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

  1. 1. 5global trendsin recruitmentoutsourcingd. zachary misko
  2. 2. Recruitment outlook for 2012/13The great (global) melting potToday, the entire world has become an Organizations and HR professionals are Today’s global workforce represents aemployment melting pot. Borders seem to tasked with adapting to this diverse complex mixture of shifting demographicsdissolve as organizations seek out talented landscape, and part of doing so requires and changing expectations and needs,individuals to drive innovation and efficiency a sea change in the way they think about and because of this the recruitmentat a scale and speed never before seen. where candidates are, how to connect outlook for the next year will be defined with them, and what candidates are primarily by the following factors:Yet, workforces are shrinking in more looking for in terms of employment. • Ongoing uncertainty in globalregions than they’re growing, and the rise markets requiring a greater focus onof the knowledge worker and the free Increasingly, this has required organizations contingent labor and maximizing valueagent has already made finding qualified to reconsider how permanent, temporary and from people resources;workers to fill permanent, full-time roles contingent labor is purchased and managed.increasingly difficult. Diminishing supply of There is no doubt that the complexity (and • Increasing competition for key skilled labor in the science, technology,talent, and the development of technology the potential for competitive advantage) that mathematics and engineering fieldsthat can facilitate data sharing and high workforce strategies now embody is putting where growth is strong;quality collaboration, has led to the Recruitment Process Outsourcing (RPO)emergence of a truly global workforce. providers on more organizations’ radars. • Greater focus on the efficiency of hiring decisions and the management of the talent pipeline. 2
  3. 3. trend #1 / Targeting new sources of talentThe trend of reducing workforces has The overwhelming factor that slows or stalls just 23% in the EMEA (Europe, Middle East,spread far and wide. More people are the recruitment process is “quality of hires”. Africa) region. So, talent appears to only be Organizations are innovatingnow leaving the workforce than entering And this is a problem that is almost universal. becoming scarcer in the key growth regions. the use of RPO solutions, andit, and there are few countries with skilled However, it is a major concern in the Asia- using them to solve specific The need to target new sources of talent,workforces that can counter this trend. Pacific region, where 67% of recruiters report business needs.” that they are having difficulty filling positions including retirees, free agents, as well asAfter all, it’s not just a shortage of people with qualified workers. Almost one-in-four employees in emerging markets, is becoming Just 17% of companies usewe’re talking about here, it’s a shortage organizations (39%) in the region say they a key issue for organizations. RPO end-to-end, as theirof talent that the world labor market must plan to hire 100 or more employees this year, entire recruiting function;contend with. compared with 30% in the Americas, and 60% use RPO selectively, for some elements of the process or for particular hard-to-fillreasons for problems in hiring roles and projects. Shortage of skilled staff / 79% Aberdeen Group, “RPO 2011: Rethink Recruitment” Salary uncompetitive / 42% Location / 33% Current recruitment process / 33%HROA/Kelly OCG’s 2011 Global RPO Report 3
  4. 4. trend #2 / Matching the job to the person,not the person to the jobUntil recently, a request for hire went out Traditional methods such as cold calling As such, the differentiator among RPOand HR determined whether the position and in-person networking, print and brand providers will be how well they work with It is estimated thatshould be full-time or contract. Now, a new recognition/attraction, as well as social clients to create opportunities that meet the worldwide, the RPOparadigm has emerged. Instead of simply media, blogs, microblogs, meet-ups and company’s needs, and candidate preferences.determining the opportunity and seeking more are all important components in both market will more thanthe right person to fill it, the right person For example, workers are increasingly the recruiter’s and the job seeker’s strategies. double by 2015, reachingnow helps to shape the opportunity. interested in free agent options such as An integrated approach using all the microwork, independent contracting, nearly $4.4 billion.The new paradigm asks, “Where is the talent available tools to find and engage candidates temporary and project work, and NelsonHall “Targeting RPO” reportthat matches the need, and how does that where they live, work and play is bringing entrepreneurship. The global free agentperson want to be employed?” sourcing to a new level. population accounts for at least 20–30% of the entire workforce—44% in the U.S.—The candidate—the ultimate client—has The problem is that HR departments are and growing. In the 20–30 year-old agehad a shift of mindset, and recruiters must already overwhelmed by other demands demographic, average tenure on a job isgo beyond static job postings, phone calls and this kind of highly targeted approach one year, whereas a contingent contract isand networking to find top talent. They must is more than many can commit to. Instead, typically a year and a half.more effectively match the opportunity to many are looking to Recruitment Processthe person, and this means knowing where Outsourcing (RPO) to help them achieve the Tenure and stability are no longer theto look for the person, as well as how to desired integrated approach. primary considerations for candidates—andstructure the opportunity. employment opportunities must reflect this. 4
  5. 5. Trend #3 / Recruitment outsourcer asstrategic partner and brand ambassadorThe complexity of recruitment for many can identify inefficiencies and help create strategies say another thing to job applicants,global companies today stretches better processes, standardize processes the broken promise could significantly impact Employer brandingthe resources and technology of in-house across locations, scale up or down as the ability to attract and acquire top talent. is a top-five industryHR departments. needed, and track important metrics, like quality of hires. The latter involves long-term A strong employment brand can provide game-changer.Increasingly, companies need dedicated an important competitive advantage, and measurement of factors like performance HRO Today’s 2011 Summit, Europeinfrastructure and expertise to find and providers who reflect the brand can be a scores, engagement, promotion andsecure scarce talent in multiple employment true competitive differentiator. Most RPO turnover—and all of these factors are linkedmarkets. Yet, if they outsource their providers now offer employment branding to the talent acquisition strategy.recruitment they need consistency and services, but organizations need to considergenuine stewardship of their brand. Because the candidate is now, more than more than just corporate messaging. Their ever, in the driver’s seat, the candidate processes, people and technology mustAs RPO continues to gain traction experience is key to an employer’s brand. If facilitate a positive, satisfying experienceworldwide, buyers are beginning to see an employer’s brand says one thing to the that is on-brand.ways to create added value. Providers public, yet its talent acquisition and retention 5
