RPO, or recruitment process outsourcing, is a human resources hiring solution that has been gaining traction in recent years. RPO involves outsourcing a company’s talent acquisition process to an established third-party service provider.
As a hedge fund manager, you already understand the importance of having a talented and motivated workforce. Hiring top talent is critical to your success, but “getting it done right” is challenging. RPO can provide an effective, efficient solution for your recruitment needs.
Let’s explore the benefits of RPO and why it has become an essential HR tool for firms.
How Does RPO Work?
Unlike recruitment agencies, RPO experts function as partners with your firm and devote time to filling the specific roles you need (whether fractional or full-time). RPO specialists use an applicant-tracking system (ATS) to capture and monitor candidates throughout the hiring process, as well as sourcing strategies to help define and target ideal candidates for your team.
The RPO partner doesn’t just recommend candidates to your team; they enforce recruitment and hiring procedures, engage with candidates, and communicate with all parties throughout the interview process.
Essentially, RPO takes the place of your talent acquisition team.
What Are the Benefits of RPO?
There are several benefits to using an RPO service.
1. It offers flexibility.
The main benefit of an RPO is that it’s a flexible model. Hiring has ups and downs — and, let’s face it, in 2023, we may see more downs. Talent acquisition teams are typically among the first groups organizations let go during layoffs but when it’s time to start hiring again, these companies no longer have a team in place to lead the charge.
RPO fills that need. It’s a model expert recruiters and talent acquisition professionals can use to work on processes and build relationships with hiring managers while allowing organizations the flexibility to downgrade or upgrade their plans at a whim.
2. It saves time and resources.
Recruitment is a time-consuming and resource-intensive process, and by outsourcing this process to a third-party provider, you can free up valuable time and resources for your firm. RPO providers have specialized expertise and technology, allowing them to streamline the recruitment process and provide you with qualified candidates much faster than you would be able to recruit and hire them on your own.
3. It improves hiring outcomes.
RPO providers use their expertise and technology to thoroughly screen and assess candidates, ensuring that they’re the best fit for your organization. These assessments are particularly important in the financial industry, where it’s critical to hire employees who have the necessary skills and knowledge to succeed in their roles.
4. It reduces cost and risk.
RPO can also help organizations reduce the costs and risks associated with recruitment. Hiring the wrong person can be extremely costly and time-consuming, especially in the alternative investment’s industry, where mistakes can have significant financial consequences. RPO providers take on much of the risk associated with the recruitment process, allowing you to focus on other aspects of your business. Additionally, RPO providers can often negotiate better salaries and benefits packages on your behalf, saving your firm money in the long run.
5. It enhances your employer brand.
By working with a third-party provider, you can demonstrate your commitment to finding and hiring the best talent for your organization. This commitment to recruiting the best talent can be particularly important for emerging managers, who are looking to establish themselves in a competitive marketplace. RPO providers can also help you develop and implement strategies for attracting and retaining top talent, further enhancing your organization’s brand.
6. It provides access to a global talent pool.
With the evolution of technology and the remote work world, it has become easier than ever to find and hire talent from across the globe. RPO providers have extensive networks and resources that allow them to find top talent from around the world in order to give their clients access to a larger pool of qualified candidates. This access is particularly important for companies that may need to find specialized talent in order to succeed.
How to Know if RPO Is Good for Your Business
If you have a team that’s looking to grow — and grow on a large scale — but you don’t have the talent resources available to you, it might be time to consider enlisting a professional. Whether you’re an emerging fund that needs assistance with process, or a mature and established fund in a period of growth, having a talent acquisition team by your side to assist in the process and make informed decisions on your hiring plan is imperative to your success.
At Arootah, our management team boasts more than 100 years of combined experience in the hedge fund and financial services industries, and this experience gives us a distinct advantage when it comes to hiring. This advantage is solidified by a thorough evaluation process we use to assess technical, soft, and managerial skills in each candidate. We optimize our ATS and procedures to accurately assess a candidate’s skills, designing role-specific questions to eliminate any potential cognitive bias during the hiring process.
We also use proprietary technology — our Candidate Scoring Matrix, which uses weighted criteria to mitigate cognitive bias when evaluating candidates — and a structured interview process with designated evaluators who incorporate job and culture-specific assessments to make unbiased hiring decisions. This unbiased approach ensures that we make the right choice at the end of the process, without being influenced by any external factors.
The Bottom Line
RPO is a powerful tool that can help organizations transform their recruitment processes and achieve their goals.
From increased efficiency and cost savings to improved quality of hire and greater flexibility and scalability, RPO offers a range of benefits that make it a smart choice for organizations of all sizes and industries.
If you’re looking to transform your recruitment process, consider leveraging Arootah’s RPO services. From our out-of-the-box RPO solution to customized approaches, see how we can help you achieve your goals and build a stronger, more effective workforce. Book your free talent strategy call today to get started.
Disclaimer: This article is for general informational purposes only and does not constitute legal, investment, financial, accounting, or tax advice, or establish an attorney-client relationship. Arootah does not warrant or guarantee the accuracy, reliability, completeness, or suitability of its content for a particular purpose. Please do not act or refrain from acting based on anything you read in our newsletter, blog, or anywhere else on our website.