Mass hiring can feel like a never-ending battle. You need top talent, fast. But with so many candidates and tight deadlines?
One wrong move, and you’re stuck with unfilled positions, wasted time, and sky-high costs. That’s why choosing the right hiring strategy is a game-changer. But here’s the kicker – not all recruitment methods are built for speed and volume.
RPO (Recruitment Process Outsourcing) and Retained Search are popular options, but they couldn’t be more different. One is built for bulk, the other for precision. Choose wrong, and you might end up paying more for less.
So, which one to pick? Let’s break it down, compare the key differences, and help you make the right call.
Ready to streamline your hiring? Let’s dive in.
What is RPO (Recruitment Process Outsourcing)?
RPO (Recruitment Process Outsourcing) is a recruitment strategy where a company outsources some or all of its hiring processes to an external provider. The RPO provider acts as an extension of the company’s HR team, handling tasks like sourcing, screening, interviewing, and onboarding candidates. This approach is designed to improve hiring efficiency, reduce costs, and streamline the recruitment process. RPO providers leverage their expertise, technology, and large talent pools to fill multiple positions quickly and effectively. It’s especially useful for companies experiencing rapid growth, seasonal hiring spikes, or ongoing recruitment needs.
Example:
A tech company looking to onboard 200 software developers in six months can benefit from RPO. The provider handles end-to-end recruitment, from job postings to final offers, while the company focuses on core operations.
What is Retained Search?
Retained Search is a recruitment method used to find senior-level or highly specialized candidates. A company partners with a recruitment firm, paying an upfront fee to ensure dedicated and focused efforts. Unlike other hiring methods, retained search is all about quality over quantity. The firm takes a deep dive into the market, leveraging its network and reaching out to passive candidates who aren’t actively looking for new roles. It’s thorough, precise, and built for roles where the right fit is crucial. This approach works well for leadership positions or when specific expertise is needed. Companies choose retained search when they want a committed recruiter who will go the extra mile to find the best talent. The process may take longer, but the result is usually worth it because it ensures the hire is not just qualified but also a great cultural fit.
Example:
An automotive company looking to hire a Chief Technology Officer (CTO) for a new electric vehicle division might use a retained search. The firm conducts a global search, ensuring only the most qualified candidates make the final list.
We find the right candidates, so you can focus on growth! Is hiring a headache? Reduce hiring time and costs with AI-driven, end-to-end recruitment solutions.
10 Key Differences Between RPO and Retained Search
Choosing between RPO (Recruitment Process Outsourcing) and Retained Search can be confusing. While both methods help companies find talent, they are designed for different hiring needs. Let’s break down the key differences to help you decide which fits your mass recruitment goals.
Purpose: Mass Hiring vs. Niche Roles
- RPO: Ideal for large-scale hiring projects where speed and volume matter. Think of it as a factory model aiming to fill multiple positions efficiently.
- Retained Search: Focused on sourcing for one specific, often high-level or specialized position. It’s more like crafting a custom product rather than producing in bulk.
Example:
A logistics company expanding its operations may hire 100 warehouse staff with RPO. On the other hand, if they need a new Head of Logistics, they’ll go for a retained search.
Payment Structure: Subscription vs. Upfront Fee
- RPO: Typically charges a fixed monthly fee or per-hire cost. This predictable pricing makes budgeting easier.
- Retained Search: Charges an upfront retainer fee (usually a percentage of the hire’s first-year salary), with the rest paid upon successful placement.
Why It Matters:
RPO’s consistent fees work well for ongoing recruitment. Retained Search’s upfront cost makes sense when you need to invest in finding a critical hire.
Time to Fill: Fast vs. Thorough
- RPO: Quicker turnaround due to streamlined processes and pre-established talent pools.
- Retained Search: Slower but thorough, as it involves extensive research and targeted outreach to passive candidates.
Example:
A retail chain hiring seasonal workers needs speed, so RPO fits. However, a finance firm looking for a new CFO prefers the detailed process of a retained search.
Scope of Work: Comprehensive vs. Specific
- RPO: Covers the entire recruitment lifecycle – from sourcing to onboarding.
- Retained Search: Primarily focuses on sourcing, screening, and presenting shortlisted candidates.
Why It Matters:
If you need support at every step, RPO is your go-to. Retained Search is better if you need help finding the right fit for a key role.
Engagement Level: Ongoing vs. One-Time
- RPO: An ongoing partnership where the provider acts as an extension of your HR team.
- Retained Search: A one-time project focused on a single hire.
