October 17, 2016

Making RPO Work for Your Entire Workforce

Do you use your Recruitment Process Outsourcing (RPO) provider for recruiting your non-employee labor (temps, consultants, etc.)? Doing so could provide better quality, greater efficiency, and less cost than the majority of temp labor vendors. Here’s why:

Dedication and quality – Within the contingent labor marketplace, we somehow developed a belief that more suppliers equals better supply. Yet, what if “more” means entry level recruiters, less dedication, lower quality of job candidates, and less knowledge of the client and their needs.  With a RPO model for non-employee labor, a client has dedicated talent acquisition professionals working for only them in a true partnership.  From a direct hiring standpoint, an organization with a strong RPO partner or a competent internal talent acquisition department is going to fill 90 - 95% of their openings without the use of search firms.  The same is true for contractors and consultants if you have the right team in place to get the job done.

Ability to leverage your employment brand - In almost every case, the client brand is a stronger tool in the recruitment of talent than the brand of any employment agency.  Even on a temporary basis, talent comes to work for the client organization, not the agency that represents them.  A RPO solution for contingent labor enables the client to leverage their employment brand and attract better talent at a lower cost.

Efficient and holistic look at your organization’s talent – How many organizations truly have a view into the talent that exists in their non-employee workforce?  What opportunities are being lost?  As contingent labor continues to grow to even higher percentages of the total workforce, organizations need to understand the talent they have internally no matter how they are employed. With an RPO model for contingent labor linked to your internal talent acquisition and development efforts, you’ll get that look at the big picture.

Cost – Think paying for the dedicated resources of a RPO provider plus a payroll mark-up isn’t going to be cheaper than the traditional agency or MSP model?  Trust me, you’ll find some hard dollar savings in this approach. Think about paying search fees versus a RPO model for your direct hiring.  Some of the same savings opportunities apply here.

One process / one voice – Even the best MSP programs still struggle with audits and compliance of their suppliers.  At the end of the day, it’s too many vendors with too many unique processes and procedures.  Contractors and consultants are paid in different ways at different times and are employed by multiple companies.  They have different benefits and different PTO policies. This is not a positive employee experience. Have OFCCP compliance flow-downs in your contract?  Wondering if the consultant you have working in your group should be an independent consultant or a W-2?  Exempt or non-exempt? Concerned about what the healthcare employer mandate means to your non-employee labor?  Think the 30 suppliers in your program are really all compliant in these areas? An RPO approach gives you a single, consistent solution.

Co-employment protection – Just like a MSP, RPO providers can educate and train your staff on how to manage a contingent workforce.  In a RPO model, the RPO provider or a third-party payroll partner will be the employer of record for all non-employee labor.  All of the protections you get with a MSP would still exist within an RPO model.

Tags: RPO, recruiting

Author
Mike Gamble

Mike doesn’t fit the typical “sales guy” mold. At first blush he might be the last person you’d expect but he’s the best person to lead business development. With a background in science, he knows the industry and our clients’ business from the inside. With a quiet demeanor he’s a great listener, capable of really hearing and understanding the problem that needs to be solved. Plus, like his deep-seated passion for his sports teams, Mike has an unyielding loyalty to the relationships he’s built over the years, always staying in touch and connected.

Mike’s extensive staffing background and even his sense of humor help him infuse different ways of looking at situations, welcomed by clients and colleagues looking for a creative, collaborative solution.

Mike has nearly 20 years of experience designing comprehensive talent acquisition solutions for leading healthcare and life science focused organizations. In his role, he is responsible for leading the sales effort across TSP’s full suite of offerings. Prior to TSP, Mike worked for Yoh, a leading staffing and workforce solutions organization where he held various leadership and sales executive positions. He holds a Bachelor’s of Science in Biology from Ursinus College and a Master’s degree in Business Administration from Saint Joseph’s University.

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