Recruitment Process Outsourcing
Recruitment Process Outsourcing (RPO) provides organisations with their own leading recruitment capability, combining highly skilled recruiters, the latest technology, sophisticated processes and the expertise to source market-leading talent. The services are tailored to support all recruitment needs: permanent, contractor management, graduate, volume and short-term.
Talent2 has extensive experience in a variety of industry sectors including ICT, life sciences and technology, pharmaceutical, financial services, new media and telecommunications, FMCG, hospitality and gaming, healthcare, electronics and industrial.
The HR services industry, particularly RPO, is evolving rapidly. Overall, RPO business across the globe grew significantly from 2006 ($1,452m) to 2009 ($2,400m). Trends are showing the move towards a higher touch service, where onsite resources add value in the onboarding and induction process and take more responsibility in ensuring new starters fit culturally within divisions and the wider organisation. The more sophisticated vendors are moving beyond the transactional provider boundaries with their clients to a trusted advisor relationship, consulting on talent planning, reputation management, internal mobility and employee engagement.
Just two years ago, 64% of the overall proportion of RPO personnel work on client premises in the Asia Pacific region, compared with only 2% in the US. That figure has now increased to 20%, showing that the trend towards a higher touch model is not exclusive to Asia Pacific. Clients across the Americas are realising the value onsite resources can add in ensuring new starters are inducted and productive. This all coincides with an increase in use of RPO specialists, as opposed to multi-process providers, who traditionally use more of a service centre approach.
In the UK, the need to reduce costs is driving the restructure of some relationships, balancing a high touch service, with use of service centres. Figures there have recorded a reduction of onsite personnel from 64% to 40% in the last two years.
Globally, the off-shoring of non-client facing administrative activities has increased significantly, up 33% since 2007.
In all geographies, clients are demanding a more transparent pricing structure by wanting to pay more variable than fixed cost fees. This means RPO is shifting to clients paying based on the number of hires and is consistent with most organisations’ stated top drivers for outsourcing. However, there are risks for both parties by pricing too much on either variable or fixed costs.
Measuring quality of hire and taking responsibility for the onboarding and rapid deployment of new hires is the key platform driving the shift to third generation RPO relationships. Typical measurements include performance reviews, innovation, productivity and retention of top talent.