You need someone good, but the whole hiring process just eats up time and money. Recruitment Process Outsourcing (RPO) might be the answer you’re looking for. But how much does RPO cost compared to traditional hiring practices?
Well, the US Department of Labor says a bad hire can cost you 30% of your first-year salary. But for some businesses who deal with this day in and day out, it’s way worse, like hundreds of thousands of dollars when you factor in all the lost work and the hassle of starting over.
Especially for a US or UK small business, these mistakes can hurt. You’re probably already stretched thin, and you don’t have a big HR team to help you sort through resumes. So, you end up with empty roles, people not meeting deadlines, and everyone leaving.
Because of these pain points, getting some help is beneficial. Quality recruitment service providers can do the legwork for you. This process is called RPO. An agency can find the right talent, so you don’t have to wade through a pile of applications, saving you a lot of time and money.
And if you’re struggling to find local talent, offshore RPO service providers can help you find the right candidate in countries outside your own, and they’re usually more affordable, and a lot of times even more skilled than the ones in your area!
But how does the entire thing work? How big are the benefits? And how much does RPO cost? These questions will be answered in this article.
The Hidden Costs of Inefficient Hiring
Before we answer the question “How much does RPO cost?” and discuss its benefits, let’s first take a look at the average cost that growing UK and US companies usually spend on the hiring process.
A lot of companies think they’re saving money by rushing through hiring, but they’re really shooting themselves in the foot. It’s not just about the salary you end up paying someone who doesn’t work out. It’s way bigger than that.
You’ve got the ads, the recruiters, the background checks, all that stuff. Then you have to train them, and they’re probably not hitting their stride for a while. And if they’re a letdown, they’re dragging everyone else down, too.
The Society for Human Resource Management (SHRM) revealed that the average cost is $4,700, but that’s just scratching the surface. When you factor in all the lost time and productivity, it can easily balloon. The longer you take to fix the problem, the more it bleeds you dry.
Here’s where it really hits you:
But here’s the good news: you don’t have to deal with this. Good recruitment agencies can make a difference.
How Much Does RPO Cost: How It Saves You Time and Money
For a small business, every penny and every minute counts, especially when you’re bringing someone new on board. You can’t afford to waste time scanning piles of resumes or gamble on someone who just isn’t the right fit.
A quality recruitment service provider does the work for you. Here’s the breakdown of how they make your life easier and save you time and money:
1. Pre-vetted talent
Finding the right skills locally can be a nightmare, especially if you’re in a specialised field. Offshore recruitment opens up a whole, bigger pool of talent. In fact, professionals in emerging markets are just as skilled, if not more so, than those in developed countries, particularly in tech, finance, and customer service.
Offshore recruiters also filter out all the unsuitable candidates. They check skills, experience, and even whether the person will fit in with your company culture. You just get the best of the best. You know how only a small fraction of applicants are qualified? They fix that.
For example, agencies like All In Outsourcing that specialise in finding offshore talent handle all the initial checks, so you’re not wasting your time. The agency uses a rigorous vetting system to provide UK and US businesses with pre-qualified offshore talent, reducing the screening process significantly.
2. Expert matching process
Quality recruitment service agencies are matchmakers that offer tailored recruitment. They get to know your company and your needs, and then use their know-how and tech to find people who are a perfect fit. Whether you need someone full-time, part-time, or just for a project, they can find the right person for the job.
This also means you’re more likely to find someone who’ll stick around. This leads to fewer people quitting, which is a big win. Companies that use these customised solutions see a big jump in employee satisfaction, which leads to happier, more productive teams.
3. Faster hiring cycles
Offshore recruitment agencies speed things up. Time is money, right? A good recruitment agency can fill positions much faster than you could on your own. Those top candidates get snapped up quickly, so you need to move fast. Plus, think about how much money you lose every day a position is empty. They cut hiring times by a huge chunk, sometimes almost in half.
4. Long-term retention
They focus on keeping people happy. It’s not just about filling a position, it’s about finding someone who’ll stay. They look for candidates who are a good long-term fit, reducing turnover and saving you the hassle of constant rehiring.
Remote talent hired through agencies tends to stay longer compared to ones you would hire yourself. It’s because they focus on that long-term fit, which means fewer headaches for you down the line.
5. Cost reduction
Finding the right people locally can be tough, and when you do find them, the price tag can be expensive. That’s why looking beyond with offshore RPO comes in handy. So, how much does the average RPO cost? It varies depending on factors like the field and the country you’re hiring from, but there are companies that see recruitment savings up to 80%.
You’ll also be saving a lot when it comes to the salaries of your offshore employees. This is because the salaries in countries like the Philippines are usually lower due to the lower cost of living there. You can also grow your offshore team without huge overheads like office spaces and expensive equipment.
This allows your business to scale easier. Agencies like All In Outsourcing make this process even easier, letting you scale your team up or down as needed, so you’re not stuck paying for people you don’t need.
The Quality of All In Outsourcing
When it comes to choosing a recruitment service provider, you’ve got a ton of options out there, so why even consider All In Outsourcing? Well, it’s not just another online job board throwing resumes at you. The agency takes the time to figure out what you truly need. Here’s what you can expect from All In Outsourcing:
- Tailor recruitment solutions: You know how frustrating it is to hire someone who looks good on paper but just doesn’t mesh with your team? They don’t just send you anyone, they dig deep to find people who have the skills and understand your company’s vibe.
- Proven track record in cost savings: How much does RPO cost? Ask the businesses that have tried hiring offshore talent with All In Outsourcing. They found talent that was not only technically sharp but also understood their company culture. And get this, they cut their hiring costs by 80% and their teams started running smoother than ever.
- Reliability as an offshore recruitment partner: A lot of these agencies are just churning out candidates, hoping something sticks. All In Outsourcing vets candidates, making sure you’re getting top talent. You know you can count on them to find the right professionals (without the upfront costs—absolutely zero-cost recruitment), and that takes a lot of stress off your plate.
Instead of spending countless hours trying to find the right people, All In Outsourcing already has a network in place. They know where to find the top talent, and they know how to screen them, so you get people who are not just skilled, but also a good fit for your company culture.
In Closing
So, what should you do? First, take a hard look at how you’re hiring right now. Are you spending way too much time and money on it? Compare that to how much RPO costs. If the answer’s yes, then it’s time for a change. If you’re serious about saving money, check out offshore recruitment.
Some companies specialise in this, like All In Outsourcing—they can help you put together a tailored strategy that saves you time and resources. Don’t just keep throwing money away on bad hires. Take control and make a change. Get started today and learn more about offshore recruitment from us at All In Outsourcing.