Some companies choose to have their in house HR department in total control of recruiting. They are in charge of taking care of every task in the process and in addition the company is faced with a number of costs associated with recruitment. Some of the important factors to take into consideration when calculating cost per hire with this approach are:

• · Job fairs, college recruitment, advertising, and job board posting and access costs.
• · Hardware that needs to be added in for candidate screening, from computers, to resume
     search programs and phones
• · The costs associated with marketing open positions
• · All training, on boarding and turnover expenses
• · Travel costs
• · Recruiters and managers salaries

HR departments are often faced with a heavy work load and the recruitment process demands a lot of invested time in order to find the best candidates for each position. In order to allow them to focus on their core responsibilities that will continue to keep the business moving forward, a company often chooses to outsource their recruiting. They do so through either a contingency or recruitment process outsourcing (RPO) agency. With a contingency recruiter they charge nothing until the position is filled but many find that this approach can be expensive for their company, costing anywhere from 15-30 percent of those hired salaries.

The companies who chose to partner with an RPO agency have found that they are able to get ahead of the competition using the specialists with the experience and the tools to find the best candidates to fill their positions. A 2009 study conducted by the Aberdeen Group found that 62 percent of the organizations that they surveyed who had used this outsourcing approach were able to significantly reduce their cost per hire while hiring valuable candidates for their company. RPO providers, such as Hire Velocity, have the ability to drive down recruiting costs for companies by as much as 50 percent. As an RPO agency Hire Velocity offers to do as much or as little of the recruitment process companies they partner with need. The Aberdeen Group study of roughly 200 companies also revealed that 77 percent of those who were using RPO were happy with the results and would recommend it to others. Outsourcing with an RPO agency provides results of hiring quality candidates that will add value to your company as well as have results that will significantly reduce cost per hire.

The annual RPO Summit was held earlier this week in Las Vegas. The RPO Summit brings together executive recruitment and talent acquisition decision-makers in the single largest gathering of the year. Hire Velocity was in attendance this year and had a great time meeting others in the industry.

We had a great time networking with RPO (Recruitment Process Outsourcing) buyers and with other successful RPO firms in the industry.  It was especially beneficial to hear live from so many of the large enterprise buyers regarding how their relationship works and the tweaks that they have made along the way.  The Summit enabled all of us to learn from each other, share insights, and work on challenges facing the industry as a whole.

This year we showcased our Hiring Suite of Services, our unique combination of recruiting technology, process, and people. The Hiring Suite of Services includes services such as Active Sourcing & Screening, Passive Candidate Development, Name Generation, Life Cycle Management, On Demand RPO, Project RPO, and Full RPO.

In an effort to document the wonderful experience at the RPO Summit, we have added a collection to our Flickr page with pictures taken during the event.

What is it?

Active sourcing and screening is a sourcing strategy that Hire Velocity uses to find qualified, available, and interested candidates. Hire Velocity uses several different techniques to find a wide array of candidates that best fit your position’s description. We have access to over 200 job boards and have content partnerships in place with over 5,000 job-oriented websites.  This gives us access to a large pool of candidates actively looking for a job. We also utilize social media such as Facebook, Twitter, LinkedIn, and blogs to find candidates that have the skills needed for our client’s positions. For an even more thorough search, we use our proprietary sourcing tools and our client’s application tracking system to search through resumes and find qualified candidates.

Upon identifying qualified candidates from our extensive searching techniques, we will telephone screen each candidate to assess his or her skills, education, and experience.  The result is a list of qualified, available, and interested candidates for your open job positions.

How is it used?

Active sourcing and screening is used to find qualified, available, and interested candidates for positions that our client’s would like to fill.

Why would an organization use it?

It can be time consuming and expensive to source and screen a big pool of candidates and narrow it down to only the qualified, available, and interested ones. Hire Velocity has the resources and experience to be able to efficiently find candidates that meet our client’s specific needs and wants. Active sourcing and screening can save you time and money by driving down your recruiting costs by as much as 50%. We believe in speed and quality and pride ourselves on the ability to deliver quality candidates fast at a reasonable price.

Recruitment Process Outsourcing, also known as RPO, involves a company turning all or some of its hiring duties over to an external company. The external company, an RPO, has the task of finding a specific number of employees using a list of specific needs and a timeframe set by the company. For example, Hire Velocity was tasked with hiring over 900 assistant store managers and bi-lingual sales consultants over the period of 12 months for a major telecommunications company. Hire Velocity saved this telecommunication company about $260 per hire made, saving the company a total of about $236,340.

