How Much Does RPO Cost? Models and Comparison!

How Much Does RPO Cost Models And Comparison

Recruitment Process Outsourcing is a great solution for a company to hire talented professionals from a vast talent pool. RPO agencies prove to be useful partners for growing companies. RPO enriches the workforce and contributes to the overall development of the company. It simplifies the process of achieving business goals with effective staffing solutions.

But what is RPO, and what are RPO prices or RPO costs? Which models can benefit your company, and how should you go about choosing the right one and assessing RPO costs?

We’re here to tell you everything you need to know about RPO and its models. Let’s take a closer look at it.

What is Recruitment Process Outsourcing (RPO)

Recruitment Process Outsourcing (RPO) is the process through which the company meets the staffing needs by outsourcing to an external recruitment services provider. It is a reliable and trustworthy solution to overcome talent acquisition needs. RPO helps in finding the best-suited professional for the organization from a vast talent pool.

RPO agencies offer the services of expert recruiters and recruitment consultants to strategically guide their clients to find the best candidates for any division, project, program, or initiative. They provide efficient services that significantly improve the talent in the company. Several companies around the world are incorporating RPO agencies into their recruitment processes.

RPO Agencies are preferred over in-house recruiters by many growing companies because RPO experts have the knowledge to offer quick and dependable solutions. They do a thorough examination of the talent pool, take into account the company’s culture and recruiting preferences, and shortlist qualified candidates for the position. RPO Agencies help in building strong teams for your business as well as branding your company culture.

Comparing Different RPO Models

Function-Based RPO – Optimized Talent Availability, Attraction, And Retention For Specialized Teams, Hard-To-Fill Roles

Function-Based RPO is the process by which the RPO provider takes over a section of the recruitment processes. Other internal recruiters can work on other hiring needs while the RPO agency takes over control of one section completely. This technique ensures that the section is properly managed and gets the attention it deserves.

Function-Based RPO helps in developing specialized teams. There is a recruitment process outsourcing fee structure that is decided based on the number of recruiters you need or the number of candidates hired through the RPO agency.

Project-Based RPO – Increased Ability To Get Manpower For Diverse New Projects And Project Expansion

For short-term projects, Project-Based RPO is the best solution. If you want to experiment with RPOs with not much risk involved, you can opt for a Project-Based RPO. It is the best way to try outsourcing for the first time. RPO charges for project-based RPO are usually based on a management fee model and the fee for every successful hire.

It’s well-suited for projects with defined goals and gives you detailed insights into managing recruitment process outsourcing pricing and RPO costs. This can serve as a pilot for longer commitments. RPO agency manages talent acquisition for a particular project. Project-Based RPO can help in recruiting team members with specialization to complete diverse projects.

This technique helps in staffing the company with specialists that fit in with the company’s culture. Under the Project-Based RPO model, agencies offer skilled candidates under a budget. Companies prefer this model when they do not require a long-term commitment. It is an effective solution to source talented manpower for projects.

On-Demand RPO – Increased Ability To Find And Hire Manpower Resources For Any Operations, Locations, Peak Times, Etc.

On-demand RPO is a technique of staffing by which the company uses outsourcing to find the manpower to fill specific roles. It’s an effective solution for short-term needs. It helps the company to receive the immediate assistance it requires. But the company doesn’t have to make a long-term commitment. This is why companies around the world prefer on-demand RPO services to enrich their workforce.

It’s a pocket-friendly method to make sure that the company’s needs are met. It helps the organization enrich its workforce. On-demand RPO is a professional contract-based arrangement that helps the company to fill its roles for them to achieve the results they need.

Full RPO – Optimized Cost And Time Savings And Recruitment Management

In this staffing solution, the RPO agency takes over the internal recruiting function of the whole company. The RPO provider staffs the company completely. They take care of all aspects of sourcing. The agency has a lot on its plate in the Full RPO model. Company-wide outsourcing helps in transforming it completely. This RPO model helps in recruiting the best professionals for a company in one go. Moreover, it is a long-term recruitment model that has a permanent effect.

