A Global Guide to RPO

RPO matters more than ever. But what is it, what are the benefits and how do you implement an RPO? Download the guide.

A Global Guide to Recruitment Process Outsourcing

Revised edition

Introduction

Change is happening. Why RPO is ready-made for the new recruitment reality.

This sequel to 'What is Recruitment Process Outsourcing? A Global Guide' (2018) still covers what it is, the benefits and implementation strategy.

However, it’s been revised to account for the current reality facing HR and talent acquisition teams as they adjust to new hiring demands.

How do we adapt to this shift? And why is RPO more relevant than ever?

Why RPO?

Because...

There isn’t a one-size-fits-all solution to talent
acquisition. Needs and costs will fluctuate.
Recruitment fire-fighting distracts organisations from
doing what they do best.
There’s great value in an objective third-party reevaluating your recruitment processes.
Your Employer Brand is everything in an age where you'll need to be laser-focussed on attraction and retention.
It’s possible to create cost and time efficiencies while also improving candidate quality.

An RPO model focuses on all of the above and more.
It involves building true growth partnerships through a
consultative-led approach that offers scalability, visibility
and actionable insight.

In this guide we’ll explore:

The impact of Covid-19 on RPO.
Why RPO is more relevant than ever.
How the RPO market has matured.
The benefits of RPO.
RPO on a global scale.
RPO in our world (Total Talent Management).
10 reasons to choose an RPO provider.
How to implement an RPO solution.

Agenda

1. Setting the Scene

RPO and Covid-19
What is RPO?
The brief history of RPO
The RPO evolution
The future of RPO
The different types of RPO
Why RPO is more relevant than ever.

2. The RPO Landscape

RPO in numbers
RPO across the globe
RPO in our world
(Total Talent Management)

3. Why adopt an RPO solution?

What does RPO provide?
10 questions to ask
The benefits of RPO

4. The Implementation

Pre-Sales Finalisation
Planning
Transition
Launch
Post-Launch

5. The Results

What results should you expect?
RPO in action: Reducing costs and time to hire.
RPO in action: Rolling out a global RPO solution.
RPO in action: Hiring at scale in challenging markets.

The Summary

It's time for change
An evolving model

Part 1. Setting the Scene

RPO and Covid-19

The societal and economic impact of the Covid-19 pandemic has been severe. As is often the case, the recruitment industry had been one of the first to feel the early brunt of a significant downturn.

Fundamentally, uncertainty causes panic and a loss of investor and consumer confidence. As a result, companies are forced to make roles redundant. Hiring slows down. Future job requirements get squeezed.

For a traditional recruitment agency, this poses serious problems.

While not immune to economic shocks, the depth, scalability, and inherent value contained within an outsourced relationship grants the RPO provider a greater degree of wriggle room.

RPOs can pull on their strategic capability to fulfil a broader remit that goes beyond transactional recruitment. For example, talent pipelining for the recovery, retention initiatives, business continuity programmes and process efficiencies are a few of the additional elements typically undertaken by an RPO provider during periods of economic stress.

Lessons from the Great Recession

The 2008 global recession provides evidence to suggest that the RPO industry will remain resilient, and possibly thrive, both throughout and in the aftermath of Covid-19.

A global guide to RPO - BPS World

Initially, any downturn will put pressure on RPO relationships. As hiring slows, some businesses will prefer to look inward towards their existing internal recruitment teams.

However, two factors can often follow:

As the economy worsens, internal teams may be laid off. In turn, the option of using third-party vendors as opposed to making new hires becomes more appealing.
Economic recoveries create a demand to hire quickly and ramp up productivity. This gives RPOs the opportunity to deliver and demonstrate their true value and ability to scale.

These trends were highlighted in the Recruitment Process Outsourcing (RPO) Annual Report 2012, produced by the Everest Group. It found that global spending on RPO hit $1.4 billion

in 2011, up from $1.1 billion the year before, as the world began to recover.

Since then, the RPO segment has continued to post strong growth.

No doubt, Covid-19 has resulted in an economic shock that's unprecedented in the post-war era. It has cut through a vast swathe of industries and created a ripple effect that will fundamentally change the type of work we do, how we do it and how we assess and select the skills we need for business success.

In shaping the future, rest assured RPOs will be instrumental in driving the change required to meet these fresh demands.

What is RPO?

Defining Recruitment Process Outsourcing (RPO) continues to be a hot topic. With the industry rapidly changing there have been plenty of labels thrown around.

Added to that, the broad offering of RPO and different ways its implemented means it’s not always easy to pin down.

