What are the different types of Recruitment Process Outsourcing (RPO) models?

When it comes to the simple question, ‘how does RPO work?’, there is no one-size-fits-all answer. There are three main recruitment process outsourcing (RPO) models, and each one can be tailored to meet your unique needs. The best option is to work with an RPO provider to work with your team to determine which model best suits your organization.

In this article, we're going to provide an in-depth overview of the three different types of RPO models and how they can help your organization.

How many types of RPO are there?

There are three types of recruitment process outsourcing models: Enterprise RPO, On-demand RPO, and Hybrid RPO. Each model has its own unique strengths and approach. For more details on how RPO recruitment process outsourcing works, visit our guide.

Here is a comparison table for each of the RPO models.

Comparison Table of RPO Models

Enterprise RPO

Enterprise RPO, sometimes called Traditional RPO or Full-Service RPO, involves a long-term RPO partner taking on all your recruitment needs. This model is best suited to businesses looking for support with complex, long-term talent acquisition strategies and/or high-volume recruitment. Enterprise RPO services will see your outsourcing partner manage the entire recruitment process from start to finish.

Scalability and Agility

One of the benefits of Enterprise RPO is the ability to be scalable and agile. RPO partners are able to scale recruitment efforts based on fluctuating hiring demands. If your team needs to suddenly hire a large number of employees, then it's possible for your RPO partner to scale accordingly. For instance, at AMS, we supported a global e-commerce company to hire 175,000 US-based warehouse employees within just six weeks, demonstrating the scalability of an RPO model.

Skills-Based Hiring

Enterprise RPO providers excel in skills-based hiring. They use their industry knowledge and market insights to identify and attract talent with the right skills. They often have access to a wider talent pool and use unique approaches, such as recruiting from adjacent industries. This can allow RPO partners to find people with the necessary skills to meet your strategic staffing goals.

Internal Mobility and Talent Development

Internal mobility has the dual benefit of increasing employee engagement and retention while also filling skill gaps. The right RPO partner can play a key role in accelerating internal mobility. Despite a decreasing trend in internal hiring, RPO providers can assist with creating internal mobility programs and make it easier for existing employees to find new, rewarding roles within the organization.

Employee Value Proposition (EVP)

A strong Employee Value Proposition (EVP) helps to attract and retain top talent. Enterprise RPO providers help develop and communicate an authentic and compelling EVP, which can significantly improve the quality of hire and reduce attrition rates. For example, AMS helped Synchrony establish their reputation as a top employer by focusing on their culture and candidate experience.

Diversity, Equity, and Inclusion (DEI)

DEI is a fundamental aspect of modern recruitment strategies. RPO partners provide the insights and expertise needed to build a more diverse and inclusive workforce. They conduct DEI diagnostics to identify areas for improvement and implement inclusive recruiting practices to ensure diverse candidate slates.

Technology Integration

RPO providers use the most modern HR and recruiting technologies, such as AI technology. Since your RPO provider is specialized in the recruitment space, they will have strategies, training, and experience to use that technology to your advantage. At AMS, we helped McDonald’s innovate with a voice-activated job search, reducing application times and positioning McDonald’s as a tech-savvy employer. An RPO provider comes equipped with the latest technology and training to accelerate recruitment.

Improved Hiring Metrics

Improving key hiring metrics like time-to-hire, cost-per-fire, and quality of hire is the goal of Enterprise RPO. Drawing on a wealth of experience and specialized resourcing, RPO providers adopt a data-driven approach to insights and use advanced source techniques. By working with an RPO provider, you get the benefit of access to a wider, more diverse talent pool, streamlined processes, and achieve better hiring outcomes.

For more information on how Enterprise RPO can optimize your recruitment strategy, explore our digital whitepaper, 'Partner Up to Power Up,' or contact us today for dedicated support from an outsourcing partner you can trust.

On-demand RPO (or Project RPO)

On-demand RPO is an agile and flexible alternative designed for organizations not looking for a lengthy outsourcing partnership commitment. Typically lasting between six months to two years, On-demand RPO partnerships address short-term talent needs on a project-to-project basis amid rapidly changing business demands. This may be to quickly bridge an internal talent resource gap during uncertain times when hiring is fluctuating, or to support with a specific urgent request – like staffing up a newly-opened office.

Agility and Flexibility

A key benefit of Project RPO is its agility. It allows organizations to scale recruitment efforts up or down based on immediate needs without requiring a long-term commitment. This type of flexibility is a benefit to businesses facing hiring surges, expanding into new markets, or experiencing high growth. In a recent case study, we found that 75% of companies using Project RPO were able to fill positions in under 30 days, significantly reducing the time-to-fill compared to traditional hiring methods​​.

Efficiency and Cost-Effectiveness

If you're looking for a  cost-effective recruiting solution should consider Project RPO. You benefit from the expertise and resources of an established RPO provider without requiring a long-term commitment. This can be critical during periods of growth or change when internal recruiting teams may be overwhelmed and understaffed, but hiring additional internal resources doesn't make sense long-term.

Support for Market Expansion and High-Growth Goals

When it comes to market expansion or high-growth goals, Project RPO can be an ideal solution. Businesses benefit from the deep domain expertise that an RPO provider can provide – this applies to various industry, geographies, and skill-based recruiting. For example, during a hiring surge, AMS helped a global company fill positions in under 30 days, significantly improving their time-to-fill metrics.

Building Long-Term Capability

Project RPO may be optimal for short-term hiring needs, it can also be used to build long-term capabilities within an organization. Internal recruiting and HR teams can learn from Project RPO specialists, gaining valuable insights and experience that can be applied to future efforts. You should aim to find an RPO partner focused on a collaborative approach that not only fills current positions but also helps the over talent acquisition function at your organization.

For more information on how Project RPO can solve your short-term hiring challenges and create long-term value, explore our digital whitepaper or contact us today for dedicated support from an outsourcing partner you can trust.

Hybrid RPO

This model offers a tailored combination of both Enterprise and Project RPO services across the business depending on specific needs. It is quite common for an outsourcing partner to provide shorter-term, project-based support in one business unit or location, and full-service support in others. Hybrid RPO provides a versatile approach, allowing organizations to scale their recruitment efforts dynamically in response to changing business demands.

Tailored Flexibility

Combining elements of both Enterprise and Project RPO can benefit your organization by responding to the varying levels of recruiting needs across different departments or locations. One part of the business may require full-service for ongoing, high-volume recruit, while another business unit has an immediate, short-term requirement. Working with an RPO provider you can tailor the approach to allocate resources where and when you need them.

Scalability and Agility

Short-term demands don't need to overshadow long-term, strategic objectives. A best-in-class RPO provider will be able to balance short-term requirements, such as a surge hiring, while providing high quality support and expertise characteristic of Enterprise RPO models. For example, if a company faces a sudden hiring surge in one department, Hybrid RPO can deploy additional resources rapidly to manage the increased demand while maintaining recruitment support in other areas of the business​​.

Efficiency and Cost Management

The Hybrid RPO model offers some of the cost-efficiency benefits of Project RPO while ensuring strategic depth and support of the Enterprise RPO model. Striking a balance between these two aspects can help hit tactical, near-term hiring needs but still remaining strategic with continuous recruitment efforts.

Selecting the right RPO model

Choosing the right RPO model is a decision that can significantly improve your organization's talent acquisition strategy. Each model—Enterprise RPO, On-demand RPO/Project RPO, and Hybrid RPO—are useful in different situations and offer strengths that can cater to your business needs.

If you're looking for an RPO partner who you can trust, you should consider AMS. Contact us today to learn more about how can help your organization.