RPO (Recruitment Process Outsourcing) and recruitment agencies are both commonly used by companies to help with their hiring needs, but there are some key differences between the two:
Below are the main Differences RPO and Recruitment Agency.
- Scope of Services: RPO providers typically handle the entire recruitment process, from sourcing and screening candidates to onboarding, while recruitment agencies tend to focus on sourcing and screening candidates for specific job openings.
- Relationship: RPO providers work more closely with their clients, often acting as an extension of the client’s HR department. Recruitment agencies typically have a more transactional relationship with their clients, providing candidates for specific roles as needed.
- Cost: RPO providers generally charge a flat fee for their services, while recruitment agencies typically charge a percentage of the new hire’s salary.
- Control: With an RPO, the client retains more control over the hiring process, as the RPO provider works under their direction. With a recruitment agency, the agency retains more control over the process, as they are responsible for finding and presenting candidates to the client.
- Flexibility: RPOs tend to offer more flexibility in terms of the size and scope of their services, while recruitment agencies are generally more specialized and focused on specific industries or job types.
In summary, RPOs and recruitment agencies both offer valuable services to companies looking to hire new employees, but the level of involvement, cost structure, and scope of services can vary significantly between the two.