Recruitment, a RPO company, and a staffing agency are all businesses that help organizations find great employees for the right jobs. But there are several differences between these three types of companies, so understanding each type can be helpful as you start looking to outsource your recruitment needs. First and foremost, it’s important to realize that recruitment services are not limited only to job posting and interviewing; depending on the type of organization you work for, there may be other solutions available in addition to traditional recruiting that could benefit your workplace.
Your business needs employees in order to succeed. But, if you’re like most entrepreneurs, you likely don’t have the resources and experience to do the recruiting yourself or on a large scale. How then do you find and hire talented candidates? We all often struggle with understanding the major difference between Recruitment, RPO Company and staffing agency. Do you know the difference or shall we guide you ahead?
Let’s explore some of the similarities and differences between RPO companies and staffing agencies, so that you can decide which will work best for your business needs.
Recruitment is the process of finding qualified candidates for jobs. It can be done internally or externally. When recruitment is done internally, it’s called recruitment. When recruitment is done by external firms that specialize in recruiting professionals for businesses or other organizations it’s called recruitment process outsourcing (RPO). When companies hire these outside firms to find employees they are using staffing agencies. A staffing agency may also recruit on behalf of a company but work only with contract employees rather than hiring people permanently to fill positions within the company.
Recruitment is the process of finding qualified applicants for a position. It entails finding the perfect candidate for your open position by conducting interviews, screening resumes and facilitating communications between employers and job seekers.
Recruitment can be done internally or externally
Internal recruitment is when you ask current employees to refer friends or contacts they know to fill open positions in their departments. External recruitment is conducted through agencies that specialize in matching candidates with potential jobs.
An RPO company or recruitment process outsourcing company is a firm that specializes in recruiting for other companies. They fill all levels of positions, from entry level to management. In many cases, they will provide the same services as staffing agencies but they typically offer more than just one type of service. For example, they may offer recruitment as well as onboarding solutions like training and HR support. RPO firms are able to recruit qualified candidates quickly because their staff has experience with the skills required by different industries. Additionally, they are experts at interviewing and assessing candidates based on specific requirements. Because of this expertise, it can be beneficial for larger organizations that want specialized staff without taking on the full-time responsibility themselves.
A staffing agency is a third-party service that helps employers with recruitment. They typically work by sourcing candidates for the employer’s open positions and taking care of all the logistics like interviews and paperwork. They charge either on a contingency or fixed-fee basis depending on the type of contract they have with the employer. When an employer hires from the agency, they usually pay the agency’s fee plus any wages paid to staff members. A staffing agency is an intermediate between the candidate and the employer. The agency does not hire or provide any service to the candidates. The recruiting process for a staffing agency is to identify potential candidates that are qualified for the position, then recruit them to fill positions in companies. Once recruited by the agency, the candidate will be assigned an account executive from the recruiting company who will help with their job search.
It’s a wrap
RPO builds a strategic ground for recruitment, it attracts, analyses, hunts, and manages employees on behalf of its clients.
Staffing agency on the other hand operates on a reactive model. While RPO’s assume the responsibility of maintaining the workforce and managing business needs staffing agency just operates to fulfill a job role and accommodate the suitable employee.
Recruitment is the process of finding people to fill available positions. An RPO company is a business that provides companies with recruitment services for specific functions such as recruitment management or IT recruitment. A staffing agency provides workforce solutions to businesses in the form of staffing, contract staffing, or temporary staffing. The main difference between these three types of agencies is the time frame. The time frame ranges from short-term staff members through long-term contracts.