However, the industry standard definition is this:

“The Recruitment Process Outsourcing Association defines recruitment process outsourcing (RPO) as a form of business process outsourcing (BPO) where an employer transfers all or part of its recruitment processes to an external service provider. An RPO provider can provide its own or may assume the company’s staff, technology, methodologies and reporting. In all cases, RPO differs greatly from providers such as staffing companies and contingent/retained search providers in that it assumes ownership of the design and management of the recruitment process and the responsibility of results.”

We provide HR leaders with a competitive advantage in the ability to attract, recruit and retain the right people. Our unique approach creates cost and time efficiencies at scale.

BPS World

Above is our own take on RPO. We ensure companies get the best people ahead of the competition. Not only with regards to their technical skills but also by assessing cultural fit too.

Ultimately, working with a fully-aligned single partner reduces the need for countless agencies and will save both time, money and raise the quality of your candidates by improving the overall hiring experience.

To add further clarity...

It’s worth pointing out the key traits of RPO. An effective RPO solution is:

A long-term partnership, not a quick fix.

Partnering with an RPO provider is a commitment to building a longer-term partnership. It’s accepting that positive results won’t happen overnight but that a carefully considered approach will yield the desired outcomes over an agreed timeframe.

A complete
re-evaluation of
how you hire.

RPO is transformative. It takes a deep dive into why your business might be struggling to attract key people, where the skills gaps are and implements measures to address this. This encompasses quick wins to future proofing your talent strategy.

A more seamless
way to hire at scale.

Forget dealing with multiple agencies, all with their own agendas. RPO focuses on streamlining the hiring process to deliver multiple hires, faster and more cost effectively than a widespread host of suppliers.

An extension of
your HR team.

Adopting an RPO solution involves embedding that provider within your business. Less ‘plug and play’, more ‘let’s have a say’. An RPO provider isn’t just an additional resource, it’s a trusted advisor that can scale up and down according to your unique requirements.

A hands-on
approach.

While there’s a consultative element to RPO, it involves far more than that. Rethinking strategy is all well and good. But an RPO provider will also do the heavy lifting required to ensure compliance, mitigate risk and ensure quality control throughout the hiring process.

A brief history of RPO

Once upon a time...
Don’t worry, we won’t bore you with all the intricacies of RPO. But we will give an overview of its evolution.

The RPOA pinpoint the advent of RPO as being around 2004.

Outsourcing wasn’t a new concept in the business world. But the idea of completely outsourcing your permanent recruitment was considered radical at the time.

Most HR leaders initially met the idea with resistance.

This led to the RPO pioneers having to pick up undesirable projects that either agencies had failed to deliver on or no one else wanted.

Given the adaptable nature of RPO, this situation provided the ideal testing ground.

Projects that involved high volume, low complexity recruitment were completed with cost and time efficiencies.

Meanwhile, those that involved low volume, high complexity work were also successfully delivered by RPO vendors prepared to put in the hard yards to meet very niche requirements.

The need for RPO
The environment of the early 2000s created a perfect storm that RPO providers were able to capitalise on.

The dotcom boom (and subsequent bust) created a more complex market.
There was an acceleration in the number of new tools and companies entering the recruiting space.
Businesses started to scrutinise their budgets in more detail to reduce fixed costs and increase operational profits.

Et voila, RPO was born.

That final point is especially relevant within the context of outsourcing. The method was already popular. And given its success the business world started to catch-on to how this could be translated to their whole recruitment cycle.

However, while RPO’s initial focus was predominantly centred on cost-cutting and hiring at scale, its capabilities are now far more holistic and strategic.

The RPO evolution

Writing for HRO Today in 2008, Andy Teng came up with this description of early RPO:

“Think of recruitment process outsourcing (RPO) as Jell-o. Just a few years ago, it was a liquidy, amorphous practice few could put their arms around.”

In the beginning many HR leaders and companies weren’t comfortable with the idea of handing over all or even some of their recruitment to a third-party. Education was required to fully explain the model’s process and its tangible benefits.

Teng continued: “Today, however, RPO is gelling. A common definition on what constitutes RPO is emerging, and the party-goers assembled under its big tent seem more capable of agreeing on the traits of recruitment outsourcing. Consensus on scope of service, fee structure, important metrics, and other deliverables is apparent, and while various forms of implementation continue taking place, market growth is vibrant, steady, and expected to continue during the next few years.”

That was over a
decade ago.

Now the benefits
of using an RPO
solution are even
more clearly defined. RPO has evolved to encompass all areas of talent acquisition and strategy.

