RPO results: In a recent article, we compared two recruitment strategies for filling new positions that required a cost-effective, quick turnaround to hire quality candidates for a large-scale reorganization and consolidation of call center support staff. In that scenario, the recruitment process outsourcing model and process outperformed the traditional hiring process.
The same conditions that make an RPO solution more effective in large-scale and time-sensitive scenarios exist in most companies whether they know it or not, even with lower volume and less time sensitivity. In this article I want to share how RPO is not just for large-scale recruitment efforts anymore.
RPO Results: The Foundational Building Blocks of RPO are Key to Cost Savings & Increased Performance
RPO firms live and die by the effectiveness of their operation. Fundamental to strong performance, especially with large-scale efforts, is making sure everyone on the team is performing the right activities, at the right tempo, with the highest quality. This becomes a science for RPOs as they measure and consistently assess and improve everything from activity levels to time-to-hire to recruiting cost ratios. Since your recruitment performance directly impacts your operational effectiveness, quality, you’re your profitability, in most cases having a dedicated RPO aligned with your business will lower you recruiting costs and improve your bottom line.
By handing over some or all of your hiring tasks to an RPO, you gain the synergies of an organization designed for focus, performance and variable adjustments. They have the team, process, and oversight to provide results accountable to your requirements. If you work with an industry specific RPO, they will be your industry experts (whether commercial real estate, residential, industrial, etc.) and have a beat on the market with a network of resources to match and woo the perfect candidate, not just find a warm body to fill the position.
Speed to access top talent before your competition is paramount. David Morel, a Forbes contributor, believes there is a ‘great rebalancing’ on the horizon as the demand for talent and the supply of candidates evens out. Others expect and economic downturn in 2023 with significant job loss during this rebalancing period.
Hiring managers and human resource professionals would be wise to prepare for the impact by considering working with an RPO like TalentWoo. Improving your time-to-hire will give you the edge over competition for acquiring the best candidates before others.
Realize Increased Performance and Reduce Cost by Partnering with an Industry Experienced RPO
When an organization brings an RPO onboard as an aligned partner, the RPO serves as the organization’s recruitment resources. The result of this alignment is that all the benefits the RPO was designed for is now benefiting the organization. This can be a wholesale outsourced solution where the RPO serves as the entire recruitment team, or with specialized RPOs like TalentWoo, an organization may want to align the RPO with one slice of their recruitment need.
Several specific metrics an RPO can reduce your cost include:
- Application Completion Rate. Expert RPO providers will define and then hone the interview and application process to ensure the application length is appropriate for the position. For example, organized questions structured well can assist in keeping the application completion rate high.
- Candidate Call-Back Rate. Some say recruiting is a form of selling. A selling strategy can get warm bodies in the building but not the right candidate for the job. A dedicated niche recruiting partner does not ‘sell’ – they woo, and candidate call-back rates improve with that tactic.
- Cost Per Hire. Cost per hire is another benchmark in your recruitment process and helps develop future hiring budgets and plans and measures the return on investment.
- Recruiting Cost Ratio (RCR) The recruiting cost ratio is the entire cost of hiring, and one of the best ways to impact this vital ratio is to have a partner by your side as interested in saving you money as they are in finding you the perfect match.
SPOTLIGHT on RPO results on Recruitment Cost Ratio :
TalentWoo helped create a world-class operating business infrastructure that combined institutional capital with professional management to fundamentally transform the single-family rental market. Owning the entire staffing process over a four year period which included an IPO and two corporate acquisitions, TalentWoo was able to help their client dramatically increase portfolio size and occupancy rates, increase core funds from operations, and decrease maintenance costs, all while maintaining a strong balance sheet.
- RCR 6.9% (industry average is 13.9%)
- 27% faster onboarding
- $900,000 annual cost savings
RPO Results: The right candidate the first time saves both time and money.
You’ll benefit from the RPO results realized in several ways, especially the positive impact on your budget. A company can reduce its in-house HR staff’s workload by outsourcing some or all of its recruitment processes to an RPO provider. RPO providers have experienced recruitment professionals who can handle the tasks efficiently and at a lower cost. Secondly, RPO providers can often negotiate better rates with job boards and other recruitment advertising platforms, which allows them to offer their services at affordable rates compared to in-house postings. In addition, RPO providers can also provide access to the latest recruitment technologies and tools, which will improve the efficiency of the recruitment process and reduce the overall cost of hiring.
As important as those three reasons are for bringing down the overall costs, hiring the best candidate the first time has the most significant impact. Quality of hire, retention rates, company fit, and satisfaction rates are just a few data points often overlooked when discussing cost savings. There are both quantitative and qualitative losses from choosing the wrong candidate in all roles, but leadership and specialty positions have even a more significant effect. The impact of a bad hire includes:
- Financial losses from underperformance
- Productivity loss being unqualified or not proficient
- Financial loss from another recruitment and hire process
- Productivity loss through the time to replace
- Hit on employee morale resulting extra workload and the underperformance
- Negative impact on co-workers and company brand as a whole
Overall, by offloading some or all of your recruitment tasks to an RPO provider, an HR department can serve the company well by saving time and money and allowing internal staff to focus on essential priorities.
SPOTLIGHT on RPO Results with Cost-Savings:
Institutional players love working with TalentWoo. When real estate executives demand a world-class operating business, they know they can rely on our real estate recruiting experts to build it for them. Whether growing a portfolio through single-asset or portfolio asset acquisitions, ground-up development, vertical construction, or corporate mergers, TalentWoo is ready to help bring you optimal RPO Results.
Our recruiting expertise allows executive teams to dramatically increase portfolio size and occupancy rates, increase core funds from Operations, and decrease maintenance costs while maintaining a strong balance sheet.
- 95% Hiring manager satisfaction
- Over $2 Million in annual costs savings
- 7.3% RCR (industry average is 13.9%)
The Main Question: How can a dedicated real estate RPO like TalentWoo produce more timely and cost-effective results for you?
An RPO provider like TalentWoo can provide a fully equipped staff specifically tailored to address your unique challenges. In addition, TalentWoo will bring a proven methodology, process, systems, technology, and their own leadership and oversight infrastructure that is able to achieve and sustain a world-class results driven recruitment operation accountable to you. TalentWoo’s efficiencies and effectiveness will give time back to you and lower your costs as they execute on your plans and help you achieve your goals.