RPO: A Strategic Advantage for Middle Market Companies

Posted by Tim Oyer, Vice President, Advanced RPO on October 31, 2016
Tim Oyer, Vice President, Advanced RPO

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The middle market continues to be a thriving portion of the U.S. economy. Revenue increases are fueling continued hiring momentum for the middle market; in fact, at 4.9%, the rate of employment growth is near the all-time reported high and is well above the long-term average growth rate of 3.3%. Expectations for future employment growth are the highest ever reported at 4.0%.

The U.S. middle market is comprised of companies with annual revenues between $10 million and $1 billion. With 48 million jobs, the middle market makes up 1/3 of the total U.S. workforce. Talent acquisition can play an especially critical role in middle market companies as every hire can have an impact – positive or negative – on company success. With fewer resources than Fortune 1000 companies (and likely, less budget), how can middle market companies compete for top talent and how can these companies weather the dynamic changes taking place in recruitment today?

Recruitment Process Outsourcing (RPO) is a compelling alternative for middle market organizations. RPO is a form of business process outsourcing where a company partners with an outside expert to design and execute a program that transforms their organization’s talent acquisition function to align with business strategy. Every company faces unique challenges; however, there are three ways in which RPO can universally improve a middle market company’s quest for high-performing talent acquisition: Expertise, Reach, and Speed.

Expertise: in 2015, the average HR-to-employee ratio was 1.1 HR professionals per 100 full time employees in an organization. That figure includes HR staff that are dedicated to benefits, compensation, and employee relations … let alone recruitment. HR resources are often stretched thin in middle market companies, yet it takes time to develop and execute on progressive recruitment strategies. An RPO provider brings recruitment expertise on Day One. RPO leaders are experts in the field of talent acquisition. HR leaders can rely on their RPO partners to guide them on strategic recruitment tactics that will yield results.

Reach: the world of recruitment is changing rapidly. Mobile, social, globalization, employer branding, recruitment marketing, programmatic ad buying, paid search … the tactics employers are using to access and attract the best talent evolve every month. Recruitment costs are also rising: in 2014, U.S. companies increased their average talent acquisition costs by more than 7%. With cost-per-hire on the rise and companies using more tactics than ever, how can middle market organizations compete for the best talent? RPO providers give their clients more access to talent by giving clients more recruitment reach than they can create on their own. Whether it’s leveraging social media or paid search, RPO providers are able to get more visibility for their clients’ openings, and they are able to increase candidate flow thanks to their recruitment power and reach.

Speed: without the right talent in the right jobs at the right time, a company cannot grow. A middle market company might have the most fantastic product or service, and they might have aggressive growth expectations, but without enough talent growth will be stymied. Building a recruitment function that can deliver on aggressive hiring demands can take time. Companies can use contractors or agencies to supplement their hiring, but those choices can be more expensive and less strategic than taking a long-term approach to talent. RPO providers can develop solutions that allow a client to quickly ramp up hiring capacity and results. An experienced recruiting team is dedicated to the client’s needs, giving them the firepower they need to acquire talent quickly. The nature of the RPO/client relationship is long-term and strategic vs. a short-term fix, giving the client a sustainable solution that can flex with business needs.

Could RPO be the right solution for your middle market company? Stay alert to some of the telltale signs that could be signaling the need for a more strategic solution. Are you already considering RPO as an alternative? Download our guide to Making the Business Case for RPO and learn how to gain organizational support for an RPO program.

Advanced RPO is dedicated to making hiring a strategic advantage for the best middle market companies in the U.S. To learn more about RPO and how it can help you achieve success, contact Tim Oyer, Vice President, at toyer@advancedrpo.com.

Download Making the Case for RPO

Tags: RPO & HR outsourcing

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