With fast-changing markets, a volatile economy and global skills shortages, the nature of recruitment process outsourcing is changing. We take a look at these changing conditions and why RPO will be of increasing importance in the future to help meet the new demands.
The Basics: What is RPO?
Recruitment Process Outsourcing is the process of a company transferring all or part of its permanent recruitment to a third-party provider like Guidant Global. It brings a variety of potential benefits including higher quality talent, cost efficiency and scalability. The recent growth in the RPO market in recent years is testament to this.
Traditional drivers for implementing an RPO have been cost savings and support with high volume recruitment. Whilst these remain important, due to the changing nature of the workplace, there’s a change in focus in what an RPO should provide.
The context is changing
Today’s competitive business demands agility. Companies are facing challenges from multiple directions. With historically low unemployment in the UK, US and across most of the developed world, competition for top talent has never been tougher.
Economic uncertainty, volatile job markets and fast-changing markets all pose challenges for talent acquisition teams.
With the rise in gig style working, companies now also face an uphill task retaining and employing permanent staff. The global labour market is increasingly difficult to navigate for businesses, and so an RPO provider — such as Guidant Global — can prove to be an invaluable source of expertise for businesses looking to hire the best permanent talent.
Key trends in recruitment process outsourcing
The RPO market is naturally affected by the trends in the economy, policy shifts, and technological advances. Companies need to be aware and prepare for the following changes to ensure they remain competitive. We will explore in greater depth the two major trends impacting RPO models, and what this means for the future.
1. Technological advances
Technology has already established itself within the recruitment process. According to CNBC, nearly all Fortune 500 companies already use automation to help with their hiring processes.
Artificial intelligence (AI) is driving huge change and is here to stay. It will only become a larger part of recruiting. A survey by Harris Poll, recognised the growing importance of recruitment automation and stated that 50% of HR managers believing that AI will become a regular part of human resources by 2022. This continued growth is something that leaders need to give significant attention to in order to maximise the benefits.
Looking forward, digital tools will push to be even more user-friendly, industry specific and automated. AI will likely touch on candidate sourcing, recruitment screening, candidate outreach, and interview scheduling.
New technology will bring benefits to talent acquisition leaders. By automating certain tasks, it allows hiring managers to dedicate more time on tasks that are not suited for HR automation. An example being offering a more personalised interview experience, something that AI cannot offer.
The challenges with implementing such technology for most businesses without an RPO partnership, however, will be the cost of investment in recruitment AI. But by partnering with an RPO provider, a business can potentially integrate this technology as part of its wider permanent recruitment program.
2. Recruitment marketing – the candidate as the customer
With the new structure of the labour market, highly qualified, top candidates are in high demand. This means that competition for passive candidates is fierce. As a result, companies are becoming more aware of the importance of candidate experience, the impact that this can have on their employer brand, and ultimately the quality of talent they attract.
With the search for top talent getting tougher, and candidates demanding more from potential employers, a strong employer brand acts as a key differentiator.
Working with an RPO partner, a business can harness the expertise of employer branding and employee value proposition (EVP) specialists who understand the wider talent market, and know how to create a brand that attracts the most sought-after talent — even in competitive, or traditionally unattractive industries.
For more insight on how to build a strong employer brand and achieve a first class candidate experience, download our talent acquisition guides here.
To sum up
Almost all organisations have permanent recruitment needs, and an RPO model can help control costs. RPO is a scalable solution that can handle the peaks and valleys in workforce demands. and is one of the fastest growing talent acquisition solution in today’s market, providing support for a employers across the globe.
Scarcity of talent joint with technological advances have impacted the way that companies seek talent. An RPO can be used to reduce costs by streamlining the recruitment process and find better candidates in less time.
RPO is not just a hiring strategy, but part of an overall business strategy. As talent becomes more of a priority for businesses, especially in sectors with talent shortages, its importance is set to grow exponentially.
For more information, and to find out how an RPO can benefit your business, visit our RPO page here.