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Global RPO Report 2011

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Now in its fourth year, this year's survey analyzes the key global trends in Recruitment Process Outsourcing. The survey sample includes more than 500 respondents from across the globe.

Now in its fourth year, this year's survey analyzes the key global trends in Recruitment Process Outsourcing. The survey sample includes more than 500 respondents from across the globe.

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Global RPO Report 2011 Global RPO Report 2011 Presentation Transcript

  • Global RPO Report 2011 
  • conTenTs 3 The changing landscape of recruiTmenT – a visual summary 4 preface 5 execuTive summary 6 respondenT profile 7 meeTing The recruiTmenT challenge12 global hiring inTenTions19 managing inTernal recruiTmenT23 ouTsourcing hr and recruiTmenT31 abouT us2  
  • the changing landscape of recruitment permanent staff hires are down only marginally from last year (94% compared with 96% in 2010) 94% 80% 83% 17% plan to hire plan to hire plan to hire temporary staff graduates 100+ graduates despite global economic a majority of organisations plan to use recruiting firms in their hiring efforts. those in apac are more recovery, more than half likely to use recruiters than their counterparts: of recruiters worldwide are still experiencing difficulties 53% 60% 55% 49% finding the right staff. apac emea the americas overwhelmingly, “shortage of skilled staff” was the main reason cited for the enduring problem 79% of recruitment. other reasons include: 42% 33% 33% salary offered location not current recruitment not competitive desirable processes not effective recruitment process outsourcing (rpo) thinking outside 78 % 33 % understanding criteria for selecting hr functions being outsourced of rpo an rpo partner recruiTmenT consider of firms banking &“faster to hire” the main 51% 61% currently outsource payroll Training finance is thebenefit of rpo. all or part benefiTs most active 68% cited 55% have a good cost recruiter of their hr compensaTion industry when “lower cost understanding. quality function performance it comes to hr 45% have a vague hris managemenT outsourcing to recruit” knowledge or none at all. 3  
  • preface home contents visual summaryThe Global RPO Report 2011 was prepared by Kelly rare glimpse into the key decisions that will impact prefaceOutsourcing and Consulting Group (KellyOCG) businesses, particularly focusing on their workforce executivein partnership with Human Resource Outsourcing needs and the challenges they face in attracting and summaryAssociation (HROA), HR.com and HR Executive retaining talent in an uncertain economic environment. respondent profilemagazine to provide a comprehensive overview of It also shines a light on latest developments in the area candy lewandowski meeting thethe latest trends and insights from the global business recruiting of recruitment process outsourcing (RPO) and reveals vice-president & globalcommunity in regard to jobs, skills development practice lead – rpo, kellyocg challenge where businesses are headed in adopting innovativeand recruitment. global hiring solutions to the growing challenge of skills shortages. intentions managingThe report is based on the views of senior hiring We believe this fourth annual update will be of immense internalmanagers from small, medium and large organisations value to senior executives, and will help in building a recruitmentfrom the Americas, Europe, Middle East and Africa outsourcing hr knowledge base around one of the most important set and recruitment(EMEA), and the Asia Pacific region. It provides a of issues facing business. about us4  
  • executive summary home contents visual summaryThis represents the fourth Global RPO Report, and the Graduate employment will remain relatively buoyant, prefacefirst to coincide with the return to economic recovery with 83 percent planning to hire staff, virtually the same executiveacross many parts of the world economy, after the level as in 2010. summaryimpacts of the global economic downturn. respondent A majority of organisations (53 percent) plan to use profileThe report shows that the issue of skills shortages recruiting firms in their hiring activities. Those in APAC meeting theremains an enduring problem, in spite of high levels of are more likely to use recruiters than their counterparts recruiting challengeunemployment across many