Why RPO and Internal Talent Teams Are Surging Again in 2026

Hiring demand is back. But if you think companies are going to repeat the same hiring mistakes from a few years ago, think again.

In this episode of Stacked: Tech Hiring Insights, we sat down with Hirewell partners Jeff Smith and Rosanna Snediker to break down what’s really happening in today’s hiring market and why both RPO (Recruitment Process Outsourcing) and internal talent acquisition teams are seeing a major resurgence.

Hiring Is Back… With a Different Mindset

Companies are hiring again, but they’re doing it more cautiously.

After the hiring surge of 2021 followed by widespread layoffs, leadership teams are rethinking how they build recruiting infrastructure. No one wants to overhire, then unwind it all 18 months later.

That’s leading to a more flexible approach:

• Smaller internal TA teams
• More contract and project-based support
• Strategic use of RPO instead of permanent headcount

What RPO Actually Means Today

RPO used to be associated with high-volume, one-size-fits-all recruiting support.

That’s no longer the case.

Today, RPO is about building a customized hiring solution based on a company’s exact stage and needs. That can mean:

• Short-term hiring sprints
• Part-time recruiting support
• Full-cycle recruiting backed by a broader team

The goal is simple: bring in experienced recruiting horsepower when you need it, and scale it down when you don’t.

When to Build Internal vs. Bring in RPO

Not every company should outsource recruiting.

The decision usually comes down to a few key factors:

• Timeline: Is hiring demand temporary or ongoing?
• Budget: What level of investment makes sense right now?
• Hiring complexity: Do you need sourcing power or just process management?
• Onsite requirements: Do you need recruiters embedded with your team?

For companies with long-term, steady hiring needs, building internal TA can make sense.

For companies scaling quickly, navigating change, or dealing with short-term spikes, RPO offers flexibility without long-term risk.

AI Isn’t Simplifying Hiring. It’s Complicating It.

One of the biggest surprises in today’s market?

AI hasn’t made recruiting easier. It’s made it noisier.

Recruiters are now dealing with:

• Mass applications at scale
• More unqualified or misrepresented candidates
• Increased need for vetting and validation

The result: the recruiter’s job is more important than ever.

It’s not just about sourcing anymore. It’s about filtering signal from noise.

Why Private Equity Firms Are Leaning In

One area where this model is gaining serious traction is private equity.

PE firms are partnering with recruiting providers to support their portfolio companies with repeatable, scalable hiring solutions.

Instead of every company reinventing the wheel, they can plug into a proven system that:

• Speeds up hiring
• Improves consistency
• Reduces risk

The Bottom Line

Hiring isn’t slowing down. But the way companies approach it has fundamentally changed.

Flexibility is the new priority.

Whether that means building internal teams, leveraging RPO, or combining both, the companies that win in 2026 will be the ones that adapt without overcommitting.

Want to hear the full breakdown?

Watch the full episode here: https://talentinsights.hirewell.com/