5 global trends in recruitment outsourcing

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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.

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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 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:

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.

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

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 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

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

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.

employer branding

is a top-five industry

game-changer.

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

global solu