economies. in EMEA and the Americas. global hiring intentionsMore than half of respondents say they are still The number of staff attached to recruitment managingexperiencing difficulties in recruiting staff. This is a slight departments remains modest, with almost three- internalimprovement on the situation in the previous year. quarters (73 percent) operating with five or less staff. recruitment outsourcing hrThe biggest improvement has been in the Americas, Recruitment is the overwhelming area of HR to be and recruitmentwhere the share of businesses experiencing recruiting about us outsourced. A total of 58 percent of respondentsdifficulties fell from 46 percent to 38 percent. There outsource recruitment, compared with other key areaswas also an improvement in EMEA from 65 percent to such as payroll (44 percent), training (34 percent), and63 percent. But in APAC, the share of businesses with benefits (31 percent).recruiting difficulties rose from 50 percent to 67 percent. The level of familiarity with recruitment processThe overwhelming factor cited for difficulty in hiring is a outsourcing (RPO) is reasonably strong, with more than“shortage of skilled staff”. half (55 percent) either “very familiar” or “familiar”. However 45 percent have only vague knowledge orA total of 94 percent of respondents plan to hire none at all.permanent staff in 2011, down marginally from 2010.The proportion planning to hire temporary staff is also In deciding whether to outsource, the critical outcomesdown slightly. for business are “faster time to hire”, and “lower cost of recruitment”.5  
  • CATEGORY 20ELEVEN 20TEN EMEA 55 40 APAC 28 18 AMERICAS 24 27respondent profile home contents source of respondents multinational roles visual summaryThe Global RPO Report 2011 was carried out by prefaceKellyOCG in early 2011 and obtained the views from EMEA executivesmall, medium and large organisations. Respondents 55% summary 22% 40%came from a broad range of industry sectors across the respondentAmericas (41 percent), Europe, Middle East and Africa americas profile 41% APAC 28% 2011(EMEA) (22 percent), and Asia Pacific (37 percent). apac meeting the 18% recruiting 2010 emea challengeThere is a strong cross-border focus among those who AMERICAS global hiring 24% intentionstook part in the survey. In EMEA, 55 percent of those 37% 27% managingsurveyed have a multinational role, up from 40 percent internalin the 2010 survey and higher than in either APAC recruitment(28 percent) or the Americas (24 percent). outsourcing hr and recruitment about usA higher percentage of respondents from EMEA(40 percent) have multinational roles than theircounterparts in the Americas (27 percent) or AsiaPacific (18 percent). Most respondents (61 percent)are responsible for one country, and 28 percent are industry sectors organisational sizeresponsible for 2 to 10 countries, while 11 percent are 7% banking & financeresponsible for 11 or more countries. 3% 7% government 28% >100 33% 3% healthRespondents came from a diverse cross section of 38% 100–500 insuranceindustry sectors, including Manufacturing, Professional 8% 501–1000Services, Information Technology, Banking & Finance, it&t <1000Health, Retail/Wholesale, Insurance, and Government. 6% 17% manufacturing 21% 13% 16% prof servicesThe largest share of respondents (38 percent) had more retail/wholesalethan 1,000 employees within their organisations, while other34 percent had from 100 to 1,000, and 28 percent hadless than 100.6  
  • home contents visual summary preface executive summary respondent profile meeting the recruiting challengeMeeting the recruiting challenge global hiring intentions managing internal recruitment outsourcing hras economic recovery gains momentum and recruitment about usacross the globe, it is apparent that thechallenge of recruiting staff remains aconsiderable challenge for many businesses.7  
