6 Benefits of Modular RPO in a Challenging Economy

By Jo Taylor, Head of RPO, EMEA

Amidst a tumultuous economy, employers continue to face challenges in talent acquisition and are seeking nimble solutions that allow them to address hiring needs quickly. Despite layoffs in some sectors, job openings surpass pre-pandemic levels in nearly every industry—averaging 31% more vacancies than in 2019. This is compounded by three million people having dropped out of the labor force.  

Many organizations lack the in-house recruitment resources—in terms of personnel or technology—to respond to fluctuations in a volatile talent market. Plus, with skills gaps growing, internal talent acquisition teams are too stretched to effectively manage the candidate lifecycle. Consequently, employers experience dwindling talent pipelines and an increase in drop-offs and ghosting between offer acceptance and onboarding. 

No wonder 91% of hiring managers say they’re experiencing hiring challenges and 45% say they’re struggling to find qualified workers for open roles at their companies. Many organizations are seeking recruitment support in the form of modular RPO (recruitment process outsourcing) as a cost-effective way to augment their recruitment capabilities where they need it most.  

That’s why we’re thrilled to announce our new suite of modular solutions, Amplifiers. Amplifiers has a solution that can help augment your team to meet your short-term talent needs—while providing lasting business value.   

What is Modular RPO? 

Modular RPO, or variable RPO, is a strategic approach to managing the recruitment process in an ultra-focused manner. It involves outsourcing specific components of the recruitment process to an RPO provider, or as a supplement to an existing outsourced recruitment engagement, providing quick access to targeted and customized recruitment support. With a modular or à la carte approach, you choose from a range of services based on your requirements. 

Our Amplifiers include: 

  • Talent Mapping 
  • Talent Sourcing 
  • Recruiter On-Demand
  • Assessment Transformation 
  • Talent Diagnostic 
  • Sure Start: Retention and Onboarding Support 

Modular RPO vs Full End-to-End RPO 

Modular RPO differs from traditional enterprise RPO in that it allows businesses to select and customize the specific recruitment services they need, rather than outsourcing the entire process.  

The main differences include: 

  • Scope: Modular RPO focuses on specific parts of the recruitment process or short-term initiatives, while end-to-end RPO can cover the entire recruitment function. 
  • Duration: Modular RPO engagements are typically short-term, while end-to-end RPO is a long-term strategic partnership. However, many of our RPO partnerships at PeopleScout have started as short-term engagements.  
  • Technology Integration: End-to-end RPO often involves more extensive use of technology, including integration with other HR systems as well as customization. 

The decision between modular RPO and a full RPO engagement depends on various factors, including organization size, hiring volume, budget and strategic workforce planning. It’s essential to assess your specific needs and evaluate the benefits and trade-offs associated with each approach before making a decision. 

6 Benefits of Modular RPO

Here are six key benefits of a modular approach to RPO. 

1. Cost Optimization 

Modular RPO gives you greater control over your recruitment costs. You select specific recruitment services based on your challenges, enabling you to allocate your budget more efficiently by avoiding unnecessary expenses for unused services. In uncertain economic times, this is a more cost-effective approach that still lets you benefit from the expertise of an RPO partner. 

2. Scalability and Agility 

The business landscape is unpredictable, which can cause your hiring needs to fluctuate rapidly. Modular RPO provides the agility to scale your recruitment capabilities up or down based on demand. You can quickly adapt your recruitment efforts in response to market conditions, ensuring you have the adequate resources during high-demand periods and avoiding unnecessary expenses during slower periods. Plus, some of our clients have added Amplifiers onto their full RPO engagement—whether they’re partnered with PeopleScout or another RPO—when an extra boost is needed.  

3. Customization and Control  

Some organizations prefer to maintain a certain level of control over their recruitment process, particularly during uncertain economic times. With modular RPO, you can customize your recruitment process according to your specific requirements. Select the services you need, such as candidate sourcing, screening or onboarding support, while retaining oversight of other aspects of the recruitment process. This level of control allows companies to align the outsourced services with their internal hiring strategies and maintain greater mastery of their talent acquisition function. 

