Cost has always been central to recruiting. One of the most popular (though not the most useful) metrics is cost-per-hire.
But demonstrating the value of recruiting is difficult. The reasons are simple enough — recruiting costs are tangible; the benefits less so. It takes time for new hires to become productive, and their contributions are difficult to measure with any precision. Furthermore, it is impossible to attribute an employee’s performance to the recruiter’s skill at getting the right fit, in the right place and time. Consequently, tying recruiting results to cost is nearly impossible. Few even try. So recruiting managers usually find themselves under pressure to “manage” costs better — which usually means do more with less. Some companies have just given up trying and handed over their recruiting to an RPO vendor.
RPO has its own issues, but one benefit of RPO may just be that recruiting managers begin to understand costs, and how to manage them to their advantage. I don’t mean “manage” as in “limit” (although that’s a very fine thing), I mean structuring costs to maximize flexibility, leverage in-house expertise, and limit cutbacks during down cycles. This is the “manage” they teach in B-school.
