Recruitment Process Outsourcing: It’s Not What You Think It Is

Recruitment process outsourcing (RPO) helps companies improve efficiencies, reduce costs and strengthen processes. Long viewed as a tactical, administrative service, RPO has evolved into a more strategic endeavor responsible for contributing to business performance, innovation, growth, and profitability.

RPO is not just responsible for sourcing and screening. The future of RPO can be found in areas such as employer branding and workforce planning – areas that significantly increase an organization’s ability to attract and hire great talent. So, it surprises me that many organizations view RPO simply as outsourcing and not as transformative. In fact, according to Brandon Hall Group’s talent acquisition research, only 10% of organizations allocate their recruitment budget toward RPO.

Although RPO impacts the bottom line, it is often misunderstood and misinterpreted. How can companies think differently about RPO? How can they invest in providers that will improve more than the tactical elements of recruitment?

The good news is that we are conducting a very important research study to answer these questions. We will explore the challenges, strategies and future direction of the RPO market. If you have ever considered an RPO investment, we would love to get your help by participating in this brief survey. A few of the topics we plan to explore include:

Blended Workforce: Historically, organizations have invested in disparate outsourcing providers to manage the processes involved in securing traditional employees and contingent workers. These include engagement with RPO providers for full-time employees and managed services providers (MSP) for managing the suppliers of contingent labor. Today, it makes sense for organizations to use a blended workforce approach and invest in a single provider for both traditional talent acquisition and management of the contingent workforce supply chain. Organizations that expect to increase their investment in contingent labor must consider providers that can offer greater collaboration between HR and procurement.

Global RPO: Although most RPO providers will claim to be “global,” few have the product leadership and expertise to support global clients. This study will explore what makes a solution provider “global” and what changes the drivers for RPO in different regions of the world.

Employer Branding: A strong employer brand can help drive quality talent to an organization by defining and translating the company’s image, organizational culture, and reputation to a large audience. It also serves as the foundation of a positive candidate experience. Our research shows that less than 10% of organizations are investing in RPO for employer branding. What will it take for organizations to shift their views of RPO and build a trusted partnership?

We are excited to share some of our early findings within the next couple of months. Please take a few minutes to participate in the survey and share your unique perspective. Thank you!

-Madeline Laurano, VP and Principal Analyst,
Talent Acquisition, Brandon Hall Group
@Madtarquin

Madeline Laurano

Madeline Laurano is the Vice President of Talent Acquisition Practice and Principal Analyst at Brandon Hall Group. Laurano is an expert on a wide range of HCM topics, including talent acquisition, HCM technology, talent management, contingent workforce management, learning and development, and employee engagement. Besides her previous work at Aberdeen, Madeline served as Principal Analyst for The Newman Group, and Principal Analyst of Talent Acquisition at Bersin & Associates, where her concentrations were employer branding, sourcing, screening, assessments, hiring and onboarding. She also held roles at ERE Media and Linkage Inc.

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