With the evolution of recruitment process outsourcing, many companies are taking advantage of RPO to reduce cost and time, and improve the quality of hires. However, like everything else, RPO can sometimes come with risks. By being aware of the risks of recruitment process outsourcing, you can prepare for them, avoid them, and overcome the consequences of these risks. Here are 7 risks of recruitment process outsourcing, and what we suggest could be done to either prepare, avoid, or overcome them:
- Stability of the Outsourcing Vendor
This is one of the tougher risks of recruitment process outsourcing to anticipate, as stability can mean a lot of things. Perhaps the stability of the RPO vendor's personnel in doing their job and maintaining professionalism. It could be the stability of your contact, if he or she has things to deal with outside of the workplace (or is just plain kooky). It could be the stability of the vendor itself. If things are unstable, it could be difficult to pinpoint the problem and to work with it. Find a verified and credible RPO providers and try a pilot project before you commit to a longer relationsip.
- Poor Control of the Outsourced Process
With the RPO vendor coming into your organization, its easy to have too many cooks in the kitchen. The outsourced process could then lose control with too many people trying to take control. It's best to let the RPO vendor do its job, and perhaps have one or two people within your organization make sure everyone listens and adapts to the outsourced process.
- It's Not a Recruiting Replacement
One thing you need to understand about RPO is that it's not to be considered as a quick fix, as a way to cut your recruiting costs with nothing else to worry about. If you're having problems with your recruiting, then outsourcing it all to an RPO provider won't fix the problems. You will need to work with the RPO provider to fix those problems, not simply pass them off to someone else.
- Weak Terms and Conditions in the Outsourcing Contract
Contracts can really make or break a business relationship, as they try to cover all the risks of recruitment process outsourcing. Make sure to read it to know what you're getting into. If possible, have a lawyer with you when you sign the contract, or at least look it over before you sign. If there's anything about the contract you don't like, try and get it changed.
- Different Corporate Values and Corporate Culture
This one will happen if you don't select the right RPO vendor, as the solution that arises won't be a good one if corporate values and culture don't match. It's imperative that they match in RPO, or else your new hires won't stick around, or your new recruiting process won't be able to find who you need.
- Expectations Weren't Specific or Realistic
One of the risks of recruitment process outsourcing is that companies expect too much, or expect RPO to be some sort of magic wand that will make all hiring and recruiting problems go away. To ensure success, make a list of all your recruiting pain points, and establish a small number of key outcomes with metrics that relate to hiring quality, speed and cost.
- No Changes or Improvements Introduced
This is a risk of any service or attempt at a better solution. It might not work. Keep in mind thought that if RPO didn't work for you, it doesn't necessarily mean that RPO is terrible. Perhaps one of the other six risks came into play, like the vendor went way over budget or had internal issues that affected how well they delivered.