4. Strategic Focus 

By outsourcing specific recruitment functions to an RPO partner, you can free up your internal HR teams and hiring managers to focus on core business activities, such as talent development, workforce planning and organizational restructuring. By opting for a modular approach, organizations can collaborate with their RPO partner to design a solution that addresses their specific challenges and aligns with their strategic goals. 

5. Access to Technology 

RPO providers have access to advanced recruitment technologies and tools. Even with modular RPO, you can leverage these technologies for specific recruitment functions without investing in them for internal use. This is particularly beneficial in challenging economic environments where capital expenditures are carefully managed. 

6. Risk Mitigation 

In uncertain economic climates, modular recruitment solutions are a great option for organizations who are new to RPO. By opting for a more targeted and flexible approach, you can evaluate the effectiveness and value of the outsourced recruitment partner before expanding the engagement further. 

PeopleScout’s Amplifiers offer you the ability to optimize costs, maintain agility, streamline recruitment processes and focus on strategic priorities—while still benefiting from our 30 years of expertise as an RPO partner. The benefits of modular RPO align your organizational needs with our current economic realities. 

MODULAR Recruitment SOLUTIONS FROM PEOPLESCOUT

AMPLIFIERS: SCALABLE. FLEXIBLE. AGILE.

5 Ways Project RPO Can Boost Your Talent Acquisition Program Right Now [Infographic]

While the global economic landscape continues to fluctuate, many employers are looking for short-term talent acquisition support that can be set up quickly to gain agility in an unpredictable market. Rather than a full recruitment process outsourcing (RPO) solution, organizations are turning to project RPO. If you’re looking for recruitment support without making huge investment, PeopleScout can help.

Here are five ways PeopleScout’s Recruiter On-Demand™, can help you improve your recruitment outcomes without increasing your permanent recruiter headcount.

Check out this infographic to learn how to boost your recruitment agility with PeopleScout’s Recruiter On-Demand solution.

An infographic explaining the benefits of PeopleScout project RPO solutions, Recruiter On-Demand.

1. Save Time 

Recruiter On-Demand or project RPO can help you speed up your time-to-fill by handling all or part of the recruitment process. Typically, the implementation takes between two to four weeks, depending on the information we receive from clients, and we regularly exceed our rapid recruiter deployment schedule. 

2. Save Money 

PeopleScout’s Recruiter On-Demand solution rivals the capabilities and costs of traditional staffing agencies, but rather than a pay-per-hire model, it’s based on an hourly model, making it a cost-effective way to meet your talent needs. 

3. Reach Hard-to-Find Talent 

Project RPO is a great way to augment your in-house team by taking over the recruitment process for hard-to-fill roles due to skills shortages. Whether you need specialized IT, healthcare or manufacturing talent, our recruiters are assigned based on industry experience, not cost and availability. 

4. Gain Agility 

Recruiter On-Demand leverages our scalable recruitment teams and global delivery centers to help manage fluctuations in in hiring volumes, particularly for seasonal peaks, without the need for additional internal resources. Plus, we can seamlessly disengage once you fulfill your business objectives. 

5. Fill the Top of Your Funnel 

One of the common use cases of Recruiter On-Demand or project RPO is top-of-funnel sourcing. In this scenario, your ROD team works to fill the top of your recruitment funnel with more candidates. This gives your internal teams back time to review applications, interview candidates and make hiring decisions. 

Recruiter On-Demand SOLUTION GUIDE

How a Project-Based RPO Can Solve Your Toughest Talent Challenges

Recruiter On-Demand™: How Project RPO Can Solve Your Toughest Talent Challenges

Recruiter On-Demand™: How Project RPO Can Solve Your Toughest Talent Challenges

While the global economic landscape continues to fluctuate, many employers are turning to project RPO, rather than a traditional full RPO engagement. PeopleScout’s Recruiter On-Demand™ solution can drastically improve your talent acquisition outcomes.

Recruiter On-Demand give you access a readily available pool of recruitment professionals when and where you need them—all without increasing your permanent recruiter headcount.