RPO in phases:

RPO Phase 1 -
Costs and efficiencies

Reduction in costs
Reduction in time-to-hire
Move to standardised processes
Process efficiency

RPO Phase 2 -
Business Impact

Ability to scale services up and down
Access to increasingly rare talent
Enhanced employer brand
Workforce planning
Building of talent pools

RPO Phase 3 -
Strategic Direction

Alignment of recruitment strategy to overall
business strategy
Emphasis on talent as a differentiator
Holistic approach to hiring (a mixture of
permanent and contract recruitment)
Increased focus on candidate experience
Measurement of quality of hire
Suite of value-add services, including: employer
branding, predictive analytics, Business Intelligence reporting, pre-employment screening, onboarding and talent pipelining

Why RPO is more
relevant than ever

To an extent, we knew this shift was coming. We’ve talked endlessly about digital transformation, automation and the potential displacement of people and jobs since the advent of the 21st century.

But we perhaps didn’t expect the change we’ve witnessed to happen quite so fast. In many respects, the effects of the Covid-19 pandemic has altered the rules of the game overnight.

But what does this mean for the RPO industry and the relationship it has with its customers?

How RPOs can deliver value post Covid-19

Businesses will always need people, albeit the emphasis on skills will transition. As will the nature of employment as freelance and gig work continues to gain traction.

The way we hire for roles – some of which have yet to be created – will also undergo profound change. This move will be further accelerated by market forces and adoption of new technologies.

Enabling these developments has always been, and will remain, the happy hunting ground for RPO providers.

However, alongside longer-term benefits, other opportunities will present themselves in the immediate future:

Outsourced support for businesses that have been forced to reduce their HR and internal talent acquisition capability.
Scalable assistance for the disruptive, resilient industries that have thrived throughout Covid-19. E.g - tech vendors and start-ups.
Objective consultancy for organisations who wish to review and redefine their people strategies for the future of work.

The different types of RPO

While you can break the following down further we thought we’d keep it brief and provide an overview of the three main
types of Recruitment Process Outsourcing.

As RPO is such a flexible model its implementation can be structured accordingly.

On-Demand RPO

Otherwise referred to as Project RPO, the On-Demand version is utilised during a specific period of time from the beginning to end of a recruitment project.

On-Demand RPO will address a specific need and is typically implemented when a business has a pressing requirement owing to rapid change.

For example, should an organisation find they have a large contract to fulfil in one quarter, an RPO provider’s recruiters can step in and help them staff up at speed.

Function-Based RPO

Function-Based RPO, or Hybrid RPO, involves an RPO provider assuming control of a specific business unit, group or geography’s recruitment on an ongoing basis. This can also involve enlisting the services of more than one provider,
i.e – the assignment of multiple partners to different areas,
according to their level of expertise.

The buyer will still use their own in-house recruitment teams
but will opt to use their RPO partner(s) to manage specific
functions.

In its Function-Based form, an RPO provider will assume
control of a particular division or area while the in-house
recruiters can focus on the rest of the company.

Full Recruitment Process Outsourcing (RPO)

The RPO provider manages a company’s entire end-to-end
recruitment. From sourcing, marketing and
interviewing to analytics and measurement, this solution
offers clients the full breadth of core and value-add services
and expertise that they otherwise wouldn’t have on their
own.

Ultimately, RPO engagements will all differ but they’ll fall
between the spectrum of these three basic models.

Ultimately, RPO engagements will all differ but they’ll fall between the spectrum of these three basic models.

Part 2. The RPO Landscape

RPO in numbers

$5BN

Value of
the Global RPO market

Expected CAGR growth of RPO through
to 2027

29%

#1

RPO is the fastest growing recruitment sector

A report by The Everest Group found that "over 3,000 multi-process RPO deals were signed as of 2018, with a minimum of four or more recruitment processes, at a minimum contract term of one year."

The Recruitment Process Outsourcing industry is the fastest growing HRO market according to 2016 figures. RPO achieved consistent 13% expansion across all regions.

RPO In North America

There is little doubt that the United States hiring landscape has taken a huge hit. By early August 2020, there were 16.1m continuing unemployment claims registered.

Even before Covid-19, the big North American RPO providers were under threat from smaller, more agile organisations.

It remains to be seen whether this trend will continue or whether there will be a consolidation of power.

One thing is certain - hiring will bounce back as businesses look to ramp up.

The traditional ‘home of RPO’, and the segment’s largest market by global share (53% in 2017), will take time to recover. But Covid-19 and the subsequent recovery will present opportunities.

RPO In EMEA

The Everest Group plots Europe, the Middle East and Africa as the second-largest region for RPO adoption, representing 31% of the global RPO market. The UK makes up the bulk of adoption, accounting for a 59% chunk.

