Transforming Talent
Acquisition: Recruitment
Process Outsourcing
Comes of Age
Wendy Wick
Vice President, RPO Client Delivery
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Transforming Talent Acquisition: Recruitment Process Outsourcing Comes of Age|2
When recruitment process outsourcing (RPO) was introduced some twenty years
ago, providers faced a steep learning and awareness curve: organizations were not
accustomed to outsourcing their recruitment function. Nonetheless, RPOs were able
to help companies gain signifcant cost savings, improve productivity and transform
their talent acquisition relatively quickly. Inevitably, these impressive results led RPO
to be positioned as the solution to every problem.
After a few decades of experience, the possibilities and limits of RPO are much
clearer. Mistakes have been made by both clients and providers and lessons have
been learned. In the end, companies of all sizes and industries have
enjoyed extraordinary success by replicating specifc strategies to
improve recruitment processes and results.
While RPO was once thought of solely as a solution for high-volume permanent
placement, today, it is about talent acquisition transformation with dedicated teams of
sourcers, technology specialists, industry analysts and social media experts. The key
is to harness and leverage the assets RPO can provide; however,
an organization must frst be prepared for that transformation.
Introduction
Transforming Talent Acquisition: Recruitment Process Outsourcing Comes of Age|2
3|Transforming Talent Acquisition: Recruitment Process Outsourcing Comes of Age
WILL YOU KNOW IT
WHEN YOU SEE IT
Recruitment Process Outsourcing (RPO)
programs often start with an expectation of
lower cost-of-hire and reduced time-to-fll
as the endgame. These goals are certainly
worthy of achieving, but they are also fnite.
What happens when all possible costs are
reduced What happens when all reasonable
expectations for time-to-fll have been met
Transformation requires next-level thinking and
action by both the employer and provider.
Conditions outside the employer’s control
such as unemployment, regulations, skills
gaps, technology and talent availability have
a considerable impact on costs. Ultimately,
the total cost of talent acquisition is not
necessarily related to budget or company
desires; it is driven by market and candidate
availability. The real question becomes: How
do you use the levers you have to make
an impact This is where an evaluation
of factors such as candidate satisfaction,
brand temperature in the market and
employee engagement come into play.
A transformational RPO strategy will help
deliver on more ambitious business objectives
while simultaneously supporting the broader
organizational mission.
THE RPO-BUYING WORLD
IS READY FOR MORE
Twenty years ago, requests for proposals (RFPs)
looked more like purchase orders versus strategic
requests. Providers were asked to deliver a certain
number of candidates for a specifc set of roles
according to a prescribed process.
Today, RPO is more sophisticated
and so are its buyers. The typical is
multi-country/multi-region and focused on
regulatory, communications, economic and
cultural challenges. Not only are buyers more
likely to seek solutions that involve shared
fnancial risk (i.e. fees at risk), but there is an
expectation for more sophisticated Key Performance
Indicators (KPI) than required of RPOs in years past.
Customers understand RPO has the ability
to scale efforts up or down based on market
trends or production cycles far more easily than
a company could do in-house. It is increasingly
expected that RPOs will be designed to account
for this, as will their pricing structures.
The market is also more mature
from a candidate perspective.
Because candidates have so many
new ways to obtain information
about job openings, providers must
continuously strive to innovate in
sourcing and recruiting. In addition,
candidates place a high value on their
experience during the hiring process,
which can have a signifcant impact
on company reputation and the
success of recruiting efforts.
Savvy employers understand these needs and look
for RPO strategies that can take their organization
to the next level.
Be the #1 destination employer
in their space
Build hiring manager capacity to
use tools to ensure more accurate
and real time data
Globalize corporate culture
Hire brand ambassadors
at all levels
Individual Employers May Seek To:
Transforming Talent Acquisition: Recruitment Process Outsourcing Comes of Age|4
An organization that is pre-RPO (meaning they have yet to utilize RPO) is going to have a different
level of readiness than an organization in the middle of a multi-year partnership, or an organization
that is considering a change.
ManpowerGroup recently released the white paper “Recruiting Strategy Metrics: From
Transactional to Transformational,” which outlines a sequence of three time horizons companies
must move along to be ready for transformational metrics. Those concepts are useful here as well:
WHERE AN ORGANIZATION IS IN
THE PROCESS MATTERS
These time horizons are an appropriate refection of the RPO life cycle. While it may be tempting
for an organization to target the most innovative practices out of the gate, an employer that is
new to RPO is wise to begin with the “common practice” metrics and expectations.
Companies
must measure baseline data around sourcing, recruiting, hiring and satisfaction.
It is important to understand market context, overall business objectives and
the landscape hiring managers are operating in.
This establishes a baseline of data and provides a starting point to talent acquisition leaders to create
internal buy-in and engagement. Ultimately, it leads to a strategy that captures the viewpoints and
insights of front-line leadership and drives toward organization-level goals.
COMMON PRACTICE: A planning and preparation phase
of goal-setting and baseline measurement.
BEST PRACTICE: A more sophisticated period of stakeholder
engagement, buy-in and advanced metrics.
NEXT PRACTICE: An ambitious, visionary state where the
entire organization is aligned to transformational objectives.
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