Recruitment Process Outsourcing: Why companies are jumping onto this bandwagon

March 1, 2019 2:19 pm

Published by

If you have not read the true definition of Recruitment Process Outsourcing, read this first: What in the world is Recruitment Process Outsourcing ( RPO ).

Recruitment Process Outsourcing ( RPO ) is pretty popular overseas but just only begun to pick up steam in Singapore.

Only recently have businesses start to realize that hiring a wrong person has many repercussions ( Some that even you may not have thought of ).

A wrong hire can cause the following problems:

  1. Not getting his or her work done to standards ( That’s basic )
  2. Delegate his or her work to other employees
  3. Create a toxic culture that spreads like cancer throughout your company

They can even influence your star players to leave the company.

Here are the symptoms of toxicity happening:

  1. When you find your employees doing a different task other than what they are assigned
  2. When you find isolation of certain employees and secret cult gatherings happening at the pantry
  3. When measurable results start to drop that could only point to employee motivation
    ( For a better guide to spot toxic employees, click here )

Chemotherapy is a cure for cancer, but sometimes it’s too late when cancer starts spreading.

Prevention is better than cure and RPO is the prevention of that very aggressive cancer that may be spreading within your company.

How can RPO prevent wrong hires?

RPO has an additional layer of design thinking to the existing recruitment process.

Here is a really simplified version of what goes behind the thought process of designing a Recruitment plan.

What exactly are the operational tasks that are needs to be done?

What technical skills are needed to perform the best at these tasks?

What attitude and qualities are needed to perform under stress at these tasks?

What Job title accurately represents the tasks that this person will handle?

What would the ideal person look like to perform these tasks?

Where can we find this ideal person?

What would this ideal person desire from the company?

What metrics would we need to focus on to identify this ideal person?

That’s just half the story, you can find out more from our friendly RPO consultants.

But wait, you are not here for this.

You are here because you want to know how can RPO benefit you.

Here’s the reason why companies are jumping on this bandwagon.

What’s so great about RPO?

( 77% of companies who have tried it will recommend it to their friends)

#1 Access to Tools and Technology

There are many tools for evaluating the fit and automating the hiring and recruiting processes of an organization.

Recruitment Process Outsourcing providers have access to the latest job search tools and futuristic technology to accurately target the people you need.

With these enterprise-level tools and enormous data sets to work with, they have the unfair advantage of speed and accuracy when it comes to attracting candidates.

#2 Reduced cost per hire

A business can reduce their cost per hire with not only an improved hiring process but the unique pricing model of RPO.

Unlike paying a finder’s fee upon hiring an employee, RPOs can be based on a monthly management fee model which is extremely useful for companies with high turnover rates.

In comparison, traditional recruiting can be exorbitant and cost per hire can quickly pile up for these companies.

The monthly management fee model is predictable and the reliability of having a prepared list of candidates every single month regardless of requirements will reduce the need for “Emergency hires” and incurring last-minute markups.

#3 To Ensure Compliance with regulations

Recruiters are experts at hiring but when it comes to the employment act or the HR landscape in Singapore, that is secondary to them.

The added advantage of RPO comes when you deviate pesky fines and breach of the employment act which typically happens with traditional recruitment because the responsibility of knowing this compliance information is on the business owner themselves.

On top of that, RPO also includes helping you to apply for various grants ( STP, Workpro, HRSS ) you can tap on to reduce your hiring costs or cover your employee’s salary.

Now that’s what we call a value-add.

#4 Subject Matter Expertise

Companies who offer RPOs are the Einsteins of recruitment.

On-boarding, hiring, and recruiting the people you need to manage and develop your company requires a high level of skill, effort, and time as it involves real living and breathing people.

Just like how figuring out the keys to a person’s heart is almost impossible.

Figuring out how to hire the perfect employee at the lowest cost requires a crossbreed of Human psychology, Systems theory, and Human capital management.

You don’t want to hire experts in all 3 to do just one task, use a company that already has that.

#5 Retain Talented Workforce

Talent Retention is imperative to an organization as it reduces turnover costs.

What better way to retain talent than to find people that resonates with your culture in the first place?

Marketers often say that you can’t change the desire of a person, but we say, you can find people who desire the same thing as your company.

When the stars align, you will have employees referring their like-minded peers to join the company instead of the opposite happening, asking fellow colleagues to leave the company.

It is time to rethink talent retention.

Ready to join thousands of companies who have graduated traditional recruiting?

Yes, you have guessed it, we are having an early bird offer for the launch of our new RPO service.

Find out more about Payboy’s RPO service >>>

Related Post

What employment law changes will take effect in 20... The new year is almost upon us and with it comes changes to employment laws in Singapore. Here we’ve run down the eight most important ones tha...
Why HR needs to go digital to stay relevant? Anand Shankar, senior partner for Asia-Pacific, Middle East and Africa at Aon Hewitt, shares his thoughts on the digital revolution and what HR can do...
3 Reasons To Replace Your HR Department With Softw... Small businesses looking to scale often face problems in human resources, or human capital. Essentially, their most important asset. A lot goes in...
4 Key Things Every Entrepreneur Must Know About Ge... Singapore is the quintessential hub for all things business globally in 2017. Across any industry, from FinTech to eCommerce, our little nation has de...
Tags: , , , , , , ,

This post was written by Payboy