  • EMEA 63 65 APAC 67 50 AMERICAS 38 46meeting the recruiting challengedifficulties hiring staffAcross-the-board, 51 percent of respondents say theyare still experiencing difficulties in recruiting staff. 01 in general, have you been experiencing difficulties recruiting staff? (% yes)This is a slight improvement on the situation in theprevious year, but still represents a key constraint on ALL REGIONS 2010 51%business activity, and one that is anything but uniform 55%across the globe. 2011 EMEAThe biggest improvement has been in the Americas, 63% 2011where the share of businesses experiencing recruiting 65% 2010difficulties fell from 46 percent to 38 percent. There APACwas a slight improvement in EMEA from 65 percent to NUMBER OF EMPLOYEES % YES 67% TOTAL 51 50%63 percent. But in APAC, the share of businesses with MORE THAN 1000 58recruiting difficulties rose from 50 percent to 501-1000 AMERICAS 50 100-500 34 38%67 percent. LESS THAN 100 53 46%difficulties hiring staff (by firm size)The largest companies are experiencing the greatestdifficulty in recruiting staff, with some 58 percent citing 02problems. It’s only those organisations with between TOTAL 51% % Yes100 and 500 employees where fewer than 50 percentof respondents report hiring difficulties. MORE THAN 1000 58% 501-1000 50% 100-500 34% LESS THAN 100 53%8  
  • SALARY UNCOMPETITIVE 42 LOCATION 33 CURRENT RECRUITMENT PROCESSES 33 X 0meeting the recruiting challengereasons for hiring problemsIn spite of widespread unemployment across manycountries, finding the right talent remains and enduring 03issue. When asked the reasons for hiring difficulties, SHORTAGE OF SKILLED STAFF 79% Per centthe overwhelming factor, cited by 79 percent, wasa “shortage of skilled staff”. Other factors, such SALARY UNCOMPETITIVEas uncompetitive salary, location, and recruitment 42%processes are all significant, but secondary to the LOCATIONtalent shortage. 33% CURRENT RECRUITMENT PROCESSES 33% REASON EMEA APAC AMERICAS SHORTAGE OF SKILLED STAFF 75 83 77 SALARY UNCOMPETITIVE 47 42 39 LOCATION 34 29 37 CURRENT RECRUITMENT PROCESSES 34 27 39reasons for hiring problems (by region)The skilled staff shortage is most acute in APAC, with83 percent of respondents blaming it for their hiring 04 SHORTAGE OF SKILLED STAFFissues, compared with 77 percent in the Americas, and75 percent in EMEA. 75% 83% EMEA 77%However the regional breakdown shows that wage SALARY UNCOMPETITIVE APAC 47%cost issues are also evident in EMEA, with 47 percent 42% 39% AMERICAS emeaciting uncompetitive salaries as a major cause of hiring apacproblems. In the Americas, recruitment processes are a LOCATION 34% americasstand-out cause of the difficulty in attracting talent. 29% 37% CURRENT RECRUITMENT PROCESSES 34% 27% 39%9  
  • COST TO HIRE 27 HIRING MANAGER SATISFACTION 26 POOR PROCESSES 22 TECHNOLOGY EFFECTIVENESS 18meeting the recruiting challenge QUALITY OF RECRUITERS 17 PERFORMANCE MONITORING 15factors impacting the hiring processThe magnitude of the talent shortage is alsounderscored when respondents are asked about 05 QUALITY OF HIRESthe conditions that have slowed or stalled the hiring 59%process. The overwhelming factor that stands in the TIME TO HIREway of a timely recruitment process is “quality of hires”, 48%cited by 59 percent of respondents. Not surprisingly, COST TO HIRE 27%“time-to-hire” also ranks as a leading constraint on HIRING MANAGER SATISFACTIONrecruitment, nominated by 48 percent. 26% POOR PROCESSESOther relatively minor factors are cost-to-hire REGION 22% % YES(nominated by 27 percent), hiring manager satisfaction TECHNOLOGY EFFECTIVENESS TOTAL 25 AMERICAS 18% 25(26 percent), poor processes (22 percent), technology APAC 28 QUALITY OF RECRUITERSeffectiveness (18 percent), quality of recruiters (17 EMEA 17% 23 X 0percent), and performance monitoring (15 percent). PERFORMANCE MONITORING 15%use of quality systems in recruitmentThere are myriad ways that organisations are goingabout streamlining the recruitment process. One 06approach entails the use of quality systems and TOTAL 25% % Yesmethodologies such as LEAN and Six Sigma. Thedeployment of these has grown in recent years. AMERICAS 25%Currently a quarter of global respondents say theyare using these systems as part of their recruitment APACprocesses, with those in APAC the leading users. 28% EMEA 23%10  
  • APAC 39 AMERICAS 11 X 0meeting the recruiting challengeplans to use qualitysystems in recruitmentWhen it comes to making plans to institute and deploy 07 TOTALquality systems, there is a widely varied response, with 22% % Yesalmost 40 percent of APAC respondents planning onsuch an approach, compared with only 24 percent in EMEAEMEA and 11 percent in the Americas. 24% APAC 39% AMERICAS 11%11  
  • home contents visual summary preface executive summary respondent profile meeting the recruiting challengeGlobal hiring intentions global hiring intentions managing internal recruitment outsourcing hrhiring intentions by firms across the globe and recruitment about usare looking reasonably robust for 2011,and largely in line with the pattern thatwas planned for 2010.12  