Many companies are left wondering whether it would be best for them to do the hiring internally, through the use of a contract recruiter, or use an RPO to do some or all of its hiring tasks. The company needs to ask itself if it can handle the increased workload of hiring a large amount of employees in a specific time frame. It is important for the company to consider all of the steps in the hiring process. The first step is active sourcing and screening, which is manually going through its applicant tracking system, job boards, and social networks to find potential applicants. Then the company must screen every applicant to ensure that they have the skills, education, and experience that the company is looking for. These two steps alone can often be overwhelming for a company that is looking to hire a lot of qualified candidates in a specific time frame.

This is where an RPO can help relieve the stress of mass hiring from a company. A company can choose to have an RPO do some of the hiring tasks, called RPO On-Demand, or have the RPO take over the whole hiring process, called Enterprise RPO.  For example, a major home improvement store company hired Hire Velocity to do diversity sourcing and screening. Hire Velocity used its resources, including over 200 job boards and 5,000 content partners, to source potential candidates using the needs and wants of the company.  Hire Velocity then telephone-screened each potential candidate to make sure his or her skills, education, and experience met the needs of the home improvement store company. This process led to 49 bi-lingual store managers and human resources managers being hired.

Recruitment Process Outsourcing can be a great tool for a company to take the stress out of hiring and reduce costs by up to 50%. However, it is up to the company to evaluate its needs and resources to see if it would be beneficial to hire an RPO or do the hiring internally. With an RPO, every task is managed for the company and all tools are supplied.  With a contract recruiter, the overall work must still be managed internally as well as all tools needed to do the job.  If you’re looking to do volume hiring quickly in an efficient and cost effective manner, the RPO may be just the solution to your current hiring challenges!

What is it?

Passive Candidate Development is a sourcing strategy used to find quality candidates who are currently employed, not actively looking for a new job and who have a particular desired skill set. Passive search is often used when candidates cannot be found by actively posting a job, hosting a job fair or searching for posted resumes of individuals who are job seeking. This entails identifying a candidate list from competitive companies and proactively calling on those candidates to present the new opportunity.

How is it used?

By directly sourcing management positions from targeted competitors within a similar industry and geography focused areas.

Why would organization use it?

The Department of Labor says that 84 percent of the workforce is made up of Passive Candidates.  With Passive Candidates making up the majority of the work force, it is important for an organization to utilize this recruiting tool.  Using this approach is popular among hiring managers who specifically know what they want in a candidate.

There are many benefits to using this approach.  First being it saves time and money.  It is very costly for a company to take on a new employee that needs extensive training, with this approach minimal training is necessary.  Because the candidate is already an expert in that field, they are highly knowledgeable about that position.  Due to the high cost of training, having to provide minimal training save an organization enormous amounts of money.  Training can be especially time consuming, especially if they are new within that field.  This approach allows an organization to focus on more pressing matters other than training.  Also an organization can be assured the job expectations are being met. Organizations use Passive Candidate Development to fill management positions.  Since they are some of the most important positions within a company, they need to be filled with candidates that will get the job done.

Since the candidates are passive, they are currently not looking for a job, which makes it difficult to identify them.  The candidate will not be utilizing a job board to post their resume or any forms of social media to display their interest in a new position.  Also there are no other available options until you know who the person you are seeking is. Another drawback is making the connection since traditional communication is hindered it is important to use alternative ways.  A lot of RPO (Recruitment Process Outsourcing) companies rely on cold calling, in which scenarios will be created to first find out who the person is as well as make initial contact with them.

Passive Candidate Development will provide an organization with a high caliber of skilled, quality, and qualified candidates.

While Salesforce is not an applicant tracking system, by utilizing its extensive database of applications, Salesforce can be equally as valuable as a Candidate Relationship Management tool. The PowerDialer application uses a powerful telephony tool, changing the way you reach out to candidates. For high-volume recruiting environments, the application can increase call efficiency by up to 400% through automatic updates of activities, automatic pre-recorded voicemail tool, and their powerful auto-dialer feature.  Other applications such as Jobscience allow recruiters to distribute job openings and manage resumes all within the Salesforce platform.

Organization is fundamental in recruiting and that is where the Customer Relationship Management aspect of Salesforce comes in. By embracing Salesforce’s activity and task management features, recruiters can create a more organized and efficient workflow while keeping up a fast pace.

The true value of accurate candidate tracking truly adds to a more pleasant candidate experience. Qualified candidates are more likely to apply to a requisition after speaking to a recruiter that is familiar with them and any previous conversations they may have had.

Byron West
President
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