RPO vs. Traditional Recruitment: Which One is Right for Your Business?

Submitted on Thu 19 Dec 2024

We get it…recruitment can feel like navigating a maze blindfolded while juggling flaming torches. You’re trying to find the best talent, stay within budget, and fill roles faster than you can say "job vacancy." But how do you decide between Recruitment Process Outsourcing (RPO) and traditional recruitment? It’s like choosing between Netflix and cable TV—both get the job done, but the experience can be worlds apart.

Let’s dive into what each approach offers and help you figure out which one aligns best with your business needs.

Traditional Recruitment: The Old-School Classic

Traditional recruitment is like ordering à la carte at a restaurant. You engage a recruiter or recruitment agency to find candidates for specific roles. They manage the sourcing, screening, and maybe even some initial interviews, but the rest? That’s on you.

Pros:

  1. Specialised Expertise: Recruitment agencies often specialise in industries, giving them niche knowledge to find candidates with specific skills.
  2. Quick Fix for Vacancies: Need someone yesterday? Agencies can often tap into their networks to fill roles fast.
  3. No Long-Term Commitment: You pay for what you need, when you need it—no strings attached.

Cons:

  1. Costly Fees: Agencies typically charge hefty fees—think 15-30% of a candidate’s salary. Ouch.
  2. Limited Scope: Once the candidate is placed, their job is done. You’re on your own for onboarding, cultural alignment, and long-term retention.
  3. Reactive, Not Proactive: Agencies tend to focus on filling current roles rather than building a strategic, long-term talent pipeline.

 

RPO: The Modern Solution

RPO is like having a personal chef who plans, shops, cooks, and even cleans up after. An RPO provider becomes an extension of your team, managing part or all of your recruitment process. They’re in it for the long haul, helping you not just fill roles but also optimise your entire hiring strategy. 

Pros:

  1. Cost-Efficiency: Forget those massive agency fees. RPO streamlines the recruitment process, often saving businesses money in the long run.
  2. Scalability: Hiring ramping up or slowing down? RPO adjusts to meet your needs, so you’re not paying for more than you use.
  3. Access to Talent Pools: RPO providers come with their own databases of pre-screened candidates, cutting down time-to-hire.
  4. End-to-End Support: From sourcing to onboarding, an RPO provider has your back—kind of like a recruitment BFF.

Cons:

  1. Upfront Commitment: RPO often involves longer-term contracts, which might feel like a big step for smaller businesses.
  2. Learning Curve: It takes time for an RPO provider to get to know your company culture, but once they do, it’s magic.
  3. Not Ideal for One-Off Roles: If you only hire sporadically, RPO might be overkill.


How to Decide:

The right approach depends on your business’s unique needs, hiring volume, and long-term goals. Let’s break it down:

 

Choose Traditional Recruitment If:

  • You have sporadic hiring needs and only need help with specific roles.
  • You’re looking for quick fixes to fill vacancies.
  • You prefer a pay-as-you-go model without long-term commitments.

Choose RPO If: 

  • You have ongoing hiring needs or plan to scale your workforce.
  • You want to reduce recruitment costs and improve efficiency.
  • You value a proactive, strategic approach to building your talent pipeline.
  • You need a partner who can handle everything from sourcing to onboarding.

 

The Verdict…Why Not Both?

In some cases, businesses use a hybrid approach—leveraging traditional recruitment for one-off roles and RPO for ongoing or large-scale hiring needs. It’s like having Netflix for binge-worthy series and cable TV for live sports—best of both worlds!

Overall, choosing between RPO and traditional recruitment is about more than just budgets and timelines—it’s about finding a solution that aligns with your business goals and sets you up for success. If you’re feeling stuck, don’t stress. Reach out to experts (like us!) who can guide you through the process and help you make the best choice for your team.

Keen to learn more? Why not download a copy of our RPO Buyers Guide which will walk you through things like the benefits of an RPO, common misconceptions about RPO and a step by step roadmap to implementing RPO in your organisation.

 

The Outsourced Recruitment Company (TORC) – RPO Specialists for SMEs

At TORC, we specialise in Recruitment Process Outsourcing (RPO) tailored for the unique needs of SMEs in Sydney. With a focus on cost-efficient and scalable recruitment solutions, we're dedicated to enhancing your hiring quality and streamlining your talent acquisition process. Our approach integrates advanced recruitment technology, market intelligence, and strict compliance to transform your recruitment strategy while ensuring a superior candidate experience.