Recruitment Outsourcing Glossary

AI Artificial Intelligence
A branch of computer science dealing with the simulation of intelligent behaviour in computers. 

Applicant Tracking System (ATS)
A software application allowing recruiters and hiring managers to attract, source, evaluate and hire candidates, facilitating a more automated and streamlined hiring process.

Attrition Rate
The rate at which employees leave an organisation. Usually expressed as a percentage of the total number of employees who have left in a given period.

Additional compensation provided to employees in addition to their salary. Can include health insurance, vacation time, retirement plans and bonuses. 

A person who is applying for a job offered by an organisation. They are typically interviewed by the employer to assess their suitability for the role. 

Candidate Engagement
The practice of creating meaningful relationships with job applicants throughout the recruitment process. It involves activities such as responding quickly to enquiries, providing a personalised experience, and creating an ongoing dialogue to maintain interest and build trust.

Candidate Experience
The process of how a candidate interacts with an organisation throughout the recruitment cycle. It encompasses all aspects of the candidate’s journey, from the initial job search to the onboarding process. 

Candidate Lifecycle
The stages a job candidate goes through, from initial contact with a recruiter or manager through to onboarding in their new role. 

Candidate Satisfaction
The degree of contentment a job applicant feels after engaging in the recruitment process. Candidate satisfaction is important because it can affect their willingness to recommend the company to other potential candidates and their willingness to accept a job offer should one be made.

Any business or organisation that has entered into a contractually binding relationship with an outsourcing provider.

A consultancy provides professional advice and guidance in a specific area, such as management, technology, human resources, marketing, or some other subject matter. 

Customer Relationship Management (CRM)
A process (usually in the form of a software platform) through which a business or other organisation manages its relationships and interactions with existing and potential customers. 

Contingent Labour
A type of employed labour that is paid for a specific job or task, often on a short-term basis. It can include contract workers, freelancers, temporary workers, seasonal workers, or independent contractors.

Contractor Management Office (CMO)
A centralised group within an organisation responsible for managing contracts with external vendors and ensuring that the organisation’s goals and requirements are met. 

Core Values
The guiding principles that an organisation uses to define its culture and shape its decisions. 

Cost Per Hire
This recruiting metric is a formula used to measure the total costs associated with filling a job opening divided by the number of hires made. Cost per hire helps companies better understand the costs of their recruitment process and can help them make more informed decisions about how to best allocate resources for hiring. 

DE&I Policies
DE&I stands for Diversity, Equity, and Inclusion. It describes policies and programs that promote the representation and participation of diverse groups of individuals. 

Direct Hire
A direct hire is when a company recruits a candidate without partnering with a third party, such as a staffing agency.

Employee Value Proposition (EVP)
EVP represents everything of value that an employer offers its workforce, including compensation, career development, DEI policies and more. 

Employer Branding
A set of tactics and methodologies to attract and promote the value of working for an employer to passive and active candidates.

Enterprise RPO
An end-to-end recruitment solution in which an external vendor manages all or part of a company’s recruitment process. 

Failure to Start
Describes a situation when a new employee fails to show up for their first day on the job or when they have not completed the onboarding process.

Full-Time Equivalent (FTE)
Measures the number of full-time employees within an organisation. It is calculated by dividing the total number of hours worked by all part-time employees by the number of hours considered to represent one full-time employee. 

Gender Bias
Prejudice or discrimination based on a person’s gender. This can manifest in different ways, from unequal pay to assumptions about a person’s abilities based on gender.

The practice of a job applicant disappearing without explanation or notice after having been engaged in the recruitment process. 

Hiring for Potential
The process of identifying and selecting individuals who can grow, develop, and thrive in their role, regardless of their current level of experience or skills. 

Hiring Manager Satisfaction
The degree to which a hiring manager is pleased with the recruitment process they have gone through to find a suitable candidate. It is determined by factors such as the quality of applicants and the speed of the recruitment process. 

HR Analytics
Also known as people analytics, workforce analytics or talent analytics, HR analytics involves gathering, analysing, and reporting HR data.

Human Resources Information System (HRIS)
A software solution to store, manage and track employee-related data. 

Hybrid Model
Hybrid recruitment (or hybrid hiring) is when an organisation uses both in-person and virtual hiring techniques to maximise its chances of securing the best talent. 

