Among single-process HRO markets, recruitment process outsourcing ranks as one of the fastest growing sectors, with North America leading the growth rate at 21% during 2013. Why this sudden surge in demand for RPO services? When the economy crashed in 2008, many RPO providers adapted their methods to become more flexible and more accessible for smaller businesses as well as large companies. These changes resulted in huge leaps forward for the industry. With the economy on an upward swing again, RPO has garnered a lot of attention for its unique approach to hiring and its ability to deliver consistent, positive results.
Why the Upward Trend for RPO?
The success of recruitment process outsourcing can be attributed both to its recruiting approach as well as to an economic environment that has motivated businesses to seek out top quality employees. Some of the contributing factors include:
- Globalization of Hiring—The global marketplace requires an aggressive approach to hiring in order to secure top talent that can meet the demands of today’s businesses. Multi-country deals increased by 48% in North America from 2012 to 2013, an outgrowth of the increasing challenges companies face when seeking to do business across international lines.
- Evolution of Technology—The past decade has seen an astonishing evolution in terms of mobile technology and social media. As job seekers and recruiters both turn their efforts toward online sources of information, RPO stands in a unique position to discover and network with top quality candidates using popular social networks like LinkedIn. Emerging technology and data sources have also made it possible to mine previously unreachable caches of data, resulting in better-quality candidate pools. RPO firms can provide a broad spectrum of both talent attraction and sourcing methods that corporate recruiting teams may not have access to.
- Flexible Hiring Options—RPO offers an array of options, from end-to-end hiring solutions to contract recruiting to specialty recruiting initiatives like diversity, prior military, and disabled veteran hiring campaigns. Unlike processes of previous decades, today’s RPO providers can adapt to client workflow, technology, and priorities, offering recruiting options designed to fit within the culture of the client company.
- Competitive Marketplace—If the crash of 2008 was the stimulus for RPO adaptation, the current recovery has likewise stimulated an increased demand for RPO services. Businesses face brutal competition for top talent, especially in industries like engineering, IT, healthcare, banking, and transportation. At the same time, the millennials who make up a large percentage of today’s job seekers are looking for employers who not only pay them well, but also provide a fulfilling and compelling work environment. RPO providers specialize in making sure each candidate is a good fit for the business in terms of culture and temperament as well as skills.
Effective Recruiting Solutions for a Growing Economy
RPO has seen significant growth both in the US and across the global market in the past five years. Because RPO providers can produce high quality results at a relatively low cost, many businesses have chosen these services as a solution to the demands of maintaining a competitive workforce. As the economy continues to grow, RPO will continue to offer companies the recruiting resources they need to remain competitive.
