Business leaders today face a challenging environment, with many discussions revolving around inflation, the state of the economy, DEI, and a talent market that’s starting to level out following “The Great Resignation” we saw in 2021.
These factors, among others, have led to new dynamics in the workforce management industry. Given these constraints, employers are under even more pressure to develop innovative, cost-effective hiring practices that provide them with the workers they need to carry out their organizational business strategies and meet their goals. As a result, many HR leaders are seeking out external recruitment process outsourcing (RPO) partners to manage all or portions of their internal direct hiring.
A new report from the Recruitment Process Outsourcing Association (RPOA) sheds light on some of the key considerations that employers should be aware of when selecting an RPO partner, as well as valuable insights for businesses that are already utilizing an RPO solution.
- An RPO partner can help you determine the type of program that’s right for your company.
Recruitment process outsourcing is not a one-size-fits-all solution. There are multiple models, each designed to meet different client needs. In the report, RPOA outlines three options:
- Enterprise/Full Talent Lifecycle: Encapsulates all recruitment activities across an organization—all skillsets, all business units, and all locations. This is the most common RPO model in place today.
- Hybrid: Allows the RPO partner to provide certain pieces of a company’s overall talent acquisition process, such as sourcing or screening for specific jobs, business units, or locations.
- Project/On Demand: Gives employers the ability to define a narrower scope for the RPO provider. For example, companies often use this model when ramping up to staff a new line of business.
- An effective RPO program can help an employer stand out from the crowd in an uncertain market.
Many companies have had to reduce their internal HR and talent acquisition resources and are looking to their RPO partners to keep their hiring efforts on track. But a growing number of businesses are also seeking out more strategic and innovative support from their providers.
As outlined in the RPOA report, RPO can help employers to stand out from the crowd, deliver a better candidate experience, and demonstrate higher value to the business through effective talent acquisition practices.
- Organizations with an RPO partner were twice as likely to increase revenue than those without an RPO partner.
67 percent of companies utilizing recruitment process outsourcing saw revenue increases last year, compared to 33 percent of companies that did not utilize RPO, according to information collected by RPOA.
Talent leaders also shared the top benefits of working with an RPO provider, including faster hiring (60 percent), more consistent hiring (45 percent), less expensive hiring (35 percent), and higher quality hires (32 percent).
97 percent of employers reported that having a trusted RPO partner allows them to focus on other business-critical priorities, and nine out of 10 companies said RPO creates clearer communication and insights into how hiring impacts key business metrics.
These are just a few of the top insights from RPOA’s recently released RPO Trends report. You can access the full report here and view RPOA’s 60-minute webinar recapping the report here. And if you’re ready to learn more about how recruitment process outsourcing can enhance your existing talent acquisition efforts, contact Broadleaf today.
This blog was authored by Jason Krumwiede.