Hiring can be one of the most time-consuming and expensive challenges for small businesses. Between posting ads, reviewing CVs, and juggling interviews, traditional recruitment drains resources fast, and delays can affect productivity and team morale.
Recruitment Process Outsourcing (RPO) offers a smarter alternative. It allows businesses to outsource part or all of their hiring process to a dedicated provider. But can recruitment outsourcing be costly? Surprisingly, it can be far more cost-effective than you’d think, especially for smaller teams. In this article, we’ll explore how RPO works, what it typically costs, and how some providers are helping UK businesses save even more.
What is Recruitment Process Outsourcing (RPO)?
Recruitment Process Outsourcing (RPO) is when a business hands over some or all of its hiring responsibilities to a third-party provider. Instead of managing everything in-house, an RPO partner can take care of specific tasks like sourcing candidates or screening CVs, or manage the entire recruitment process from start to finish.
RPO is more than just a staffing solution; it’s a strategic partnership that helps businesses hire better, faster, and more efficiently. Some of the key benefits include:
- Faster hiring times, thanks to proven processes and dedicated recruiters
- Access to recruitment expertise, technology, and talent networks you may not have internally
- Reduced workload for internal teams, freeing up time to focus on core business
- Better candidate quality, which can lead to lower turnover and stronger performance
One of RPO’s biggest advantages is its flexibility. It’s not just for large corporations with high-volume hiring needs. In fact, many RPO providers tailor their services to suit small and growing businesses. However, a few common misconceptions still exist, such as:
- “RPO is only for big companies” – Not true. Many small businesses benefit from scalable RPO models.
- “It’s too expensive” – As you’ll see later, RPO can actually reduce costs over time.
- “We’ll lose control of hiring” – A good RPO provider works with you, not around you. You stay in control of final hiring decisions.
The Real Costs of Traditional Recruitment
At first glance, handling recruitment in-house might seem like the more affordable option. But when you add up the time and effort involved, the true cost becomes much clearer, especially for small businesses without a dedicated HR team.
According to SHRM, the average cost per hire is around £3,500. That figure can climb even higher for smaller companies with limited internal resources. Beyond the direct costs, there are hidden expenses many businesses overlook:
- Time spent writing job descriptions, posting ads, screening CVs, and coordinating interviews
- Opportunity costs from roles remaining unfilled, leading to missed revenue or increased pressure on existing staff
- Poor hires, which can result in higher turnover and additional hiring cycles
So, is it more expensive to outsource recruitment? Not necessarily. When you consider the time saved, reduced downtime, and improved quality of hires, RPO often proves to be the more cost-effective route in the long run.
Can Recruitment Outsourcing Be Costly? Here’s What You Need to Know
One of the first questions businesses ask is: Is the recruitment process expensive with third-party providers? The answer depends on the model and the level of support you need.
Average RPO Costs
RPO providers typically charge based on one of three pricing models—cost-per-hire, monthly retainers, or project-based fees. According to Leaderstat, small businesses can expect to pay anywhere from £3,900 to £39,000 annually, depending on the number of roles, the complexity of hiring needs, and the provider’s experience.
A business hiring regularly for specialist or hard-to-fill roles will likely incur higher costs than one with occasional, straightforward recruitment needs. However, this upfront investment often brings significant savings over time.
Hidden Savings of RPO
While RPO might look like an added expense on paper, many of its savings are built into the service. Faster time-to-hire means less revenue lost due to unfilled roles. RPO providers also have access to extensive candidate networks, screening tools, and proven hiring systems, helping businesses avoid the usual trial and error.
Other cost-saving benefits include:
- Reduced opportunity costs from shorter hiring timelines
- Economies of scale, since providers can spread resources across multiple clients
- Improved quality of hires, reducing the cost of replacing poor-fit employees
These efficiencies often result in lower total recruitment spend, especially over time.
Big Cost-Saving Option
If traditional RPO models still seem out of reach, performance-based options offer a compelling alternative. These models skip the upfront recruitment fees entirely and only charge for the ongoing support of staff once they’re hired. This approach shifts the cost from recruitment to results.
For example, some providers now offer full-time outsourced staff for as little as £670 per month, with no recruitment fees, no long delays, and full support from sourcing to onboarding. It may sound unlikely, but for many small businesses, this kind of solution is already a reality.
All In Outsourcing: Your Zero-Cost Recruitment Solution
If you’re a small business owner looking to reduce hiring costs without compromising on talent, All In Outsourcing offers a practical solution. With over 12 years of experience connecting UK companies to top-tier professionals in the Philippines, we specialise in performance-based recruitment that delivers real value, without the upfront expense.
What We Offer
- Zero-cost recruitment: You don’t pay anything until your new hire starts—no placement fees, no hidden charges, just results.
- Affordable full-time support: Hire skilled professionals covering roles in marketing, admin, graphic and web design, CAD drafting, lead generation, and more.
- Qualified, English-fluent staff: Our talent pool is not only highly skilled but also culturally aligned with Western work environments, ensuring smoother collaboration.
- End-to-end hiring process: From sourcing and screening to interviews and onboarding, we tailor everything to your needs so you can focus on growing your business.
With All In Outsourcing, recruitment becomes a strategic advantage, not a financial burden.
Conclusion
Recruitment doesn’t have to drain your time or budget. Many business owners ask–can recruitment outsourcing be costly? In practise, it’s often the more affordable and efficient option, especially when compared to the hidden expenses of doing everything in-house.
RPO offers faster hiring, access to expert support, and reduced internal workload. And with zero-cost models like All In Outsourcing’s, small businesses no longer need to choose between quality and affordability. You get skilled, full-time staff without the upfront fees.
Why waste time and money on recruitment when you can hire top talent for less?