The right partner could make all the difference. But how can an RPO provider help you navigate unpredictable waters without adding more risk?
Introduction
There has been a lot of press coverage over the last 24 months, highlighting how some organisations over-recruited during and after the pandemic – only to then downsize and cut their workforce just as quickly. It’s not a great look. Many reasons have been given for the misjudgement: arrogance of senior leaders, the rush to capitalise on growth, the panic caused by skill shortages and rising salaries (particularly in the tech sector).
Market uncertainty
Whatever the reason behind it, there is no doubt that some organisations are feeling very unsure about kickstarting their recruitment programs again. And who can blame them? The UK government published its labour market statistics in May, painting an uninspiring picture of the market:
» Employment levels have fallen by around 204,000 over the last year, and the employment rate has fallen.
» 9.38 million people aged 16-64 were economically inactive, and the inactivity rate was 22.1%. Inactivity levels increased by around 302,000 over the last year and the inactivity rate increased.
» The number of vacancies fell in the last quarter and over the year to 898,000 in February to April 2024, but remain above pre-pandemic levels.
A sense of hesitation is natural. Not only are organisations that recruit too quickly going to inflate costs and cause themselves operational difficulties – they are also going to suffer from bad press, as the spotlight stays on hiring and retention.
Over-recruiting can cause:
- Inflated Costs: Over-recruiting can lead to significant financial strain. The costs associated with salaries, benefits, training, and onboarding for excess staff can quickly escalate, impacting the organisation’s bottom line.
- Resource Misallocation: Hiring more employees than needed can result in misallocation of resources, where valuable time and effort are spent managing an oversized workforce instead of focusing on strategic initiatives.
- Employee Morale and Turnover: Over-recruiting can create a volatile work environment. When employees sense job insecurity due to potential layoffs, morale can decline, leading to decreased productivity and higher turnover rates.
- Employer Brand Damage: Frequent hiring and subsequent layoffs can tarnish an organisation’s reputation, making it challenging to attract top talent in the future. A strong employer brand is critical for long-term recruitment success.
The RPO provider evolution
Historically, Recruitment Process Outsourcing has enabled organisations to ramp up their hiring needs and manage costs by using a single supplier and a consistent, unified approach. But as the market evolves, RPO is evolving too. Many of the leading RPO providers are adapting their service models to focus on agility, quality of experience and an added value, more strategic offering.
This strategic offering can include:
#1 Workforce Planning & Talent
RPO providers that have been able to move with the times and modernise to meet client expectations are naturally gravitating towards the talent solutions space. This means being able to do more than simply implement a process and drive candidates through the pipeline. Talent Solutions has a much greater focus on understanding the longer-term picture of what a client needs, how their workforce is evolving and what components they need in place to attract, recruit and retain the right people. There may be a recruitment component to help with hiring in the short-to-medium term. But there will also likely be a more strategic component focused on laying the foundations to build the future workforce – which may look very different.
#2 Flexible Recruitment Models
An RPO provider that is evolving into a talent solutions provider is thinking beyond the immediate recruitment goals. This means that, while recruiting the right people to meet the immediate needs of the business is still important, there is a shared recognition that this should not be the only goal for the Talent Acquisition team. With a broader plan in place, RPO providers are better able to be agile and dial down on their recruitment provision if a client needs them to, as they can then concentrate their efforts on other aspects of the talent solution.
#3 EVP and Talent Brand
For many organisations, the key to reducing their reliance on agencies and the high recruitment costs that go with using them, is to build their talent brand. RPO providers are in a unique position to support employers on their brand journey as they often have access to key qualitative and quantitative candidate data as part of the recruitment process. This data can include metrics gathered through campaign and application insights. But equally valuable are anecdotal conversations and feedback from recruiter conversations, learning why candidates say no, what they may be looking for in their next role or where this role is not quite right. Data like that isn’t always available from Google.
#4 Improved Experiences
Process is important. But too many RPO providers have forgotten that people are at the heart of that process and that great candidate, recruiter and hiring manager experiences make a world of difference. Building those great experiences is often a ‘secret sauce’ – combining a rare skill set of great recruiters, great communicators, marketers and client partners. Not every RPO provider has the right blend of talent.
Conclusion
Recruitment Process Outsourcing offers significant advantages, but it also presents the challenge of over-recruiting in a short period of time. How do organisations avoid this?
By involving their RPO partner in their strategic workforce planning. Through strategic collaboration and continuous improvement, an RPO provider can help organisations build a resilient, agile, and efficient workforce that drives sustained success.
Using data to drive decision-making. Real-time analytics and reporting provide insights into recruitment metrics, enabling RPO providers to adjust strategies promptly and prevent over-recruiting.
Modernising their RPO relationship to deliver more flexibility and agility. Finding the balance between immediate recruitment needs and longer-term business goals means being able to adapt to changing conditions quickly, delivering more complete solutions rather than simply hitting targets.
There are RPO providers out there who can combine strategic capacity with short-term recruiting capability, as well as offering the depth of services required to shape a talent acquisition solution that clearly aligns with long-term business goals.
Finding the right RPO provider not only enables organisations to build the right type of solution. It instils confidence, reinforces your employer brand and strengthens the candidate experience.
