5 global trends in recruitment outsourcing
Post on 18-Oct-2014
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This ebook offers a recruitment outlook for the next year. It will be defined primarily by the following factors: • Ongoing uncertainty in global markets requiring a greater focus on contingent labor and maximizing value from people resources; • Increasing competition for key skilled labor in the science, technology, mathematics and engineering fields where growth is strong; • Greater focus on the efficiency of hiring decisions and the management of the talent pipeline.TRANSCRIPT
5 global trends in recruitment outsourcing d. zachary misko
22
recruitment outlook for 2012/13the great (global) melting pot
Today, the entire world has become an
employment melting pot. Borders seem to
dissolve as organizations seek out talented
individuals to drive innovation and efficiency
at a scale and speed never before seen.
Yet, workforces are shrinking in more
regions than they’re growing, and the rise
of the knowledge worker and the free
agent has already made finding qualified
workers to fill permanent, full-time roles
increasingly difficult. Diminishing supply of
talent, and the development of technology
that can facilitate data sharing and high
quality collaboration, has led to the
emergence of a truly global workforce.
Organizations and HR professionals are
tasked with adapting to this diverse
landscape, and part of doing so requires
a sea change in the way they think about
where candidates are, how to connect
with them, and what candidates are
looking for in terms of employment.
Increasingly, this has required organizations
to reconsider how permanent, temporary and
contingent labor is purchased and managed.
There is no doubt that the complexity (and
the potential for competitive advantage) that
workforce strategies now embody is putting
Recruitment Process Outsourcing (RPO)
providers on more organizations’ radars.
Today’s global workforce represents a
complex mixture of shifting demographics
and changing expectations and needs,
and because of this the recruitment
outlook for the next year will be defined
primarily by the following factors:
• Ongoinguncertaintyinglobal
markets requiring a greater focus on
contingent labor and maximizing value
from people resources;
• Increasingcompetitionforkeyskilled
labor in the science, technology,
mathematics and engineering fields
where growth is strong;
• Greaterfocusontheefficiencyofhiring
decisions and the management of
the talent pipeline.
3
trend #1 / targeting new sources of talent
the trend of reducing workforces has
spread far and wide. more people are
now leaving the workforce than entering
it, and there are few countries with skilled
workforces that can counter this trend.
After all, it’s not just a shortage of people
we’re talking about here, it’s a shortage
of talent that the world labor market must
contend with.
The overwhelming factor that slows or stalls
the recruitment process is “quality of hires”.
And this is a problem that is almost universal.
However, it is a major concern in the Asia-
Pacific region, where 67% of recruiters report
that they are having difficulty filling positions
with qualified workers. Almost one-in-four
organizations (39%) in the region say they
plan to hire 100 or more employees this year,
compared with 30% in the Americas, and
Organizations are innovating the use of RPO solutions, and using them to solve specific business needs.”
Just 17% of companies use RPO end-to-end, as their entire recruiting function; 60% use RPO selectively, for some elements of the process or for particular hard-to-fill roles and projects.
aberdeen group, “rpo 2011: rethink recruitment”
just 23% in the EMEA (Europe, Middle East,
Africa) region. So, talent appears to only be
becoming scarcer in the key growth regions.
The need to target new sources of talent,
including retirees, free agents, as well as
employees in emerging markets, is becoming
a key issue for organizations.
HROA/Kelly OCG’s 2011 Global RPO Report
Shortage of skilled staff / 79%
Salary uncompetitive / 42%
Location / 33%
Current recruitment process / 33%
reasons for problems in hiring
4
trend #2 / matching the job to the person, not the person to the job
until recently, a request for hire went out
and hr determined whether the position
should be full-time or contract. now, a new
paradigm has emerged. instead of simply
determining the opportunity and seeking
the right person to fill it, the right person
now helps to shape the opportunity.
The new paradigm asks, “Where is the talent
that matches the need, and how does that
person want to be employed?”
The candidate—the ultimate client—has
had a shift of mindset, and recruiters must
go beyond static job postings, phone calls
and networking to find top talent. They must
more effectively match the opportunity to
the person, and this means knowing where
to look for the person, as well as how to
structure the opportunity.
