RPO Buyer's Guide: Choose the Best Provider in 2024

*Dollar amounts are estimate numbers

In addition to lowering premium labor spend, you can expect substantial cost- savings benefits when engaging an RPO provider. These benefits include:

How Do You Assess Your Organization’s Recruitment Needs for Choosing an RPO Provider?

Before you begin your search to find the right RPO provider, it’s essential to thoroughly assess and understand your recruitment needs. Understanding your specific requirements, goals, current processes, and challenges will help you identify the best RPO partner to meet your unique needs. 

Define Recruitment Goals  

Outlining your goals is a fundamental step in selecting an RPO provider. Clear, well-defined goals guide your decision-making and ensure that your chosen partner can effectively align their services with your strategic objectives. 

Start by answering the following questions: 

• What are our short-term and long-term hiring objectives? 
• Are your hiring objectives aligned with strategic business goals? 
• Are you looking to fill specific roles, or do you need a comprehensive hiring strategy? 
• What are the key performance indicators (KPIs) for recruitment success? (e.g., time-to-fill, cost-per-hire, quality of hire)?  

Evaluate Current Recruitment Processes 

Conduct a thorough evaluation of your existing recruitment processes to identify strengths and areas for improvement. Pinpointing the challenges in your recruitment efforts is crucial for finding an RPO partner who can address these issues.  

Consider the following aspects: 

• Candidate Sourcing: Where and how are you currently sourcing candidates? Are these channels effective? Are you having difficulties attracting qualified candidates? 
• Screening and Selection: How efficient is your screening and selection process? Are you satisfied with the quality of candidates it yields? How does your time-to-fill compare to the industry average? How high are your turnover rates? 
• Onboarding: Is your onboarding process streamlined and effective in integrating new hires? 
• Technology and Tools: What recruitment technologies and tools are you currently using? Are they meeting your needs? Are you using them to their fullest potential? 
• Company Culture: What are your company’s core values and culture? How are they reflected in your recruitment process? 
• Employer Brand: How is your employer brand perceived and what message do you want to convey to potential candidates? Is your employer value proposition (EVP) strong?  

Ensure Internal Alignment 

Leadership Buy-In  

Before you begin the search for an RPO partner, it is essential to secure buy-in from leadership and internal stakeholders. Gaining their support ensures alignment with your organization's strategic objectives and facilitates smoother RPO implementation.   

To make a strong case for an RPO partnership, it's important to highlight potential benefits such as cost savings, improved quality of hires, and enhanced scalability. Engaging key decision-makers early in the process, addressing any concerns, and demonstrating how an RPO solution aligns with the overall business goals will help build a compelling case for the partnership.  

Budget and Scope 

Armed with the insights from your thorough assessment, you will have a clear understanding of the scope of services required from an RPO partner. It is crucial to have detailed discussions with key stakeholders to establish a realistic budget that your organization is willing to allocate for these recruiting services.  

Clearly defining both scope and budget will enable you to evaluate potential RPO partners effectively, ensuring they can deliver the necessary services within your financial parameters.  

This strategic alignment not only helps in shortlisting providers who can meet your specific needs but also sets the foundation for a successful, long-term partnership that drives tangible results for your organization. 

Where Can You Find Reliable RPO Providers?

Finding the right RPO provider involves thorough research and exploration of various channels. Here are some key avenues to consider:

Industry Reports

• HRO Today: A media company that provides annual rankings of RPO providers using various criteria such as deal size, breadth of service, and quality of service, to name a few.  

• ClearlyRated: A satisfaction survey program that publishes a Best of RPO recognition program. Winning firms are chosen based on a Net Promoter score calculated using survey responses from an RPO provider’s clients.   

• Everest Group: A research firm that published the annual PEAK Matrix report – an assessment of service providers categorized by Leaders, Major Contenders, and Aspirants.  

• NelsonHall: An analyst advisory firm that has created the NelsonHall Vendor Evaluation and Assessment Tool (NEAT) to analyze the performance of vendors offering RPO and talent acquisition services. 

Associations and Networks  

• RPOA (Recruitment Process Outsourcing Association): Offers ICoCo Marketplace – a search engine that provides a comprehensive profile for RPO companies and affiliates.  

• SHRM (Society for Human Resource Management): Lists over 150 experienced and reputable RPO companies and industry experts.  

Online Reviews   

• Glassdoor: Provides insights into the company culture, leadership, and overall reputation of RPO companies. Reviews and ratings from current and former employees provide valuable perspectives on factors such as work environment and management style.  

• Gartner Peer Insights: Access real-world feedback and reviews from clients who have worked with RPO providers, offering firsthand perspectives on their performance, service quality, and customer satisfaction levels.  

