What Are the Benefits of RPO?

Recruitment process outsourcing has many benefits like high-quality hires at lower costs. Read on to find out how your business could leverage RPO benefits.

Robynn Farrell

Apr 4, 2023 14:35

Recruitment Process Outsourcing (RPO) is on the up and up — so much so that the global RPO market was estimated to be worth $26.4 billion by 2031, and increase by approximately 13.91% over the next 10 years

There are various advantages of recruitment process outsourcing that companies are leveraging — advantages that your business can easily benefit from too. So what are the benefits of RPO?

Outsourcing is often perceived to be an expensive solution to recruitment challenges. However, it is quite the contrary, especially if you don’t intend to expand your reach or scale up anytime soon. Besides being a savvy choice, there are various RPO benefits. 

Here are 10 benefits of recruitment process outsourcing that could help boost your business productivity, efficiency, and bottom line. 

Advantages of Recruitment Process Outsourcing

1. Higher Quality & Diversity

One of the main benefits of recruitment process outsourcing is having access to a diverse talent pool. Freelance marketplaces or job sites may have thousands of seemingly qualified and experienced professionals. However, there’s really no way to tell until you’ve hired them or retained their services to determine the quality of the services provided. 

RPO service providers are skilled at finding quality hires that will meet the needs and expectations of their clients. What’s more, they are also experienced in diversity inclusion. And, seeing as diverse teams are statistically 33% more likely to have above-average profits, utilising the benefits of RPO services can only stand your business in good stead.

2. Shorter Turnaround Time

Using RPO services means you won’t have to waste your valuable time hopping from job board to job board trying to find suitable candidates. 

RPO agencies will source and screen candidates for you to ensure you hire the best candidate for the job. They usually have a database of screened, experienced candidates at their fingertips, which means faster hires. In fact, you can reduce your recruitment time by as much as 25% by using RPO services. 

3. Scalability & Flexibility

Another of the many advantages of RPO services is flexibility. Filling a position with the right person as quickly as possible is crucial to any business to reduce the impact on your team. 

The RPO model can be an effective, flexible solution for businesses that need to scale their recruitment efforts up or down quickly. Additionally, RPO providers can easily adjust their services to meet changing recruitment needs, such as seasonal or project-based hiring.

4. Lower Costs

Many businesses often make the mistake of focusing on cutting costs when it comes to hires. But, when it comes down to it, a lot of time and effort is lost on job boards, as well as reviewing and shortlisting candidates. Not to mention, high turnover rates will cost you more in the long run.

In fact, one of the many RPO benefits is that it can actually help reduce recruitment costs by eliminating the need for in-house recruitment staff, advertising fees, and other associated expenses, lowering time spent on hire by 25%.

5. Innovative Insights & Expertise

Another of the many advantages of RPO  is that they are recruitment experts and can provide access to specialized knowledge, tools, and resources that may not be available in-house. This can include expertise in recruitment marketing, employer branding, and candidate sourcing. However, having access to top people is only one part of the solution. It is as crucial to position your business in a way that attracts the best prospects. 

The employee value proposition (EVP) of your organization may not always be clear to HR leaders, who may lack the internal knowledge necessary to implement a strong employer brand strategy.

RPO companies can address this gap by conducting competitor and brand positioning analysis, coordinating employer brand strategy with business brand and vision, and creating recruitment communications that are specific to that messaging.

6. Reports and Analytics

RPO providers can help organisations monitor and report on compliance-related metrics, such as the percentage of diverse hires or the time-to-fill open positions. This can help identify areas where compliance can be improved and ensure compliance goals are met. 

RPO providers use a combination of company acquisition data with predictive talent analytics to better understand performance indicators, implement effective models, and forecast supply and demand talent acquisition trends and business outcomes.

Is outsourcing worth it for your business?

7. Better Compliance

One of the biggest challenges in recruitment is ensuring that regulations and laws are adhered to. Recruitment Process Outsourcing (RPO) can help improve compliance in several ways, including:

  • Adherence to legal and regulatory requirements
  • Standardization of processes
  • Centralization of data
  • Use of technology

Overall, RPO providers can help organisations mitigate the risk of non-compliance and improve compliance by developing compliance-focused hiring strategies that are low-risk, along with ongoing monitoring and reporting.

