Whenever it comes to filling up a vacant position in a company, a common question arises; ” Should I go for a staffing agency or hire an RPO provider?” These are the two most-heard names for the case of recruitment. Most companies nowadays prefer either of these to recruit a workforce for their business tasks. But very few of them have a clear idea about the differences between the two. Many even are not fully aware that these two are different from each other.
This article will clear the prevailing doubts regarding staffing and RPO. We will be discussing the questions like how RPO is different from traditional staffing agencies.
What is a Staffing Agency?
A Staffing Agency is a company that accumulates a huge pool of human resources that generally fulfill the short-term recruiting requirement of other companies. They place the candidates in the required positions at the time of need. The agencies charge as per the numbers of the successful delivery of the employees to the employer company. Briefly, a staffing agency connects a bridge between the recruiter and the recruited.
What is an RPO?
An RPO or Recruitment Process Outsourcing Company provides high-quality candidates to mitigate long-term requirements in another company. From talent acquisition, strategic sourcing, to pre-employment screening, interviewing the candidates-an RPO company do it all. Simply put, an RPO on behalf of the company, hires the candidates and outsources them through a recruiting process compliant to company culture and goals.
The Difference between a Staffing Company and an RPO
It’s now clear that both of the options are to save the time and effort of conducting the recruitment process within a company. Now, let’s focus on how they differ from each other.
Objective: The key difference lies in the objectives of the two processes –RPO and staffing. Staffing focuses on the successful delivery of the workforce in a short period. In contrast, the major objective of an RPO is to find high-quality candidates that fit the best for the specific job role.
Sourcing: Staffing agencies usually find candidates using their networks. It does not include company recruitment strategies like employee referrals, brand promotion, or any other direct engagements.
On the contrary, an RPO utilizes all possible ways to find the best-suited candidates for the companies. From their channels to the company’s employee referral plans, they leave no stone unturned. Exploring different avenues including employer websites, online job search portals, etc. they source the suitable pool of talents. Thus, they help in improving the brand value of the employer company as well.
Overall Cost: On average, a staffing company charges 25% to 30% of the salary of a job role. For example, if a job position has a salary of Rs. 50,000/-, the stuffing agency asks for an amount within 12,500/- to 15,000/-. So, the overall cost for that particular job position is around Rs. 62,500/- to Rs. 65,000/-.
Nonetheless, the RPO providers mostly work with a monthly payment system instead of fees per candidate recruited. They charge a monthly rate for handling all kinds of hiring tasks. Moreover, they come up with excellent ideas to improve the recruitment strategies within a company. So, considering the long-term benefits, hiring an RPO is more cost-effective than opting for staffing agencies.
Benefits of Re-hiring: When you’re working with a staffing company, it is hard to get back to the previous employee you hired. As the staffing agency reserves the ownership of the candidate, you may not get the same candidate next time you think of hiring. On the other hand, an RPO strives to offers high-value candidates who are likely to maintain a long-term relationship with the company. It saves you from the tiresome process of re-hiring again. The benefits of re-hiring matter if you ask what is the difference between staffing and recruiting in general.
Accountability: The staffing agencies do not hold themselves responsible for recruitment results. But RPO providers own the responsibility of the whole recruitment process along with the result. Thus, the employer company can relax once they tie the knot with recruitment process outsourcing companies in India or other places.
So, that is how RPO is different from traditional staffing agencies. To summarize, if you want urgent recruitment for a short time, you can think about staffing options. But to serve long-term requirements accessing quality candidates, you must rely upon the recruitment process outsourcing method.