The Role of RPO Companies in Modern Business

According to RPOA, Recruitment Process Outsourcing, often abbreviated as RPO (can also be called an RPO), is a form of business process outsourcing (BPO) where an employer transfers all or part of its recruitment processes to an external service provider.

RPO companies essentially serve as an extension of the company's human resources department- working closely with the internal team to understand hiring needs, align recruitment strategies, and ensure the timely acquisition of top talent.

True RPOs deals exclusively with permanent hire recruitment and handle large recruitment volumes. RPO employees typically sit on-site within the client’s organization and provide a technology known as an ATS (Applicant Tracking System) to their client to facilitate recruitment. RPO providers also assume all responsibility for the recruitment results. 

Beyond the hiring process, popular RPO support functions include:  

Pre-screening assessments: 

Skill-based and behavioral interviews, psychometric testing, aptitude evaluations, reference and background checks, and medical scheduling.

Diverse and inclusive recruiting:

Tailored approach to DEI (or DIB), identifying challenges, adapting to a more inclusive culture.

RPO technology:

Visibility of and control over hiring process allowing continuous improvement via existing technology or by supplying an ATS tool. 

As a catalyst to the adoption of RPO, and an overall structural overhaul of hiring practices, the COVID-19 pandemic pushed businesses to explore more flexible and scalable solutions for recruitment. RPO providers stepped in to help organizations navigate uncharted territory by providing a revolutionary service approach.

According to a report by Grand View Research, the global RPO market size was valued at USD 5.3 billion in 2019 and is expected to expand at a compound annual growth rate (CAGR) of 16.1% from 2023 to 2030. This aligns with the current popularity of the service and shows how hiring needs have influenced changes in modern recruitment.

Emerging RPO Trends

As RPO continues to grow in North America and across the world, it has evolved to better fit consumer needs. 2024 provider tendencies include:

Focus on Employer Branding:

As talent markets become more competitive, RPO providers are enhancing employer branding strategies to attract top-tier candidates.

Data-Driven Recruitment:

Analytics and AI are revolutionizing recruitment processes, enabling RPO providers to deliver more precise and efficient hiring solutions. While AI boosts efficiency, partnering with a human-first agency is crucial to navigating recent pitfalls in recruitment AI effectively.

Globalization of Talent Acquisition:

With remote work becoming more prevalent, RPO services are expanding to source talent globally, providing companies with a wider talent pool.

Flexible and Hybrid RPO Models:

Customized RPO solutions are becoming more common, with providers offering hybrid models that combine elements of traditional and project-based RPO.

Sustainability and Corporate Social Responsibility (CSR):

There is a growing emphasis on sustainability and CSR in recruitment practices, with RPO providers incorporating these values into their service offerings.