How Recruitment Process Outsourcing (RPO) Works?​

The recruitment of specialist staff remains a challenge for companies. Thus high demand for qualified workers can be expected in the future. At the same time, there is a shortage of candidates, especially in the highly qualified segment. Hence, decision-makers must use many recruiting strategies, channels, and tools to take advantage of in their search for talent.

As various vacancies need to be filled, adaptive and varied recruiting approaches are necessary. While publication on the homepage or posting a widely distributed job advertisement is sufficient for some positions, other vacancies can only be filled with targeted active sourcing measures.

Given this context, companies must consider how to establish their HR department for optimal success. Establishing a large, internal recruiting department only makes sense for some companies; luckily, Recruitment Process Outsourcing (RPO) offers an alternative.

What is Recruitment Process Outsourcing (RPO)

Recruitment Process Outsourcing (RPO) is a sub-area of Business Process Outsourcing (BPO) in which internal recruiting is partially or wholly assigned to a specialized service provider. The aim here is to support the hiring company in implementing measures in the long term and to ensure an adequate supply of specialist staff.

How does RPO differ from classic personnel services?

In contrast to personnel consulting and similar service models, the RPO partnership between the client company and the service provider is usually designed as something other than a project. It is not about individual appointments but about permanent cooperation in which the service provider takes on an essential corporate function and implements this on behalf of the company in the medium to long term.

Companies can take advantage of all partial services in personnel recruitment or the entire recruitment process. This may include the creation and placement of job advertisements, the evaluation of applications received, the implementation of active sourcing measures, the organization and implementation of job interviews, assessment centers, employer branding, and onboarding activities.

Advantages of RPO

Advantages of the RPO partnership for companies include:

  1. External recruiting experts compensate for the lack of specialist know-how in the company.
  2. Active recruiting measures increase candidate quality.
  3. More efficient recruiting and hiring processes improve the “time to hire.”
  4. Cost-per-hire has been reduced thanks to more cost-effective internal structures and savings in headhunter fees.
  5. Fluctuating recruiting volumes can be balanced out.
  6. More cohesive integration across departments.
  7. Technological innovations in recruiting can be implemented internally.
  8. There is more security when it comes to data protection issues.


RPO is particularly suitable for companies that do not want to build up larger HR structures but at the same time rely on a constantly filled pipeline of suitable candidates. The ability to leverage the latest recruiting methods, cost savings, and flexibility make RPO the go-to solution for many companies in search of top talent.

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