Ask the following questions to make an informed decision about whether RPO is right for your organization
How will RPO improve business performance?
RPO reduces recruitment costs significantly – but it can do much more. Establish other performance metrics with your RPO partner to demonstrate how the arrangement will help you with: superior sourcing, better candidates, shorter time to hire, more consistent employer brand and increased employment engagement.
Are the financial projections accurate?
Take a critical look at any numbers submitted by the RPO provider. Look for assumptions or oversimplifications that may adversely impact your overall cost. Also agree the percentage of roles the RPO will fill themselves versus those they give to agencies; the more they fill themselves, the lower the cost for you.
How can I understand and control costs?
Take the time to evaluate what you spend today on recruitment and your average cost per hire. Average cost per hire equals total recruitment costs divided by the number of placements per year. It's also important to understand the entire cost structure proposed by an RPO provider, including monthly and variable fees.
What are the cultural ramifications of outsourcing?
Understanding how people might react to operational change is critical. It is essential that your RPO business partner has change management expertise: an RPO provider who has “been there, done that” can help you navigate the potential pitfalls and create a smooth transition that is received positively throughout the organization.
Is there protection in place for when business conditions change?
Depending on the roles and specific sector, there are also hiring peaks and lows for many organizations in New Zealand, especially for those with ambitious growth plans. Ensure you are not locked into a long-term contract with little or no flexibility to alter scope or the option to withdraw over time.
If the above questions are carefully evaluated, you should be confident that an RPO model will bring you value and that it is worthwhile to further explore and ultimately start an RPO solution to support your business growth in New Zealand.