International Mobility
The process of workers moving from one country to another. Companies that promote international mobility can access talent from a global pool. 

Internal Mobility
The movement of employees within an organisation, either vertically or laterally, for career transitions or career development. Offering employees the opportunity to change roles is beneficial to both the employee and the organisation. 

A temporary position with a predetermined end date or project completion date.

Job Advert
An advertisement posted by an employer to attract potential job applicants. It usually contains information about the job, the company and the qualifications required for the position.

Job Board
A website or online platform that allows employers to post job openings and job seekers to search for and apply for those jobs. 

Terms employers use to describe the skills, qualifications and experience they are looking for in candidates. By including relevant keywords, employers can make their job postings more searchable and more accessible for job seekers to find. 

Key Performance Indicator (KPI)
Metric used to measure and evaluate the performance of a company, organisation, team or individual against a predetermined set of criteria. Generally, KPIs focus on measuring progress toward specific goals or objectives.

Managed Service Programme (MSP)
A Managed Service Programme (MSP) is when a company outsources the recruitment, administration, and management of its contingent workforce.

Master Vendor
In the master vendor model, a single provider is engaged to source and manage the client's hiring needs. Any roles that can't be filled by this preferred supplier can be sent to second-tier providers. 

Monthly Business Review (MBR)
Similar to a quarterly business review but held monthly. 

Nearshoring is the practice of outsourcing a business function or project to a nearby country rather than a distant one.

The process of transitioning an employee from their current role at a company, either through termination or resignation. It involves the completion of tasks such as collecting company property and materials, providing exit interviews and feedback, and providing support for the employee during the transition.

The relocation of a business process from one country to another — typically an operational process, such as manufacturing, or a support process, such as accounting. Offshoring can reduce production costs and maximize profits.

The process of orienting and training new employees so that they can become effective members of the organisation. It typically includes introducing the new employees to their team and the company, providing a job orientation, and assigning tasks or projects. 

The process of moving a business function that was previously handled offshore back to the organisation’s home country. The opposite of offshoring, onshoring can reduce costs and improve service quality.

The process of helping employees who have been laid off or otherwise terminated by their employer to find a new job. Outplacement services typically include career counselling, resume assistance, job search skills, and help with networking.

Passive and Active Candidates
Active candidates are those currently looking for new opportunities and applying for jobs. Passive candidates are not actively looking for work but may be interested in a new opportunity if approached and asked to consider it.

Pop-up RPO
A type of temporary recruitment process outsourcing (RPO) solution designed to provide companies with the resources and expertise they need to quickly fill positions with qualified candidates. Pop-up RPO solutions are often used in times of high demand or when companies are looking to scale quickly.

Preferred Supplier Agreement (PSA)
A Preferred Supplier Agreement is a mutually beneficial agreement between a company and a recruiter. Typically, the preferred supplier is guaranteed business from the recruiter in return for offering a discounted recruiting fee.

Preferred Supplier List (PSL)
A list of preferred suppliers (see above).  

Project on Demand
A short-term, targeted recruitment solution that focuses on the identification, selection, and onboarding of a specific set of job candidates for a particular project. 

Project RPO
A specific recruitment project that is outsourced, typically with a smaller scope and shorter duration than a full-scale or enterprise RPO. 

Quality of Hire
A recruitment metric that measures the effectiveness of a company’s recruitment process in terms of the quality of the employees that are hired. 

Quarterly Business Review (QBR)
The quarterly business review is an opportunity for the client to review the performance of the outsourcing provider.

Recruiter on Demand (ROD)
A type of employment service that provides employers with access to pre-vetted and qualified talent on a short-term basis. This service allows employees to quickly fill job openings without committing to a full-time, long-term recruitment process. 

Recruitment Process Outsourcing (RPO)
Recruitment Process Outsourcing (RPO) is a workforce solution in which an external provider takes on some or all of an organisation's permanent recruitment functions. 

Referral Bonus
A monetary or non-monetary incentive given to a current employee for referring a new employee who is then hired by the company.

Request for Information (RFI)
The action done by an organisation requesting information about a potential outsourcing provider’s services. The information collected through an RFI can be used to compare suppliers and choose the right partner for the job. 

