The differences between In-house Recruitment and RPO

Over the past 29 years, I’ve had the privilege of working across three sectors of the recruitment industry. After being made redundant from a job I loved, I ended up in the world of Agency as a Temp Desk Controller for four years, then transitioned in-house, and finally into RPO.

This diverse experience has equipped me with a broad toolkit of skills, across various industry sectors and was one of my motivating reasons to start Jigsaw to offer these skills to many, not just one.

People often ask me about the differences between Inhouse and RPO sectors and which one I enjoyed the most. The truth is, I loved them all. Below, I’ve shared some key differences to help make it easier for others to understand each and what they offer.

In our rapidly changing world, businesses — big and small — are faced with the decision of choosing between in-house recruitment (IHR) and Recruitment Process Outsourcing (RPO) to meet their staffing needs. Each approach comes with its own unique advantages and challenges.

 

In-House Recruitment: The heartbeat of company culture

In-house recruitment is a tried-and-true method where an organisation manages its own internal recruitment team. This team aligns with the company’s vision and culture, acting as trusted partners to business leaders. Here’s what makes it stand out:

Cultural Alignment: In-house recruiters deeply understand the company’s culture, values, and goals, ensuring a strong match between candidates and ethos.

Speed to Respond: Internal teams can quickly adapt to changing hiring needs and build talent pipelines that align with long-term objectives.

Cost Control: While there are overhead costs, in-house recruitment can be cost-effective, especially for organisations with consistent hiring demands.

 

RPO: Strategic outsourcing for scalability and incremental growth

Recruitment Process Outsourcing (RPO) involves partnering with an external provider to manage the recruitment processes. This collaboration offers unique benefits:

Scalability and Flexibility: RPO allows for flexible scaling of recruitment efforts, ideal for organisations experiencing rapid growth or fluctuations.

Access to Specialised Expertise: RPO providers bring industry-specific knowledge and expertise, enhancing the quality of hires.

Cost-Efficiency: While there’s a cost, RPO can be more cost-effective for organisations with sporadic hiring needs, freeing up resources for other critical tasks.

Phased Outsourcing and Employee Transitions: RPO allows for gradual outsourcing, maintaining control while benefiting from external expertise. Existing in-house teams may transition to the RPO provider, ensuring a smooth transfer of knowledge.

 

For companies considering both options, the choice depends on factors like organisation culture, growth trajectory, and strategic goals. Understanding the nuances of each approach helps businesses make informed decisions that address immediate staffing needs and contribute to long-term success.