RPO - A Solution for All Seasons

While not a new phenomenon, many companies are struggling with the general uncertainty of the economy and the implications on their most important resource – human capital.

Over the past two years, companies in the travel, leisure and entertainment industry have had to respond to a surge in consumer spending with a corresponding need to add employees in high volume. During this same period, companies in industries whose demand is more interest rate sensitive (ex. home building, building product, automotive, capital goods, etc.) have seen a rather rapid falloff in activity and a corresponding need to slow hiring and/or reduce headcount.

The point is that economic conditions are always in some state of flux and can change rapidly, with often radically different implications across industries. Managing through uncertainty has always been stressful and challenging. It is particularly difficult for HR to strike the right balance of being lean and efficient during slow periods while remaining well-prepared and properly resourced to respond timely and effectively when conditions change.

A relationship with a strategic RPO provider can provide the agility, flexibility, scalability and cost efficiency that is a “solution for all seasons”. In our 20+ years of assisting companies as partners in talent acquisition, Source2 has supported companies in all market conditions, from recessions to exponential growth.

What is RPO?

Recruitment Process Outsourcing, or “RPO,” refers to the transfer of all or part of recruitment functions to an external provider. This can include any combination of candidate sourcing and engagement, advertising, screening, interviewing, offer provisions, and even retention efforts.

The right RPO partner should deliver the technology and methodologies to fulfill a client’s recruitment requirements quickly and cost effectively. Importantly, the RPO partner unburdens the internal HR team from time-consuming tasks, allowing internal resources to focus on strategic priorities. This is particularly relevant in today's environment where HR teams have been tasked to “do more with less”, juggling multiple responsibilities with limited resources.

Why partner with Source2 for something as crucial as recruitment, especially now?

We specialize in high-volume, frontline recruitment, providing tailored solutions that adapt to changing needs. While we don't make hiring decisions, we streamline the entire process from sourcing to onboarding. Source2’s objective is to optimize our clients’ recruitment processes to reduce costs, increase the speed of hire, eliminate the opportunity costs of being understaffed, and rapidly scale (up and down) as business conditions dictate. With our laser-focused assistance on talent acquisition, our clients can confidently concentrate on strategic priorities such as retention, training, development, etc.

As illustrated in the graph below, the price per hire drops significantly as the number of annual hires increases, showcasing the cost efficiencies that can be achieved through our RPO partnership.

Fixed Cost vs. Variable Cost Business Models & Related Spend

In working with our client partners, Source2 emphasizes flexibility and cost efficiency.

We typically begin our partnerships with a pilot program, sourcing qualified candidates for a specific location or position type, allowing for a low-risk proof-of-concept. This trial period enables both parties to “test-drive” the relationship and discover how to define roles and responsibilities that best suit the new client. A typical pilot program runs for six months.

Recognizing that hiring needs can change quickly and may vary seasonally, our agreements are structured to be highly flexible and customizable. With respect to pricing, our model is “pay for performance”.  Our cost-per-hire fee structure means we get paid for the value we deliver when we deliver it, not in upfront fees or deposits like many other firms.

The Source2 model aims to provide cost efficiency through a lean and agile process supported by advanced technology and leveraging our clients' employer brand. Our tailored approach combines industry-specific knowledge with data-driven strategies to optimize every stage of the recruitment process. This means a higher volume of qualified candidates in less time and with less effort from your hiring managers.

These are just a few ways Source2 can optimize your recruiting as your RPO partner. Our specialized focus on frontline and high-volume hiring, combined with our flexible approach and cost-efficient model, sets us apart in the industry. To fully appreciate the potential benefits of partnering with Source2, we encourage you to calculate your current cost per hire for comparison. Our transparent fee structure and proven track record of reducing time-to-fill and improving candidate quality can lead to significant savings and operational improvements for your organization.

Let us show you how our tailored RPO solutions is a “solution of all seasons” in transforming your recruitment process and drive your business forward. If you want more information, reach out to us at solutions@source2.com or by completing our contact form, and a member of our executive team will connect with you.