Recruitment process outsourcing has rapidly progressed from an outsider in the staffing industry to a major contender in terms of hiring solutions. In order to remain competitive, RPO firms will need to implement effective solutions for clients, and they’ll also need to take steps to differentiate themselves.
Is the RPO Market Growing?
According to the 2013 annual report issued by the Everest Group, the RPO industry grew by 12% in 2012. That growth is reflected not only in North America, but also Europe, Latin America, and Asia. There are three likely causes for the expansion: the evolution of the RPO industry itself, the increased prevalence of social media as part of the hiring process, and the recovering economy.
As the RPO industry has matured, private equity companies have begun backing some firms. Many companies are also looking to create a global presence, an endeavor that results in acquisitions and mergers. This flurry of activity can be interpreted as a sign that the industry is gaining traction, especially as increasing numbers of companies express their intentions to invest more in talent acquisition.
Specialization Within Intelligent RPO
With more RPO providers entering the marketplace, it will become even more necessary for companies to differentiate themselves from their competitors in order to acquire new clients. Intelligent RPO uses a rifle approach to outsource exactly what the client needs, creating a customized hiring solution designed to make the hiring process more efficient and to target high quality candidates for each position.
One way this process is accomplished is through specialization in a particular industry (such as IT, financial services, or healthcare). Specialization allows the firm to assess the available candidate pool more effectively, engaging high quality candidates on a deeper level in order to determine which ones bring the greatest assets to the client. With a specialized knowledge of the industry, intelligent RPO firms can sell the position to the candidate more effectively, making an offer acceptance more likely.
Intelligent RPO As Marketing
Intelligent RPO can be compared to a marketing campaign. The RPO firm identifies the target audience, engages that audience, and sells the position. It’s much more than simply identifying possible candidates. By interacting with candidates via social media, the provider can communicate the company’s value proposition and engage in thoughtful discussion in order to sell the position. While sites like LinkedIn, Facebook, and Twitter are used by a majority of recruiters, intelligent RPO uses them not just to post available positions, but to connect with and influence potential candidates. In addition to social media, RPO providers also use data mining techniques, networking, and technology to bring the right candidate on board.
As the RPO field gains popularity among recruiters, those within the industry will need to find ways to set themselves apart as thought leaders. Specialization and an intelligent approach to the process will prove to be keys in accomplishing that goal.
