Here are some fundamental differences between staffing and RPO services:
● Scope: Staffing agencies only play their part in the recruitment stage. On the other hand, an RPO firm provides comprehensive hiring solutions that involve hands-on assistance across the hiring process.
● Focus on client policies: In staffing, there is minimal focus on adhering to company recruitment policies while referring candidates whereas RPOs immerse themselves in understanding the client’s policies before recommending potential hires.
● Process: RPO is a data-driven process that utilises the latest technology for scouting the relevant talent and meeting agreed-upon SLAs. In contrast, staffing is a rudimentary process that is not as formal and adept at meeting complex hiring needs.
● Cost efficiency: A staffing agency usually charges 25-30% of every recruited candidate’s compensation package. On the contrary, RPO companies operate under strict SLAs and charge a fixed sum making them a more cost-effective and productive method.
● Quality of hires: Staffing firms are only suitable for short-term hiring needs as the quality of hires cannot be guaranteed in such cases. RPOs focus more on sourcing quality candidates that possess adequate skills to meet the job role requirements for the long term.
● Approach: RPOs offer a more proactive approach to their clients in maintaining a healthy and productive workforce by providing regular inputs and consultations regarding industry trends and talent pool. Staffing agencies do not provide such comprehensive assistance and consider their main job done after the offer proposal stage