Securing ROI from RPO ASAP
March 18, 2024

In the U.S., the market for RPO (Recruitment Process Outsourcing) has grown from $2.25B to well over $6B since 2016. There is continued growth predicted over the next 3 years by Everest Group and Staffing Industry Analysts. It's safe to say that companies across the U.S. of all sizes have realized the impact RPO can have on their business:

The potential ROI that can ensue is alluring, with some companies seeing returns 200% higher than anticipated or more when their RPO is coupled with BPO (Business Process Outsourcing) for administrative tasks like credentialing/background checks and payroll administration:

Securing returns like this isn't an anomaly — but it isn't a guarantee either.

Any client's ability to achieve ROI from an RPO program immediately hinges on the implementation phase.

The companies that meet their ROI goals make sure they choose the right RPO partner based on efficiency, cost-effectiveness, and flexibility (ability to scale up/down without interruption.

ROI from RPO: A 2-Way Street

As easy as it would be to say the success of any RPO implementation hinges solely on the commitment of the provider — it simply isn't true. For companies looking to secure ROI as quickly as possible with RPO, buy-in during the implementation phase of the project should not be overlooked.

The right RPO program should be able to ramp efforts quickly, generate a steady, reliable return on investment, and be able to scale and shift focus at a moment's notice — and the ability of any RPO provider to do so is hindered without 100% buy-in from the client.

Even a client utilizing a team of 4,000+ RPO Recruiters will face issues securing an ROI if they are unable — or unwilling to accept the increase in qualified candidates, or onboard them effectively.

Setting The Standard for Implementation

More than likely, the implementation stage will be the first time client teams (other than key stakeholders) communicate directly with the RPO provider's team. This is where the RPO team can "prove" to the client that they made the right choice.

If the implementation team does its job effectively, the RPO delivery team can run the program successfully right out of the gate — generating ROI as soon as possible.

During implementation, the RPO provider and team starts building out infrastructure, implementing project management governance tools, and tech that enhances efficiency, cost-effectiveness, and productivity. Once all of this is in place, the client is given proof through a wide-angle lens of the capacity and competency of the RPO plan enacted.

Implementation Consultants — Not Clerks

Rather than just following a checklist and facilitating the fastest implementation, a quality RPO Implementation team provides insight and options to advance the most effective implementation possible.

This involves auditing the goals/SLAs agreed upon, the current state of the program day-to-day, and offering suggestions to change/optimize the program that benefits both parties equally.

When an implementation specialist isn't just focused on fulfilling the requirements of a checklist — but is invested in the efficiency, cost-effectiveness, and flexibility of the program, clients are more likely to see an initial and continued ROI throughout the program.

Importance of RPO Employee Retention

RPO employee attrition is one of the leading concerns of customers. If the RPO team isn't stable — the results can be sub-optimal. Thus, the methods an RPO uses to source, select, and continuously support their staff is a crucial factor to consider when enlisting recruitment support through an RPO.

Sourcing RPO Through the Lens of Superior Employee Satisfaction

One of the keys to finding the right RPO is looking into their employee satisfaction. RPOs with the highest employee satisfaction will have the lowest attrition rates and be able to maintain and increase productivity with a set, stable, and satisfied team throughout the program's lifecycle.

Maintaining an Employee Satisfaction Score of 93% throughout even the most tumultuous times means that PSG clients can rest assured that the team assembled is dedicated to the client's success, their individual success, PSG's success, and an employer altogether and equally. Learn more about our team in the Philippines here.

Ensuring Success When Sourcing Personnel
The "Launch-Buffer" Approach: A Win-Win Scenario to Neutralize Attrition Issues

In a new and innovative approach, PSG offers a "Launch Buffer" period. The Launch-Buffer period provides security against early-stage attrition and/or performance issues, so that the client receives the best team possible.

During implementation, clients will receive additional delivery team personnel beyond the project's original scope at no additional cost. This mitigates any potential attrition that occurs in the pilot stages of the program.

The "buffers" — for all intents and purposes — are regular, functioning members of the team. They are given the same training, set the same goals, and complete the same tasks as the rest of the team.

Upon exiting the implementation phase without any attrition, the lowest-performing members of the team are unassigned-leaving only top-performing personnel in the originally agreed upon quantity.

Flexibility in RPO Implementation
Out of all BPO/RPO providers surveyed by SIA, 55% of all programs have shifts to the scale/scope within the first 90 days

As anything in business goes, "if you're making plans, write them in pencil." Exceptional change communication management can be the difference-maker during project implementation.

With proper change communication management, the implementation team can assure that everything is not only running smoothly, but that everyone is connected, communicating, and expressing concerns, issues, or bottlenecks regularly to manage any risks during program launch.

If project scope shifts aren't addressed properly, clients risk their potential ROI, and may withdraw altogether, resulting in a net-loss for all parties.

The best way to avoid the potential for disruption is finding an PRO provider who focuses on flexibility in their plans.

PSG clients receive an implementation team well-versed in change communication management, ensuring implementation is a period of scaling up efficiently, and addressing any issues head-on with open communication, and proactive strategies.

RPO Program Configuration

The most effective RPO operations work like a LEGO set — the pieces are all arranged to build a specific system, but they can be rearranged to take just about any form the client wants.

RPOs that offer custom solutions with little to no additional fees for change in scope are a priority for most companies, as the demand for candidates fluctuates greatly.

There should be processes established during implementation that address areas that may have been overlooked or underestimated. Once these areas are identified, a flexible RPO will allow for changes to the original plan that meet the needs and financial constraints of the client. With those needs met, the plan can continue, and an optimal ROI can be realized in the shortest time possible.

70% of PSG clientele surveyed report seeing ROI immediately
Best Stats for Rating an RPO

Outside of reductions in cost-per-hire, time-to-hire, and overhead, looking towards an RPO's previous clients is the best way to vet their ability to maximize ROI.

Clients should seek out:
  • Avg. client retention within the first 90 days
  • Percentage of clients based on referrals
  • Examples of Standard SLAs for the Implementation team, % of SLAs met
  • Percentage of clients who ended contracts, and renewed later on

PSG Global Solutions maintains a net promoter score of 77 (22% higher than industry average) and has been given Diamond-Status awards for their place on the ClearlyRated Best of RPO list for 5 years running. This list is based 100% off client feedback and surveys and is one of the biggest pride points as a company.

We believe in our people and proprietary tech to be the best in the industry, and a main driver of our success with clients year after year. Learn more about our tech here.

In Conclusion

Securing an ROI from RPO immediately is not a given. It takes effort from both parties. Assuring proper implementation is the best way to deliver ROI from RPO in the pilot stages of the project.

An RPO should have teams dedicated to implementation, adherence to SLAs and implementation schedules, the ability to flex plans when they change, and an outstanding record of accomplishment with clients and their employees alike.

Finding a provider that meets these criteria doesn't need to be difficult — and you don't have to look far.

PSG Global Solutions has the fastest-growing worldwide network of recruitment professionals. As such, PSG clients have an added luxury: being able to maintain hyper-specific and intentional personnel assignment to limit attrition across accounts.

Get in touch with PSG today, and we can build a plan to help you Secure your ROI through RPO ASAP.

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