However, there are plenty of headwinds likely to muddy the waters in EMEA. Brexit, Covid-19 and widespread uncertainty represents a potent combination of challenges,

RPO is likely to remain resilient but it'll have to adapt quickly to serve an increasingly remote workforce and disruptive industries who won’t wish to settle for hiring norms.

Rapidly growing tech start-ups and forward thinking blue-chips are likely to be two key areas of interest for the vendors.

RPO In APAC

While RPO has been adopted in North America and Europe since the early 2000s it’s the Asia-Pacific that’s expected to see the most significant growth in the coming years.

Market research by Technavio estimates that the APAC market will witness a 21% CAGR growth between 2018 and 2022.

Japan remains the leading RPO-adopting nation in the region. But APAC’s emerging economies are expected to significantly contribute to RPO’s regional growth.

Covid-19 will no doubt pose serious questions of RPO providers in the Asia-Pacific. However, the speed of technological innovation in the region will be an ace up the sleeve of savvy outsourcers.

RPO in Latin America

A global pandemic, coupled with a regional spike in Dengue Fever, has stalled RPO growth in LATAM. But previous figures will provide some comfort.

According to the 2018 Annual Economic Report, the year-on-year growth of RPO in the region stood at 34%, compared to the 13% global average.

Largely spearheaded by the big 3 economies – Brazil, Argentina, and Mexico – RPO has evolved rapidly across a traditionally challenging landscape. And while most deals being struck are by western businesses, there has been an uplift in locally signed, single-country deals too.

A localised acceleration in online recruitment can only be another positive for local RPO providers.

RPO in Our World
(Total Talent Management)

BPS World is a Total Talent Management (TTM) provider.

What’s TTM?
TTM is an emerging model of talent or workforce management which blends an organisation's permanent recruitment (RPO) with its contract workforce focus (where the RPO partner acts as a Managed Service Provider/MSP).

Spurred by organisational divergence and the rising importance of contingent workers, TTM seeks to integrate the respective management of “permanent hire” and “contingent” workers by HR and Procurement functions.

"Total Talent Management (TTM) is increasingly getting a prominent place in the discussion around the talent needs of enterprises. While still in its early stages, service providers would do well to adopt TTM capabilities with an eye on the future.”

Everest Group, Recruitment Process Outsourcing (RPO) Annual Report 2018: Orchestrating the Digital Talent Acquisition Symphony"

Why TTM?
The market is maturing. Traditional recruitment services are increasingly coming under threat, leading to the consistent growth of RPO.

In turn, RPO service providers are continually developing their own remit to meet the changing demands of business enterprises.

Rather than have a sole focus on permanent hires, the TTM approach also takes into consideration the temporary or contingent staff evolution.

With a large number of businesses employing a mixture of permanent and contract workers this approach to talent management has become ever more important.

When a business doesn’t have the correct balance, or there isn’t a joined-up approach, it can be difficult to assess demands and delivery.

TTM ensures your business maintains the right shape by getting to grips with the workforce planning of both permanent and contingent recruitment.

What does TTM look like?

TTM is strategic, blending a mixture of flexibility and stability.

Historically, to ignite this type of wholesale change the natural process would be to engage with ‘the agencies’.

We combine the best parts of these agencies to deliver tailored talent solutions.

Our TTM suite contains four core products that form a multi-functional service aligned specifically to the needs of our customers, candidates and projects. These are: BPS Labs (consultancy), BPS Search (Executive Search), BPS Resourcing (RPO and compliance) and BPS Brand, a creative studio dedicated to employer brand and recruitment marketing.

The TTM approach is highly scalable. Services can be dialled up or down according to demand.

The design
of TTM

Customer requirements are evolving and creating increased demands. This has led to Total Talent Management being the fastest growing area of the recruitment sector.

The table to the right highlights the level of current customer demand evidenced from HR leader interviews and BPS World case studies. It is an illustrative example of a typical - but not exhaustive - vendor-customer relationship.

What are the benefits of TTM?

It solves a specific business challenge

This may involve a particular project that requires the right resources to deliver it or dealing with the pace or change.Requirements can also be due to the company experiencing frustrations in their ability to recruit the right people, at the right time, in the right place, for the right money. Or not having or wanting the in-house capability to undertake the challenge internally so outsourcing becomes an option.

It’s consultative

TTM focuses on building long-term partnerships through open dialogue and deep-dive analysis from the very first interaction. During the consultation phase we can gain understanding of the issues at hand and present a bespoke solution. Within this process we’re also able to identify other challenges and identity how we can help overcome them and provide value in other areas. These can include developing an Employer Value Proposition (EVP) to aid attraction and retention, process improvements to ensure a more efficient and auditable hiring process, or cost efficiency measures to better manage recruitment spend.

