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RPO vs. a Retained Recruiter: Which Solution Is Better?

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RPO vs. a Retained Recruiter: Which Solution Is Better?

recruiter vs rpo

Let’s say you’ve decided to team up with a recruitment agency and you found a few potential partners. Some agencies offer a dedicated recruiter, others are all about Recruitment Process Outsourcing (RPO).

What is the difference between partnering up with a retained agency recruiter and an RPO recruiter? And, which option is the right for your company?

Keep reading to find out!


RPO vs. Hiring a Recruiter: What’s the Difference?

There are quite a few differences between RPO and partnering up with a retained recruiter.

RPO is best-suited for strategic company scale, team construction, and support in continuous hiring processes. This model grants support on multiple active positions and is more suitable for long-term hiring goals. You pay the recruiters’ hourly rate and get their full attention and support in return. There are no placement guarantees, but you get the best support money can buy!

Teaming up with a retained recruiter is best-suited for filling an open position in a short amount of time. No coordination or particular time investment on your side is needed! You pay part of the fee in advance and the other part once the recruiter identifies the right candidate, and the candidate joins the company!


KPIs

When you engage a retained recruiter, the success is measured by the number of placements they make. You pay a part of the success fee in advance and the other part once the candidate is successfully placed (there is a money-back guarantee). The recruiter sources candidates, interviews them and introduces them to you – you just take your pick!

The main KPI for the RPO model is the number of presented candidates during the research and identification process. The primary objective of recruiters is to find candidates who are an excellent fit for the job and are interested to join the company. There is no placement guarantee but also no limit to which tasks the recruiter can perform to support your hiring process.


Expense

Another significant difference between an RPO and hiring a recruiter is the way they bill the companies for the services they provide.

Since RPO partners take over a part of or even the entire recruitment process for a company, they charge monthly/hourly fees to handle all the hiring functions as entitled. On the other hand, when working with a retained recruiter, agencies typically charge from 10% to 30% of the candidates’ annual salary, whom they help recruit.

Considering all this, the total fees of the RPO are still comparatively lower by 65% to 70% than the overall fees of the traditional recruitment agency.


Long-Term vs. Short-Term Goals

RPO recruiters like to develop long-term partnerships with their clients. Their aim is to build a talent pipeline of both active and passive candidates with who they are in regular contact. This creates a community for future hiring.

When working with a retained recruiter, the focus is on finding a candidate to fill a position as quickly as possible. This model is brilliant for those one-off ‘emergency cases’ when a company needs to fill a position quickly. For a more strategic approach, an RPO recruiter is a better option.


How to Choose the Right Model for Your Hiring Needs?

Both RPO and hiring a dedicated external recruiter have their advantages. Ultimately, the choice depends on a company’s hiring needs.

If you have a job opening that is tough or urgent to fill, teaming up with a retained recruiter will help you get the job done and lower the cost of unfilled positions.

If you’re planning to carry out a strategic scale, open a new office in a different city, or you suddenly need to grow your team, an RPO is the better option for you.


Whether you’re looking to find out more about different recruitment services or you need to fill a vacant spot, we can help you out!

Popcorn Recruiters are always ready to answer any of your questions and help you find the ideal candidate for your company.

From market analysis to reduced time to hire, we’re here to support your hiring process. Get in touch with our team!