5 min read

Outsourced Recruitment (RPO) vs. Traditional Recruitment Agencies: What’s Best for SMEs?

Recruitment is a vital function for every business, but for small and medium-sized enterprises (SMEs), finding the right talent efficiently and affordably can be a major challenge. While traditional recruitment agencies have been the go-to option for years, many SMEs are now exploring Recruitment Process Outsourcing (RPO) as a more strategic and cost-effective alternative.
At TiaTalent, we recognise that both models have their place. In this blog, we’ll explore the key differences between our RPO service and fee-per-hire solutions, helping SMEs choose the approach that best suits their needs.

What Is Traditional Recruitment?
Traditional recruitment, or fee-per-hire recruitment, is straightforward: a recruitment partner finds you a candidate, and you pay a one-time fee (typically 15-25% of the hire’s annual salary) once the position is filled.

This model is often ideal for businesses with:

  • One-off or urgent hires where speed is essential
  • Niche or hard-to-fill roles that require specialist recruiters
  • Recruitment needs that fluctuate without a long-term hiring plan

At TiaTalent, our fee-per-hire approach delivers quality candidates quickly, ensuring businesses get the right fit without delay.

What Is Recruitment Process Outsourcing (RPO)?

RPO is a more strategic, long-term recruitment solution. Instead of paying a success fee for every hire, businesses pay a fixed monthly or annual fee for end-to-end recruitment support. With TiaTalent’s RPO model, you gain access to a dedicated Hiring Manager who integrates seamlessly into your team, managing every step of the recruitment process.

TiaTalent’s RPO service includes:

  • Writing and optimising job descriptions and adverts
  • Proactively sourcing and attracting candidates
  • Screening and assessing applicants
  • Coordinating interviews, offers, and onboarding

This comprehensive solution is ideal for businesses with ongoing or high-volume recruitment needs, offering cost savings and greater efficiency.

Key Differences Between TiaTalent’s RPO and Fee-Per-Hire Solutions

  • Cost Structure: RPO offers a fixed monthly fee, ideal for businesses with multiple or recurring hires. Fee-per-hire charges a one-time success fee, which is more suitable for urgent or occasional recruitment.
  • Service Scope: RPO provides full end-to-end recruitment management, while fee-per-hire focuses solely on candidate placement.
  • Scalability: RPO adapts to fluctuating hiring needs without additional costs. Fee-per-hire allows businesses to pay only when recruitment is needed.
  • Speed vs. Strategy: Fee-per-hire prioritises speed for immediate vacancies. RPO focuses on long-term recruitment strategies and process improvements.
  • Budget Control: RPO offers predictable, flat-rate costs, while fee-per-hire costs vary based on the number of hires and salaries.

Why Choose RPO Over Traditional Recruitment?

For SMEs with consistent hiring needs, TiaTalent’s RPO model delivers significant benefits:

  • Cost-Effectiveness
    Traditional fee-per-hire models can be costly when recruiting for multiple roles. For example:
  • 10 hires at £30,000 average salary with a traditional agency (at 20% fees) = £60,000 in costs.
  • TiaTalent’s RPO model provides a flat monthly fee, offering significant savings over time.

If you anticipate ongoing recruitment, RPO helps you plan your budget with greater predictability.

  1. Time Savings
    Recruitment is time-consuming—writing job descriptions, screening CVs, and managing interviews can take up to 25 hours per hire. For SMEs, this often means pulling valuable time away from core business activities.
    TiaTalent’s RPO service takes this burden off your shoulders, saving your team hundreds of hours over the year.
  2. Scalability and Flexibility
    RPO gives you the flexibility to adjust recruitment support based on your changing hiring needs. Whether you need to fill one role or hire an entire team, your fixed costs remain predictable.
  3. Integrated Partnership
    With RPO, your dedicated Hiring Manager becomes an extension of your team, ensuring alignment with your company’s culture, goals, and processes. This leads to higher-quality hires and a smoother recruitment experience.

Why Might Fee-Per-Hire Be Better for Some Businesses?

While RPO is ideal for SMEs with ongoing hiring needs, there are situations where our fee-per-hire service is the better option:

  • Urgent Hiring: When you need to fill a role quickly, a fee-per-hire solution delivers faster results.
  • Occasional Recruitment: If you only hire a few roles per year, a one-off fee can be more cost-effective than ongoing recruitment support.
  • Niche Roles: For specialist or hard-to-fill positions, targeted fee-per-hire recruitment ensures you find the perfect candidate with minimal hassle.

At TiaTalent, we offer both RPO and fee-per-hire options, allowing you to choose the recruitment model that works best for your business.

Which Recruitment Model Is Right for You?

If your SME has ongoing or high-volume hiring needs, TiaTalent’s RPO model provides long-term value, efficiency, and cost savings. For occasional or urgent hiring, our fee-per-hire service ensures you get the right talent quickly without long-term commitments.

Discover How TiaTalent Can Support Your Recruitment

At TiaTalent, we understand that every business is different. Whether you need a long-term recruitment partner through our RPO model or a quick solution with fee-per-hire, we’re here to help you find the best talent.

Book a Discovery Call Today to explore how TiaTalent can streamline your recruitment process and save your business time and money.