It focuses on outcomes, not outputs.
It provides the perfect blend.
It’s flexible, not fixed.

In addition to these elements TTM has a flexible pricing strategy which is designed to drive the necessary behaviours to deliver the desired outcome as well as providing transparency in the cost. The model aims to provide year-on-year savings through a consolidated partnership approach.

In a nutshell

BPS World is a global business with access to resourcing professionals with experience of executing our services across all continents. In addition, we have a global partner supply chain ensuring we can always deliver on our commitments no matter the scale or complexity. Our final solution will always include the provision of a local, on-site Account Management structure to provide a personal touch. The representatives involved are responsible for developing what we expect to be a long-standing partnership.

Part 3. Why Adopt an RPO Solution?

What does RPO provide?

RPO isn’t a one-size-fits-all solution and its implementation will differ depending on a clients’ unique requirements. However, there are some common traits.

Here’s an explanation of what an RPO solution will typically include:

Strategy and Vision
Your RPO partner will work closely with you to understand your businesses’ strategic goals, now and in future.

As part of this initial engagement phase, a Talent Review session will pinpoint the challenges faced and start to outline solutions.

With cultural fit an increasingly important aspect of the recruitment process, your RPO provider will want to understand your purpose, values and behaviours.

By performing this exercise, it’ll be easier for your RPO provider to weight individuals against the culture of your organisation.

Workforce Planning
Once the strategy is finalised, it’s time to move on to the actual planning of building a workforce. This will go beyond listing the number of people required.

It’ll look at achieving the right shape for your business and the required balance between permanent and contingent employees.

It’ll also consider any regulatory, legislative or compliance requirements.

It’ll look at achieving the right shape for your business and the required balance between permanent and contingent employees.

It’ll also consider any regulatory, legislative or compliance requirements.

Attraction
How do you look to your dream employees? An RPO solution will assess how your employer branding stacks up and seek to improve the way you market to candidates.

This can involve anything from re-assessing a brand’s look and feel to implementing marketing and content strategies in order to build talent communities.

Ultimately, your RPO provider will want to tell your business story, help you manage this perception and advise on how you can take control of your brand journey to attract the right people to your business.

What does RPO provide?

Sourcing
In its simplest form, this will involve determining your hiring priorities before sourcing candidates and presenting them for approval. Working closely with hiring managers, briefs will be clearly communicated to delivery teams by a dedicated Account Manager.

But before this takes place, your RPO provider will gain an understanding of: your target audience, where these candidates can be found, the size of the talent pool, how the competition is positioned and how effective the sourcing process is with regards to candidate drop-offs.

Assessment and Selection
RPO teams are experts in recruitment. They will vet prospective candidates according to the brief given and provide valuable assessment feedback to the hiring manager before the interview stage.

There’s fantastic added value in having your RPO point of contact sitting in on the interview process. Some businesses conduct effective interviews but forget to sell their benefits and vice versa.

Your RPO provider will help eliminate confirmation bias and ensure you find the best people for your roles, thus further building trust and relationships.

Recruitment and Onboarding
Once a candidate has been selected, your RPO provider will facilitate the presenting of the offer, using their expertise to gain the candidate’s acceptance and seal the deal.

To ensure an excellent experience, candidates will also receive relevant communications on what to expect in the first days and weeks of their new role.

Your RPO provider will also check-in with the successful candidate at various stages throughout their initial employment to receive feedback and ensure they’ve made the right hire for the position.

What does RPO provide?

Talent Management
This area is closely tied to workforce planning and succession planning. In an ideal recruitment model, people will grow into available roles, negating the need to recruit externally. In turn, this enhances retention, as junior employees are entrusted to take on more responsibility.

Part of your RPO provider’s remit will cover internal roles and benchmarking against who’s available on the open market. A good RPO partner would rather see internal promotion as this enhances an employer’s brand and makes external recruitment easier by being able to promote internal mobility through case studies.

Leaver Management
Understanding why people leave a business is vital to workforce planning and to aid the recruitment process.

Leaver Management involves an RPO provider working with you to obtain and analyse reasons for leaving, identify trends and feedback to the business.

This aspect is all part of an RPO partner’s commitment to providing management information that allows companies to make strategic and operational decisions. Your greatest assets are your people and it’s important for you to understand how they’re feeling.

A good RPO partner would rather see internal promotion as this enhances an employer’s brand and makes external recruitment easier by being able to promote internal mobility through case studies.