• G2: Through G2's user-generated reviews and ratings, you can gain insights into the customer experience, service quality, and overall satisfaction levels of different RPO organizations. You can also compare features, pricing, and customer feedback.  

What Should You Look for in an RPO Provider?

Key Factors to Evaluate 

Industry Expertise  

An RPO provider with a deep understanding of your industry’s nuances, challenges, and talent requirements is more likely to deliver tailored solutions that align with your business goals. Additionally, a provider with industry expertise can navigate your sector's specific recruitment landscape, leading to better hiring outcomes and a stronger alignment with your organizational objectives. 

To verify that an RPO provider has relevant industry experience, follow these steps:  

• Evaluate the providers’ access to talent pools relevant to your industry.  
• Check if the provider holds relevant industry certifications and professional memberships. 
• Interview key personnel to assess industry-specific knowledge and insight. 
• Review available thought leadership content (whitepapers, blogs, webinars, etc.). 
• Analyze case studies and client testimonials that highlight their track record in similar industries and sectors. 

Recruitment Technology and Innovation  

A forward-thinking RPO provider should leverage advanced recruitment technology tools and have relationships with technology vendors to optimize your recruitment process.   

Here are a few questions you should ask:  

• What recruitment technology do they use? (ATS, CRM, HRIS) 
• How easily can their technology integrate with your existing HR systems? 
• What kind of data analytics and reporting capabilities do they offer?  
• How do they leverage AI and automation tools? 
• What kind of training and support do they offer your team? 

It is necessary to gain a comprehensive understanding of a provider’s technology capabilities to determine if they align with your talent acquisition needs.   

Candidate Sourcing and Screening 

Examine the provider’s sourcing strategies and their ability to build and manage a diverse and high-quality talent pool. Ask about their methods for attracting passive candidates, leveraging social media, and utilizing niche job boards. 

Here are a few ways to gain an understanding of an RPO provider’s capabilities: 

• Investigate the range of sourcing channels the provider utilizes.  
• Determine whether the provider employs proactive sourcing methods. 
• Evaluate how the provider build and maintains talent pipelines.  
• Assess the provider’s commitment to building diverse and inclusive talent pools. 
• Ask about screening and assessment processes they utilize. 
• Review how they evaluate candidates to ensure alignment with your organization. 
• Request performance metrics such as the success rate of placements, time-to-fill, and retention rates.  

Candidate Experience 

Evaluating an RPO provider's candidate experience involves examining several key aspects to ensure your candidates have a positive and engaging journey throughout the recruitment process. A positive candidate experience reflects well on your employer brand and increases the likelihood of luring top talent.  

Here are a few factors to consider: 

• Assess the provider’s communication practices, including how promptly and transparently they keep candidates informed about their application status.  
• Consider the technology and tools used to enhance the candidate experience, such as user-friendly application platforms, mobile accessibility, and automated scheduling systems that streamline the process.  
• Investigate how the RPO provider trains their recruiters to deliver exceptional candidate experiences, including their understanding of your company’s culture, values, and job requirements. 

Performance Metrics and Reporting 

A good RPO provider should offer transparent, data-driven insights into key recruitment metrics such as time-to-fill, cost-per-hire, and quality-of-hire.  

Here are a few questions you can ask to assess an RPO provider’s reporting and data practices: 

• How do they track recruitment key performance indicators (KPIs)? 
• Do they leverage data analytics to drive recruitment outcomes? (Predictive analytics, talent pool analytics, etc.) 
• Do they provide real-time dashboards and reporting tools? Are they customizable? User-friendly? 
• How often do they conduct performance reviews? Do they provide actionable insights?  

Cultural Fit and Partnership Approach 

A provider whose values, work ethic, and communication style align with your company culture are better positioned to foster a collaborative and productive RPO partnership. Look for providers who view the engagement as a long-term, strategic alliance rather than a transactional relationship. 

Here are a few actions you can take to identify organizational alignment: 

• Review the provider’s values and mission statement to see if they align with your own. Look for similarities in commitment to quality, integrity, innovation, and other core principles. 
• Understand how the provider operates and assess their work environment and practices. 
• Observe their communication style during meetings and interactions. Do they communicate clearly, transparently, and respectfully? 
• Assess their employee engagement and retention. Check online employee reviews for transparent insights.  

Compliance and Risk Management 

Ensure the provider has robust compliance practices, including adherence to labor laws, data protection regulations, and industry-specific standards. Their ability to mitigate risks and maintain compliance safeguards your organization against potential legal and reputational issues. 

