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recruitment

Recruitment Process Outsourcing: The Future is ‘Total Talent’ | In the News

By | In The News

Employers are battling economic uncertainty but still struggle to source much-needed skills. In such a volatile jobs market, what role does recruitment process outsourcing have in workforce planning and hiring strategies? Jo Faragher investigates.

Traditionally, the drivers for outsourcing have been around cost savings and support with volume recruitment. But while saving money remains important, there’s a lot more focus now on candidate quality and experience, according to industry analysts Everest Group.

“For those who have not adopted RPO before cost is an important driver. Apart from that, it’s about scalability and adaptability. It means they can add to employee base or reduce more flexibly,” explains Vishal Gupta, practice director of Everest’s business process services division.

Read more in Personnel Today

Recruitment Process Outsourcing Market Grows 16%, Bears Fruit for Companies of All Sizes in 2016 | Press Release

By | Press Releases

RPO providers seek more value from technology; industry leaders moving beyond efficiency solutions to advanced analytics and next-gen digital tools to enhance candidate experience

The global Recruitment Process Outsourcing (RPO) market continued to remain one of the fastest growing single-process Human Resources Outsourcing (HRO) markets in 2016, growing at a rate of 16 percent to reach a cumulative market size of US$2.85 billion, according to Everest Group. In 2016, RPO saw wider acceptance among companies of all sizes, including small (less than 3,000 FTEs) and mid-sized (3,000-15,000 FTEs) buyers, which captured an increased share of the market at 51 and 6 percent, respectively, as compared to large buyers at 43 percent.

Digital adoption is the trend most strongly attributing to this rapid growth. RPO service providers are increasingly differentiating themselves through technology, increasing their investments in both technology partnerships and proprietary solutions. The exact nature of the “partner+build” strategy adopted by each provider is dictated by the regional availability and quality of off-the-shelf talent acquisition tools. Annual technology investments vary considerably among providers, ranging from $1 million to in excess of $100 million.

Efficiency focused technology solutions such as Applicant Tracking Systems (ATSs), Customer Relationship Management (CRM) tools, and Robotic Process Automation (RPA) systems are readily available through technology partners and have essentially become “table stakes” in the industry. In fact, nearly half of all RPO engagements include provision of ATS solutions.

So, now, the focus for differentiation has shifted to technology solutions that either enhance the experience of candidates or generate better insights on various aspects of the recruitment value chain. Accordingly, RPO service providers are adjusting their “partner+build” strategies to rapidly assimilate into their service portfolios additional technology solutions such as self-service scheduling tools and chatbots (primarily acquired through partnerships) and advanced analytics (primarily developed through proprietary investments).

“The RPO service provider landscape is intensely competitive, with many players and very few with dominant market share; plus, the high growth in the global RPO market, combined with increasing adoption in emerging economies, is attracting even more new players,” said Arkadev Basak, practice director, Business Process Services, at Everest Group.  “In the coming year, technology orientation will be one of the key parameters by which RPO service providers will distinguish themselves in this fragmented market. Other key differentiators will be geographic focus; consulting capabilities, particularly with respect to strategic workforce planning and talent management; and Total Talent Acquisition capabilities.”

These and other research findings are explored in a recently published Everest Group report: Recruitment Process Outsourcing (RPO) Annual Report 2017 – Strategic Value Creation in a Rapidly Evolving Market.

This research provides comprehensive coverage of the RPO market and analyzes it across various dimensions such as market overview, key business drivers, buyer adoption trends, solution and transaction trends, and service provider landscape.

***Download complimentary report abstract here***

Other key findings:

  • The mature market of North America saw a decline in its market share, with the emerging markets of Eastern Europe and Latin America gaining at its expense. The biggest growth of single-country RPO was seen in deals outside the mature markets of the United States, United Kingdom and Australia. Many countries in different regions across the world are emerging as strong RPO markets on their own, particularly in Latin America, Continental Europe and Asia Pacific.
  • RPO as a concept continues to gain wider global acceptability as evidenced by the rising number of multi-country deals. These are more complex deals, which require both the buyer and service provider to invest more time and effort in order to understand local nuances.
  • Value-added processes such as employer branding, talent communities, workforce planning and assessment are increasingly becoming table stakes; buyers are now demanding next-gen value-added services such as consulting (especially for technology strategy and implementation), talent engagement, and content creation and communication.
  • 2016 saw heightened activity in the market around Total Talent Acquisition (TTA) services, as demonstrated by a 41 percent increase from 2013 to 2016 in number of new TTA deals.

