RPO For Small Businesses Vs. RPO For Large Enterprises

 

Recruitment process outsourcing is a great solution for hiring needs of companies but the solution isn’t necessarily same across all of them. As the type of industry and the size of organization changes, the recruitment outsourcing needs change as well. A large enterprise has bigger budgets and has some flexible time for hiring someone whereas a small enterprise needs their vacancies to be filled quickly and have a limited budget. So let’s examine closely the difference between recruitment outsourcing solution for small businesses and large enterprises.

Different needs, different solutions

Small business owners have a fair idea of what kind of people they want to take on board and walk the extra mile before they hire someone. Moreover they are pressed for time and don’t have enough resources to hunt for the right candidates. On the other hand, in a large enterprise, the decision to hire is often left to managers and supervisor. Managers often fill these spots just because they are pressured, not because they are the right people. Some individuals don’t even have the necessary skills to hire the right people.

The problem of small businesses are that they find recruitment time-consuming and the problem of large enterprises is the difficulty in hiring the right peopleRecruitment process outsourcing can solve the problem for both small as well as large businesses. They have the necessary resources and skill to fulfill these challenges. However, as the needs for both small and large enterprises are different, the solutions are different as well.

Budget size

Large enterprises can easily pay $1000 to $2000 or the standard 20-30% of the annual salary to the RPO service providers but the same cannot be said for smaller firms. The industry norm may be too expensive for small firms that operate on low budgets. Thus, the idea of the traditional pricing structure doesn’t fit well across all organizations. The variety of resources available today has made it easier to source candidates. Thus, the pricing structure varies from small to large enterprises as their needs vary and so does the resources spent on those needs.

Time frame

A large firm can usually wait for 2 to 3 months before they hire a candidate.They can afford to have endless interviews and follow ups. However in a small firm, quick turnaround time is essential. The reason can be that key personnel such as the director or the CEO is involved in the decision making and they need to spend more time on the profit centers of the company rather than take multiple interviews. Moreover in smaller firms, where new vacancies open up quickly, time is of essence or the company may regress backwards.

The core focus

When recruiting for small firms, the core focus for a RPO service provider should be on quick turnaround time, affordable pricing and a good understanding of the positions. However, when recruiting for large firms, the core focus should be on quality of candidates, flexible staffing solutions, comprehensive services including recruitment and other HR functions. 360-degree interviewing including behavior and personality analysis, recruitment audits, applicant tracking and so on and so forth. So in essence, small businesses need quick turn around time and large businesses need comprehensive services.

 

RPO For Small Businesses Vs. RPO For Large Enterprises.