Reasons for choosing RPO
There are numerous reasons why companies choose RPO. These can include: unsustainable recruitment costs, positions going unfilled, difficulty retaining talent, inefficient or non-compliant hiring practices, and inability to accurately measure the quality of hires.

RPO has the answers to these challenges and provides a unique competitive edge. However, RPO providers differ in quality, culture and scope so it’s important to properly assess any potential partner before engaging them.

Think of this decision in the same way you would with any other business partner. Take the time to review what’s being offered, how a solution will provide quantifiable benefits and which provider will be the best match for your organisation’s culture.

10 Questions to Ask

1. Are your talent requirements unpredictable?

2. Is your workforce planning effective?

3. Are your hiring managers offering a consistent and positive candidate experience?

4. Can you define what a ‘quality hire’ looks like?

5. Is your recruitment strategy aligned with your business strategy?

6. Has there been an event or business impact that necessitates change? (e.g, Covid-19!)

7. Are your HR Leaders hungry for change?

8. Is your organisation already engaged in successful service-provider relationships?

9. Do you effectively measure what success looks like?

10. Do you know how much your organisation spends on talent acquisition?

If you’re struggling with any, or many, of these questions then RPO has the answers.

Part 4. The Implementation

What to expect

Each RPO provider will have their own implementation methodology. But for the purposes of this guide we’ve detailed our own four-stage process.

The BPS World RPO Implementation model utilises elements of Prince II methodology and has been refined over a period of 18 years’ practical experience successfully implementing international, single and multi-site contracts for clients.

Managed by a dedicated BPS Project Lead, our approach is stage-based to ensure that appropriate periods of Planning, Design and Transition enable a rapid, risk-limited transition to the new norm at Launch.

The process is broken down into:

• Pre-Sales Finalisation
• Stage 1 - Planning
• Stage 2 - Transition
• Stage 3 - Launch
• Stage 4 - Post-Launch

Pre-Sales Finalisation

Before embarking on any project it’s important to define and outline the scope of the agreement.

At this stage an RPO provider will seek to gain an in-depth understanding of the customers’ requirements – before any contract has been signed.

Meeting with key stakeholders, facilitated workshops to make sure the service to be implemented is on point and a definition of the required outcomes is all part of this process.

This involves:

Building an understanding of the services and solutions to be provided
Finalising the financial processes
Development of meaningful reporting
Defining strategic objectives
Assigning clear roles and points of contact

Stage 1 - Planning

The Planning stage will further build out the work conducted throughout the Pre-Sales Finalisation.

A defined Project Team is established with clear responsibilities allocated to ensure successful delivery for the customer.

At this stage the RPO provider will also identify and begin communication with the key customer stakeholders and immerse themselves in the existing recruitment process and start to design the new version.

As an overview, these are the key steps:

Establishing the Project Team
Stakeholder analysis, mapping and identification
Review of the existing recruitment process
Designing the new recruitment process
Managing the supply chain
Communication management plan

Stage 2 - Transition

The second stage of the Implementation process focuses on the implementation and communication of the proposed recruitment process.

This will include: any systems to be used and the commencement of the formal engagement sessions with both the internal stakeholder groups and the external RPO provider’s teams.

Before this stage can begin the RPO provider will prepare a Stage Review of the Planning phase. This provides an opportunity to present a progress update to the wider teams involved before moving on to the Transition.

This stage involves:

The Stage Review
Process mapping and sign-off
Systems configuration
Finalising invoicing and reporting
Engagement sessions with the customer hiring manager(s)
Engagement sessions with suppliers

Stage 3 - Launch

While the Go-Live date is a notable milestone, the day itself should be uneventful provided the steps outlined in Stages 1 and 2 have been fully completed.

In effect the ‘Go-Live’ day is a return to Business as Usual – but a new form of BAU.

The day will be marked by a formal communication from your RPO provider to hiring managers and other staff. Your RPO partner may also use this occasion to hold branded give-aways around the office.

Effectively, the launch stage will involve:

Identifying your priority vacancies
Receipt of full brief of priority vacancies and confirmation
Agreement of delivery timescales against priority listing
Management of key stakeholder relations with regards to priority vacancies
Management of non-priority roles and relationship building with the supply chain

Stage 4 - Post-Launch

As you’d expect, the Post-Launch stage involves collecting valuable feedback and performing a sanity check on the deliverables of the agreement.

This will involve multiple parties, including the RPO provider, client and any Supply Partners being utilised.