2017: The Utopian Year for Talent Acquisition? | Sherpas in Blue Shirts

By | Blog, Talent

Talent acquisition teams across companies and countries have spent decades looking for a utopian talent acquisition solution through which they can find the right talent, at the right time, in the right place, and at the right cost. This rare, elusive combination may just start becoming a reality in 2017, as promising themes from 2016 begin to emerge on the mainstream, and new technologies and ideas surface.

Think about the unification of these, resulting in an ideal world order for talent acquisition teams in which:

  • Companies can leverage workforce planning tools to decide on the type of talent – permanent versus, temporary, internal versus external –they want to hire
  • Sourcers, in a split second, can decide on the talent source they want to leverage, immediately access their diligently cultivated employer-specific talent pools, and screen candidates by parsing resumes using cognitive, AI and NLP-enabled tools
  • There is a seamless flow of data between HRMS and talent acquisition systems, and recruiters can leverage this data to run predictive analytics to gauge the candidate fit
  • Employers can attract and engage candidates through their brand by continuously interacting with them leveraging chatbots for email, chat, and voice communication. Availability of add-on tools allows recruiters to interview candidates remotely, run background checks, and conduct mobile assessments
  • HR managers can identify candidates who are susceptible to attrition, and devise effective strategies to retain them
  • Recruiters are able to map the entire employment lifecycle of a potential hire, and leverage it for making an informed decision about the candidate

Integrating all these scenarios into one single solution offering might feel like fiction, but Everest Group feels it will start manifesting into reality later in the year. Enterprises and providers alike have been using video interviewing, self-scheduling, and background screening tools for quite some time. Other more advanced technologies such as AI, cognitive, predictive analytics, and NLP-enabled tools are evolving fast. And service providers that are the flag bearers of innovation in RPO are already investing in and working on some of these technologies. It will be interesting to see which service provider is able to integrate all these technologies into a one-stop solution, whether through new investments, or through partnerships and acquisitions.

But, one thing is certain: this whole ecosystem is about to be disrupted, to such an extent that we believe that 2017 will probably be remembered as the year in which the concept of technology became deeply entrenched in the talent acquisition function psyche. This will also result in technology slowly becoming an extension of a recruiter’s physical being in the years to come.

For more insight into some of these technologies, please see our reports including Technology in Recruitment Process Outsourcing – Enabling a Paradigm Shift, and Giving Talent Acquisition the “Analytics Nirvana” Edge.

Reimagining RPO through the RPA Lens | Sherpas in Blue Shirts

By | Blog

The economic downturn following the financial crisis of 2008 forced companies to look at their internal costs and find ways to rationalize spend on various business activities. Recruitment was quickly identified as an area ripe for significant cost cutting, and in subsequent years Recruitment Process Outsourcing (RPO) was widely adopted by enterprises.

While cost reduction had long been RPO buyers’ main aim, in recent years they’ve been facing another set of problems – talent shortage and hard to fill roles.

Employers are always on the lookout for better candidates with niche capabilities. However, these desirable employees can be hard to find, especially in a timely manner. To fulfill their hiring requirements, many employers hire contract or offshore recruiters. Unfortunately, hiring additional contract recruiters results in additional expenses, and offshoring results in loss of personal touch. And in both cases, the recruiters spend a substantial amount of their time on transactional tasks, rather than on professional recruiting activities.

The answer to this problem is robotic process automation (RPA). RPA is being used to automate a wide variety of repetitive, low touch recruitment-related tasks and processes including data entry and validation, file and data manipulation, multi-format message creation, web scraping, text mining, workflow acceleration, etc. Through RPA, the productivity of the recruitment team can be improved manifold, resulting in better and faster hiring.

Processes where RPA can be leveraged to improve the effectiveness of the recruitment process:

RPA - RPO - Recruitment Process Outsourcing

There’s little question that RPA helps reimagine the whole recruitment value chain. RPO providers and buyers that make investments in RPA, and automation in general, thereby enabling their recruiters to handle the professional aspects of recruiting, will differentiate themselves by more quickly and efficiently identifying, securing, and onboarding the most desirable candidates.

For more information on how RPA can improve various recruitment-related processes, please refer to Everest Group’s RPO Annual Report, 2016.