One of the questions I hear from organisations is: “How do we know when it’s time to consider an RPO model?  

It’s a fair question, and an important one. Outsourcing recruitment isn’t just a tactical decision; it’s a strategic shift. But it doesn’t have to be overwhelming. In fact, there are clear signs that indicate when your current recruitment model may no longer be serving your business. 

When to consider RPO: Improving the talent acquisition and on-boarding function  

RPO is about embedding recruitment expertise inside your business to improve how you hire permanent and fixed term contract employees. It’s not just for high-volume hiring it’s for organisations that want to hire better. Here are some triggers I’ve seen that prompt organisations to explore an RPO model and what each one means in practice. 

You want to reduce recruitment costs

If you’re relying heavily on recruitment agencies, the costs can add up quickly as fees charged can range from 12% -18%, and higher for Executive Search. This means you are paying agencies between $12,000 and $18,000 for a $100,000 salaried hire.  While agency use is important for some roles, an RPO partner will generally fill between 60% and 100% of your roles (often 90% or higher) at a fraction of this cost, without sacrificing quality or service. The percent of roles filled by the RPO is agreed with you upfront and is subject to KPI’s to ensure you get the talent you need, when you need it. 

You have an internal recruitment model that’s not effective 

It can be hard to find, train, manage and keep the right recruitment talent when your core business isn’t recruitment. Sometimes, the business has the cost of the internal team as well as the agency costs on top. An RPO model will save you money and give you the skills and flexibility you need to better support your business.

Hiring volumes are inconsistent and hard to predict

Even if you have the right people, internal recruitment models can keep costs and team size fixed, making it harder to scale the team up and down according to hiring needs.  An RPO model will ensure team size and costs are flexible, so you only pay for what you need when you need it.  

Recruitment is taking too long, or you are not getting the talent you need 

When roles go unfilled or take too long to fill, productivity and revenue suffer. If HR or Hiring Managers are doing the heavy lifting, it’s often at the expense of more important responsibilities. An RPO manages end to end recruitment, ensuring roles are filled quickly with the right talent, using advanced direct sourcing techniques and a high performing supplier panel. Hudson also brings their talent data base to the solution, ensuring there are suitable candidates to short-list from day one. 

Your panel isn’t performing

If you’re working with multiple agencies but getting inconsistent results, an RPO introduces governance, accountability, and performance tracking so you get the best from your recruitment suppliers. 

You need to improve hiring quality and/or diversity 

If hiring and on-boarding practices vary wildly between business units or locations, RPO models can bring consistency and rigour to sourcing, screening, and assessment. It’s not about posting ads and selecting from those candidates that apply, it’s about proactively finding passive and diverse candidates through targeted search and selecting the best-fit talent for your business. 

You are concerned about risks 

I’ve worked with clients who discovered they weren’t doing proper work rights and background checks or references – a costly oversight. An RPO ensures compliance with policies, processes and legal requirements, reducing your exposure to risk.  

Onboarding needs improvement

A great hire can still fail if onboarding is poor.  Most new hires will determine in the first three months if the organisation is right for them. RPO models can include onboarding support, ensuring new hires are engaged, productive, and retained from day one. 

Final Thought: Change starts with a conversation 

If any of these challenges sound familiar, it might be time to rethink your recruitment model. Whether you’re managing a growing workforce or looking to improve permanent hiring outcomes, the right talent solution can help you move faster, hire smarter, and build a workforce that’s ready for what’s next. 

Let’s talk talent 

If you’d like to explore whether RPO could benefit your organisation or simply want to understand what’s possible contact me today. I’d be happy to help you assess your needs and design a solution that fits. 

Kimberley Hubble – Head of Talent Solutions
kimberley.hubble@hudson.com
0416 270 642