Kevin C. Klinvex, EVP and co-founder of Select International, Inc.

The "perfect RPO storm" is brewing. There's plenty of evidence to suggest that it's going to last a long time and be a world-wide phenomenon. Recruitment Process Outsourcing (RPO) is the latest expansion of Business Process Outsourcing (BPO), and it is becoming a global, multi-billion dollar industry. While there is yet to be a universally accepted definition for RPO, at its most basic, RPO is a form of Business Process Outsourcing where an organization outsources or transfers all or part of its recruitment activities to an external service provider.

So what is the perfect storm, and why should your organization take a close look at RPO? The following six reasons point out why it's gaining so much momentum:

1. Acceptance of Outsourcing: Back in the late 1980's, legendary management guru Tom Peters implored all of us to "Stick to our Knitting" by moving away from businesses that are not core to our success. Since then, this advice has been expanded to specifically warn companies that they should consider outsourcing any work function that is not paramount to their core business. Today, almost every company embraces and accepts BPO as a successful business strategy. Even if a company decides not to use RPO, its merits will at least be discussed.

2. Recruitment in the Boardroom's Crosshairs: Recruitment is almost always a topic of discussion among the executive group. Open positions, time to hire, recruiting costs, turnover, legal claims, and publicity over bad hires are all topics that make leadership question whether recruitment is an activity they can or should be handling internally.

3. The War for Talent: Everyone is talking about the expected labor shortage. Baby boomers are retiring and the very real fear is that there won't be enough qualified workers to fill the void. Today, more and more companies are asking if they can wage a superior recruiting war by augmenting their existing recruiting staff with an RPO partner.

4. Proven Track Record: There are always a few daring mavericks willing to try something before everyone else, but a trend won't result until there is history of success. RPO is now at the point of demonstrating enough success that skeptics are seeing the proof they need to move forward. This proof has come in the form of key metrics such as cost per hire and time to fill. In addition, there are now well-known, successful organizations utilizing RPO, offering public endorsements and serving as references.

5. Globalization: You won't find a Global 1,000 company that is not concerned about international recruiting or confident about the effectiveness of their global recruiting. Some larger RPO firms show promise of being able to manage international hiring needs and to provide good aggregate reporting across the entire organization. This capability is of significant strategic value to organizations with a strong global presence.

6. The Tipping Point: We are actually past the "Tipping Point" regarding RPO media buzz. There are increasing numbers of articles, associations, newsletters, and conferences that are exponentially multiplying RPO communication. This means that unless you're living under an HR rock, you will be discussing the merits of RPO for your company soon enough.

Clearly, RPO is one of the hottest trends in the industry. The rapid growth of RPO is astonishing when you realize that just a few years ago most people had never heard of it. With the success that it's having today, and considering the improvements being made to RPO processes and technology, this trend is destined to become an essential business strategy. So get ready for this perfect storm - it could determine whether your organization sinks or swims.

About Select International
A leading provider of selection and development solutions, Select International has helped many of the most successful organizations demonstrate this type of ROI and win the war for talent. From entry-level to executive, organizations find, hire and retain top talent using Select International's cutting-edge assessment products, hiring systems, and recruitment process outsourcing services. For more information, call 412-358-8595 or visit our website at www.selectinternational.com.