Early in this new year trends in recruitment process outsourcing (RPO) are becoming evident and shaping current and prospective contracts. Increased demand for a global strategy and greater emphasis on core recruiting are generating the biggest buzz this year and setting the stage for the future of RPO.
Increased demand from multi-national companies and a greater emphasis on recruiting and staffing will generate the biggest buzz in the recruitment process outsourcing (RPO) industry in 2007 and beyond. To accomplish such, partnerships will have to emerge between US and international RPO firms. More and more contracts will include a global component and RPO firms in North America will need to develop a delivery model that supports such.
As Human Resource Outsourcing (HRO) firms continue to meet the challenges of the RPO piece of the engagement, HRO firms will step up their partnerships with RPO firms to deliver recruiting and staffing services. HRO firms that have either built an in-house RPO delivery engine or have partnered with RPO firms will have a market differentiator. RPO firms are evolving their recruiting models. Historically, RPO firms have been strong on process and weak on actual recruiting.
Other trends for 2007 identified in the report include:
- Industry consolidation: With many firms entering the RPO space, look for definition and standards to emerge as the industry evolves
- Larger contracts: As large corporations continue to recognize the strategic and business benefits of RPO, large contracts of this size and scope – and larger - will become more commonplace
- Demand for an RPO strategic partner: Companies will look at RPO firms as more than a vendor. They will expect RPO firms to bring forth new ideas and fully understand a client’s issues
- Consultative/Selling approach to staffing: A recruiter can’t be a “yes man.” The RPO firm must support “change management”
- New recruitment skill sets: RPO firms will be continually asked to find ways to attract the passive non-job seekers
- Metrics: The demand will be to measure results as the key to identifying issues and make improvements before they become problems
- Technology: Specifically, RPO firms will provide the expertise for managing a process within a system and integration with other systems
- Reporting: The ability for companies to pull ad hoc, real-time reports is becoming the standard expectation – and at a reduced cost.
Source(s): The Right Thing