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Recruitment Process Outsourcing a Tool to Compete in Tough Times
14 January 2009:
WASHINGTON, Jan 13, 2009 (BUSINESS WIRE) – According to a recent industry survey, Recruitment Process Outsourcing (RPO) is being adopted by companies to address increasingly strategic needs. The study, released today by global professional association and think tank Human Capital Institute (HCI), and research partner, Futurestep indicates continuing demand for RPO. Notably, companies are applying the practice to address both immediate tactical recruiting needs in difficult times and strategic functions of planning and long-term development.
HCI surveyed nearly 400 of its senior human resources (HR) membership for the study, "Recruitment Process Outsourcing: Today's Challenges and Opportunities," conducted in August and September 2008. 59 percent of respondents indicated their organizations outsource at least some recruiting processes. Of that 59 percent, 73 percent defined RPO as the outsourcing of "some or most recruiting processes."
While motivations for utilizing RPO varied, respondents consistently reported that active recruiting, talent strategy development, employer branding, metrics and onboarding were among the most critical activities contributing to their ability to meet talent management goals.
"Study results point to the widespread use of RPO to focus on tactical recruiting, especially during the current economic downturn," said Allan Schweyer, HCI Executive Director and Senior Vice President, Research. "With growing maturity of the process, organizations will move on to outsourcing strategic practices later. These are the organizations that will reap rewards--including improved ROI and competitiveness--for their efforts."
HCI and Futurestep embarked on the study in order to gain a better understanding of today's RPO practices. Despite steady industry growth, there has been limited information available on trends in RPO use, the specific recruitment practices it includes, and how well it is being carried out.
Significant Findings
The HCI/Futurestep survey results revealed trends in several key areas:
Adoption. More than half (59 percent) of organizations surveyed outsource some or all recruiting practices, and 50 percent say they will use RPO within the next five years.
Scope. The majority of current RPO deals cover selective practices for tactical needs. Among users, the most common definition of RPO (indicated by 36 percent of respondents) is the outsourcing of some recruiting activities for some levels of employees. Organizations ranked "Active Recruiting," the service they considered most important to their talent management goals, second most likely to be outsourced. Practices focusing on strategic talent needs, such as talent strategy development/consulting, are outsourced less frequently.
Return on Investment (ROI). Organizations rating the ROI for their RPO program number as "good" or "excellent" number only 39 percent. Those that use an RPO approach for longer-term strategic needs, such as workforce planning, employment branding and competency management, are significantly more likely to report excellent ROI for their recruitment outsourcing.
When HCI re-surveyed 86 respondents in November 2008, to gauge how the economic crisis will affect RPO during the next two years, responses showed that RPO, especially when focused on strategic business needs, can become a tool to compete during tough times. 44 percent of those respondents indicated that, even in the event of a recruitment budget decline, their organizations' investments in RPO may still increase in the future.
To request a copy of "Recruitment Process Outsourcing: Today's Challenges and Opportunities," please visit www.humancapitalinstitute.org.
About Futurestep
Futurestep, a Korn/Ferry Company, provides strategic Recruitment Process Outsourcing, management recruiting, interim recruiting and talent management consulting services. With global reach, proprietary technology, diverse candidate pool and deep expertise, Futurestep helps companies meet critical talent needs. www.futurestep.com
About the Human Capital Institute
The Human Capital Institute (HCI) is a catalyst for innovative new thinking in talent acquisition, development, deployment and new economy leadership. Through research and collaboration, our global network of more than 130,000 members develops and promotes creativity, best and next practices, and actionable solutions in strategic talent management. Executives, practitioners, and thought leaders representing organizations of all sizes, across public, charitable and government sectors, utilize HCI communities, education, events and research to foster talent advantages to ensure organizational change for competitive results. www.humancapitalinstitute.org
Source: Human Capital Institute (HCI) and Futurestep
