An exploratory study on the impact of recruitment process outsourcing on employer branding of an organisation

Abstract

Purpose This paper aims to focus on “Recruitment Process Outsourcing” (RPO) as a key element of improvement in corporate brand of organisation through using the talent and capabilities of employees. This research explores the linkages and interconnection between the concepts of RPO and its contribution towards the employer branding process. The review of the literature on RPO and employer branding identifies an emergence of conceptual framework based around outsourcing effectiveness and its impact on employer branding. Design/methodology/approach Exploratory research was carried out using case study analysis to give clear and deep understanding of the RPO and its impact on employer branding. This was conducted by using the semi-structured interviews with the HR and marketing managers using the qualitative method. The findings propose a conceptual framework which is representative for the organisations engaged in RPO. Findings The key findings include talented employees’ role in improving the brand image of any organisation; the development of customers’ perceptions through their attitude and behaviours; the reduction in the HR costs through RPO Services, the responsibility of the organisation taken by RPO which provides the chance for HR professionals and top management to focus on core activities; and the organisational care in selection of the RPO service provider as per their criteria. Research limitations/implications This research has been limited to assessing the impact of RPO on the employer branding of manufacturing organisations purely due to access issues. The research clearly establishes a good link between the operationalisation of RPO and its direct influences on an organisation’s employer branding through its outsourced employees. The research clearly highlights the importance of and the vital role played by the outsourced employees and how they need to be nurtured through a strong corporate culture and make them great brand ambassadors. Practical implications At the practical level, this study has several managerial implications, as the findings provide a good understanding of the concept of RPO and how it impacts the employer brands of the organisation. The research gives confidence to the HR managers and directors on the importance of outsourced staff members and the need to address the issues concerning the employee branding of an outsourced member of staff. The outcome of the research gives a conceptual model which represents the impact of an outsourced employee on the employer branding process of the organisation. This conceptual model highlights the many different factors that need to be addressed by a HR manager to keep consistency in employee branding of the organisation. Social implications The social implications of this research relate to the wellbeing and motivated staff members of an organisation, even though they do not work directly under the brand of the company they serve in. As mentioned in the research findings, the complications of the RPO process usually has drastic and serious impacts on employee attitudes and feelings when it comes to issues like change management, job satisfaction and the sense of belonging to the organisation. By addressing the different factors explored in the conceptual model of this research, an outsourced employee can feel equally motivated and belonging to the organisation they serve in, just as any other permanent member of staff who acts like an ideal brand ambassador for the employer branding of the organisation. Originality/value This research is original and adds value to the dynamics of RPO processes by exploring the impact of the process on employer branding of the organisation through its brand ambassadors. This research paves way for further research to be carried out within service organisations where employees play a vital role in being the brand ambassadors of their employer brands.