The global recruitment process outsourcing (RPO) market continues to grow as organizations seek more sophisticated talent acquisition solutions. But not all RPO partnerships deliver equal value. For experienced RPO buyers, recognizing when it’s time for a change can mean the difference between stagnation and transformational talent acquisition results.
As the talent landscape becomes increasingly complex and competitive, organizations need partners who can not only execute on day-to-day recruitment needs but also drive strategic workforce innovation. The cost of staying with an underperforming provider extends far beyond missed hiring targets—it can impact market competitiveness, growth potential and bottom-line results.
Here are five critical signs that indicate it’s time to find a new RPO partner:
Sign #1: Underperformance in Core Metrics
The most compelling reason to seek a new RPO provider is consistent underperformance in fundamental recruitment metrics. Too often we hear from employers about experiences they’ve had with other providers in which one thing was said during the sales pitch only to have the stakes change once the ink was dry. What begins as promises of transformative results often devolves into missed targets and shifting explanations. When core metrics consistently fall short, it signals a fundamental misalignment between provider capabilities and organizational needs.
What to look for:
- Declining metrics in time-to-hire
- Rising early-stage turnover rates indicating poor candidate quality or fit
- Poor interview-to-hire ratios that waste hiring manager time and resources
- Decreasing hiring manager satisfaction scores and feedback about candidate quality
- Inconsistent reporting or attempts to redefine success metrics after implementation
One retail organization discovered the impact of performance-guaranteed RPO when they switched providers to partner with PeopleScout. Through our partnership they experienced a two-day reduction in time-to-hire and improved sales performance by 7%, generating $3 million in cost savings through reduced vacancy costs and an additional $170 million in annual revenue.
We’re offering organizations that switch their RPO engagement to PeopleScout guaranteed performance outcomes. Book your complimentary benchmarking session today to see how we stack up against your current provider.
Sign #2: Inflexible Cost Structures
Many RPO providers rely on hybrid pricing models combining monthly management fees with cost-per-hire charges. This rigid structure can lead to inefficiencies and hidden costs. Organizations often find themselves paying premium rates during hiring slowdowns while still facing surcharges during peak periods.
Red flags to watch for:
- High fixed monthly fees that don’t adjust with hiring volume
- Lack of transparency in invoicing
- Unexpected line-item charges that inflate total costs
- Fee structures disconnected from performance metrics
PeopleScout offers truly variable cost structures with performance-based pricing—you only pay for actual hires. This ensures your recruitment costs scale naturally with your hiring demands, supported by transparent communication about any potential charges outside the standard agreement.
The true value of an RPO partnership extends beyond the base program cost. Consider the financial impact of reducing time-to-hire by four days or decreasing early-stage turnover by 20%. Our experienced team works directly with clients to calculate potential ROI based on specific performance improvements. In case cases, we have even engaged our finance department to collaborate with clients in establishing concrete valuations of enhanced recruitment performance, ensuring you understand the full financial picture of your investment.
Sign #3: Lack of Process and Technology Innovation
In today’s digital-first recruitment landscape, outdated processes and technology can severely impact your ability to attract and secure top talent. Some providers undergo frequent operational changes or internal restructuring that limit their ability to invest in innovation.
If you feel like you’ve been forced into cookie-cutter processes that don’t support your unique needs, it’s time for a change.
Watch for these signs:
- Limited automation in candidate processing
- Poor candidate experience
- Basic reporting capabilities
- Lack of AI and machine learning integration
- Minimal investment in proprietary technology
Affinix®, our proprietary total talent suite of AI-powered recruiting and reporting tools unites talent acquisition technology, automation and predictive analytics with candidate experience at the core. With a modular approach, our client can mix and match specific tools that align with their unique talent needs and enhance their existing tech ecosystem. Because it’s our proprietary technology, every feature of Affinix is shaped by our clients’ real-world recruitment challenges and designed to deliver tangible business impact. Recent advancements to Affinix, including more AI-powered capabilities, more flexible deployment options and greater insights, means we elevate our clients’ connection to top talent while helping them be more agile and resilient.
Sign #4: Understaffed Delivery Teams
The foundation of successful RPO programs lies in having adequate recruitment teams in place. We work with many clients who have worked with other RPO providers who ended up frustrated by chronically understaffed programs that can’t meet hiring demands. Some providers spread their recruiters thin across too many clients, compromising service quality and results.
Warning signs include:
- Consistently missed hiring targets
- Slow response times to hiring managers
- Inability to handle volume spikes
- Sudden changes in team size without notice
- High recruiter turnover
Every PeopleScout client has a dedicated delivery team with appropriate bench strength, especially during critical periods like program implementation and peak hiring periods. Because PeopleScout recruiters, sourcers and program coordinators are only assigned to one client, our clients actually get to know their PeopleScout team. If we need to make changes, due to a drop in requisitions, for example, we do so in consultation with you to ensure you receive consistent service delivery and the results you’re expecting.
Sign #5: Lack of Specialized Expertise
Today’s complex hiring environments demand specialized expertise that goes far beyond basic staffing capabilities. Organizations need partners who understand the nuances of different industries, job functions and geographical markets. Top providers invest heavily in developing deep industry knowledge and maintain transparency about their team composition and specializations.
Moreover, modern RPO providers should offer comprehensive talent advisory services to help organizations develop forward-looking talent strategies, maximize tech investments, optimize their employer brand and navigate evolving market conditions. This strategic guidance is crucial for creating a resilient workforce.
Red flags to watch for:
- Generalist recruiters assigned to highly specialized roles without relevant industry experience
- Limited understanding of industry-specific requirements and compliance standards
- Superficial market intelligence and competitor insights
- Gaps in understanding regional hiring practices and cultural nuances
- Outsourced or insufficient employer brand and recruitment marketing capabilities
PeopleScout stands apart through our global delivery centers and extensive network of talent experts, offering unmatched scalability for professional, specialist, volume and contingent hiring needs across all sectors. Plus, with one of the industry’s largest in-house talent advisory teams, we serve as a true strategic partner in talent acquisition.
As part of TrueBlue, we’re able to provide our clients access to comprehensive talent solutions including healthcare staffing, contingent workforce management, on-site industrial staffing and commercial driver services. This breadth of expertise ensures we can address the full spectrum of our clients’ workforce needs.
Making the Decision to Switch
Evaluating a potential RPO provider change requires careful consideration of both current pain points and future needs. Look for providers who offer:
- Performance guarantees backed by financial commitments
- Variable cost structures aligned with results
- Proven long-term client partnerships
- Strong NPS scores and client satisfaction metrics
- Modern technology and process innovation
- Transparent team resourcing and communication
The difference between being a provider and a true partner lies in the whole approach to service. For over 30 years, PeopleScout has built our services on integrity. We believe in keeping promises. We believe that listening creates a better experience and leads to better outcomes. We’re not perfect, but if we mess up, we make it right.
We’re proud and humbled to say that this philosophy has led to some of the most enduring client relationships in the talent acquisition space. While the RPO industry average client tenure is approximately three years, PeopleScout partnerships extend well beyond that benchmark—averaging over seven years, with an exceptional NPS score of 84. These metrics reflect our consistent ability to deliver value and drive transformation.
Remember: the cost of maintaining an underperforming partnership far outweighs the temporary challenges of transition. With strategic planning and the right partner, changing providers can revolutionize your talent acquisition capabilities and deliver lasting business impact.
