More Employers Embrace RPO as Hiring Battles Heat Up

The tightening labor market has some employers turning to
recruitment process outsourcing (RPO), growing the market by 17 percent in 2015
over 2014, according to the Everest Group, a consulting and research firm. A
majority of global RPO growth is attributed to new deal activity, which grew at
a rate of more than 18 percent year-over-year.

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organizations are continuing to encounter competitive labor markets and, in
response, need to evolve ways to attract, engage and secure top talent,”
said John Wilson, CEO of WilsonHCG, a global talent solutions firm
headquartered in Tampa, Fla. “Talent acquisition leaders are now expected
to lead initiatives which in the past may not have been core to their function.
RPO is helping to fill this knowledge or experience gap with expertise.”

Everest Group’s
practice director for business process services, Arkadev Basak, finds that RPO
buyers are expecting more proactivity and innovation from service providers.
“Providers are responding to this opportunity by developing niche areas of
expertise, adding talent advisory capabilities and improving their internal
efficiencies by leveraging technology,” he said.

RPO providers are
offering more value-added services and targeted offerings such as recruitment
marketing, diversity hiring and outplacement. “Mature next-generation RPO
buyers, in particular, are seeking a depth of knowledge and breadth of
capabilities from talent service providers in areas such as employment
branding, talent community development and workforce planning, in addition to
sourcing candidates,” Wilson said.

Technology Is the

More than 40 percent
of RPO deals are bundled with a technology capability, according to the Everest
report. In particular, many service providers are making dedicated investments
in developing bundled RPO offerings that include advanced analytic services.

growing use of talent analytics has employers moving away from traditional
hiring metrics such as cost-per-hire and time-to-fill in favor of longer-term
success metrics measuring tenure, promotability and performance.

the past, our job was done when the person was hired,” MacDonald said.
“Now we are collecting data as part of the search process that can be used
well after the hire. Our assessments allow us to measure not just what the
candidate does but who they are. This helps us understand if they are a good
long-term fit for the organization, as culture and candidate fit are key to
long-term success.”

process outsourcing is a great alternative for businesses to grow their
companies, without shouldering the majority of the burden. The current labor
market is requiring companies to yield a more competitive edge when it comes to
attracting and retaining talent. Converge HR Solutions offers an advanced
approach to RPO, with a team of extensive experience and a deep understanding
of how recruitment functions. Visit our website for more information Contact us directly at or 610-296-8550.

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