The Department of Labor Statistics estimate that 24 million people will leave the work force and 19% of all executives, managerial & administrative personnel will retire within five years. So there is a need for fast, efficient, time saving ways of hiring. RPO’s can be the solution for that problem. NelsonHall, a Boston-based research firm specializing in business process outsourcing, has projected a 37% annual growth in the RPO industry. They forecast that the RPO industry will become a $7 billion industry globally in 2010. RPO’s are becoming the new way to solve an organization’s hiring needs, so it’s essential for an organization to understand what an RPO can do.
The first thing an organization considers when making a change from the status quo is the cost. An organization can increase their ROI with efficient employees and services that can save their organization large amounts of money. Most RPO’s offer customized packages that can fit an organization’s hiring process needs.
Most importantly, a company wants to see results; an organization will be able to see an expanded candidate pipeline, increased candidate quality, shortened cycle times, reduced cost-per-hire, and improved measurement of recruitment metrics. Hire Velocity was approached by an organization looking for diverse candidates. In less than a month, more than 500 candidates were screened with over 90% of those screened being selected to move to the next stage. This is the type of results that an RPO can deliver as an extension of your team.
HR departments are limited in their resources, while RPO’s typically have unlimited access to a multitude of paid and free job boards. RPO’s also use alternative ways to capture potential candidates and have recently been taking advantage of Social Media, which is a fairly new aspect in recruiting services. Having these resources available presents your hiring manager with more choices for selecting top performing candidates.
Hiring managers utilize RPO’s because it provides the best fit candidates. It is a cost effective approach to an organization’s hiring needs. RPO’s are essential to acquiring top notch candidates while freeing up internal HR resources/recruiters and their hiring managers to perform other important tasks.
Candidates find the RPO process less stressful and more convenient. As a candidate, you are receiving more specialized attention, and the process is smoother. Some organizations are lacking the appropriate screening process which can leave candidates feeling like a small fish in a big pond.
Recruiters are able to use RPO’s as alternative resources giving them more access to sourcing resources than they would normally have. Because RPO’s cast a wider net and handle all the screening and admin work, recruiters can focus on qualified, available and interested candidates versus weeding through piles of unqualified candidates.
RPO’s can save your organization time, money, and energy in your quest for quality talent. It will free up your staff to stay focused on their goals of increasing profits to your company’s bottom line. It is clear that RPO’s really do work and the results are tangible.