- March 26, 2023
In this era of stiff competition, many organizations are looking for support as they often struggle to attract top talent from the industry. There are many staffing service providers out there and it can be difficult to understand which model begins with your recruitment choice between recruitment process outsourcing (RPO) or traditional recruitment or the staffing agency model.
So, what is the difference between a staffing agency and an RPO service provider? In this blog, we will cover the major differences between RPO and direct-hiring staffing agencies.
RPO vs Staffing Agencies: Which Recruitment model is right for you?
It is a type of business process outsourcing in which an employer transfers delivery of some of the recruitment parts to a third-party partner. RPO is a long-term partnership that helps you upgrade your talent strategy with the objective to attract and hire the industry’s top talent and retain the old ones, keeping in mind your business goal as well.
Staffing agencies majorly focus on finding candidates for a particular vacancy. They can be a good option for when the in-house team requires a bit of support especially when you require support for one or two roles. Some staffing agencies may also specialize in providing desired candidates through contracts as well.
Key differences between RPO and Recruitment Agency
- Partnership- Your RPO team acts as an extension of your in-house team and strategic partner in creating a good talent acquisition strategy. RPO recruiters may offer on-site, work remotely, off-shore, or a combination of these and might take your company’s name and email domain for the communication. An RPO partner will understand your business deeply which means they are best suited to help you evolve your talent acquisition program to meet your needs now and scale up your future growth.
Agency recruiters typically act as a finder, sourcing, pre-screening, and introducing candidates to the client who takes it from there. Agency recruiters keep their brand and email while interacting with the candidates. - Staffing Process Improvements- One huge advantage of the long-term relationship you build with an RPO partner is leveraging the power of their data to create a solid pipeline of candidates. Having a pool of active and passive candidates swift the hiring process by giving you a wide range of candidates from around the world whenever a vacancy opens up.
Whereas, the Agencies focus on finding candidates for a specific position. It tends to be a reactive model. The agency does have a pipeline of candidates but these candidates are not necessarily found keeping in mind your business needs and requirements. - Quality of Hire- Both RPO and Staffing agency will bring candidates- including screening resumes or CVs and conducting first-round interviews- before involving your hiring manager.
Leading RPO providers also offer talent assessment solutions to ensure identifying candidates with good skills and experience required for the role. An assessment is done in a bias-free way so that the best moves to the next round, and the most diverse candidates pass to the interview stage.
With a staffing agency, you will use the assessments you already have in place. They generally won’t be responsible for administering them or advising on how to improve them. - Talent advisory consulting - RPO partners bring value addition in terms of talent advisory, including employer branding, recruitment marketing, candidate communications, assessment services, labor market, workforce planning, and talent acquisition strategy. These qualities are very important for companies to attract top talent, and recruit and retain the best ones in today’s changing hiring landscape.
Staffing agencies usually don’t post job ads and promote your vacancies under their own employer brand and use their own techniques to market their openings. And most staffing agencies lack talent advisory consulting which is much required by any organization. - Reporting and analytics- As the RPO partner will take the whole responsibility of your talent acquisition programme, your partner will try to bring the best possible results. They would work with you to define the areas of improvement and report to you quarterly or the pattern decided by both parties.
In addition to that, leading RPO partners who are well-versed in labor analytics can help to understand the available talent pool for which you are hiring and provide you recommendations on how to adjust your strategy.
Agencies generally don’t provide you with such analytics reports as they have the responsibility to fill particular positions.
Wrapping up
RPO and Recruitment agencies serve different models. Now you have a clear understanding of the RPO and staffing agency model. But still, relying on staffing agencies for your recruitment hassles? This will not help you in the long run, we at Crox RPO can be a great holistic partner in helping you with your recruitment scarcity.
FAQ’s
What does RPO mean in staffing?
RPO in staffing stands for Recruitment Process Outsourcing. In this, an organization transfers its recruitment (whole or partial) to its permanent recruitment partner.
What is the work of a staffing company?
A staffing company basically fulfills the human resource needs of an organization or enterprise.
How much do staffing agencies make per employee in the US?
Staffing agencies in the US, generally charge 25% to 100% of the candidates hired.
What are the 3 challenges of staffing in an organization?
The three main challenges that staffing agencies faces are
- Skill shortages
- High Competition
- Outdated strategies