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A Comparison Between In-House Hiring And RPO

Are RPO Firms Gaining More Prominence?

Hiring is an important process for any organization as the right talent pool is one of the biggest assets for its success. Companies employ different methods for recruiting talent.  The two popular talent search methods include having an in-house HR team and hiring RPO firms. Each method has its own recruitment process and certain features that may or may not suit your business type. As hiring is a continuous process for an organization, choosing the right hiring solution is vital. For all the recruitment solutions available today, recruitment process outsourcing or the RPO model is gaining more prominence. An RPO firm is an extension of the employer and acts like its HR department. They take care of sourcing, hiring and take responsibility for the outcome.

Also Read: A Complete Overview On Recruitment Process Outsourcing

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How RPO Firms And In-House Hiring Works?

It is easier to decide on a hiring solution if you know how it works, and understand its features. So, let us delve into each one of them here.

In-House Hiring

An HR team in the office is a great idea when you want to have undivided attention.
The company will have to hire, train and maintain the HR personnel of the in-house team.
HR professionals recruited by the company will know the company culture, best fit talents, and other specific needs.
They can be additionally involved with tasks like employment engagements, employee/labor relations, resource planning and development, and risk management.
The HR team will have its entire focus on the business and better control over all the organization's employees.
They will be able to assign tasks quickly and easily chart workplace practices.
A full-time HR team also incurs other overhead costs like benefits and compensation.

RPO Firm

RPOs act as an external service provider who guides the companies in recruitment build talent pools, training, development, employer branding and workforce planning.
They have flexible packages to manage the HR responsibilities of a company.
They cover all hiring needs and help companies control HR expenditure.
RPOs can easily expand your team size at whichever rate you want it to be done.
They provide companies with additional time to focus more on business development.
RPO firms make use of recruitment technology for better analysis, recruitment forecasting, and reporting.

For better functioning of an organization, an in-house HR team and RPOs can co-exist. However, you can realign responsibilities such that the in-house team can focus more on internal affairs and strategic initiatives while RPOs can focus on the hiring process.

Pros And Cons Of In-House Hiring And RPO Firms

Understanding the pros and cons of each hiring solution will also make you better prepared to choose the right one.

Pros

Inhouse Hiring

The HR team is a part of the organization, and they will be more accepting of other employees than contractors.
They can easily collaborate with employees within the organization and collect a lot of input for strategic projects.
In-house teams can put in extra hours of work if need be.
Companies enjoy full control over the HR team.

RPO Firm

RPO services are more affordable.
They require minimal time for managing HR processes.
Companies can change the level of support as per their need.
They come with a wealth of knowledge on HR processes and recruiting.

Cons

Inhouse Hiring

Having an in-house team is more expensive.
Companies may not have enough projects to keep them occupied.
Companies will have to fend with rehiring processes if a trained HR professional quits the job.

RPO Firm

RPOs may not be included in other communication channels of the company.
Outsourcing to other countries can cause cultural differences.
Companies may not find it appropriate to outsource strategic and confidential processes to third parties.

RPO firms have ample experience, expertise, connections and use the right technologies that make human resource management sound very simple. Therefore, they are the best bet when compared to an in-house hiring team.

As the leading RPO firm, TechFetch, we provide top-notch services in hiring the right talents.We help lessen the burden of the in-house HR team and integrate with them to offer the best talent procurement plans. For more details, contact us today.

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