  6. 6. Trend #4 / The multi-country approachGlobalization brings with it the need for The hallmarks of a provider with global and the EMEA region ranks highest forglobal recruiting solutions. In industries capabilities include: average number of countries covered. Nearly half ofwhere skills are highly transferable, • access to a global pool of quality talent; • Buyers include EMEA nearly as frequently multi-country RPO buyersborders count for little as recruiters seek as they include North American multi-talent wherever it may be found. • the ability to deliver talent in light of cover four or more country RPO deals. differing customs, cultures and languages; countries of operation.Increasingly, companies are taking a and • Buyers frequently include some of the Everest Groupmulti-country approach to accessing talent. emerging economies such as India, “2011 Multi-Country Recruitment • a global footprint or regional offices that China, Brazil, and Russia in multi-country Process Outsourcing: Hype vs. Reality”.Primarily, they are seeking standardized provide deep regional knowledge.and streamlined processes, scalability and RPO deals. Single-country RPO still exists in far greaterreduction in cost—while shoring up supply. • The origin of multi-country RPO deals volume than multi-country RPO. However:More often, this is requiring some form is more broad-based now, with nearlyof RPO with a provider that offers a truly • Nearly half of multi-country RPO buyers half of such deals originating outside ofglobal solution. cover four or more countries of operation, North America. From Everest Group’s 2011 Multi-country recruitment report 6
  7. 7. trend #5 / Total workforce solutionsTraditionally, HR recommended and Companies are increasingly looking to RPO providers and MSPs recognize thisultimately purchased RPO while streamline vendor management to save shift, evidenced by the surge in mergers, RPO providers needprocurement purchased temporary money and create greater efficiencies. HR acquisitions and partnerships in the past year. to think in terms of aand contingent labor. But, changes in is becoming more involved in Managed NelsonHall Senior HR Outsourcing analyst complete recruitingworkforce demographics (and attitudes) Service Provider (MSP) programs that started Gary Bragar explains, “As companies remain solution. For example, doare changing the way companies in procurement, leading to the concept of cautious due to continued low consumer you hire on a permanentthink about their hiring needs. having one sponsor to manage hiring needs confidence and ongoing market uncertainty, or contingent basis? We of all kinds. On top of this, companies’ RPO they are hiring more temporary employees will see a total workforceTechnology, economic forces, changing needs have changed and they are now using and utilizing more contingent workforces solution more and moreexpectations and globalization have all them not only for hard-to-fill positions, but for than on-boarding new full-time hires.” as clients look at hiringcontributed to shifts in where workers are semi-skilled and customer service positions [NelsonHall’s HRO Insights blog] differently. The conceptsfound and how they want to work. As a result, as well. What they need is an effective overall of permanent andcompanies are now looking more at the total The trend of mergers and acquisitions process for attracting talent, not just a one-off temporary are blurring.”“talent supply chain” than at individual labor solution per position. within the RPO space is likely to continue assilos. They are favoring a blended approach hiring is predicted to remain flat, and fierce Pam Berklich, SVP, KellyOCGto filling varied positions, which is not competition for talent persists.facilitated by these HR-procurement silos. 7
  8. 8. CONCLUSIONDemographics, work preferences and technology are changing rapidly around the world.To successfully manage the new “talent vendor management, a blended approach The lines between permanent andsupply chain” as this occurs, a greater to filling all positions is gaining traction. temporary and between RPO providers andpartnership between RPO providers and Recruiting needs and challenges are MSPs are blurring as HR and procurementtheir clients is needed, and new strategies multiplying across a diverse global align strategically to address the totalmust be explored. spectrum, and organizations are seeking workforce needs. partners in their overall talent strategy.These changes necessitate a more holistic Ultimately, organizations need one big pot They’re seeking ways to come to terms of global hiring solutions, and they’re seekinglook at what companies truly need, as well with the candidate-as-customer reality, and the simplest, most cost-effective way ofas what job seekers actually want. with the need to faithfully represent their accessing it. The test of both MSPs andAs organizations look for ways to create company branding across every aspect of RPO providers from here on in is just howefficiencies, save money and consolidate the employment proposition. well they can deliver on this need. 8
  9. 9. About the AuthorD. Zachary Misko is Vice President, Workforce Strategy of the KellyOutsourcing and Consulting Group (KellyOCG), with 20 years experiencein the HR industry. He works with Fortune 500 companies throughout theworld to develop and implement processes that improve and drive humanresources and workforce solutions. Zachary is a Senior Executive BoardMember of Best Practice Institute (BPI) and serves on the Latin AmericaRegional Advisory Board for the International Association of Outsourcing Professionals(IAOP). He was named one the top 15 Workforce and HR professionals under 40 inthe US by Workforce Management magazine in Oct 2011. In November 2011,Globalization Today magazine and the IAOP listed Zachary in their annual PowerHouse25 list—a list of the top 25 outsourcing professionals globally.About KellyOCGKellyOCG® is the Outsourcing and Consulting Group of Kelly Services, Inc., a leader in providingworkforce solutions. KellyOCG is a global leader in innovative talent management solutions in theareas of Recruitment Process Outsourcing (RPO), Business Process Outsourcing (BPO), ContingentWorkforce Outsourcing (CWO), including Independent Contractor Solutions, Human ResourcesConsulting, Career Transition & Executive Coaching, and Executive Search.Visit www.kellyocg.com EXIT
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