  • GRADUATE 83 82 TEMPORARY 80 86 PERMANENT 94 96 X X Xglobal hiring intentionshiring intentionsA total of 94 percent of respondents plan to hirepermanent staff in 2011, down only marginally from 01 do you plan to hire staff in 2011? (% yes)96 percent in 2010. The proportion planning to hire GRADUATEtemporary staff is also down slightly, from 86 percent to 83%80 percent. 82% TEMPORARY 20elevenGraduate employment will be relatively buoyant, with 2011 80% 86% 20ten83 percent planning to hire staff, almost the same level 2010as foreshadowed in 2010. PERMANENT 94% 96% CATEGORY 20ELEVEN 20TEN GRADUATE 17 12 TEMPORARY 17 20 PERMANENT 32 37 X X Xplanned number of hiresThe percentage of respondents planning to hire morethan one hundred graduates has risen from 12 percent 02 do you plan to hire more than 100 staff in 2011? (% yes)in 2010 to 17 percent in 2011. GRADUATE 17% 2010However, for other categories of employment –permanent and temporary - the percentage planning 12% 2011 TEMPORARY 2011volume recruitment is somewhat softer. For permanent 17%employment the share drops from 37 percent to 2010 20%30 percent, and for temporary employment, it falls from PERMANENT20 percent to 17 percent. 32% 37%13  
  • APAC 4 58 39 AMERICAS 5 65 30global hiring intentionsplanned number of hires (by region)When viewed globally, the employment outlookappears stronger in both the Americas and APAC, 03 EMEA More than 100but still soft in EMEA. In APAC, 39 percent of 13% 64% 23%respondents plan to hire 100 or more employees, 1 to 100compared with 30 percent in the Americas, and just APAC23 percent in EMEA. 4% 58% 39% None none 1 to 100 AMERICASMeanwhile, the percentage of firms planning to hire more than 100no staff at all in 2011 is 13 percent in EMEA, more than 5% 65% 30%twice as high as in APAC and the Americas. INDUSTRY MORE THAN 50 UP TO 50 PROFESSIONAL SERVICES 21 79 GOVERNMENT 44 56 OTHER 49 51 HEALTH 50 50 MANUFACTURING 50 50 IT&T 51 49 BANKING & FINANCE 57 43 RETAIL/WHOLESALE 64 36 INSURANCE 65 35planned number of hires (by industry)The industry sectors that will see the most robust 04 PROFESSIONAL SERVICESrecruitment activity include Insurance, Retail/Wholesale, 21% 79%and Banking & Finance, all of which will see a majority GOVERNMENTof firms recruiting more than 50 employees in the 44% 56%coming year. OTHER More than 50 49% 51% HEALTH 50% 50% Up to 50 more than 50 up to 50 MANUFACTURING 50% 50% IT&T 51% 49% BANKING & FINANCE 57% 43% RETAIL/WHOLESALE 64% 36% INSURANCE 65% 35%14  
  • ADMINISTRATIVE 46 53 SENIOR EXECUTIVE OR PROFESSIONAL 32 38 OTHER 24 19global hiring intentions TRADES 17 13 CONTACT CENTRE 16 26priority job categories to be filled in 2011Planned hires in 2011 are more likely to be replacingexisting positions than filling new roles, suggesting that 05 BUSINESS OPERATIONS SUPPORTmany businesses remain in a holding pattern ratherthan entering a new expansionary phase. 61% 71% 29ten MID-LEVEL EXECUTIVE OR PROFESSIONALThe main categories of jobs that employers aim to fill 60% 70% 20elevenin 2011 are business operations support, mid-level ADMINISTRATIVE 2011 46%executives, and administrative roles. However across 53% 2010most job categories, planned hires are somewhat SENIOR EXECUTIVE OR PROFESSIONALweaker than outlined in the 2010 survey, suggesting 32% 38%a “wait-and-see” attitude to the prevailing economic OTHERuncertainty. REGION 24% TO 5 LOCATIONS MORE THAN 5 LOCATIONS 1 TOTAL 19% 61 39 EMEA 65 35 TRADES APAC 65 35 AMERICAS 17% 57 43 13% CONTACT CENTRE 16% 26%number of locations for whichemployers will hire in 2011The way that organisations in different parts of the 06globe will go about hiring reflects differing approaches TOTAL 61% 39% More than 5 locationsto issues such as central control versus decentralisation.Globally, approximately 60 percent of hirings will be for EMEA 1 to 5 locations1-5 locations, while approximately 40 percent will be 65% 35%for more than five locations. The recruitment industry is 1 to 5 locationsmost centralised in the Americas where 43 percent of APAC more than 5 locationshirings will be for more than five locations. 65% 35% AMERICAS 57 43%15  
