Okay. Let’s see if we can clear up some confusion about the difference between recruitment process outsourcing and contingent staffing. And, yes, there is a distinction between the two.
With RPO, a company enters into an agreement with a provider who then takes over all or part of the recruitment efforts for the company. Obviously, there is an contract which establishes the responsibilities and expectations of the each party of the agreement.
There are a few models with RPO.
- The company will remit a straight monthly fee no matter how many placements are made.
- There is a combination of monthly fee and placement fees.
- Fees are paid per placement with the understanding that the provider will ensure a minimum number of hires.
In contingent staffing, no placement means the company pays no fee.
On initial consideration, no placement—no fee, sounds pretty good. Cost efficient, even. And for one or two hard-to-fill positions, it may be the way to go. But, if the company has an on-going and consistent need for employees, RPO may be the answer.
If you want to find out more about RPO, contact us at www.pprts.com. We are really good at being a great RPO partner with our clients.