When assessing pricing models for Recruitment Process Outsourcing (RPO) solutions, there is a lot of confusion in the market. Most analysis tends to focus solely on the buyer or provider’s perspective, rather than reviewing the impact on both. The choice of pricing model does not define the quality of service delivered by an RPO programme, but it does have a significant bearing on how easy it is for the provider to deliver the level of scalability and effectiveness required. For example, if you require a highly scalable programme with dedicated on-site resources, this will be attained much more effectively with a pricing model that involves some form of a fixed fee rather than transactional fees alone.
This paper attempts to demystify the pricing conundrum, reviewing various pricing models, their advantages, disadvantages, and how they intrinsically affect the RPO service for both parties.