5 global trends in recruitment outsourcing
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DESCRIPTIONThis 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.
5 global trends in recruitment outsourcing d. zachary misko
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 theyre 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.
Todays 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:
markets requiring a greater focus on
contingent labor and maximizing value
from people resources;
labor in the science, technology,
mathematics and engineering fields
where growth is strong;
decisions and the management of
the talent pipeline.
3trend #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, its not just a shortage of people
were talking about here, its a shortage
of talent that the world labor market must
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 OCGs 2011 Global RPO Report
Shortage of skilled staff / 79%
Salary uncompetitive / 42%
Location / 33%
Current recruitment process / 33%
reasons for problems in hiring
4trend #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 candidatethe ultimate clienthas
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 recruiters and the job seekers 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
companys 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 2030%
of the entire workforce44% in the U.S.
and growing. In the 2030 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 candidatesand
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
5trend #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
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
turnoverand all of these factors are linked
to the talent acquisition strategy.
Because the candidate is now, more than
ever, in the drivers seat, the candidate
experience is key to an employers brand. If
an employers 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.
is a top-five industry
hro todays 2011 summit, europe
6trend #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 costwhile shoring up supply.
More often, this is requiring some form
of RPO with a provider that offers a truly