8. Reduced Need for Advertising

Recruitment Process Outsourcing (RPO) can help reduce the need for advertising by leveraging its expertise and resources to source and attract candidates through other means. Here are a few ways RPO can reduce the need for advertising:

  • Proactive sourcing: RPO providers use proactive sourcing techniques such as candidate referrals, social media, and online job boards to source potential candidates. By proactively seeking candidates, RPO providers can find candidates who may not be actively searching for jobs and, therefore, may not respond to traditional job advertisements.
  • Talent pool development: RPO providers can help develop and maintain a talent database of potential candidates who have expressed interest in working for the organisation or have the skills and experience needed for the organisation’s positions, reducing the need for advertising.
  • Employer branding: RPO providers can help organisations build and maintain a strong employer brand. By developing an attractive employer brand, organisations can attract candidates through word-of-mouth referrals, social media, and other non-advertising channels.
  • Recruitment marketing: RPO providers can use targeted recruitment marketing campaigns to attract potential candidates. This can include targeted email campaigns, social media advertising, and other digital marketing techniques.

9. Increased Employee Retention

Recruitment Process Outsourcing (RPO) can indirectly increase employee retention by improving the quality of candidates hired. In turn, this will improve the overall candidate experience and help align recruitment strategies with organizational goals. Here are a few ways RPO can contribute to increased employee retention:

  • Improved candidate quality: By using effective screening, assessment, and selection techniques, RPO providers can help organisations hire candidates who are more likely to stay with the organisation long-term.
  • Better candidate experience: RPO providers can improve the candidate experience by streamlining the recruitment process, providing regular communication, and offering personalised attention to candidates.
  • Alignment with organisational goals: By aligning recruitment strategies with organisational goals and culture, RPO providers can help ensure that candidates who are hired are a good fit for the organisation and are more likely to stay with the organisation long-term.
  • Ongoing support: RPO providers can provide ongoing support to candidates and employees after they are hired. This can include onboarding support, career development, and other retention initiatives. 

10. State-of-the-art Recruitment Technology

There are many state-of-the-art recruitment technologies available today that can help organisations streamline their recruitment processes and improve their hiring outcomes. Here are some examples of technological RPO advantages:

  • Artificial Intelligence (AI) and Machine Learning: AI and machine learning can be used to analyse large volumes of data, including candidate resumes and applications, to identify the best-fit candidates for a particular job. AI can also be used to automate routine recruitment tasks, such as candidate screening and scheduling interviews, freeing up recruiters to focus on more strategic tasks.
  • Video interviewing: Video interviewing technology allows recruiters to conduct virtual interviews with candidates, saving time and travel costs. Video interviewing can also be used to assess candidates’ soft skills, such as communication and interpersonal skills.
  • Predictive analytics: Predictive analytics can be used to identify candidates who are most likely to succeed in a particular role based on their skills, experience, and personality traits. This can help organisations make more informed hiring decisions and reduce turnover.
  • Applicant Tracking Systems (ATS): ATS software can help automate many recruitment tasks, including resume parsing, job posting, and candidate communication. ATS can also help organisations manage the recruitment process more efficiently by providing real-time data and analytics.
  • Mobile recruiting: Mobile recruiting technology allows candidates to apply for jobs and communicate with recruiters from their mobile devices. This can be particularly useful for reaching candidates who are actively looking for jobs and may not have access to a computer.
  • Gamification: Gamification technology can be used to create interactive recruitment experiences that engage candidates and assess their skills and abilities. This can help organisations identify top talent and improve the candidate experience.


Overall, there are many advantages to recruitment process outsourcing that can help organisations improve their recruitment processes and outcomes. The key is to identify whether or not RPO solutions are appropriate for your organisation’s unique needs and goals. To find out more about how your business can leverage the many benefits of RPO, take a look at our free demo and see how blackbear can help streamline your acquisition needs.

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