The pricing of Recruitment Process Outsourcing (RPO) is structured based on the scope of services, hiring volume, job complexity, and level of support required. Unlike traditional recruitment fees, RPO costs are typically more predictable and scalable, allowing companies to align hiring expenses with business needs.
Understanding the various RPO models and their associated pricing can help you select the most suitable option.
Factors influencing RPO pricing:
- Scope of Services: The extent of recruitment functions outsourced.
- Hiring Volume: Number of positions to be filled.
- Role Complexity: Specialised roles may require more resources.
- Geographic Location: Recruiting in remote areas can impact costs.
“RPO arrangements can be customised to suit the requirements of your business, whether it be the size of your team, how long you need them to assist, whether you need pre-employment checks, psychometric testing, or contract generation,” says Justin Campbell, Head of Projects at Globe 24-7.
For insights into managing an RPO partnership effectively, consider reading: How do you manage an RPO?
Key RPO pricing models in the mining industry
Cost Per Hire (CPH)
- A fixed fee for each successful placement.
- Suitable for project-based recruitment or specialised technical roles.
Management Fee Model (Monthly Retainer)
- A consistent monthly fee for ongoing recruitment support.
- Ideal for operations with continuous hiring needs, such as large-scale mining projects.
Hybrid Model
- Combines a base monthly fee with performance-based incentives.
- Offers flexibility and aligns costs with recruitment outcomes.
Other RPO models
In addition to the pricing models mentioned above, it’s also common to see these RPO operating models in the mining industry as the services often cover a broad range of activities in addition to just the recruitment function on its own:
Full-Cycle RPO
The provider manages the entire recruitment process, from job posting to onboarding. Ideal for companies seeking to outsource all recruitment functions.
Partial RPO
The provider handles specific components of recruitment, such as sourcing or screening. Suitable for companies that need support in particular areas of the hiring process.
Project-Based RPO
Designed for short-term or specific hiring projects, like new mine developments. Allows flexibility to scale recruitment efforts based on project demands.
On-Demand RPO:
Provides recruitment support as needed, offering scalability during peak hiring periods. Beneficial for companies with fluctuating recruitment needs.
For a detailed overview of these RPO types, you can read this article: What are the different types of RPO?
By understanding these models and factors, you can make more informed decisions to optimise your recruitment strategies.
