Does your RPO strategy have what it takes to adapt?
Introduction
‘Agility’ is one of those words that gets used lot in recruitment. It’s right up there with ‘dynamic and ‘innovative’. But when so many talent solutions providers are claiming to be ‘agile’, what does it really mean? And how can you tell whether agility is adding value to the strategy – or whether it is just an ad hoc reaction to an ever-changing market?
In a difficult talent landscape, there are many agile providers who have struggled to sustain performance. In this article, we’ll consider what an agile talent solution really should offer to clients, beyond that, we’ll ask why agility really can be valuable for clients rather than simply being a necessity for providers.
“Success today requires the agility and drive to constantly rethink, reinvigorate, reach and reinvent.” – Bill Gates
The changing RPO market
Why is RPO delivery undergoing such a transformation?
The traditional RPO model, while effective, often struggles to keep pace with the rapid changes in today’s job market. A traditional RPO model will focus on reducing cost-per-hire and time-to-hire. But in a more complex market, different questions usually require a more sophisticated response and a deeper level of strategic thinking.
- How do you enhance candidate experience as well as improve process?
- How do you adapt to skills shortages and economic uncertainty?
- How do you identify, reach and attract passive jobseekers and diverse talent?
- How do you build your employer brand and get the most from your marketing?
To answer these questions, organisations need RPO partners that can deliver more complete talent solutions rather than short-term recruitment interventions. It is a different way of thinking about outsourcing and a different type of client/partner relationship. At the heart of that relationship is a higher level of client service and strategic support that not all RPO providers can deliver.
Looked at from a recruitment perspective, Bill Gates is undoubtedly correct. But at the same time, agility alone is not enough. The ability and drive to rethink, react and reinvent needs to be accompanied by a deeper market understanding, a strategic-level awareness of workforce planning and a longer-term appreciation of the talent solution a client is building towards.
Core strengths of a successful RPO strategy
More sophisticated talent solutions. Personalised candidate experiences. Ensuring a strategic and supportive client service. These are the core strengths that RPO providers need to have in place. These are the enablers that allow RPO providers to bring agile solutions and approaches to market successfully.
The challenge, in a fluctuating market, is that too many RPO providers have tried to become more agile without building the foundations first. ‘Agility’, in this sense, means ‘reactive’ whereas the best providers understand the need to be proactive. Even in a market where nothing can be taken for granted, the foundations need to be in place to build the right solution.
- Flexibility and Scalability: Agile RPO providers offer scalable solutions that can be adjusted based on an organisation’s evolving needs. Whether a company is experiencing rapid growth or a temporary slowdown, an agile RPO can adapt to these changes without compromising on the quality of hires.
- Enhances Candidate Experience: Modern RPO solutions prioritise the candidate experience, ensuring that the recruitment process is smooth, transparent, and engaging. This focus helps attract top talent and improves retention rates.
- Strategic Workforce Planning: Agile RPOs work closely with organisations to develop strategic workforce plans that align with business goals. This involves identifying critical skill gaps, forecasting future hiring needs, and implementing proactive recruitment strategies.
The global recruitment process outsourcing (RPO) market size was valued at USD 8.82 billion in 2022. It is estimated to reach USD 36.79 billion by 2031, growing at a CAGR of 17.2% during the forecast period (2023–2031) – Straits Research
A growing market
Why is the blend of agility and strength so important right now? Because while the market may still be riddled with uncertainty, the longer-term forecasts are for growth. RPO providers without the capability to deliver longer-term strategic thinking will fail to capitalise.
Nor is it a case of RPO providers simply being positioned for growth. Clients benefit from smarter solutions. They benefit from deeper levels of expertise and more meaningful partnerships. They benefit from working with organisations who partner with them through busy and quiet periods, learning about their workforce, their industry sector and the barriers there are to recruiting the best talent.
Does your RPO strategy facilitate longer term thinking?
Employers who are looking for an RPO provider should be asking how their prospective partner engaged with talent and builds smarter solutions. Does your RPO provider:
Build talent communities
Talent pooling and talent community technology platforms allow employers to build longer-term engagement strategies with candidates. This helps to break the cycle of ramping up to hire, then slowing down, then ramping up again – and the associated high levels of cost.
Shape the integrated workforce
The recruitment of permanent employees should no longer be viewed as an isolated project. Complex organisations need their talent solutions partners to help shape an integrated workforce, with a growing emphasis on contingent workers.
Craft the employer brand
Thinking beyond immediate hiring needs and building a forward-thinking employer brand is a vital element in reducing costs and building better candidate experiences in the future.
Conclusion
The capability to deliver agile RPO solutions is a real differentiator for talent solution partners. But agility means far more than simply being able to deliver the same traditional model but at a faster pace. An RPO strategy that concentrates on three core strengths stand out as being better placed to succeed in a changing market:
– More sophisticated talent solutions
– Personalised candidate experiences
– Ensuring a strategic and supportive client service
If these pillars are in place, providers can build smarter solutions around an evolved set of services. Moving forward, that establishes the foundation for a more agile RPO offering for clients who need a consultative partner in an uncertain market.
