The Recruitment Process Outsouricng industry continues to see steady growth. In 2014, the industry grew 13 percent, pushing it over the $2 billion mark, and indicators suggest it will continue to expand at a projected rate of nearly 9 percent through 2018. This growth is thanks to many drivers, including shifts in the talent marketplace, talent scarcity, increased competition, and globalization.
The growth in the RPO industry is exciting but with this growth comes increased competition from either new RPO players entering the market or existing RPOs who are merging with or acquiring companies to rapidly expand. With an ever-expanding number of choices, how can a company determine which RPO provider is best for them?
As a refresher, Recruitment Process Outsourcing (RPO) is when a 3rd party RPO provider acts as a company’s internal recruitment function for some or all of its talent needs. RPO providers manage the entire recruiting/hiring process from job profiling through the on-boarding of the new hire, including staff, technology, processes, and reporting. A successful RPO will decrease a company’s time to hire, increase candidate quality, provide business intelligence, reduce costs, and improve compliance.
It’s important to recognize that there are several types of RPO providers in the marketplace. First, there are temporary/contingency agencies that offer RPO-type solutions. Staffing agencies might be able to help with recruitment support for multiple hiring needs, but this is more similar to sourcing or “co-sourcing.” The important distinction to remember is that true RPO companies own the process from start to finish, using their own staff, technologies, processes, and reporting. RPO companies design and manage the recruitment process and they are responsible for the results. With staffing firms, the client usually still owns a significant portion of the process.
Among true RPO providers, then, you will find a variety of choices. RPO providers range from small, mid-sized, or large scale companies. Most small providers are regionally based with national recruiting capabilities. They might also be focused on specific specialties. Mid-sized providers are regionally or nationally based and cover a broader spectrum of industries. Large, strategic enterprise RPO companies can recruit globally and they often provide outsourcing services beyond RPO (such as workforce planning and talent strategy).
How do you know what’s best for you? Selecting your RPO partner should include a thoughtful selection process. This is a partner that is representing you in the talent marketplace, therefore it’s important to select one that shares similar corporate values and culture. Remember that performance and results are most important. An RPO provider might provide extensive capabilities but if they can’t help you find the talent you need, the partnership will not succeed.
Contact Advanced RPO today to learn more about how our RPO solutions can help your company achieve greater success.