Why is recruitment process outsourcing (RPO) critical to the success of employers who use them? Successful employers say that part of their success comes from their RPO partner clarifying how talent acquisition (TA) affects their business outcomes. Understanding the connection between talent acquisition and business outcomes can help increase your return on investment in hiring new talent.
The Recruitment Process Outsourcing Association (RPOA) recently commissioned a report that unveiled Why Employers Value Modern Recruitment Process Outsourcing Partnerships. A key takeaway from the report is that RPOs help their clients with talent acquisition and business alignment. This article provides a snapshot of that relationship.
Talent Acquisition and Business Success
Hiring has various effects on an organization that goes beyond the pay rate. The RPOA report reveals that 80 percent of employers say that their RPO partner helps them understand the impact of hiring on business outcomes.
Often a trusted RPO partner provides this knowledge through the years of collaborating with an employer. Understanding the actual cost of hiring can also help employers make the case for partnering with an RPO provider. In an interview conducted for the report with RPO subject matter expert Jenifer Kihm, Ph.D., Managing Director of Operant Consulting, she saw that a prior employer intentionally brought the CFO into the evaluation process. The company was understaffed and couldn't produce as many goods as needed to meet demand. Each year they operated at that level, leaving millions of dollars in revenue on the table. Kihm brought that knowledge to the attention of the CFO, and she gathered support for investing in the RPO partner because the return on investment of bringing in new talent is an increase in revenue incrementally.
Kihm showed the CFO how hiring more talent fits into the bigger picture. To put a finer point on it, a strategic RPO partner lets employers know what won't happen if they don't hire one more person. If the employer doesn't hire one more:
• Salesperson, the company won't sell more products/ services and won't generate that incremental revenue.
• Support person, the company won't provide the service that customers need, potentially causing them to leave.
• Machine operator, the company won't meet its production quota, losing out on the potential revenue those products would generate.
In summary, RPOs provide employers with invaluable insight into how talent acquisition affects business outcomes. RPOs provide this insight while working with employers and during the evaluation process of hiring an RPO. Working with a trusted RPO partner can increase the return on your investment because they can help you increase revenue, customer retention, and productivity.
To understand more about the value of RPOs, download our report today and bring success to your business!