In this solution guide, you’ll learn:

  • The most common use cases for Recruiter On-Demand or project RPO
  • How a short-term RPO solution can benefit your business
  • How we’ve created lasting impact for our clients with Recruiter On-Demand

Recruiter On-Demand: How Project-Based RPO Can Solve Your Toughest Talent Challenges 

Our challenging labor market has made it hard to hire qualified workers and turnover is high. On top of that, it’s difficult to hire recruiters in the current market. According to LinkedIn, the number of open job postings for recruiters has increased nearly seven times year-over-year. Talent acquisition teams are spread thin—spending time sourcing passive candidates and working with candidates who have multiple job opportunities. 

These factors have left many employers looking for short-term talent acquisition support that can be set up quickly to respond to changes in the market. Rather than a full recruitment process outsourcing (RPO) solution, many employers are turning to project-based RPO, also called Recruiter On-Demand. In this article, we’ll walk through the different ways a project-RPO partnership can be deployed to address specific challenges within talent acquisition programs.  

What is Recruiter On-Demand? 

labor on demand

Project-based RPO and Recruiter On-Demand are interchangeable terms that represent talent solutions designed to meet the demands that internal resources may be unable to accommodate. Specifically, project-based solutions provide focused support for organizations in all industries during challenging periods of the recruitment cycle, such as peak hiring, hard-to-fill positions, compressed timeframes and more.  

The biggest difference between Recruiter On-Demand solutions and traditional RPO programs is that Recruiter On-Demand is a pay-per-hour model, rather than a pay-per-hire model. It’s a great option for organizations that don’t need or want a full RPO engagement, but still feel that they could benefit from some extra talent acquisition expertise and a small number of extra recruiters (or even just one). 

While these types of programs typically begin with a defined timeline and scope, they also have the ability to expand, extend and evolve as needs arise. There are three major use cases for project-based RPO engagements; below, we’ll cover what they are, how they work and how they fit together. 

Use Case: Top-of-Funnel Sourcing 

The first Recruiter On-Demand model is a top-of-funnel sourcing solution. This model is exactly what it sounds like: Your partner works to fill the top of your recruitment funnel with more candidates. From there, your own internal team takes over reviewing their applications, interviewing candidates and making all of the hiring decisions. 

When Should You Use it? 

This type of solution usually appeals to employers for a few reasons, but the overarching theme is that internal talent acquisition teams don’t have enough time or bandwidth to source enough qualified candidates for open roles. This could be due to a hiring surge, ramp up or expansion. We also see this challenge for employers that have great consumer brands: They often get a lot of applicants, but can struggle to source candidates for specialized roles that aren’t what their brand is known for. This is common when hiring for IT or technology roles at companies that are not in the tech space.  

Likewise, as many organizations work to meet their diversity and inclusion goals, talent leaders can also struggle to find enough candidates from underrepresented backgrounds. The challenge can be further amplified when employers have locations spread across dozens, if not hundreds, of communities. That’s because recruiters and sourcers have to understand all the demographics and nuances of disparate locales.  

How Does it Work? 

At PeopleScout, a top-of-funnel sourcing Recruiter On-Demand engagement proved successful for one of our clients, a national retail sporting goods company. The team at this company was experiencing two challenges: They needed to fill a few specialized IT roles and they were struggling to source candidates from underrepresented backgrounds at their different locations. They also needed many candidates for their manager and assistant manager roles.  

In this situation, the retailer needed five sourcers: one person supporting their hard-to-fill IT roles, and the other four working to source for their high-volume area of retail and distribution roles. They had also identified several Midwestern states where they wanted to focus their diversity efforts and bring in more candidates from underrepresented backgrounds. To help them reach their goals, we created a detailed sourcing strategy. We also worked with local chambers of commerce and community-based organizations, in addition to leveraging social media platforms. By the end, the sporting goods store was able to meet its hiring and diversity goals, and the benefits even continued for weeks after the engagement ended.    

Use Case: Source/Screen/Submit 

Meanwhile, for employers that need slightly more support, there’s the next level of project-based RPO support: source/screen/submit. This type of engagement starts out the same as a top-of-funnel sourcing partnership; recruiters and sourcers support an internal talent acquisition team for a period of time, sourcing candidates to apply to open roles. However, rather than handing those lists of candidates off to internal teams, the recruiters take the next step of prescreening the candidates to ensure that they are both qualified and interested in the role before submitting prequalified candidates to hiring managers.  