  • APAC 60 AMERICAS 49 X 0global hiring intentionsuse of recruitment firms (by region)A majority of organisations (53 percent) plan to userecruiting firms in their hiring efforts. Those in APAC 07 ALL REGIONSare more likely to use recruiters than their counterparts 53% % Yesin EMEA and the Americas. EMEA 55% APAC 60% AMERICAS NUMBER OF EMPLOYEES % YES 49% MORE THAN 1000 67 501-1000 57 100-500 44 LESS THAN 100 38 X 0use of recruitment firms (by firm size)The larger firms (those with more than 1,000 employees)are much more likely to use recruitment firms than their 08smaller counterparts. While approximately two-thirds of MORE THAN 1000 67% % Yeslarge organisations use recruiters, only one-third of smallfirms plan to use them. 501–1000 57% 100–500 44% LESS THAN 100 38%16  
  • APPLICANT AND RECRUITMENT PERFORMANCE TRACKING 30 ON-BOARDING 14 VENDOR MANAGEMENT 9global hiring intentionsfunctions performed by recruitment firmsThe vast majority (87 percent) of businesses plan to userecruitment firms for the primary functions of sourcing, 09screening and testing candidates. Around 45 percent SOURCING, SCREENING, TESTING 87% Per centwill use them for reference checking, while 30 percent REFERENCE CHECKINGwill use them for applicant and recruitment performance 45%checking. Only a relatively small percentage oforganisations will use recruitment firms for on-boarding APPLICANT AND RECRUITMENT PERFORMANCE TRACKING 30%or vendor management. ON-BOARDING 14% VENDOR MANAGEMENT LESS THAN 10% PERCENTAGE 10% TO 25% 26% TO 50% 51% TO 75% 76% TO 100% 9% ALL REGIONS 36 36 13 8 8 EMEA 28 44 13 0 16 APAC 30 43 13 11 3 AMERICAS 43 28 13 8 8 X 0 0 0 0 0share of vacancies filled bythird party providers (by region)Most organisations (72 percent) use recruitment 10firms to fill only a maximum of 25 percent of their ALL REGIONS 36% 36% 13% 8% 8% 76% to 100%recruitment needs. Above that level, the number offirms seeking the use of recruitment firms falls away EMEA 51% to 75% less than 10%quite sharply. Only 13 percent of organisations will 28% 44% 13% 16% 10% to 25%use recruitment firms for between 25 and 50 percent 26% to 50% 26% to 50%of vacancies. And only 16 percent will use them for APACbetween 50 and 100 percent of their hires. 30% 43% 13% 11% 3% 10% to 25% 51% to 75%The Americas sees a larger share of organisations 76% to 100%planning to use recruitment firms for a relatively small AMERICAS 43% 28% 13% 8% 8% Less than 10%slice (less than 10 percent) of their recruitment needs.EMEA has more organisations that are prepared to userecruitment firms for between three-quarters and 100percent of their vacancies.17  
  • MORE THAN 1000 39 33 14 7 7 501-1000 41 33 15 7 4 100-500 15 46 15 8 15 LESS THAN 100 39 39 6 9 6global hiring intentionsshare of vacancies filled by third partyproviders (by number of employees)Smaller firms (with less than 100 employees) are more 11likely to use outside firms for a smaller share (up to25 percent) of their recruitment needs. Larger firms MORE THAN 1000 39% 33% 14% 7% 7% 76% to 100%(with more than 1,000 employees) tend to userecruitment firms for a greater share of their vacancies. 501-1000 51% to 75% less than 10% 41% 33% 15% 7% 4% 10% to 25% 26% to 50% 26% to 50% 100-500 51% to 75% 15% 46% 15% 8% 15% 10% to 25% 76% to 100% LESS THAN 100 39% 39% 6% 9% 6% Less than 10% LESS THAN 10% 10% TO 25% 26% TO 50% MORE THAN 50% AMERICAS 79 11 9 1 APAC 64 25 8 4 EMEA 47 27 12 14 TOTAL 68 18 9 4cross border recruitment activitiesAcross the globe, the majority of respondents(68 percent) fill less than 10 percent of their vacancies 12 What precentage of vacancies are filled by cross border recruitment? (%)through cross-border recruitment. Firms in theAmericas are the least likely to be relying on cross- AMERICAS 79% 11% 9% 1% More than 50%border recruitment, and those in EMEA the most likely. APAC 26% to 10% less than 50% 64% 25% 8% 4% 10% to 25% 10% to 25% 26% to 50% EMEA 47% 27% 12% 14% Lessthan 50% more than 10% TOTAL 68% 18% 9% 4%18  
  • home contents visual summary preface executive summary respondent profile meeting the recruiting challengeManaging internal recruitment global hiring intentions managing internal recruitment outsourcing hrorganisations across the globe design and and recruitment about usmanage their recruitment needs in variousways. they may be centralised in the headoffice under a global or regional directorate;they may be decentralised to local offices;they may be outsourced; or there may besome mix of all these arrangements.19  
