As we face growing talent shortages, greater economic uncertainty, dynamic technology advancement and a desire for flexible work options we need to create choice and solutions for the complexity of today’s talent needs whether that be for 50 or 5000 hires per annum.
Workforce visibility, cost management, and compliance with regulation as well as internal processes such as D&I goals add to the complexity of managing a contingent workforce. Increasingly organisations are utilising the expertise that a Managed Service Provider (MSP) can bring through their knowledge of workforce technology, talent acquisition expertise and compliance competency to optimise these concerns.
MSPs are a convenient and cost-effective method of managing an organisation’s contingent workers through outsourcing. Which includes temporary, consultants, contractors, freelancers, Statement of Works (SoW) and other non-permanent workers for a company directly and through a supply chain.
An MSP will take over the management of this contingent workforce providing governance whilst focusing on contractor visibility, cost management, process efficiencies and ensuring that the company remains compliant in its treatment of such workers whilst staying true to the values of the brand. An MSP sources temporary workers for a company by working in conjunction with third parties acting as a supply chain. Using a Vendor Management System (VMS), they may both source directly for suitable candidates and reach out to an established network of staffing agencies with their criteria. From the options presented back you will select the individuals you wish to appoint, and they will ultimately consolidate supply and invoicing. Organisations find that by using an MSP they save money, reduce time-to-hire, improve access to talent, control risk, and make more informed decisions about resourcing. Performance can be tracked and reviewed resulting in better optimisation, enabling efficiencies and improvements.
Within the MSP umbrella there are also several different types of offerings. Here, we examine how the various types of MSPs can complement an RPO.
Master Vendor – this model uses one primary supplier, the MSP, to source temporary workers for businesses and manage its contingent workforce directly. As an organisation liaises with one single supplier, an in-depth understanding of the business’ needs is cultivated, and a quick engagement process is delivered.
It also provides a simple, consolidated solution including hiring process, management information, contractor data and spend / billing through a single point of contact structure and allows for improved forecasting. In the event that workers cannot be sourced, a Master Vendor will reach across a supply chain to other providers to ensure 100% of roles are filled.
Vendor Neutral – in this model MSPs and suppliers are separate and contingent workers are sourced from several agencies to fulfil a business’ requirements. Vendor neutral MSPs do not actively recruit, instead they manage their hires, using an agreed list of vendors and to an agreed rate card. This is to ensure complete neutrality, flexibility and competition to guarantee all roles are filled. This model offers a wide choice of suppliers and candidates; however, it may dilute your companies EVP as multiple agencies are going to market on your behalf. This model is often used in the public sector for fairness and high volume, low barrier to entry programmes.
Hybrid – combining elements of both Master Vendor and Vendor Neutral, the hybrid model offers clients flexible options for their staffing needs, which can vary depending on the business’ location, function and discipline, as well as the capacities of the suppliers involved. This model is often used to segment specific job classifications or business functions to a specialist supplier whist still sourcing for a full workforce from a supplier network or vice versa. A hybrid model offers clients the benefits of a supplier who can utilise a multi-talent supply chain while still personalising the service it offers.
Most organisations use a blend of permanent and contingent workers, which adds a further layer of difficulty to hard-pressed hiring teams. MSPs can be used in combination with an RPO. Here sharing the brand values and culture, candidate sourcing, screening / selection, and onboarding candidates through fully embedded recruiters within your HR or Talent teams, provides a flexible and cost-effective solution to all your workforce supply issues attracting the right people for business’ needs at the right time.
RPO, or Recruitment Process Outsourcing, is a strategic approach to talent acquisition where organisations outsource some or all of their recruitment processes to an external provider.
In traditional hiring, organisations typically manage recruitment processes in-house, from sourcing candidates to onboarding. This often requires significant time, resources, and expertise from internal HR teams or hiring managers. However, traditional hiring methods can sometimes struggle to keep pace with changing talent demands, especially in industries facing skill shortages or rapid growth.
RPO offers a holistic and strategic approach to talent acquisition. RPO providers like Omni act as an extension of an organisations brand, assuming responsibility for recruitment activities such as candidate attraction, sourcing, screening, assessment, and even onboarding. By outsourcing these functions to specialised experts, organisations can benefit from industry knowledge, resources, and technology to give access to the best talent at pace.
