RPO (recruitment process outsourcing) and lateral hiring are two methods for sourcing skilled employees in the financial sector of North America. RPO allows financial institutions to outsource the screening, identification, and selection of candidates to an external provider. This improves quality, reduces costs, and allows access to a more culturally diverse and international talent pool compared to lateral hiring, which is more restricted geographically. RPO providers also take care of training and extensive background checks, reducing the burden on financial institutions. Considering the advantages in quality, costs, and risk reduction, RPO is generally a better option than lateral hiring for meeting the talent needs of companies in the financial markets.

1. RPO or lateral employment: A look in financial sector of North America
Financial markets in the USA involve lenders, financial intermediaries, borrowers and
institutions. The individuals hired for these jobs work for individual companies, insurance
houses, mutual funds, stock exchanges, money markets, bond dealers and foreign exchange
houses.
The players want their employees to help in saving mobilization, investments, national growth,
entrepreneurship, industrial development and functions in financial markets. Financial
transactions involve transfer of resources, enhancing income, and productive usage of capital,
capital formation, price determination, and analysis of funds, sales mechanisms and giving
information of products.
The industry is large in the US and requires skilled employment. Sourcing of employment can be
done through lateral means or RPO. A comparison of the two employment filling and search
methods is given below:
RPO help improve the quality of the skilled worker needed for these jobs. The institution can
screen employees. The team can identify, screen and scrutinize the batch of candidates as needed
by the financial institution. The RPO process allows better selection and cost reduction leading
to world class recruitment.
The selection of worldwide culturally diverse work force is possible using RPOs. Lateral
employment methods are geographically restricted and a RPO player can reduce costs and afford
better international talent from various sources easily.
RPO providers take a structural path to fill the client’s needs. Financial training in online
courses, class room and selective sourcing of employees with best fitting skills and experience
make the success rate higher. Also the selected candidates are much more productive and stay
with the firm longer than those selected through the lateral route. This is an advantage in ROI to
the firm and cuts down on resource and time usage by a firm. The RPO is a one point solution to
meet the financial institutions needs.
Financial market jobs require that the employee goes through intense training and background
checks to make sure he is not a fraudulent person. RPO players take care of all the hassles and

2. give the best talent after extensive training and checks. The lateral route would have required
separate checks and in house training adding to costs and resource blockage.
Keeping all these points in mind one would as a financial institute prefer a better option to fulfill
the needs of finding the right talent for potential employment in financial markets. RPO has
many advantages over lateral employment mobilization. RPO is a much more effective and safe
method of selecting and recruiting the talent needed to excel in the markets.