Traditional methods such as cold calling
and in-person networking, print and brand
recognition/attraction, as well as social
media, blogs, microblogs, meet-ups and
more are all important components in both
the recruiter’s and the job seeker’s strategies.
An integrated approach using all the
available tools to find and engage candidates
where they live, work and play is bringing
sourcing to a new level.
The problem is that HR departments are
already overwhelmed by other demands
and this kind of highly targeted approach
is more than many can commit to. Instead,
many are looking to Recruitment Process
Outsourcing (RPO) to help them achieve the
desired integrated approach.
As such, the differentiator among RPO
providers will be how well they work with
clients to create opportunities that meet the
company’s needs, and candidate preferences.
For example, workers are increasingly
interested in free agent options such as
microwork, independent contracting,
temporary and project work, and
entrepreneurship. The global free agent
population accounts for at least 20–30%
of the entire workforce—44% in the U.S.—
and growing. In the 20–30 year-old age
demographic, average tenure on a job is
one year, whereas a contingent contract is
typically a year and a half.
Tenure and stability are no longer the
primary considerations for candidates—and
employment opportunities must reflect this.
it is estimated that
worldwide, the rpo
market will more than
double by 2015, reaching
nearly $4.4 billion.
nelsonhall “targeting rpo” report
5
trend #3 / recruitment outsourcer as strategic partner and brand ambassador
the complexity of recruitment for many
global companies today stretches
the resources and technology of in-house
hr departments.
Increasingly, companies need dedicated
infrastructure and expertise to find and
secure scarce talent in multiple employment
markets. Yet, if they outsource their
recruitment they need consistency and
genuine stewardship of their brand.
As RPO continues to gain traction
worldwide, buyers are beginning to see
ways to create added value. Providers
can identify inefficiencies and help create
better processes, standardize processes
across locations, scale up or down as
needed, and track important metrics, like
quality of hires. The latter involves long-term
measurement of factors like performance
scores, engagement, promotion and
turnover—and all of these factors are linked
to the talent acquisition strategy.
Because the candidate is now, more than
ever, in the driver’s seat, the candidate
experience is key to an employer’s brand. If
an employer’s brand says one thing to the
public, yet its talent acquisition and retention
strategies say another thing to job applicants,
the broken promise could significantly impact
the ability to attract and acquire top talent.
A strong employment brand can provide
an important competitive advantage, and
providers who reflect the brand can be a
true competitive differentiator. Most RPO
providers now offer employment branding
services, but organizations need to consider
more than just corporate messaging. Their
processes, people and technology must
facilitate a positive, satisfying experience
that is on-brand.
employer branding
is a top-five industry
game-changer.
hro today’s 2011 summit, europe
6
trend #4 / the multi-country approach
globalization brings with it the need for
global recruiting solutions. in industries
where skills are highly transferable,
borders count for little as recruiters seek
talent wherever it may be found.
Increasingly, companies are taking a
multi-country approach to accessing talent.
Primarily, they are seeking standardized
and streamlined processes, scalability and
reduction in cost—while shoring up supply.
More often, this is requiring some form
of RPO with a provider that offers a truly
global solution.
the hallmarks of a provider with global
capabilities include:
• accesstoaglobalpoolofqualitytalent;
• theabilitytodelivertalentinlightof
differingcustoms,culturesandlanguages;
and
• aglobalfootprintorregionalofficesthat
provide deep regional knowledge.
single-country rpo still exists in far greater
volume than multi-country rpo. however:
• Nearlyhalfofmulti-countryRPObuyers
cover four or more countries of operation,
and the EMEA region ranks highest for
average number of countries covered.
• BuyersincludeEMEAnearlyasfrequently
astheyincludeNorthAmericanmulti-
country RPO deals.
• Buyersfrequentlyincludesomeofthe
emerging economies such as India,
China, Brazil, and Russia in multi-country
RPO deals.
• Theoriginofmulti-countryRPOdeals
is more broad-based now, with nearly
half of such deals originating outside of
NorthAmerica.
From Everest Group’s 2011 Multi-country recruitment report
nearly half of
multi-country rpo buyers
cover four or more
countries of operation.
everest group“2011 multi-country recruitment process outsourcing: hype vs. reality”.
