Recruitment process outsourcing and organisational culture, connecting the dots

Abstract: Outsourcing has been around for over twenty years and is still growing, while outsourcing of recruitment is a relatively new phenomenon. Organisations outsource primarily because of the cost benefit and time saving, since there are also several reasons to outsource, there are also several types of outsourcing. Business process outsourcing is when an organisation outsources a whole business process such as Human Resources, which Recruitment Process Outsourcing is a part of. Recruitment Process Outsourcing is a process used to increase organisation‟s efficiency through managerial time saving, moving the recruitment process to external recruiting agencies providing trust and the proper competitive expertise needed. The purpose of this study is to see how organisational culture is affected by Recruitment Process Outsourcing. This study examined how RPO affects organisational culture, more precisely three factors were examined, motivation, performance orientation and effective orientation. Five international banks in Sweden were investigated and the results showed that motivation was not affected at all by RPO, effective orientation was affected by the most of the companies studied and the performance orientation was affected by circum one third of the companies by RPO. Human Resource study field has a lack of research in RPO and this study is a contribution to that field, regarding the outsourcing of recruitment in the Swedish bank industry.