Earlier this month, CareerBuilder came out with their Annual Jobs Forecast for 2017, and frankly, for most of us in HR, the recruitment challenges they see on the radar look to be a “perfect storm.”
While the companies polled may be split on their opinion as to the effect the Trump administration may have on hiring, over 40 percent reported that they plan to add full-time personnel in 2017—up 4 percent over last year. This increased demand for skilled talent in a market that’s already tight will make top talent tough to engage. It’s a problem that’s definitely got the attention of the C-Suite: in last year’s PWC Global CEO survey, 63% of the CEOs polled cited the availability of skilled talent among their most ‘serious concerns’, the highest number in six years.
HR leaders today are under pressure to get top talent in the door and to do so in an environment where time, resources, technology, and available budget can be at premium.
The answer they’re turning to might surprise you.
RPOs give companies the edge
Around the globe, recruitment process outsourcing (RPO) has proven itself as one of the most effective ways for companies big and small to manage the challenges of attracting and hiring top talent today. Not only does partnering with an RPO improve efficiency in your processes, but provides the expertise and tools to help you attract the right people to the right positions at the right time.
So why exactly are so many companies turning to recruitment outsourcing?
RPOs reduce costs
No matter the size of your company, chances are your recruiting budget is lean. The time, manpower, and training that is now required around today’s recruitment process (whether it means investing in an additional sourcing professional or the latest technology) can be onerous for any HR budget. But what if all of those processes were handled by experts who have the latest skills, training and technologies at their disposal?
RPOs have the best practices, strategies and knowledge already in place. They streamline the recruitment process, introduce sourcing and recruiting best practices, and use the most appropriate strategies and technologies to reach the right candidate pool. Best of all, they provide scalable, tailor-made solutions for the challenges you face as your organization changes.
Partnering with an RPO can help companies identify how to staff the recruiting function more effectively and significantly reduce recruitment costs—even direct costs in areas like advertising, job boards and relationship management tools.
RPOs shorten time-to-fill
As an HR professional, you well know the negative impact an unfilled vacancy can have on your organization’s productivity and performance.
Not being able to fill positions as soon as they are needed can directly impact the goals of the business unit and effect its bottom line. An unfilled position can mean the difference between being the first company to launch a product and a competitor getting to it first.
Late starting employees often need to be rushed through training and orientation, which can inversely impact their time-to-productivity, turnover rates, and on-the-job error rates which diminishes the return on their efforts, further contributing to dissatisfaction with HR throughout the business.
That’s why reducing time-to-fill is one of the most consistently-cited goals for taking on a recruitment outsourcing partner.
RPOs improve candidate quality
In today’s tough talent market, being able to consistently attract in-demand—or even scarce—talent can give you a distinct competitive advantage. Not only are RPOs set up specifically to attract, assess and place high quality talent for their clients regardless of the role, but have sourcing approaches that allow them to access deeper talent pools than often are available in-house.
You might be thinking, “Just how can any process change improve quality of hire?” RPOs specialize in providing the kind of candidate-focused experience that creates a strong relationship with the employer from the get-go. According to a recent study by the Aberdeen Group, companies that outsource recruitment report that their employees are 8% more likely to rate themselves as highly engaged with their work, as compared to all others. And, of new hires who received ratings of “exceeds performance expectations” in their first performance review, 46% were hired using RPO to 44% hired by all other means.
Recruitment outsourcing partners will also offer their clients sound guidance on the latest employer branding and candidate attraction strategies needed to stand out as an employer of choice in today’s competitive marketplace—improving the ability to attract both passive and active talent.
RPOs promote agility
When agility is one of an organization’s goals, it’s important for HR to identify practices that help them focus on prioritizing value and delivering more quickly.
Outsourcing all or part of the recruitment function significantly helps to free up the internal HR department and hiring managers’ time, allowing them to focus on other critical business functions.
Because HR is becoming an integral part of how talent impacts the company’s bottom line, key leadership is asking more of their HR business partners, particularly in the area of training and developing talent and helping to align that talent in a way that gets needed business outcomes. Freeing your HR team to concentrate on these tasks could be one of the most important ways you gain more than just efficiency in an RPO partnership.