Reduce cost-per-hire with an RPO solution
We review the three main benefits of using an RPO Solution to reduce the cost-per-hire in this article.
Published: 17 September 2024
Article by: Rae Dixon
1. Tangible hard cost savings and a more cost effective solution
To begin with, even if your cost-per-hire is okay, a permanent workforce solution is highly likely create tangible hard cost savings, through economies of scale, volume/spend discounts and supplier negotiations.
Working with an external partner who is an expert in talent acquisition is likely to be more cost effective because they are buying candidate attraction solutions and technologies in much greater volumes.
2. Detailed ongoing visibility of cost-per-hire metrics, by skill, seniority or business unit
Secondly, an RPO could give you ongoing visibility of your cost-per-hire, ensuring your business doesn’t slip into costly habits. You could also monitor how cost-per-hire differs depending on skills, seniority, business units or locations, so you can look for ways to improve cost efficiency.
Beyond that, you could also work with your RPO partner to measure true cost-per-hire by looking into ‘time to productivity’; the cost associated with the time for candidates reach full productivity
3. Services to boost your attraction potential; spend less getting more applicants
Finally, an RPO can help you work on harnessing your employer brand to make it easier to attract candidates to your business, as well as retaining more engaged staff, which could reduce your staff turnover and mean you spend less in total on hiring.
There are far more ways to look at improving the cost of recruitment than just looking at a transactional level.
Ultimately, a permanent workforce solution will give you the tools and support to sustainably reduce your cost-per-hire so that your business is able to access the best talent before your competitors for the least amount of cost without sacrificing quality or time-to-hire.