RPO is the fastest growing sector of HR outsourcing and the $2 billion industry is expected to expand at a rate of 9% through 2018. The RPO industry is growing thanks to a rebounding economy, stronger competition for skilled talent, globalization, social media, and companies who desire to focus on core business operations.
Is RPO right for every organization? The answer depends on having the right frame of mind, defining the right solution, and selecting the right partner. An organization needs to have a clear strategy around talent acquisition and understand how RPO fits within the objectives. Are internal recruitment resources operating efficiently and effectively? Is there an escalated increase in hiring demand? Does leadership demand more sophistication (i.e. real-time metrics, market analysis, consultation)? Certainly the point of an RPO is to acquire talent but a company might also be seeking to reduce cost-per-hire, improve time-to-fill, decrease turnover, or improve candidate and hiring manager satisfaction.
Next, a company needs to determine the right solution. Most RPO solutions fall into one of three categories: project RPO (for a specific hiring project/timeframe), program RPO (also for a defined timeframe but involving larger hiring needs) and total outsourcing (completely outsourcing your recruitment function to an RPO provider). While these specific models are common, many companies’ needs are unique. It’s important to partner with an RPO provider that truly seeks to understand your talent acquisition strategy and deploys a solution that aligns with that strategy.
Finally, a company needs to carefully consider finding the right partner. Criteria for partner selection might include the size of the RPO provider (do you want a large RPO provider with global presence or do you want someone who is hands-on and local?), their capabilities and technology, their cost structure, commitment to partnership, and cultural alignment. What is the best way to identify the right partner? It’s important to engage in conversations at all levels of the organization. Have your RPO prospects include account managers and recruiters in the discussions. These are the individuals that will be supporting the account on an on-going basis, therefore it’s important you understand how they operate.
The future of RPO is exciting, not only in terms of industry size and growth but also, HR leaders are demanding greater sophistication from RPO firms. RPO providers are responding by developing more solutions that incorporate talent communities, social media, data, mobile, employer branding, workforce planning, and creative sourcing techniques. Engaging with an RPO provider accelerates a company’s ability to develop a best in class talent acquisition solution.
Contact Advanced RPO today to learn more about our RPO solutions.