Important items include:

Hiring Manager updates
Supplier reviews
Hiring Manager satisfaction surveys
Business information and management reporting

Part 5. The Results

RPO partnerships will benefit businesses on multiple levels.
However, here are the key advantages:

An increase in quality
This should go without saying. As one of its fundamental outcomes, RPO enhances your organisation’s ability to source and attract
high-quality people.

RPO zeroes in on talent aligned with your business goals and culture and helps you measure and improve the quality of the people you employ.

All-important cost efficiencies
When you bundle together all the hidden costs of recruitment – team overheads, agency fees, technology, time and salary
spent on requisition – it can add up to a significant amount.

RPO solutions offer tangible savings across the board with typical operational reductions between 20-30%.

Over time, benefits include: improved hiring quality and process, reduced staff turnover and better candidate fit.

Added industry expertise
You know your business inside-out. However, an RPO provider operating in the same space is a key ally.

A partner with industry expertise will know who’s right for your roles and how compatible they’ll be with the culture of your
organisation.

Furthermore, a provider with a fantastic industry track record will give you a huge competitive advantage when sourcing and engaging with the best people.

Improved stakeholder experience
RPO is a truly people-focussed solution. Client and candidate satisfaction is essential with a quality stakeholder experience top of the RPO provider’s agenda.

From the very first interaction an RPO partner will offer an attentive and consultative approach to improving their clients’ talent acquisition.

Regular communication and exceptional delivery ensures the happiness of hiring managers who know their RPO provider has the capability to handle any issues that might come their way.

Here’s a bullet-point list to summarise the positive and measurable impact a successful RPO partnership will provide.

Flexibility.
You can scale up and down the services you need as requirements change.
Improved process efficiency.
Your processes will be managed by one dedicated, single partner.
Exceptional employee engagement.
From pre-hiring to on-boarding, give your candidates an experience that’ll make them say "wow".
Improved strategic focus.
Liberate your HR leadership and hiring managers so that they can focus on the long game.
Increased new hire/employee retention.
Hiring quality candidates who are the best fit for your business increases retention.
Ensured compliance and reduced risk.
Let your RPO provider worry about all the paperwork and reduce your exposure to risk.

Future-proofed talent strategy.
Reap the benefits of your partner’s expertise in identifying and delivering a growth strategy fit for the future.
Access to wider global talent pools.
Your RPO partner will have access to vast networks and databases, expanding your geographical reach.
Powerful reporting tools and insight.
Get actionable insight to make proactive changes to your hiring process.
Reduced dependency on expensive third-party, contingency firms.
You no longer need to rely on an unmanageable list of external partners.
An enhanced employer brand.
Increase your attraction and beat the competition to the quality talent you need to thrive.
The freedom to focus on what your business does best.
Your RPO provider will handle your talent acquisition while you concentrate on achieving your business goals.

RPO In Action

Reducing costs and time-to-hire (M+W)

M+W is placed at the heart of the booming construction sector, an industry that contributes vast amounts to the UK economy in terms of revenue and employment. But our talent management examination uncovered a number of areas for improvement.

The Problem:
1. M+W had an in-house recruitment resource to manage the whole hiring process. But to keep on top of demand they were using in-excess of 80 agencies who provided an inefficient service and inconsistent quality of candidate.

2. Given the varied nature of M+W’s business there was a constant demand for contractors. This brought about its own challenges concerning contractor management and compliance.

3. M+W needed a solution to streamline their processes so that they could meet project demands, attract the best talent and further grow the business.

The Solution:
1. One of the key outcomes of this project has been to centralise M+W’s talent management process. That meant taking complete ownership of their supply chain, with each agency signing up to our charter which detailed service level agreements and ensured consistency in selection.

2. Our recruitment team used their skill and expertise to ensure supply was always met in a world of rapidly changing resourcing requests.

3. An in-house team and an online contractor management portal resolved all queries while our compliance team offered workforce management guidance across the globe, as well as the UK.

4. We worked with M+W’s HR team to add value to their people strategy by making their onboarding and induction processes slicker.

Key Achievements

Since the start of our partnership in 2013, delivery has been the key outcome of working with M+W

Successfully grew the company’s nuclear division from four people to 80 employees.

Redefined M+W’s resourcing and recruitment processes.

Our Business Intelligence suite now tracks and reports on the whole hiring process and time to hire.

We’ve saved M+W time and money by streamlining and consolidating their invoicing procedures.

RPO In Action

Rolling out a global recruitment solution

A global market leader will always have to juggle a number of spinning plates. And when your primary business is global mobility it’s essential to have the right processes in place to ensure efficient execution. Improving those was the key objective of Santa Fe Relocation Services, a company managing over 60,000 international moves annually, specialising in areas such as local and international moving, work permits and corporate relocation.

