RPO Passes It Prime: Enter RPP

Around 2004, the term RPO - Recruitment Process Outsourcing - was first coined. The concept gained rapid traction as business leaders, including CHROs, CFOs, and CEOs, began to recognize the critical importance of improving talent acquisition. Simultaneously, they realized that many organizations lacked the expertise to acquire talent effectively. This was an era of outsourcing various HR functions, such as employee benefits, HR call centers, and payroll, which proved to be popular, profitable, and efficient. So, why not apply the same approach to the complex and often bewildering world of recruiting?

This subtle shift from "outsourcing" to "partnership" carries significant implications, as today's hiring demands highly customized solutions and collaborative relationships with recruitment partners.

If complex business processes can be frustrating, recruiting can be doubly so. It involves not only intricate processes and technology but also unpredictable human factors. Unlike products that can be repaired or redesigned, candidates and employees are not easily interchangeable. Thus, recruiting encompasses a myriad of challenges.

Initially, the primary concern for both companies and RPO providers was the urgency to hire quickly. For many companies, this marked the first time they were hiring faster than ever before, bringing a sense of relief. Consequently, recruiting now has two key metrics: cost of hire and time to hire.

However, what once seemed like a perfect solution for recruiting has now lost its luster. We are now navigating a talent landscape characterized by scarcity in certain roles and limited job opportunities for many candidates across various sectors. Additionally, factors such as hybrid work models, AI, and an array of new recruiting technologies for both companies and candidates are continuously reshaping the market. Moreover, there's a newfound focus on creating diverse workplaces and maintaining work-life balance, all within an unpredictable economic climate.

These challenges are expected to intensify, as highlighted in the Harvard Business Review article "9 Trends That Will Shape Work in 2024 and Beyond".

In this ever-changing landscape, the traditional concept of recruitment outsourcing is no longer sufficient. Enter the era of RPP: Recruitment Process Partnership. This subtle shift from "outsourcing" to "partnership" carries significant implications, as today's hiring demands highly customized solutions and collaborative relationships with recruitment partners.

People Science's white paper, "The Varying Degrees of RPO", explains the distinction between partnering and outsourcing. With years of experience since the late 1990s, People Science has learned that each company requires a tailored recruiting approach.

When executed effectively, RPP allows companies to leverage the evolving talent landscape rather than struggle against it.

The following chart provides a high-level comparison of RPP versus RPO:

Without a doubt, we are facing the most complex and challenging work environment ever recorded. Opting for the outdated version of RPO, as compared to a fully integrated RPP partnership, is not just a suboptimal choice but a risky one when evolving your talent strategy.

If you'd like to learn how People Science can help your organization achieve it's talent acquisition goals, visit our website; or schedule a time to talk with us here.