Define metrics and establish processes that will help you assess the performance of your Recruitment Process Outsourcing (RPO).
An RPO solution can have a significant impact on your overall business. Outsourcing your recruitment has the potential to help reduce costs and time-to-hire, increase the quality of the talent you employ, as well as improving your internal recruitment processes.
In general, an RPO solution can play an important part in bringing your business one step closer to achieving your overall organisational goals.
Start by agreeing clear SLAs & KPIs. These should be aligned with your wider business objectives as this will help you to evaluate the RPO performance in the context of your overall business strategy.
What’s more, the KPIs should be set based on the services that your RPO partner provides. Typically these services will include the following:
Candidate assessment & testing
Reporting on KPIs and SLAs
A scalable team (to increase/decrease pending on business requirements)
Creating and managing talent pools
Governance & Oversight
Each of the above will be measured in different ways.
When discussing your reporting requirements with your provider, ensure you both agree on how you’d like your services to be tracked, measured and reported on.
Some of the most commonly used KPIs in the RPO world are:
Source of hire
Number of applications
Time to hire
Cost per hire
Quality of candidate pool
Number of hires
CV sent to interview ratio
Interview to offer ratio
Offer to acceptance ratio
Diversity of candidates
Employee referral to hire ratio
Some of these metrics inform you of the actual ROI on your RPO, while others will indicate which elements of your recruitment process should be further optimised and improved.
Along with the quantitative measures, you might want to track qualitative aspects of your service such as the experience of the hiring managers and candidates or even cultural fit. Collecting and recording feedback from your employees and candidates is necessary when gathering this information, however, the RPO provider can assist in the collection of this material.
Understanding and relating this data in the context of the wider business will help you to further optimise your hiring process and get the most out of your RPO partnership.
If you're wondering if RPO could be the right choice for your business, contact us via this form to arrange an informal chat. Our experts will be happy to talk you through different possibilities and help you evaluate if recruitment outsourcing is something that could suit your business.