  • managing internal recruitmentstructure of internal recruitmentThe survey findings show that more than half (58percent) have a centralised recruitment structure; 01that approximately one-third have a decentralisedarrangement; and a small percentage have either anoutsourced model or some other variant. 34% de-centralized outsourced 58% other arrangement centralized 4% 4% NUMBER OF INTERNAL RECRUITMENT STAFF 1-2 3-5 6-10 MORE THAN 10 TOTAL 46 27 10 17 MORE THAN 1000 21 24 18 37 501-1000 48 41 4 7 100-500 64 31 3 2 LESS THAN 100 71 19 5 5size of recruitment teamAs in previous years, the findings show that the numberof staff attached to recruitment departments is modest, 02 how many internal staff form the hr recruitment team?with almost three-quarters (73 percent) operating withfive or less staff. The size of the internal recruitment TOTALteam correlates closely to organisational size. Some 71 46% 27% 10% 17% More than 10percent of the smallest firms engage two or less staff,while 37 percent of the larger firms (more than 1,000 MORE THAN 1000 6-10 21% 24% 18% 37%employees) engage ten or more internal recruiters. 501-1000 3-5 1–2 4% 3-5 48% 41% 4% 7% 1-2 6-10 100-500 more than 10 5% 64% 31% 3% 2% LESS THAN 100 71% 19% 5% 5%20  
  • managing internal recruitmentrecruitment-only tasksWhen survey respondents are asked about themake-up of their recruiting teams, it becomes evident 03that many are spending only a relatively small amount 14%of time on recruiting duties. More than a third(41 percent) spend less than 10 percent of their time on less than 10%recruitment. In all, 60 percent of respondents spend less 12% 10% to 25% 41%than 25 percent of their time on recruitment. 26% to 50% 51% to 75% 14% 76% to 100% 19% PERCENTAGE LESS THAN 10% 10% TO 25% 26% TO 50% 51% TO 75% 76% TO 100% LESS THAN 100 54 16 8 10 12 100-500 53 14 17 7 9 501-1000 28 22 26 11 13 MORE THAN 1000 30 23 11 18 18recruitment-only tasks (by firm size)Generally, the smaller the firm, the less likely it is tohave staff dedicated solely to recruiting. Among the 04 how many internal staff form the hr recruitment team?smaller firms, more than half (54 percent) say that less LESS THAN 100than 10 percent of their recruitment team are devoted 54% 16% 8% 10% 12% 76% to 100%to recruitment only. Among the larger forms, slightlymore than a third have a recruitment team that spends 100-500 51% to 75% less than 10%at least half its time on recruitment tasks only. 53% 14 17% 7% 9% 26% to 50% 10% to 25% 501-1000 26% to 50% 28% 22% 26% 11% 13% 10% to 25% 51% to 75% 76% to 100% MORE THAN 1000 30% 23% 11% 18% 18% Less than 10%21  
  • CV SEARCH CAPABILITY 34 JOB ORDER TRACKING 23 AUTOMATED REPORTING 19 ELECTRONIC SCHEDULING 15managing internal recruitmenttechnology used to source& track candidatesRespondents employ a variety of technologies to source 05and track candidates. The most common are applicant APPLICANT TRACKING 63%tracking, and online applications and assessment, ONLINE APPLICATIONS AND ASSESSMENTused by 63 percent and 60 percent respectively. Other 60%functionality is less common including CV management, CV MANAGEMENTused by 44 percent, CV search capability (34 percent), 44%job order tracking (23 percent), automated reporting CV SEARCH CAPABILITY(19 percent), and electronic scheduling (15 percent). 34% JOB ORDER TRACKING 23% AUTOMATED REPORTING 19% ELECTRONIC SCHEDULING 15%22  
  • home contents visual summary preface executive summary respondent profile meeting the recruiting challengeOutsourcing HR and recruitment global hiring intentions managing internal recruitment outsourcing hrfirms across the globe have actively embraced and recruitment about usthe decision to outsource elements of theirtotal hr function, but the way in which they dothis, and the scale of the outsourcing, variesfrom region-to-region, and firm-to-firm.23  
  • EMEA 29 APAC 32 AMERICAS 37 X 0outsourcing hr and recruitmentoutsourcing hrOne-third of firms currently outsource all or part of theirHR function, with those in the Americas (37 percent) 01 in general, have you been experiencing difficulties recruiting staff? (% yes)more likely to do so than in APAC (32 percent) andEMEA (29 percent). ALL REGIONS 33% EMEA 29% APAC 32% MORE THAN 1000 40 AMERICAS 501-1000 36 100-500 40 37% LESS THAN 100 18outsourcing hr (by firm size)The decision to outsource broadly increases as firmsgrow in size, with the larger firms more than twice as 02likely to outsource as the smaller firms. MORE THAN 1000 40% 501-1000 36% 100-500 40% LESS THAN 100 18%24  
