The ROI Equation: Cracking the Code for Measuring RPO Success

Measuring the Return on Investment (ROI) is an excellent way to gauge the effectiveness of your Recruitment Process Outsourcing (RPO) partnership. At Resourgenix it is vitally important to ensure that the client’s RPO program is tailored to align with their needs and goals, ensuring that their ROI is maximised. 

Knowing what the client wants should be an RPO provider’s first key objective when starting a new partnership. When working with Resourgenix, this is often discussed during the design phase according to Anne Rutledge, Executive Director of talent solutions at Resourgenix.

“During the design phase of an RPO implementation, we review each of the client’s needs and requirements to understand the objectives and the ‘why’ behind these objectives. We align our team and processes to these objectives and ensure we meet them.” says Rutledge about how Resourgenix ensures that its strategy aligns with the company’s goals.

Resourgenix also works at highlighting areas where the company can achieve more during design phases tells Rutledge. 

“Sometimes during this phase, we also come to agree that some items, processes and procedures may need to change or to adapt. To help clients understand that they too want something different.” Rutledge comments.

Metrics that Determine ROI:

There are various ways to measure your RPO partnership’s effectiveness and how it affects your ROI. Time-to-fill and Quality of hire are perhaps two of the most essential tools an RPO provider has that can significantly boost their client’s ROI and how they influence these metrics is vital.

Time-to-fill is an essential metric for measuring your RPO partnership’s ROI. Time-to-fill refers to the time it takes to fill a job opening from the moment it is posted. By comparing the time-to-fill before and after implementing RPO, organisations can assess the efficiency and effectiveness of their recruitment process.

Resourgenix has an exceptional track record when it comes to reducing time-to-fill according to Rutledge. 

“In one of our programs, we were able to reduce the time to fill from 90+ days to less than 30 days,” Rutledge commented. “We were able to achieve this by automating certain processes and placing dedicated focus on certain touch points that slow things down.” 

Another key metric for measuring the effectiveness of your RPO partnership is by looking at your RPO provider’s ability to find top talent and assessing their quality of hire. Some key metrics for measuring the quality of hire include comparing performance and retention rates from before the RPO partnership to those after the partnership has begun.

“The quality of hires is also important, studies have shown that replacing good talent can cost an organisation up to one-half to double the employee’s annual salary and this is due to the additional training that is  required as well as the length of time it takes to integrate a new employee into the organization,” Rutledge comments.  

One other way you can measure the effectiveness of your RPO partnership is by looking at the cost-saving techniques that RPO providers employ. Resourgenix works hard at reducing its client’s costs through efficiency in its programs according to Rutledge.

“Within our programs, we look at ways to reduce the use of external agencies which in itself is direct savings as placement fees can incur big costs. In addition, there is cost avoidance that is achieved by being able to hire quickly which saves in productivity costs,” Rutledge comments. 

The ROI your company receives from an RPO partnership is a fundamental metric to measure the success of the endeavour. When working with Resourgenix you can rest assured that your ROI goals will be treated with top priority, ensuring success. 

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