Recruitment Process Outsourcing
In human resources administration, the process of soliciting, evaluating, testing and hiring new employees can be a daunting challenge.
- Civil rights laws and labor laws protect the privacy of certain personal information.
- Questionnaires and interviewing cannot be structured so as to discriminate against job applicants on illegal grounds, such as sex, race, religion, national origin or other personal attribute protected by law.
- Background checks are required to verify whether the applicant has a criminal record or has “unfinished business” such as unpaid judgments, child support payments, a prior bankruptcy or other events that might lead to judgments on suitability for employment.
Recruitment process outsourcing (“RPO”) fits the needs of industries that experience significant turnover rates. For such industries, efficiency and effectiveness at this HR process can facilitate significantly the chances for success through low turnover and high levels of human capital.
Selection and contracting for RPO services requires careful consideration to the roles and responsibilities of the parties and the allocation of risk and liability.