  • BENEFITS 31 COMPENSATION 14 PERFORMANCE MANAGEMENT 12 HRIS 11outsourcing hr and recruitmenthr functions being outsourcedRecruitment is the overwhelming area of HR to beoutsourced. A total of 58 percent of respondents 03outsource recruitment, compared with other key areas RECRUITMENT 58%such as payroll (44 percent), training (34 percent), and PAYROLLbenefits (31 percent). 44% TRAINING 34% BENEFITS 31% COMPENSATION FUNCTION EMEA APAC AMERICAS RECRUITMENT14% 61 61 55 PAYROLL PERFORMANCE MANAGEMENT 35 41 50 TRAINING 48 38 26 12% BENEFITS 13 29 41 HRIS COMPENSATION 23 14 11 PERFORMANCE MANAGEMENT 11% 16 14 9 HRIS 10 14 9hr functions being outsourced (by region)There are some important global differences in theway that firms outsource various elements of the HR 04 RECRUITMENTfunction. Firms in the Americas are much more likely 61%than those elsewhere to outsource payroll and benefits. 55% 61% AMERICAS PAYROLLFirms in EMEA are more likely to outsource training and 35%compensation. 41% 50% APAC TRAINING emea 48% 26% 38% apac EMEA BENEFITS americas 13% 29% 41% COMPENSATION 23% 14% 11% PERFORMANCE MANAGEMENT 16% 14% 9% HRIS 10% 14%25 9%  
  • ALL REGIONS 21 28 EMEA 25 34 APAC 22 34 AMERICAS 20 20outsourcing hr and recruitmentoutsourcing of recruitmentWhen asked specifically about the recruitment elementwithin the broader HR function, more than one-in-five 05 do you currently outsource your recruitment process? (% yes)(21 percent) say they outsource their recruitmentor hiring process, down slightly from 28 percent in ALL REGIONS 20ten 21%2010. The rate of outsourcing remained stable in the 28%Americas, but went backward in other global markets. 20eleven EMEA 25% 34% 2011 2010 APAC BANKING & FINANCE 2922% MANUFACTURING 27 34% INSURANCE 20 AMERICAS PROFESSIONAL SERVICES 18 IT&T 20% 17 GOVERNMENT 20% 17 RETAIL/WHOLESALE 12 HEALTH 8 TOTAL 21outsourcing of recruitment(by industry sector)Rates of outsourcing of recruitment vary widely across 06industry sectors, with the greatest activity occurring in BANKING & FINANCE 29%Banking & Finance, Manufacturing, and Insurance, and MANUFACTURINGthe least in Health and Retail/Wholesale. 27% INSURANCE 20% PROFESSIONAL SERVICES 18% IT&T 17% GOVERNMENT 17% RETAIL/WHOLESALE 12% HEALTH 8% TOTAL 21%26  
  • CONTINGENT/TEMPORARY 26 BUSINESS UNIT 23 GRADUATES 18outsourcing hr and recruitmentparts of the recruitmentprocess outsourcedThe larger the organisation, the more likely it is to be 07 COMPANY WIDEoutsourcing its recruitment/hiring process. 50% PROFESSIONALAmong those that outsource recruitment, the most 45%common approach is to do so on a company-wide ADMINISTRATIVEbasis. However, a smaller share of respondents focus 32%specifically on outsourcing professional, administrative, CONTINGENT/TEMPORARYand contingent categories of workers. Graduate 26%recruitment is the least likely to be outsourced. AREA BUSINESS UNIT EMEA APAC AMERICAS GRADUATES 23% 23 21 13 BUSINESS UNIT 23 16 27 CONTINGENT/TEMPORARY GRADUATES 15 32 27 ADMINISTRATIVE 18% 46 11 40 PROFESSIONAL 54 32 50 COMPANY WIDE 31 53 57parts of the recruitmentprocess outsourced (by region)Across the globe, approaches vary, with firms from the 08 GRADUATESAmericas and APAC more likely to outsource company-wide. Outsourcing of professional and administrative 23% 21% AMERICAS 13%positions is most active in EMEA. BUSINESS UNIT 16% 23% APAC 27% emea CONTINGENT/TEMPORARY 15% 32% apac EMEA 27% americas ADMINISTRATIVE 46% 11% 40% PROFESSIONAL 54% 32% 50% COMPANY WIDE 31% 53% 57%27  
  • APAC 53 AMERICAS 38 X 0outsourcing hr and recruitmentlikelihood of outsourcing recruitmentWhen asked, almost half of all respondents say theywould consider outsourcing recruitment processes, 09 Would you consider outsourcing part or all of your recruitment process? (yes)with the greatest likelihood in EMEA, where 61 percentwould consider such an option, compared with TOTAL 47%53 percent in APAC, and 38 percent in the Americas. EMEA 61% APAC 53% AMERICAS& FINANCE BANKING 59 PROFESSIONAL SERVICES 58 38% IT&T 58 MANUFACTURING 55 INSURANCE 50 OTHER 44 GOVERNMENT 33 RETAIL/WHOLESALE 24 HEALTH 24 TOTAL 47likelihood of outsourcingrecruitment (by industry)There is a definite pattern to the industry sectors most 10willing to consider an outsourcing arrangement. Sectors BANKING & FINANCE 59%such as Banking & Finance, Professional Services, IT, and PROFESSIONAL SERVICESManufacturing are the leading contenders. 58% IT&T 58% MANUFACTURING 55% INSURANCE 50% OTHER 44% GOVERNMENT 33% RETAIL/WHOLESALE 24% HEALTH 24% TOTAL 47%28  
