1. Assess if Recruitment Process Outsourcing is Right for the Organization
RPO isn’t for everyone. Mitigate the risks through a rigorous assessment and RFI/RFP process.
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2. Introduction
Recruitment Process Outsourcing (RPO) isn’t for everyone and doesn’t abdicate HR from being responsible for the recruitment process. Use this solution set to determine whether it is right for you and to select a vendor that is best suited to your needs.
This Research Is Designed For:
This Research Will Help You:
HR leaders responsible for the talent acquisition process.
Business leaders interested in exploring whether recruitment process outsourcing is right for their organization.
Determine if RPO is right for your organization.
Evaluate RPO models using a Request for Information (RFI).
Select a vendor via a Request for Proposal (RFP) evaluation.
This research will set the stage for further research on…
Future set: Implementation and Optimization of RPOs
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3. Executive Summary SAMPLE The Situation
HR leaders are increasingly exploring options like Recruitment Process Outsourcing (RPO) to improve effectiveness. There many reasons behind the interest in recruitment outsourcing, including lean recruitment teams and infrastructure, increase in hiring demands, and the cost of hiring.
The Challenge
There are a number of RPO vendors in the market; finding one that is best suited for your organization and specific needs can be daunting.
An RPO solution is not always the best for all organizations. Organizations must determine if it’s the right move and which form of outsourcing is more appropriate, whether it is selective outsourcing or partnership outsourcing.
The Solution
Clearly document your pain points when it comes to current recruitment processes and requirements to determine what is driving your need to outsource.
Create and distribute a Request For Information (RFI) to decide if outsourcing is the right move, and if vendors are capable of meeting your needs.
Use a defined Request For Proposal (RFP) process to solicit proposals for RPO and form a Proposal Evaluation Committee to develop comprehensive selection criteria and evaluate the vendor RFP responses.
McLean & Company Recommends
If outsourcing is deemed an appropriate solution, outsource the tactical and keep the strategic parts of recruitment in-house. At the very least HR should always have final say on the hiring decision. At least one interview should be conducted in-house, so that you can meet the candidate and have a basis for making a good judgement on fit.
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4. Guided Implementation
McLean & Company offers various levels of support to best suit your needs
Guided Implementation
“Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keep us on track.”
DIY Toolkit
“Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful.”
Workshop
“We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework and strategy in place.”
Consulting
“Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of this project.”
Diagnostics and consistent frameworks used throughout all four options
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5. Use McLean & Company’s three step process for developing a Recruitment Process Outsourcing Strategy
Identify your recruitment pain points
Assess RPO Appropriateness
Select a vendor using an RFP process
An RPO is not always the solution to your recruitment challenges. McLean & Company’s process will help you determine if an RPO is right for you and if so, which type of RPO is most appropriate, then walk you through an RFI and RFP process to select a vendor for your RPO initiative.
This solution set includes the following tools:
Recruitment Pain Points Assessment Workbook
Recruitment Process Outsourcing RFI Template
Recruitment Process Outsourcing RFP Template
RFP Evaluation Grid
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6. Sample Slides
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7. Lean recruitment teams and recruitment infrastructure are causing HR leaders to turn to outsourcing as a solution
Reasons why organizations
turn to RPO:
55% Pressing staffing needs could not be met.
50% Desire to concentrate on core competencies.
43% Lack internal HR resources.
25% Cost of recruiting is too high
16% Not satisfied with our recruits.
(percentages based on respondents that agree/strongly agree to the statement)
Source: HCI Research 2009
Benefits of outsourcing recruitment:
Time savings - through the shift of time and effort previously spent in house on tactical or administrative recruitment process activities to a third party.
Increased focus on strategic issues - through the shift of the tactical aspects of recruitment to a third party. For more information on moving the HR function from an administrative to a functional or strategic role, see McLean & Company’s HR Roles & Structure.
Leveraging expertise and networks - of a recruitment vendor to increase your pool of qualified candidates, speed time to fill, and gain access to their research and data to help optimize other areas of your process, even those kept in-house.
Flexibility to scale up or down to meet fluctuating recruitment volumes without the commitment and cost of full-time employees.
Reduced labour costs - of transactional recruitment work. However, be aware that outsourcing recruitment will not eliminate all recruitment related labour costs, including that of managing the RPO vendor relationship.
Reduced technology costs – where the RPO vendor has better recruitment technology in place than your organization, which you can leverage in lieu of investing in such technology yourself.
You can make cost savings through outsourcing, but it shouldn't be your major driver, because if you are focused purely on the bottom line you risk being disappointed. Efficiency, simplification, and added value are the areas where you can make
real wins.
- Simon Patton, former HRD of supermarket chain Somerfield
Source: Gray, 2013
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8. Define your RPO expectations before crafting your RFP to keep the focus on business needs
Work with procurement to define clear RFP requirements, and what would make a successful RPO before requesting proposals from vendors. 1
Any good RFP hinges on an unambiguous statement of work. Define this first. Clearly outline what you want out of the RPO.
For example:
A specific number of hires in a specific timeframe.
Specific parts of the recruitment process such as sourcing or background checks.
Next, set up a Proposal Evaluation Grid and establish an evaluation committee; ensure objectivity and that all perspectives are considered.
Set the criteria you will use when evaluating RPO vendor proposals. Use McLean & Company’s RFP Evaluation Grid to customize your RFP scoring grid, record your evaluations, and map the weighted scores for each proposal.
The criteria you set will form the basis of your actual RFP.
The RPO is representing your organization…they’re an extension or should act as an extension of your organization, and therefore, you own all the work products, including candidates.
- Kim Benedict, interview
Keep the following in mind when establishing criteria:
Outsourcing a service is very different from outsourcing the manufacturing of widgets.
The vendor will be representing your organization and employer brand in the marketplace. Be sure to include both qualitative and quantitative measures in your evaluation matrix.
Quantitative: number of hires, time to fill, quality of hire, cost, etc.
Qualitative: alignment with employer brand, values, flexible approach, available technology, ability to scale up or down quickly, willingness to transfer knowledge to in-house staff, ownership of candidate database and materials produced by the RPO, etc.
All criteria are not create equal. Assign weightings up front, before evaluating each proposal.
Ensure objectivity by developing an scale for each weighting. 2
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9. McLean & Company Helps HR Professionals To:
Empower management to apply HR best practices
Develop effective talent acquisition & retention strategies
Build a high performance culture
Maintain a progressive set of HR policies & procedures
Demonstrate the business impact of HR
Stay abreast of HR trends & technologies 
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