RPO Cost

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How Much Does RPO Cost? Cost Breakdown & Examples

Marko Pavicevic

Marko Pavicevic

If you’re looking for a way to improve your talent acquisition process, reduce your hiring costs and access a wider pool of qualified candidates, you might have considered outsourcing some or all of your recruitment activities to a third-party provider.

This is known as recruitment process outsourcing (RPO), and it can offer many benefits for businesses of all sizes and industries.

But how much does RPO cost, and how can you compare different pricing models and options?

In this article, we’ll answer these questions and more, based on our own experience as a talent acquisition expert and the available material online.

We’ll also show you some examples of how RPO can save you money and time in the long run, and how to get in touch with us if you’re interested in exploring RPO solutions for your business.

What is the cost of RPO?

The cost of RPO is the amount of money that a business pays to an RPO provider for taking over some or all of their recruitment functions.

The cost of RPO can vary depending on several factors, such as:

  • The scope and complexity of the services provided
  • The number and type of positions to be filled
  • The duration and flexibility of the contract
  • The quality and availability of the talent pool
  • The technology and tools used by the RPO provider
  • The performance and satisfaction metrics agreed upon

Because of these variables, there is no one-size-fits-all answer to how much RPO costs.

However, there are some common pricing models that RPO providers use to charge their clients, which we’ll explain in the next section.

How do RPO providers charge their clients?

There are five main pricing models that RPO providers use to charge their clients for their services:

1. Management fee model

This is a fixed fee that the client pays to the RPO provider for working on an agreed-upon number of positions per month or per year.

The fee may change depending on the agreement or may have escalation factors if the number of hires increases over a period of time.

This model is typically used for enterprise RPO services, where the provider takes over the entire recruitment process for the client.

2. Cost per hire model

This is a variable fee that the client pays for each candidate who is successfully hired by the client through the RPO program. The fee may depend on the level and difficulty of the position, as well as the market conditions and competition. This model is often used for short-term project RPO, where the provider is hired to fill a specific number of positions within a limited time frame.

3. Management fee plus cost per hire model

This is a combination of the above two models, where the client pays both a fixed fee for the ongoing recruitment effort and a variable fee for each successful hire. This model balances the risk and reward between the client and the provider, and encourages both parties to work towards a common goal. This model is suitable for enterprise RPO and point-of-service RPO, where the provider handles only certain aspects of the recruitment process, such as sourcing or screening.

4. Cost per slate model

This is a sourcing model where the client pays a fee for a set number of sourced, screened and qualified candidates for each open position.

The candidates are then handed over to the client’s internal recruiters for further evaluation and hiring.

This model is ideal for point-of-service RPO, where the client needs help with filling their candidate pipeline but wants to retain control over the final hiring decision.

5. Cost per transaction model

This is a process-based model where the client pays a fee for a specific task or service completed by the RPO provider, such as initial screening, reference checks, background checks or offer management.

The fee may be charged per transaction, per hour or per candidate.

This model is suitable for on-demand RPO services or consulting RPO services, where the client needs occasional or temporary support with certain recruitment functions.

How can you compare different RPO options?

As you can see, there are many factors that influence how much RPO costs, and different pricing models that reflect different levels of service and value.

To compare different RPO options and find the best fit for your business, you need to consider not only the price but also:

  • The quality and expertise of the RPO provider
  • The alignment and compatibility of their culture and values with yours
  • The transparency and accountability of their processes and reporting
  • The flexibility and scalability of their solutions
  • The technology and tools they use to enhance their efficiency and effectiveness
  • The feedback and testimonials from their previous and current clients

Ultimately, the cost of RPO should be measured against the return on investment (ROI) that it delivers for your business.

RPO can help you save money and time by:

  • Reducing your recruitment costs, such as advertising, agency fees, hiring bonuses, travel expenses and overheads
  • Improving your hiring speed and reducing your time to fill, which can boost your productivity and revenue
  • Enhancing your employer brand and reputation, which can attract more and better candidates
  • Increasing your hiring quality and accuracy, which can improve your retention and performance
  • Providing you with compliance support and risk mitigation, which can protect you from legal issues and penalties
  • Giving you access to state-of-the-art technology and data analytics, which can help you optimize your recruitment strategy and decision making
  • Allowing you to focus on your core business activities and strategic goals, while leaving the recruitment tasks to the experts

Curious to learn more? Check out the top reasons companies choose to outsource recruitment.

How can we help you with RPO?

If you’re interested in learning more about how RPO can benefit your business, we’d love to hear from you.

We are Tribe, a talent acquisition expert with years of experience in the field.

We have a team of dedicated and skilled recruiters who can handle any recruitment challenge, from sourcing and screening to interviewing and hiring.

We use cutting-edge technology and tools to streamline our processes and enhance our results.

We work closely with you to understand your goals and expectations, and we provide you with regular feedback and reports to ensure your satisfaction.

We have helped many businesses across various industries and locations to find and hire the best talent for their roles.

We have a proven track record of delivering high-quality hires, faster time to fill, lower cost per hire and higher retention rates. We are confident that we can do the same for you.

If you want to find out how much RPO costs for your business, and how much value it can add to your talent acquisition process, please get in touch with us today.

You can book a free consultation with us.

We look forward to hearing from you soon!

Marko Pavicevic

Marko Pavicevic

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