5 Reasons to Use a Blended RPO Model for Temp & Perm Hires

(1) Break down internal silos for a “total talent acquisition approach.” At many organizations, this is the scenario: Procurement engages a Managed Service Provider (MSP) for temporary hires, while the Recruiting department partners with a Recruitment Process Outsourcing (RPO) provider for permanent hires. By taking this silo-based approach to hiring, firms miss out on some of the flexibility, hiring best practice standardization and cost efficiencies found in a blended RPO model.

(2) The “War for Talent” isn’t just for full-timers anymore. Need a specific high-end (and probably) scarce skill set for that particular project? Today, you’re likely to find these in-demand employees among a select set of contingent workers. Such skilled contractors are highly motivated, but in short supply. Today, companies need to adopt the same kind of rigor to hiring contract employees and find better ways to engage this portion of the workforce… something a blended RPO model provides.

(3) Create a scalable and flexible “on time” model for recruiting. Demand for different skills varies with business requirements. By facilitating an on-demand recruitment model, you can act as a key enabler to staff the right type of hires, in the right numbers, and with the correct skills in the right time to meet these pressures. Plus, by using one blended RPO provider, you’ll standardize your hiring practices and free up your internal resources to focus on strategic talent management issues.

(4) You’ll reap the long-term strategic benefits. When a separation of contingent and perm hiring exists, it’s tough to develop a holistic workforce plan. To best align workforce planning with business strategy, you need one blended recruiting process to produce a transparent view of your firm’s workforce.

Plus, you’ll enjoy competitive differentiation and more engaged employees. Human capital is a key driver of competitive advantage. Since higher skilled workers are part of the contingent labor pool, companies that can successfully tap into it have a competitive advantage. Also, a streamlined contingent and permanent model creates efficiencies and provides more accurate matching between skills and jobs which means higher employee engagement.

(5) And of course the financial benefits. According to Everest Group, with a blended RPO model buyers can realize cost savings of nearly 25% as compared to using independent MSP and RPO providers. Other key levers of cost efficiencies include:

  • Better workforce utilization – approximately 10-15% savings
  • Better demand management – a single provider will help you identify which roles can be filled with contractors rather than expensive perm hires (approx 7-11% savings)
  • Lower service and vendor management costs – a reduction of vendor management costs by managing just one blended RPO vendor

Learn how Hudson RPO can help you with a blended RPO solution. Contact us today.

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