Wanted to open up a thread about these types of companies….
They call themselves RPO (Resource process outsourcing) or MSP (Managed Service Providers).
The business model seems to be to sell the Clientco on that fact that they can come into the HR department, take over some of the HR function and reduce costs and burden (I assume).
You notice the big name clients and banks often have them onsite. It’s hard to tell who is working with the RPO/MSP Agency and who is actual Clientco staff, as they use the same Clientco emails and are often onsite with the team.
They seems to be used for contracting recruitment more than permanent.
I assume they are seen by the Clientco as a way of getting HR staff for reduced costs - they probably work on a commission basis as opposed to being part of the constrained HR permanent staff costs. They also then get a bunch of agencies underneath them on their PSL and manage them.
BUT...
The Clientco effectively loses all control and visibility of their Talent Acquisition process.
Some of these companies have links or are owned by Agencies on their so called independent PSL.
Clearly, it seems like a good idea for recruitment agencies to form these RPO/MSP type organisations, get on-site with Big Clientco’ s, take control of all the Job Reqs, try and recruit themselves or funnel them off to their sister agencies that they can effectively double bill commission for.
As long as they keep the Clientco sweet onsite - they can treat candidates as they wish. All other recruitment agencies are at their beck and call, and usually they will funnel the open positions to agencies that are related to them (even though they may tell the Clientco that they are operating as a vendor neutral provider).
Due to the competitive nature of the recruitment agency market – is this just big agencies trying to forward integrate to get in with Clientco’s and thus control the recruitment process in order to ensure £££'s??.
Does anyone have an insight? Or how this unaccountable middleman model affects the candidate and Clientco experience?
They call themselves RPO (Resource process outsourcing) or MSP (Managed Service Providers).
The business model seems to be to sell the Clientco on that fact that they can come into the HR department, take over some of the HR function and reduce costs and burden (I assume).
You notice the big name clients and banks often have them onsite. It’s hard to tell who is working with the RPO/MSP Agency and who is actual Clientco staff, as they use the same Clientco emails and are often onsite with the team.
They seems to be used for contracting recruitment more than permanent.
I assume they are seen by the Clientco as a way of getting HR staff for reduced costs - they probably work on a commission basis as opposed to being part of the constrained HR permanent staff costs. They also then get a bunch of agencies underneath them on their PSL and manage them.
BUT...
The Clientco effectively loses all control and visibility of their Talent Acquisition process.
Some of these companies have links or are owned by Agencies on their so called independent PSL.
Clearly, it seems like a good idea for recruitment agencies to form these RPO/MSP type organisations, get on-site with Big Clientco’ s, take control of all the Job Reqs, try and recruit themselves or funnel them off to their sister agencies that they can effectively double bill commission for.
As long as they keep the Clientco sweet onsite - they can treat candidates as they wish. All other recruitment agencies are at their beck and call, and usually they will funnel the open positions to agencies that are related to them (even though they may tell the Clientco that they are operating as a vendor neutral provider).
Due to the competitive nature of the recruitment agency market – is this just big agencies trying to forward integrate to get in with Clientco’s and thus control the recruitment process in order to ensure £££'s??.
Does anyone have an insight? Or how this unaccountable middleman model affects the candidate and Clientco experience?
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