• April 17, 2023

RPO is the long-term partnership of ownership of all or some parts of an employer’s recruitment hassles to a third-party specialist. This business model basically allows the organizations to focus on their core competencies and meet fluctuations so that they can meet hiring demands without enhancing budgets to pay in-house recruiters or recruitment agencies. In this blog, we are going to answer the reader's common query “How Do RPO Companies Work?”

What is the meaning of Recruitment Process Outsourcing (RPO)?

An RPO provider acts as an in-house recruiter for a business, providing the efficiency required to skyrocket your recruitment outcomes keeping in mind the quality and your overall budget. 

How Do RPO Companies Work?

A comprehensive RPO partnership generally offers daily support and strategic guidance for the whole recruitment process right from finding the right talent to onboarding support. These services are typically backed by Applicant Tracking System (ATS). All the recruited and shortlisted candidates are for a particular client and it is not shared with anyone. 

This must have answered your query “How do RPO Companies work?” But we are not done here!

Perks of Recruitment Process Outsourcing 

At any point in time, but especially during a rapid change like COVID-19. RPO can help employers improve overall productivity. The other benefits of RPO include: 

  • Scalable Solutions: RPO is a business model that runs on a scalable and flexible solution where the business has to pay only what they need and when they need it. 
  • Less Time and Cost to Hire- RPO providers strictly follow the deadlines to meet recruitment needs. Furthermore, RPO is an investment not an expense; it offers a minimum of 30% reduction in cost-to-hire. 
  • Quality of Hire: RPO Providers design and follow strategies ensuring that the hiring would be of those people who meet organizational needs, not just on paper but also practically as well. 
  • Analytics and Reporting- RPO providers analyze the whole process and make sure they are well familiar with the drawbacks which result in effective decision-making. 

What are the Common RPO Models?

RPO is something that fits into every organization's model. But it has various models, and here are some for your better understanding. 

  • On-demand Model- In this very model, the company has an immediate hiring need. With the back of RPO providers, you have the desired team to overcome all your desired recruitment needs for instant hiring requirements. RPO can help you save a lot of money and time and not only you can focus on other priority work. 
  • Function-based Model- The company that opts for this model outsources the hiring of a particular division or department or a particular RPO Provider. 
  • Full RPO- This model is somewhere different, wherein the company outsources all the hiring strategies processes, and decisions to the RPO provider. Here the RPO partner acts as an extended part of your current team. 

What Do RPO Services Include?

The above models mostly cover one or multiple services:

  • Workforce planning- For both short-term and long-term hiring needs. 
  • Hiring Manager Management- Improves the communication between a hiring manager and the accounting department 
  • Strategic Outsourcing- Provides exposure to the platforms where high-performing candidates are available. 
  • Pre-employment Screening- Conduct background checks, employment history, and other records of the candidates. 
  • Early Careers or Graduate Recruitment- These can be used to develop outreach programs for graduates, internships, schemes, and many more. 
  • Talent Engagement- Aids in positioning the company and its culture so that they acquire the right talent. 
  • Candidate Management- They deliver an efficient end-to-end experience right from starting the candidate to their onboarding. 
  • Recruitment Analytics Support- Helps to develop all the checklists and processes to identify the drawbacks of the recruitment process. 
  • Compliance and Risk Management- Making sure that all the processes and operations of recruitment are within legal boundaries. 

Difference between RPO and BPO

RPO VS BPO is a question that still remains in the mind of readers and here we are again explaining it in the best possible way. 
RPO stands for Recruitment Process Outsourcing, which means outsourcing the recruitment process to an external service provider. RPO providers typically handle the entire recruitment cycle, from sourcing and screening candidates to onboarding new hires. RPO is often used by companies with high-volume recruitment needs or those that lack the internal resources or expertise to manage recruitment effectively.

BPO stands for Business Process Outsourcing, which means outsourcing various back-office or front-office functions to an external service provider. BPO providers offer a range of services, such as customer support, finance and accounting, human resources, IT support, and many more. BPO is often used by companies that want to focus on their core business operations and outsource non-core functions to specialized service providers.


RPO companies work as an extended part of your team. And this article provides you with the perfect answer to the question “How do RPO Companies Work?” RPO is not an expense, it is an investment.

Frequently asked questions

How does the RPO industry work?

RPO stands for recruitment process outsourcing. It is a business model wherein the company outsources the management of the recruitment function to a third-party provider. 

Why do companies PREFER RPO? 

As we have already told you, RPO is an investment not an expense. RPO builds a pipeline of potential candidates and it also enhances the employer’s brand value as well. 

What are the roles and responsibilities of RPO recruitment?

The roles and responsibilities of RPO Recruitment vary from model to model, in Full RPO services RPO provider takes the whole responsibility right from screening to the on-boarding of candidates.