Review Case Studies 

Case studies are a great way to gauge an RPO provider’s experience, problem-solving abilities, and partner successes. They provide real-world examples of how a company operates and addresses challenges and opportunities.  

Analyzing case studies offers direct insight into industry experience and scope of work — this can help you determine if a provider has experience working with organizations within your industry, scope, and scale.   

Take this Hueman case study, for example:   

Other case study factors to consider:  

• Do they have any case studies that highlight challenges similar to what you’re facing?  

• How did the provider tackle the problem and what were the results?  

• What was the length of the partnership?  

• These metrics can help you determine RPO performance:  

  • Cost savings 

  • Submission to interview ratio 

  • Submission to hire ratio  

 
Four Steps to Selecting an RPO Partner

After conducting thorough research on potential RPO providers and compiling a shortlist of the top contenders, you're ready to progress to the selection phase of the process. This section will outline the crucial steps involved in choosing the right RPO partner for your organization. 

1. Requesting and Evaluating Proposals 

Begin by sending out Request for Proposals (RFPs) or Request for Information (RFIs) to the selected RPO providers on your shortlist. These documents should outline your organization's specific needs, objectives, expectations, and key criteria such as hiring volume, time-to-fill targets, candidate quality standards, technology requirements, and cultural fit. Upon receiving proposals from RPO providers, thoroughly review and evaluate them based on predetermined criteria.  

2. Conducting Interviews and Site Visits  

Schedule face-to-face interviews with the shortlisted RPO providers to gain a deeper understanding of their capabilities, approach to recruitment, organizational culture, and commitment to client success. These interviews should involve key stakeholders from both your organization and the RPO provider. 

Whenever possible, arrange site visits to the RPO provider's facilities. This allows you to observe their operations, infrastructure, technology capabilities, and team dynamics firsthand, providing valuable insights into their working environment and processes.  

3. Negotiating Contracts  

RPO contracts and agreements are formal documents that outline the terms and conditions of the engagement between a client and an RPO provider. Establishing a well-defined contract ensures both parties have a clear understanding of their responsibilities, expectations, and the mechanisms for measuring and ensuring success.   

Key Components of RPO Contracts

• Contracts Scope of Services: This section clearly defines the services that the RPO provider will perform, such as sourcing, screening, and recruiting. It ensures there is no ambiguity about the RPO provider's responsibilities and sets the foundation for performance expectations.
• Terms of Agreement: Details of start and end dates of the service engagement, including any provisions for auto-renewal. This section provides a clear timeline for the contract’s validity and sets expectations for contract renewal processes. 
• Pricing: Outlines the fee structure, including implementation fees, monthly fees, and any additional charges for increased services. Transparency in pricing helps avoid future disputes and ensures budget alignment. 
• Service Level Agreements (SLAs) and Key Performance Indicators (KPIs) These metrics, agreed upon by both parties, measure the effectiveness of the RPO services. Metrics may include minimum and maximum requisition fulfillment times, time-to-fill, quality of hire, and other relevant benchmarks. 
• Billing and Payment: Specifies the billing and payment terms, including payment schedules, due dates, and penalties for late payments. Clear billing terms ensure smooth financial transactions and help maintain a healthy partnership.
• Managed Services: Describes the procedures for managing the relationship, including communication protocols, reporting structures, and processes for handling additional requisitions outside the established objectives. 
• Non-Solicitation Clause: An agreement that your RPO provider will not directly solicit to your employees, and vice versa. 
• Information Security: A clause stating that the provider will protect your sensitive data from unauthorized access, loss, destruction, disclosure, or use may also be included.
  
• Termination: Outline the process for terminating the contract, including required documentation, notice periods, and effective termination dates.  

Work with the RPO provider to customize the contract to align with your organization's specific needs, goals, and expectations. Both parties should thoroughly review the contract to ensure mutual agreement on all terms and conditions. It is advisable to involve legal and compliance teams in the contract review process to safeguard against potential risks and ensure all legal requirements are met. 

4. Choose The Right RPO Provider

Remember to use a structured decision-making process to evaluate all factors and criteria considered during the selection phase. Consider input from key stakeholders, including HR leaders, hiring managers, executive leadership, and legal counsel. Once you've made the final decision, proceed with signing the contract and formalizing the partnership.

How Do You Implement an RPO Provider Successfully?

An efficient implementation and transition process is crucial to set the stage for a successful partnership. A good RPO partner will provide a dedicated team to manage the process, taking little time from your internal team.    The typical implementation timeline is 8-12 weeks. During this time, your chosen provider will learn as much as possible about your organization, build out processes, set up systems, train recruiters, and lastly launch the new talent acquisition program. 

How Can You Effectively Manage an RPO Partnership?