What is RPO? (Recruitment Process Outsourcing)
RPO (Recruitment Process Outsourcing) is when a company transfers part or all of its recruitment process to an external provider. The RPO vendor acts as an extension of the client's talent team, sourcing, screening, and delivering qualified candidates for open roles.
In more detail
Unlike a staffing agency that places contractors, an RPO delivers full-time hires for the client's own payroll. The vendor may operate under the client's brand (employer branding), use the client's applicant tracking system, and report to the client's HR leadership. Scope ranges from project-based RPO (one campaign, one role family) to enterprise RPO covering all hiring across a global company.
RPO is priced by management fee, cost-per-hire, or as a blended model with performance bonuses tied to time-to-fill and retention. Typical contract length is two to five years for enterprise deployments.
What an RPO provider delivers
- Sourcing strategy and talent market research.
- Candidate sourcing, screening, and shortlisting.
- Interview coordination and offer management.
- Reporting on time-to-fill, cost-per-hire, and pipeline quality.
- Employer brand and candidate experience management.
Related terms
Common follow-up questions
A staffing agency is paid per placement, typically 15-25% of first-year salary. An RPO takes over the entire recruitment function on an ongoing basis, usually paid a monthly management fee plus a smaller cost-per-hire.
The client. RPO vendors place candidates onto the client's own payroll as full-time employees. Only the recruiting workflow is outsourced.
A long-term, multi-year engagement covering most or all of a company's hiring globally. The RPO team functions as the client's talent acquisition department.