrics, agreed reporting and review schedule and format, and a specified escalation procedure.

  • Lack of Proper Internal Management & Communication

Poor internal communication is responsible for a quarter to a third of all failure outsourced initiatives. Companies bring in their RPO partner and expect them to manage it without the rest of the organization. That's also clearly not feasible. The company has set reporting and communication channels; an outsider, no matter how experienced or skilled, will not break into that system without assistance. It entails open and honest communication with all affected employees, outlining who the RPO team is, what they are there to accomplish, how they should do it, and what the client staff expectation to do to ensure the project's success.

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