7
trend #5 / total workforce solutions
traditionally, hr recommended and
ultimately purchased rpo while
procurement purchased temporary
and contingent labor. but, changes in
workforce demographics (and attitudes)
are changing the way companies
think about their hiring needs.
Technology, economic forces, changing
expectations and globalization have all
contributed to shifts in where workers are
found and how they want to work. As a result,
companies are now looking more at the total
“talent supply chain” than at individual labor
silos. They are favoring a blended approach
to filling varied positions, which is not
facilitated by these HR-procurement silos.
Companies are increasingly looking to
streamline vendor management to save
money and create greater efficiencies. HR
is becoming more involved in Managed
Service Provider (MSP) programs that started
in procurement, leading to the concept of
having one sponsor to manage hiring needs
of all kinds. On top of this, companies’ RPO
needs have changed and they are now using
them not only for hard-to-fill positions, but for
semi-skilled and customer service positions
as well. What they need is an effective overall
process for attracting talent, not just a one-off
solution per position.
RPO providers and MSPs recognize this
shift, evidenced by the surge in mergers,
acquisitions and partnerships in the past year.
NelsonHallSeniorHROutsourcinganalyst
Gary Bragar explains, “As companies remain
cautious due to continued low consumer
confidence and ongoing market uncertainty,
they are hiring more temporary employees
and utilizing more contingent workforces
than on-boarding new full-time hires.”
[NelsonHall’sHROInsightsblog]
The trend of mergers and acquisitions
within the RPO space is likely to continue as
hiring is predicted to remain flat, and fierce
competition for talent persists.
RPO providers need to think in terms of a complete recruiting solution. For example, do you hire on a permanent or contingent basis? We will see a total workforce solution more and more as clients look at hiring differently. The concepts of permanent and temporary are blurring.”
pam berklich, svp, kellyocg
8
conclusionDemographics, work preferences and technology are changing rapidly around the world.
To successfully manage the new “talent
supply chain” as this occurs, a greater
partnership between RPO providers and
their clients is needed, and new strategies
must be explored.
These changes necessitate a more holistic
look at what companies truly need, as well
as what job seekers actually want.
As organizations look for ways to create
efficiencies, save money and consolidate
vendor management, a blended approach
to filling all positions is gaining traction.
Recruiting needs and challenges are
multiplying across a diverse global
spectrum, and organizations are seeking
partners in their overall talent strategy.
They’re seeking ways to come to terms
with the candidate-as-customer reality, and
with the need to faithfully represent their
company branding across every aspect of
the employment proposition.
The lines between permanent and
temporary and between RPO providers and
MSPs are blurring as HR and procurement
align strategically to address the total
workforce needs.
Ultimately, organizations need one big pot
of global hiring solutions, and they’re seeking
the simplest, most cost-effective way of
accessing it. The test of both MSPs and
RPO providers from here on in is just how
well they can deliver on this need.
eXiT
about kellyocg
KellyOCG® is the Outsourcing and Consulting Group of Kelly Services, Inc., a leader in providing
workforce solutions. KellyOCG is a global leader in innovative talent management solutions in the
areas of Recruitment Process Outsourcing (RPO), Business Process Outsourcing (BPO), Contingent
Workforce Outsourcing (CWO), including Independent Contractor Solutions, Human Resources
Consulting, Career Transition & Executive Coaching, and Executive Search.
Visit www.kellyocg.com
about the author
D. ZaCHaRy MISKO is Vice President, Workforce Strategy of the Kelly
Outsourcing and Consulting Group (KellyOCG), with 20 years experience
in the HR industry. He works with Fortune 500 companies throughout the
world to develop and implement processes that improve and drive human
resources and workforce solutions. Zachary is a Senior Executive Board
Member of Best Practice Institute (BPI) and serves on the Latin america
Regional advisory Board for the International association of Outsourcing Professionals
(IaOP). He was named one the top 15 Workforce and HR professionals under 40 in
the US by Workforce Management magazine in Oct 2011. In November 2011,
Globalization Today magazine and the IaOP listed Zachary in their annual PowerHouse
25 list—a list of the top 25 outsourcing professionals globally.