When Should You Use It? 

We’ve seen a significant increase in the number of employers looking for this type of support. By taking on the front end of the recruitment process, these recruiters and sourcers give more time back to internal teams. This means that they have more time to interview candidates, put together competitive job offers and onboard new hires. 

This solution can be helpful for employers for a number of reasons, but the most common is that they need to hire for a large number of roles at the same time. This could be because they’re in expansion mode or rebuilding their team after the challenges of the last few years. Or, maybe they have a seasonal hiring surge as they gear up for a busy season, and it doesn’t make sense to have a large internal team when they only need the extra help for a few weeks or months at a time. We see this type of need frequently with retail clients gearing up for the holidays; educational organizations adding staff for the school year; and healthcare companies preparing for open enrollment.   

We also see a need for this solution when employers have a lot of branches or locations spread across a large geographic area—especially if hiring decisions are made at the local level and not at the corporate office. Similarly, we often see that local, branch-level teams don’t have the manpower to source and screen large numbers of applicants.  

How Does it Work? 

In practice, this type of solution can have a major influence. For instance, we have a client that provides early childhood education for children six months to 12 years of age; at one point, they had more than 900 openings across the country. Simultaneously, they were dealing with the Great Rehire, classrooms were reopening and they were working on an acquisition. Their final hiring decisions were also made by the school at a local level. Clearly, this was more than the small internal team could manage.  

When we partnered with this organization, our engagement started with two recruiters on a 16-week project. Those recruiters conducted the sourcing and prescreening of a minimum of 25 candidates per recruiter per week. Then, they sent prequalified candidates to the assigned school, where the hiring managers conducted in-person interviews, job offers and onboarding.   

Now, 10 months later, the project is still going strong. Because of the success of the initial team, the PeopleScout team has grown to six recruiters and, so far, they’ve phone screened nearly 3,000 candidates and submitted nearly 2,000.    

Use Case: Full-Cycle On-Demand Recruitment

Full-cycle project RPO partnerships are the most involved and most closely resemble traditional RPO partnerships. Think of them as “RPO light.” 

In a full-cycle partnership, recruiters support an employer’s internal team for the entire process—from intake to offer. There’s also even more space for a consultative partnership as the support extends throughout the entire process—not just bits and pieces. This means that there’s a greater opportunity to learn from the experiences and best practices that your partner has gleaned from years of working with employers across industries in all types of talent markets. Yet, despite the increased support, these types of full-cycle partnerships still retain all of the Recruiter On-Demand benefits—including the billing structure, shorter defined timeline to secure labor on-demand labor and more. 

When Should You Use It? 

This type of partnership typically works well for employers that are struggling to keep up with their hiring load. This could be due to attrition or a hiring surge and can cover every part of the process—from applicant management to interview scheduling to offer. 

We also see it work well for employers that want the best practices and experience of an RPO provider, but don’t have the need for a traditional, large, long-term engagement. In this case, these often start out as short-term projects, but end up being long-term partnerships.   

How Does it Work? 

At PeopleScout, we currently support a client that hires licensed clinical social workers. Because they provide virtual therapy and counseling sessions, their internal team was struggling to keep up with the increased demand caused by the pandemic. 

Once again, this Recruiter On-Demand project started small, with a 13-week planned engagement with two recruiters who handled everything form sourcing candidates to initial screenings and setting up interviews. The project also involved sourcing candidates from across the entire U.S. Finally, our team also handled offer letter execution and management.   

Now, 19 months later, the recruiting team has grown to 14, and we’ve hired more than 1,000 licensed social workers. We’ve also extended our services to support the client’s hiring needs in their call center and IT department.  

A Growing Partnership to Provide Labor With On-Demand Recruitment

Project-based RPO engagements have built-in flexibility, which makes it easy for them to shift in scope. In this way, a partnership can start out focusing solely on top-of-funnel sourcing and then later expand when needs change to cover more of the hiring process. A project RPO partnership can even migrate to a traditional RPO partnership.  

To learn more about project-based RPO engagements, view our webinar