One of the key differences between RPO and traditional hiring lies in the level of specialisation and scalability offered by recruitment RPO providers. RPO partners often have dedicated teams of recruiters who specialise in specific industries or skill sets, allowing them to access niche talent pools and identify high-quality candidates more efficiently. Additionally, RPO solutions are highly scalable, meaning they can quickly adapt to fluctuating hiring needs, whether it’s scaling up recruitment efforts during peak periods or adjusting to changing market conditions.
Recruitment Process Outsourcing (RPO) can significantly enhance your Talent Acquisition strategy by providing specialised expertise, scalability, and strategic partnership. Here’s how:
Specialised Expertise: RPO providers have dedicated teams of recruiters who specialise in various industries, roles, and skill sets. These experts possess in-depth knowledge of the labour market, industry trends, and sourcing techniques, allowing them to identify and attract high-quality candidates efficiently. By leveraging their specialised expertise, RPO partners, like Omni, can access niche talent pools and ensure high-quality people for your organisation.
Scalability: One of the key advantages of recruitment RPO is its scalability. RPO providers can quickly scale recruitment efforts up or down based on your organisation’s hiring needs. Whether you’re experiencing rapid growth, seasonal fluctuations, or project-based hiring spikes, RPO can adapt to accommodate your changing requirements. This flexibility ensures that you have the right resources in place to meet demand without overburdening your internal HR team or sacrificing recruitment quality.
Cost-Effectiveness: RPO recruitment can offer cost savings when compared to traditional hiring methods. While there may be an initial investment in outsourcing recruitment to an RPO partner, the long-term benefits often outweigh the costs. RPO can help reduce time-to-fill, cost-per-hire, and turnover rates, resulting in overall cost savings for your organisation.
Strategic Partnership: RPO goes beyond transactional recruiting by forging a strategic partnership between the RPO partner, like Omni, and your organisation. At Omni, we become an extension of your employer brand and we work closely to understand business objectives, culture, and talent requirements. This collaborative approach allows RPOs to tailor recruitment strategies that align with your organisation’s goals. By working as an extension of your HR team, RPO providers can provide valuable insights, leading practices, and innovative solutions to help achieve talent acquisition objectives.
Recruitment Process Outsourcing (RPO) is a strategic approach to talent acquisition where organisations outsource some or all of their recruitment processes to an external provider, like Omni. The partner is known as the RPO provider and assumes responsibility for various aspects of the recruitment process, including candidate attraction, candidate sourcing, screening, assessments, interview coordination and onboarding.
Recruitment RPO is about leveraging specialised expertise, technology, and resources to streamline the recruitment process and improve hiring outcomes. Rather than relying solely on internal HR teams or traditional recruitment agencies, organisations partner with RPO providers to access a broader range of talent to enhance efficiency and drive better results.
The specific services offered by RPO providers can vary depending on the needs and preferences of the organisation. That’s the beauty of RPO. Some organisations may opt for end-to-end RPO, where the RPO provider manages the entire recruitment process from start to finish. Others may choose to outsource specific elements of the recruitment process, such as candidate sourcing or interview scheduling, while retaining other aspects.
There are several key advantages:
Access to Specialised Expertise: RPO providers have dedicated teams of recruiters who specialise in various industries, roles, and skill sets. This expertise allows them to identify and attract high-calibre talent more efficiently than internal HR teams or traditional recruitment agencies.
Scalability: RPO recruitment solutions are highly scalable, meaning they can quickly adapt to fluctuating hiring needs. Whether your organisation is experiencing rapid growth, seasonal fluctuations, or project-based hiring spikes, RPO can flexibly adjust to accommodate your changing requirements.
Cost Savings: RPO can offer cost savings compared to traditional hiring methods. By outsourcing recruitment processes to an external provider, organisations can reduce time-to-fill, cost-per-hire, and turnover rates, resulting in overall cost savings for the business.
Strategic Partnership: RPO recruitment goes beyond transactional recruiting by fostering a strategic partnership between the RPO provider and the organisation. At Omni, we work closely with our organisations to understand their organisation’s objectives, culture, and talent requirements, allowing us to tailor recruitment strategies that align with the organisation’s goals and values.
