Recruitment Process Outsourcing and Applicant Reactions: When Does Image Make a Difference?

Abstract

Many organizations transfer parts of their recruitment process to external service providers—often referred to as recruitment process outsourcing (RPO)—to save costs and enhance the quality of their recruitment procedures. However, contrary to the expectations regarding RPO, Wehner, Giardini, and Kabst (2012) found that RPO might cause negative reactions to recruitment procedures among graduates. We extend that study by incorporating a brand equity perspective in examining whether employer image and service provider image counterbalance negative reactions among graduates. Utilizing a scenario‐based, between‐subject design, we obtain results that show that the extent of RPO negatively influences applicant reactions regardless of the employer's or service provider's image. Furthermore, we find negative mediating effects of RPO on job acceptance intention. However, the perceived fit between employer image and service provider image positively influences applicant reactions. Moreover, employer image positively influences employer attractiveness and service provider image positively influences applicants’ satisfaction with the recruitment process. Thus, a strong employer image and service provider image partially compensate for the negative effects of RPO on applicant reactions. © 2014 Wiley Periodicals, Inc.