When the company’s hiring needs are completely outsourced, it’s known as Full RPO. It has a significant impact on the company’s culture. Full RPO is great for optimizing the cost of sourcing and saving time in hiring great professionals.

How RPO Enables Cost Visibility And Savings

1. Enables Over 50% HR Cost Savings – Minimizing Investment in Infrastructure, Resources, And Technology

RPO is a cost-effective solution to find the best professionals to lead a company forward. It reduces operational costs as you do not have to divert funds to maintaining an in-house recruitment infrastructure, resources, and people.

RPO agencies help in hiring the best professionals in the industry under a given budget. You can save hundreds of hours spent on finding candidates when you avail of the services of an RPO agency.

Inadequate staff will result in losses for the firm. Therefore it’s crucial to make sure that it has a fantastic team of committed employees who can take on additional work and finish it. The number of tasks the business takes on will determine its profitability.

With RPO, you can efficiently minimize investment in infrastructure, resources, and technology. Their techniques of recruitment are sure to bring in profits for the company.

2. Enables Reduced Cost Per Hire Across Positions

RPO agencies are flexible in facilitating recruitment. In the Cost per Hire model, the RPO agency and the company sign a mutual agreement to fix the standard amount that will be paid for each successful hire. This standard pay is a fixed percentage of the annual compensation paid to the employee.

3. RPO Partner Provides Granular Visibility Into Talent Acquisition Costs

Cost-effective recruitment is possible with an RPO firm. An RPO agency’s services can be very beneficial to the business because they offer optimized and specialized recruitment services. They have more access to resources and bring new levels of experience to the table. Good RPO companies have connections to qualified individuals all across the world. It shortens the time needed to finish recruitment successfully. RPO firms can aid with time and effort savings. The organization will benefit substantially from including RPO agencies in its hiring procedure.

4. Cuts Down Unproductive Recruitment Processes – Related Time and Costs

Using an RPO company enables an employer to quickly fill potential vacant positions. The business loses money because of vacancies. An RPO agency’s quick hirings can aid in reducing such losses.

RPO firms provide adaptable models that are tailored to the needs of the business. They provide a variety of models, from long-lasting remedies to practical short-term commitments. It depends on the business whether you want to hire someone for a little time for a project or contact an agency for a long-term solution. The business will be able to run efficiently without spending money on pointless long-term commitments.

5. Gives the Ability To Scale Up Projects, Resources, and Operations With Ease While Optimizing Hiring Costs And Time

Sourcing from a well-screened talent pool allows for more choices. Without an RPO agency, it would be difficult and time-consuming to guarantee that the individuals you hire are of the highest caliber. They give more options than any other method since they draw from a huge talent pool.

Hiring an RPO company helps you discover the ideal candidate with the right qualifications and expertise. Companies that want to hire competent workers will find that partnering with RPO services is very advantageous.


Acquiring efficient and talented employees is a priority of every business. RPO makes it possible to recruit the best candidates to the company’s workforce. RPO agencies are increasing in popularity around the world for the services they offer. Your business will be able to take on difficult and complex new projects if there are more qualified applicants around. The organization benefits from exceptional results produced by excellent manpower resources.

RPO firms give your business the chance to hire intelligent people from all over the world. Their team of experts routinely maintains a wide network of resources to find recruits.

Alliance International

Alliance Recruitment Agency is a leading C-level recruitment agency worldwide. With its consistent performance in helping companies hire the finest professionals in the industry, the company remains unrivaled. Our team of expert consultants can help enrich your company’s culture. They are armed with numerous years of industry experience and in-depth knowledge to facilitate the recruitment process.

The agency helps you recruit the professionals that are best suited for your company’s needs. Alliance Recruitment Agency has an extensive network to successfully source intelligent professionals from around the world. The agency is equipped with the knowledge to tackle challenges that may come its way. To know more about RPO and how it can fulfill your staffing and manpower needs, please get in touch with us.