In mining recruitment, HRO (Human Resource Outsourcing) and RPO (Recruitment Process Outsourcing) are two distinct approaches for hiring talent. Which is better for mining companies? Well, it depends on what you need. Let’s have a look at each one in more depth:
Human Resource Outsourcing (HRO)
HRO involves outsourcing a range of HR functions, not limited to recruitment. An HRO provider can manage multiple HR tasks, such as payroll, employee relations, benefits, and compliance, alongside recruiting. This approach gives mining companies the ability to streamline various HR responsibilities through a single external provider, making it easier to focus on core operations.
For a mining company, HRO might mean delegating all HR tasks to an outside firm, which could be valuable if the company has limited in-house HR resources. However, HRO doesn’t specialise solely in recruitment, so it may not provide the same depth of expertise or strategic focus as an RPO solution when it comes to hiring specialised roles.
Recruitment Process Outsourcing (RPO)
RPO focuses exclusively on the recruitment function. With RPO, a mining company partners with a recruitment firm, like us, that handles its recruiting process. RPO providers often bring specialised expertise in sourcing, assessing, and hiring talent for the mining sector, making them highly effective for complex or hard-to-fill roles, like engineers, geologists, or metallurgists.
For a mining company, an RPO provider can act as an extension of its own HR team, focusing solely on finding the right talent at scale, or on short deadlines. RPO providers understand the challenges of recruiting in remote locations, the technical qualifications needed for mining roles, and the importance of a strong safety culture. They often use data-driven strategies to improve time-to-fill and quality of hire, which can reduce hiring costs and improve workforce stability.
When to choose HRO vs RPO
Here’s a quick breakdown of the pros and cons of HRO and RPO in the mining industry:
HRO is a good choice if the mining company needs to outsource several HR functions and reduce the administrative load across HR tasks.
Pros:
- Broad coverage: Manages multiple HR functions beyond recruitment and streamlines HR tasks.
- Admin relief: Frees up in-house HR teams by handling payroll, compliance, and benefits.
- Cost efficient: Reduces overhead because you outsource several HR functions to one provider.
Cons:
- Limited focus: Recruitment is just one part of the service, so it may lack specialised recruitment expertise.
- Not customised: HRO may not customise the recruitment process to mining industry needs.
- Potential disconnect: Providers may lack in-depth knowledge of mining-specific roles or remote location challenges.
RPO
RPO is ideal when the company’s primary need is recruiting the best talent, fast. It’s especially valuable for filling specialised or high-volume roles in mining where skills and experience are important. An example is when Ambatovy Joint Venture in Madagascar needed to attract hundreds of highly-specialised engineers, superintendents and senior managers. Over seven years, they recruited more than 300 expats for their world-class lateritic nickel mine and processing facility using RPO.
Pros:
- The recruiters are specialised: Focuses solely on recruitment, with expertise in mining-specific roles and finding people for remote locations.
- As big or small as you need: The service can scale up or down to provide recruitment processes to fit the company’s specific needs, improving cultural and technical fit.
- More efficient: Reduces time-to-fill and cost-per-hire through targeted strategies.
Cons:
- Narrow scope: Some RPO providers only handle recruitment, so the company may still need internal HR support for other tasks. However, other RPO providers, like us, can provide a full service.
- Higher initial investment: Typically requires more upfront investment, though usually offset by long-term cost savings.
- Dependent on provider: Heavy reliance on RPO can lead to challenges if the provider changes or service quality drops. It pays to do your research up front and ask around for referrals from other mining companies. Ask to be connected to current RPO customers so you can ask them what it’s like working with that RPO provider.
Each option serves different needs, with HRO offering a broader HR solution and RPO providing targeted expertise in recruitment for mining companies.
Curious to know what the difference is between RPO and Managed Services? We talk about it in this article.