Example:
Tech startups with continuous hiring needs prefer RPO. Established firms seeking a new CTO might go for a retained search.
Candidate Pool: Volume vs. Quality
- RPO: Access to a vast pool of candidates, ideal for mass hiring.
- Retained Search: Targeted approach to attract high-caliber candidates, often from niche industries.
Why It Matters:
RPO helps when you need a lot of hands-on deck. Retained Search is best when looking for one person to drive the ship.
Risk Involvement: Low vs. High
- RPO: Lower risk as the cost is spread over time and can be adjusted as needed.
- Retained Search: Higher risk since you’re committing a significant fee upfront, regardless of the outcome.
Example:
If your company’s hiring needs might change, RPO is safer. Retained search works if you are sure about filling a key position.
Flexibility: Adaptive vs. Fixed
- RPO: Easily scales up or down based on hiring demand.
- Retained Search: Rigid, as the agreement typically focuses on one role with limited adjustments.
Why It Matters:
RPO adapts to your hiring spikes. Retained Search is locked into finding that one perfect candidate.
Focus on Candidate Experience: Process-Oriented vs. Relationship-Oriented
- RPO: Emphasizes efficiency and quick onboarding. Candidates move through the process faster.
- Retained Search: Prioritizes relationship-building and personalized interactions.
Example:
Speed is the priority in high-volume hiring. Crafting a positive experience is crucial when hiring a senior executive.
Success Metrics: Volume of Hires vs. Quality of Hire
- RPO: Success is measured by how many positions are filled and how quickly.
- Retained Search: Measures success by the longevity and performance of the hire.
Why It Matters:
If you need to fill many roles quickly, RPO metrics make sense. If you want one strategic hire, Retained Search metrics are more relevant.
Why is Supersourcing the Best Choice for RPO Solutions in India?
Finding the right RPO partner can significantly impact your hiring strategy. Supersourcing is a trusted provider of efficient, scalable, and result-driven RPO solutions. Here’s why:
- Trusted by Top Brands: Works with leading companies like Paytm, Adani, and HCL, delivering successful recruitment projects with proven results.
- Recognized Excellence: Featured among LinkedIn’s Top 10 Startups in India and part of the Google AI Accelerator program, showcasing innovation and credibility.
- Proven Results: Achieves 50% faster hiring, 40% cost savings, and 98% hiring accuracy, ensuring quality and efficiency in recruitment.
- Flexible RPO Models: Offers tailored solutions, including End-to-End RPO, Project RPO, On-Demand RPO, and Recruiter on Demand (ROD), catering to different business needs.
- AI-Driven Approach: Uses advanced AI tools and data analytics for efficient talent acquisition, reducing time-to-hire and maintaining candidate quality.
- Client Success Stories: Successfully delivered 100+ engineers for Paytm’s pre-IPO and helped Adani One source niche talent, proving their high-volume and specialized recruitment expertise.
Conclusion
Deciding between RPO (Recruitment Process Outsourcing) and Retained Search comes down to your hiring needs. RPO is the way to scale your workforce quickly and efficiently. It’s cost-effective, scalable, and tailored for mass recruitment. On the other hand, if you need to fill a critical leadership role or a highly specialized position, Retained Search is your best bet.
Ready to streamline your hiring process? Connect with Supersourcing today to discuss your recruitment goals.
FAQs:
1. What is the main difference between RPO and Retained Search?
The primary difference lies in their purpose and scope. RPO (Recruitment Process Outsourcing) is designed for high-volume hiring and acts as an extension of your HR team. Retained Search is focused on filling senior or specialized roles with a more dedicated and thorough approach.
2. Which method is more cost-effective for mass recruitment?
RPO is generally more cost-effective for mass hiring since it operates on a predictable, ongoing fee model. Retained Search involves upfront payments, making it more suitable for strategic, high-level hires rather than bulk recruitment.
3. Can RPO and Retained Search be used together?
Yes, some companies use both methods simultaneously. For example, they may use RPO to fill numerous entry-level positions while utilizing Retained Search for executive roles. This hybrid approach effectively addresses different hiring needs.
4. Why is RPO faster than Retained Search?
RPO providers have pre-established talent pools, optimized processes, and dedicated recruitment teams, enabling faster candidate sourcing and placement. In contrast, Retained Search takes more time due to its targeted and research-intensive nature.
5. Is confidentiality a concern with RPO?
RPO is typically transparent and public, which makes it suitable for large-scale hiring. However, if confidentiality is crucial, especially for executive roles, Retained Search is a better choice as it maintains discretion throughout the process.