RPO India - The Benefits of RPO Continue to Evolve :

eCybergurus Inc.

The $3.2 billion recruitment process outsourcing (RPO) industry has grown
considerably in recent years, as it has changed from being primarily a costcutting measure to a full strategic partner that can provide workforce scalability
and analytics.
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RPO has taken employers from a reactive mode to a proactive strategy-building

mode, said Terry Terhark, president of talent acquisition solutions for ADP. We
expect RPO to grow as more and more companies are getting comfortable with
the strategy beyond just filling hard-to-fill jobs, Terhark told attendees June 30,
2015, in a concurrent session at the Society for Human Resource Management
(SHRM) 2015 Annual Conference & Exposition.
The core of RPO includes the complete recruitment life cycle from sourcing,
scheduling interviews, conducting background checks, creating offer letters and
even onboarding. In addition to the end-to-end recruiting function, RPO firms can
provide employers with analytics that are very challenging to get at, Terhark
said. RPO providers also offer specialized services in employer branding, building
talent pools, assessing candidates, diversity hiring and equal employment
opportunity reporting, as well as in bringing the latest recruiting technology and
long-term strategies to the table.
Companies deploy RPO for a multitude of reasons. It really comes down to what
is important to you in an RPO relationship, he said. Every RPO relationship is
uniquely different.
Terhark said that in the early days, companies were interested in RPO as a way to
reduce cost how can we reduce staffing agency spend? What Ive seen more
so now is scalability, how do we go up and down, how do we take advantage of
the technology available to us today, whether thats mobile, social or recruitment
technology?
Ricoh Seeing the Benefits
Victor Maciak, vice president of talent management at Ricoh Americas Corp.,
talked about how the decision to engage in RPO completely transformed

recruiting at the company. The office technology solutions company fills 7,000
jobs annually and has been working with ADP as an RPO partner for four years.
Formerly in human resources, but at the time a salesman for Ricoh, Maciak called
HR to express frustrations with the companys recruiting processes. He was told
to return to HR and fix it. Soon thereafter, he was told to look into RPO. So we
did. It took about six months of talking to companies, until we ended up with
ADP, he said. ADP currently supports about 85 percent of annual requisitions, a
third of which are filled by internal employees or through employee referrals.
Along with keeping up with scalable needs, the partnership between Ricoh and
ADP has yielded the following results:
An enhanced relationship between recruiters and hiring managers.
A reduction in cost-per-hire by 70 percent of the benchmark. It went down
dramatically, for the most part from no longer paying the sourcing agency fees,
he said.
Talent communities filled with 10,000 candidates from which to draw.
The number of total hires coming from referrals increased from 10 percent in
2014 to 13 percent currently.
Upgraded administrative onboarding processes. We used to hear complaints
about offer letters, that they were late, wrong and incomplete. Complaints every
week. I dont hear a word about this anymore, he said.

Source : www.shrm.org
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