  • outsourcing hr and recruitmentfamiliarity with rpoOne of the key issues in any outsourcing decisioncentres on the knowledge firms have about the role 11 how familiar are you with recruitment process outsourcing?of vendors and the workings of organisations thatprovide an umbrella service under a recruitment processoutsourcing (RPO) arrangement. The level of familiarity 16%with RPOs is reasonably strong, with slightly more than 25% very familiarhalf (55 percent) either “very familiar” or “familiar/ familiar/knowledgeableknowledgeable”. However 45 percent have only vague somewhat familiarknowledge or none at all. 29% not at all RECRUITER QUALITY 61 COST 51 30% INDUSTRY KNOWLEDGE 49 YEARS OF RPO EXPERIENCE 36 BREADTH OF RPO SERVICES 26 TECHNOLOGY 23criteria for selecting an rpo partnerWhen it comes to selecting an RPO partner, the topthree criteria are recruiter quality, industry knowledge 12and cost. RECRUITER QUALITY 61% COST 51% INDUSTRY KNOWLEDGE 49% YEARS OF RPO EXPERIENCE 36% BREADTH OF RPO SERVICES 26% TECHNOLOGY 23%29  
  • MANAGE OR LIMIT NUMBER OF THIRD PARTY PROVIDERS 18 GAIN ACCESS TO TECHNOLOGY 18outsourcing hr and recruitmentmain reasons to consider outsourcingIn any selection decision, firms clearly put greatestpriority on those elements that go to the heart of the 13prevailing problem of attracting skilled talent. They FASTER TIME TO HIRE 78%rate the key expectations as “faster time to hire”, and“lower cost of recruitment”. LOWER COST OF RECRUITMENT 68% INTEGRATE MULTIPLE SOURCING CHANNELS 45% MANAGE OR LIMIT NUMBER OF THIRD PARTY PROVIDERS 18% INFORMATION ON RPO TRENDS 63 GAIN ACCESS TO TECHNOLOGY SHARE RPO USER BEST PRACTICES 60 18% PROVIDE COMPLIMENTARY RPO EVALUATIONS 32 FURTHER DEFINE RPO 29 PUBLISH AN RPO NEWSLETTER 21 HOLD RPO CONFERENCES/EVENTS 16critical information on rpoThere is a thirst for knowledge on the part of the HRcommunity about exactly how RPO arrangements can 14 What information would the hr community like to see related to rpo?help overhaul and streamline the recruitment process. INFORMATION ON RPO TRENDS 63%What is clear is that there is a dual level of knowledgein this area. Some firms in certain markets and of a SHARE RPO USER BEST PRACTICES 60%given size have had exposure to the RPO business PROVIDE COMPLIMENTARY RPO EVALUATIONSmodel and are comfortable with deploying it. Others 32%have vague knowledge and no experience. FURTHER DEFINE RPO 29%Many respondents to the latest survey make clear that PUBLISH AN RPO NEWSLETTERthey want to primarily see data on trends and best 21%practice that will help them determine what is best for HOLD RPO CONFERENCES/EVENTStheir individual business circumstances. 16%30  
  • About the hRoA:A Global Association Founded in 2003, the HROA is a global association with chapters in theAmericas, Asia, and Europe. The Association is open to anyone in the HR Outsourcing andTransformation industry anywhere in the world, including practitioners, buyers, providers, advisors,consultants, attorneys, and academics. The HROA is dedicated to accelerating and improvingthe professional practice of HR Transformation and Outsourcing. The Association serves as thedefinitive source of independent information and insight on the issues and challenges facingpractitioners in this field.About hR.com:HR.com is the largest global social networking and resource site for HR professionals. 194,000+members visit HR.com daily to learn, earn certification credits, attend live webcasts and virtualconferences, network, blog, join a community, and get the answers they need to manage thepeople side of their business.About humAn ResouRce executive® mAgAzine:Human Resource Executive® was established in 1987 and continues today as the premierpublication focused on strategic issues in HR. Written for vice presidents and directors of humanresources, the magazine provides these key decision-makers with news, profiles of HR visionariesand success stories of human resource innovators. More than 75,000 HR decision-makers currentlyreceive the publication, which is published 13 times a year.About KeLLYocg’s RPo PRActiceKellyOCG’s Recruitment Process Outsourcing (RPO) practice is a global leader in managingenterprise-wide talent acquisition process, sourcing & recruitment solutions. Since 1995, we havedelivered best-in-class talent acquisition processes and services with a proven record of successthrough our experience in advanced sourcing techniques, LEAN methodologies and recruitmentprocess design and management. 100% of our global business capabilities are dedicated toRPO, with over 500 recruitment professionals across 43 U.S. sites and in 27 countries to provide  exitrecruitment solutions for clients ranging from 75 to 7,000+ annual hires.kellyocg.com