The Problem:
1. Santa Fe were about to undertake rapid global expansion and they required a partner capable of working smarter and faster to hire the volume of people required.

2. We needed to reduce inefficiencies and inconsistencies across locally managed recruitment functions, spanning 47 countries.

3. Our consultative approach uncovered other areas in need of addressing. Our aim was to reduce agency spend and create a robust recruitment framework that included fit and proper audit trails and approval processes.

4. We were challenged with finding a solution to help counteract employee turnover and bring fresh talent into the business.

The Solution:
1. The successful implementation of our fully integrated RPO solution has delivered the desired volume of candidates and placements. Commencing in the UK, our managed service has since been rolled out across EMEA and into APAC.

2. We’ve redesigned and redefined Santa Fe’s recruitment processes. The introduction of a centralised and embedded account team has provided clear audit trails and quality assurance. We’ve also developed an approved supply chain of recruitment agencies to eliminate inconsistencies and better manage spend.

3. Our enhanced management reporting tools have enabled more powerful directional decisions to be made. We’ve provided Santa Fe with a Business Intelligence dashboard that gives full visibility of the hiring process and tracking of delivery.

4. The creation and roll-out of the Accelerate Graduate Programme has brought the leaders of tomorrow onboard. We’ve worked in conjunction with Santa Fe to manage the whole process, from initial CV screening to organising the final assessment days.

Key Achievements

We've demonstrated the value we can add across the board.

Successful implementation of RPO solution across the UK and EMEA. Now rolled out to APAC.

Centralisation of recruitment function to save time, money and
improve quality.

Our Business Intelligence suite now tracks and reports on the whole hiring process and time to hire.

RPO In Action

Global fintech achieves 35% reduction in recruitment costs using unique tailored approach

When an ambitious global fintech told us they were having trouble attracting niche skills to their Czech Republic base we knew we had the capabilities to help them. 4Finance are Europe's fastest growing online and mobile consumer lending group and they operate across the globe. However to meet their growth targets they had a pressing requirement to bring in Java software developers. With local competition fierce this was proving to be a problem. But we found a way to deliver the skills that would ensure 4F met their expansion goals.

The Problem:
1. They needed to recruit fast and fill an initial 140 positions over a 6-month period. But the local talent market was tough and attracting candidates from larger EU markets was proving difficult due to wage disparity.

2. 4Finance’s people strategy and processes were fragmented and inefficient. Dealing with multiple recruitment partners mainly on a retainer basis made it hard to track performance and delivery.

3. Their global employer brand needed to match the company’s ambitions and be strengthened across the board to make 4Finance a more attractive proposition.

The Solution:
1. Our first point of action was to source candidates from the Czech Republic, Latvia and Poland. While this met with some success we needed to try a different approach to fulfil the client’s requirement. As a solution, our World Solutions team identified a highly-qualified talent pool available within the Ukraine, Russia, Belarus and Kazakhstan.

2. We deployed one single project management director who coordinated all aspects of delivery. Meanwhile, clients were kept in the loop via a bespoke web-based dashboard and a weekly update.

3. We developed a powerful global employer brand proposition. This included consistent branding/advertising across all mediums at all stages, from attraction through to interview and onboarding. To further enhance 4F’s culture, we implemented an intranet allowing employees across a range of locations to engage, communicate and collaborate simultaneously.

Key Achievements

Our tailored approach to recruitment and ability to think outside the box helped 4Finance save time, money and become a more attractive proposition.

Detailed review of current processes resulted in agreements with legacy recruitment suppliers.

Creation of an embedded account team at 4Finance HQ in Belgrade.

Developed internal hiring skills. ‘How to hire’ training programme implemented for the 4F management team.

Summary

We’ve tried to condense everything you need to know about Recruitment Process Outsourcing into this guide.

But given its rapidly evolving nature there’s always more to learn and new ways of making processes more efficient and solutions more impactful.

RPO will continue to mature. And as the world emerges from the Covid-19 pandemic its relevancy will increase. Talent leaders will need strategic partners that can help them meet the demands of both the boardroom and their employees.

We hope this guide has given you a good introduction to the world of RPO and the benefits it provides on a global scale.

Its cutting-edge and agile nature is why an increasing number of businesses are turning towards RPO to assist them in attracting, recruiting and retaining the right talent.

However, if you have any questions or you’d like to find out more then we’re waiting to hear from you.

Email sales@bps-world.com to get in touch with one of our experts and discuss how an RPO solution can help solve your biggest people challenges.