Request for Proposal (RFP)
The action done by an organisation soliciting proposals for an outsourcing or high-volume hiring solution. It typically contains instructions on how to respond to the RFP, evaluation criteria and the scope of services being requested. 

Request for Quotation (RFQ)
The action done by an organisation that is seeking services from an outsourcing provider. The RFO outlines the services required, the terms and conditions of the contract and the expected timeline for completion of the project. 

The process of acquiring new skills or knowledge to adapt to changing job requirements. It typically involves retraining existing employees to allow them to take on new roles or to remain competitive. 

Robotic Process Automation (RPA)
The use of software robots or artificial intelligence (AI) to perform repetitive, mundane tasks that are usually performed by human workers. RPA automates manual processes such as data entry, data sorting, data validation and document processing.

Scope of Work (SoW)
Sometimes known as a Statement of Work, an SoW is a written document detailing the work activities and deliverables a supplier must execute within the agreed timeframe. 

Search Engine Optimisation (SEO)
The process of optimising web pages and their content to be easily discoverable by users searching for terms relevant to your website. Employers can use SEO-friendly keywords to increase the visibility of their job postings, targeting the right audience and reaching more qualified candidates.

Service Level Agreement (SLA)
An SLA comprises contractually binding clauses (deliverables, goals, milestones, etc.) that the providers and clients will meet during the term of service. 

Software as a Service (SaaS)
A software distribution model in which a third-party provider hosts applications and makes them available to customers over the internet. Customers access the applications via web browsers or mobile apps, eliminating the need to install and run the applications on their own computers. 

The process of proactively seeking out and identifying qualified candidates for a specific job opening or role. It involves using various recruitment techniques such as job boards, social media, networking, and referrals.

Staff Augmentation
The use of external personnel to augment a client's capacity on a temporary basis, typically in response to a new business initiative or expansion. 

Staffing Services
Services provided by recruitment companies to help organisations find and hire qualified employees. This can include anything from identifying candidates through online job postings to conducting screenings and interviews.

Statement of Capability (SoC)
A statement of capability is a document that shows potential clients the services a business can provide. 

Statement of Work (Sow)
A document used in project management that describes the agreement between two parties: the client and the service provider. It outlines the scope of work, deliverables, timeline, and payment terms for a particular project.

A company or agency that sources and recruits temporary, contract and permanent employees for an organisation. Suppliers typically recruit, screen, and manage the hiring of these employees, as well as provide payroll and benefits administration services.

Supply Chain
This typically refers to second-tier recruitment agencies that support the RPO, MSP or TTA programme.

Talent Pipeline
A process used by an organisation to identify, attract, and onboard talented individuals for open positions. The goal of a talent pipeline is to ensure that the organisation has a steady supply of qualified personnel to meet its needs. 

Talent Pool
A group of potential candidates identified and assessed as having the necessary skills and qualifications for a particular role. This pool of pre-screened individuals can be tapped into by an organisation to quickly fill positions when needed. 

Short for temporary employee or temporary worker. This is someone who works for a company on a short-term basis, usually to fill in for an absent employee or to help out during peak periods. 

Time to Fill (TTF)
A recruiting metric or KPI that measures the number of days it takes to fill an open position; from the date a job is posted to the date a new hire accepts the position. 

Time to Start (TTS)
A recruiting metric or KPI that measures the number of days that a vacant position stays empty until a new hire is onboarded. 

Total Talent Acquisition (TTA)
Also known as Total Talent Management, this solution allows organisations to outsource their permanent and contingent hiring to a single service provider. 

Total Talent Management (TTM)
see Total Talent Acquisition

University Relations
Actions and branding strategies designed to attract and recruit more and better-qualified students from educational institutions. 

The process of learning new skills or improving existing ones to stay relevant in the job market or to gain a competitive advantage.

User Experience (UX)
The overall experience of a person using a product, system, or service. 

Vendor Management System (VMS)
A VMS is a software application (often cloud-based) that allows businesses to manage and procure staffing services, control costs, drive performance and mitigate risks to gain added value from their vendors throughout a project.

Vendor Neutral
The vendor-neutral model is when a client partners with an agreed list of recruitment suppliers, all of whom are given the opportunity to present candidates for vacancies. 

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