Recruitment Process Outsourcing (RPO) Recruitment and Managed Service Providers (MSP) both aim to improve the hiring efficiency of your organisation by relieving the complications of managing the organisation’s resourcing needs. But what do these two terms mean and what is the difference between RPO and MSP?
RPO recruitment is when an organisation chooses to transfer all or part of its recruitment process to an external provider, such as Omni. That RPO provider can take control of areas such as candidate sourcing, candidate screening and candidate onboarding, or alternatively provide you with a full end-to-end solution. To achieve the best results possible, they will fully embed themselves within your HR or Talent teams, taking onboard the brand values and culture. The candidates themselves won’t see any difference. RPO can easily be scaled up and down or used for projects only, ensuring that an organisation doesn’t waste resources during slower points of the year.
Both RPO recruitment and MSP providers can dramatically reduce the amount of time you spend managing a hiring process and save you money when compared to partnering with a tradition recruitment agency.
MSP offers a similar recruitment proposition but focus entirely on contingent workers. This term includes temporary workers, consultants, contractors, freelancers, Statement of Works (SoW) and other non-permanent workers who work for an organisation. An MSP will take over the management of this contingent workforce focusing on cost management, process efficiencies and ensuring that the organisation remains compliant in its treatment of such workers whilst staying true to the values of the brand. Workers may be supplied by a network of different agencies, but all will go through the MSP who acts as the liaison and supply chain manager.
The most obvious difference between RPO and MSP recruitment is the type of worker they supply to an organisation. RPO providers solely focus on finding the ideal long-term permanent employee, whereas an MSP will find you the perfect talent to fulfil a temporary or contract need.
An MSP sources temporary workers for an organisation by working conjunction with third parties or agencies. 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. The MSP recruitment partner you’ve chosen to work with will present the suitable candidates to you (from both their search and the agencies’ searches) and you’ll make your candidate selection. This approach ultimately consolidates supply and invoicing.
In contrast, an RPO recruitment provider will source candidates themselves. To do so, they will use a multitude of different talent attraction methods including a search of their pre-existing database, social media campaigns, LinkedIn searches and extensive industry contacts. As well as engaging active applicants, an RPO recruitment provider will also contact individuals who they have identified as having the necessary experience and skills to succeed in the role, even if they aren’t actively looking for a new job. They keep track of all their potential candidates using Applicant Tracking System (ATS), such as Omni’s Appellia recruitment technology.
The most obvious difference between RPO and MSP recruitment is the type of worker they supply to an organisation.
Both RPO recruitment and MSP recruitment offer valuable solutions for organisations looking to streamline their hiring processes and improve efficiency. While they share similarities in their goal to optimise recruitment, the key differences lie in the type of workforce they focus on and their sourcing methods.
RPO recruitment is ideal for organisations seeking to enhance their permanent hiring processes, with providers like Omni embedding themselves within your organisation to deliver tailored solutions. On the other hand, MSP recruitment excels in managing a contingent workforce, offering comprehensive oversight of temporary and contract workers.
Ultimately, the choice between RPO and MSP depends on your organisation’s specific needs. Some organisations may even benefit from implementing both solutions to cover all aspects of their workforce management. By leveraging the expertise of RPO recruitment providers for permanent hires and MSP recruitment for contingent workers, businesses can create a holistic approach to talent acquisition and management.
As the recruitment landscape continues to evolve, staying informed about these solutions and their benefits is crucial for organisations aiming to maintain a competitive edge in attracting and retaining top talent. Whether you opt for RPO recruitment, MSP recruitment, or a combination of both, these strategic partnerships can significantly enhance your hiring capabilities and contribute to long-term organisational success.
