Is your RPO delivering true business value?


Jacob Ammentorp Lund via iStock A Recruitment Process Outsourcing (RPO) solution could make your business more efficient and cost-effective. Aberdeen Group research has revealed that businesses that outsource their recruitment receive tremendous business value in a number of key areas. 

As a result, they are 38% more likely to reduce hiring costs year-on-year; 8% more likely to have employees that consider themselves engaged; 47% more likely to rate their candidate relationship management tools as effective to very effective for handling candidates and their growing expectations; and 68% more likely to rate their company’s career portal as effective to very effective for handling candidates and their growing expectations.

However, not all RPOs are created equal. For the best results, you need an RPO provider that is a true business partner rather than just a vendor. Finding good business partners is critical to the success of growing your business, as they can help you to take advantage of, or create opportunities. The right RPO partner could be the difference between your talent acquisition function generating revenue rather than an expense on your balance sheet.

As companies have slowly embraced recruiting metrics, many have instituted time, efficiency, and quality metrics as measures for success, but what are those really telling you? You may know how long it takes to fill a vacancy, but “so what?” What is the effect on company performance?

By calculating the business impact of metrics like time-to-fill and quality of hire, you can understand the value provided by your talent acquisition strategy. For example, when recruiting salespeople, the shorter the time-to-fill, the more days salespeople will be selling (available sales days). More sales days equal more revenue for your business - this is where the true business value of your RPO solution lies.

Partnering with an RPO provider is also proven to effectively reduce the amount of time that hiring managers spend on recruitment activities, such as reviewing resumes or conducting interviews. Your RPO partner should reduce your interview-to-hire ratio, thereby giving your hiring managers more time to run the business. Additionally, if there are roles still waiting to be filled, an RPO provider helps to reduce the burden on other members of the team. This partnership takes away the need for them to work extra hours to cover the unfilled roles, further impacting your bottom line by reducing overtime.

The proven business impact of RPO

So, how has AGS RPO helped to generate measurable business results for its clients? For one leading insurance provider:
  • 42 sales agent positions were filled during the first six months of the partnership (something the agencies previously employed by the client took a year to achieve).
  • As a result, the new hires were able to contribute an additional six months of work (sales days), generating $2.1 million in added revenue. 
  • With $2.1 million in additional revenue and $400,000 savings in agency fees, AGS’s RPO solution contributed a total of $2.5 million to the client’s bottom line - a quantifiable demonstration of value.
Partnerships are a great way to stimulate growth and improve efficiencies. Great RPOs are strategic partners that directly contribute to the achievement of your business goals, and demonstrate their value to your organization through quantifiable business results.

Our commitment to delivering business value for our clients has been recognized by clients and industry analysts alike: AGS was named a leader and star performer in Everest Group’s 2016 RPO Service Provider Landscape report. You can find out how to build a business case for RPO at your company here.
Posted 11/9/2016 By Theresa Hart

Theresa Hart serves as a Strategic Operational Excellence Consultant at Allegis Global Solutions and has more than 13 years of talent acquisition experience across the recruitment, financial services and technology industries. She is a results driven leader experienced in working with cross-functional,...
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