Hiring strategy

RPO vs Traditional Recruitment: Which Fits

Recruitment process outsourcing is not a bigger version of using an agency. It is a different arrangement with different economics.

Sizanid Staffing6 min read
RPO vs Traditional Recruitment: Which Fits

RPO gets sold as the answer to high-volume hiring, which is roughly right but misses what actually distinguishes it.

The real difference

With an agency, you buy placements. You pay per hire, and the agency carries the risk of searches that go nowhere.

With RPO, you buy capacity. A team works on your hiring as an extension of your own, typically for a monthly fee covering an agreed scope.

That changes the incentives. An agency is paid for outcomes, so it prioritises the roles most likely to close. An RPO team is paid for the work, so it can be directed at the roles you actually need filled, including the difficult ones.

When RPO makes sense

Sustained volume. The arithmetic only works above a certain level of hiring. Paying a percentage per hire across forty or fifty roles a year becomes expensive relative to dedicated recruiters.

The volume is ongoing, not a one-off. A single ramp is better served by project-based support. RPO is for hiring that continues.

You want process improvement, not just filled roles. A good RPO engagement changes how you hire — the interview structure, the data, the employer brand. That has value beyond the hires themselves.

You lack internal capacity and do not want to build it. Hiring recruiters takes months and commits you to fixed cost. RPO flexes.

Consistency matters across a lot of hires. When many people are being hired for similar roles, a single team applying the same standard produces more consistent results than several agencies working independently.

When it does not

Low or sporadic volume. Below roughly twenty hires a year, contingency is almost certainly cheaper.

A single difficult senior role. That is retained search, not RPO. Different skill, different approach.

You need it solved in six weeks. RPO engagements take time to set up — understanding the business, the roles, the hiring managers. For an immediate problem, an agency moves faster.

You are not willing to change anything. If the engagement cannot touch your process, you are paying for recruiters to operate inside a system that is the actual constraint.

Variants worth knowing

Full RPO covers all hiring across the organisation.

Selective RPO covers specific functions, locations, or role types, leaving the rest in-house or with agencies. Most engagements start here.

Project RPO covers a defined programme — a new site, a ramp, a product launch. Fixed scope and duration, without an ongoing commitment.

Project RPO is often the sensible first step. It tests the relationship on something finite.

Questions worth asking

Who is on the team, and are they dedicated to us? Shared resource across several clients produces different results from dedicated recruiters.

Whose systems and whose data? If the engagement ends, do you keep the candidate pipeline, the process documentation, and the metrics? Agree this at the start.

What does the scope actually include? Sourcing only, or screening, scheduling, offer management, and onboarding coordination? The boundaries determine both the cost and whether it solves your problem.

How is performance measured? Time to fill, quality of hire, hiring manager satisfaction, cost per hire. Agree which matter and how they are reported before you sign.

What tends to go wrong

Scope that was never clearly agreed. The most common failure. Six months in, there is a disagreement about whether something was included.

Treating the RPO team as a vendor rather than part of the team. Engagements work when the recruiters sit in the hiring managers' conversations. They fail when briefs are thrown over a wall.

Expecting it to fix a process nobody will change. If your hiring managers take two weeks to give feedback, no amount of recruiting capacity will make your hiring fast.

Where to start

Count your hires over the last twelve months and be honest about whether that volume continues. That number determines whether this conversation is worth having at all.

Sizanid provides RPO across full, selective, and project engagements. If you want a straight assessment of whether your volume justifies it, [start a conversation](/find-talent) — including when the honest answer is that it does not.

Taggedrporecruitment outsourcinghiring strategy
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