Recruitment Process Outsourcing (RPO)

An arrangement where a company transfers all or part of its recruitment function to an external provider that sources and screens candidates under the client's brand.

General

RPO goes further than using a staffing agency on a role-by-role basis. The provider takes ownership of the recruiting process itself, from workforce planning and sourcing through offer management and onboarding handoff. Candidates hired through RPO become employees of the client, not the provider.

Engagement Models

RPO engagements take three common forms. Enterprise RPO replaces the client's entire talent acquisition function, with recruiters embedded in the client's team and working on its Applicant Tracking System. Project RPO covers a defined hiring burst, such as a new market launch or a seasonal surge. Selective RPO handles chosen parts of the funnel, such as sourcing or screening, while the client keeps the rest.

Pricing and Metrics

Most RPO contracts price per hire, per recruiter, or through a volume-based management fee. Traditional agencies charge contingent percentage fees instead. Providers report against agreed metrics, with time to fill, quality of hire, and pipeline diversity among the most common. Recruitment for temporary and contract labor usually sits with a Managed Service Provider rather than an RPO.

RPO in International Hiring

Recruiting in an unfamiliar country is difficult without local knowledge. Job boards, salary expectations, notice period norms, and interview culture all differ by market. RPO providers supply that knowledge at the front of the hiring process. Many companies pair RPO with an Employer of Record, so the provider finds the candidate and the EOR employs them compliantly. Together they allow you to hire in a market where you have no presence at all.

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