Building out an RPO business from your Recruitment Agency – opportunity or risk? Howard Flint, Managing Director , HG Solutions
The document discusses the opportunity and risks of building out a recruitment process outsourcing (RPO) service from an existing recruitment agency. It examines the different types of RPO services, the growth opportunity in the RPO market, and the potential financial benefits of long-term recurring revenue and higher business valuation. However, it also cautions that launching an RPO service could distract from the core business, compromise client relationships, and cost money in the short-term. It provides four considerations for maximizing success: defining service accountability and differences from the core business; choosing the right RPO service type and scope; managing internal relationships between the RPO team and core business; and developing a growth strategy that recognizes the long sales cycle
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Building out an RPO business from your Recruitment Agency – opportunity or risk? Howard Flint, Managing Director , HG Solutions
- 1. Building out an RPO from your recruitment agency Opportunity or risk?
- 2. About me 10 years global IT outsourcing 15 years recruitment outsourcing and technology 7 years leading UK RPO
- 3. In this session… • Have a look at what RPO is • Examine the opportunity • Think about the risks • Leave you with 4 considerations to maximise chances of success
- 4. Service Contract Temp Perm Contract Business Project Department Discipline RPO Entry Experienced Executive Term Success Fee Management Fee Retainer Service Levels Planning Fulfilment Onboarding Direct Supply chain Internal On-Site/ Off Site It’s a journey with people you don’t know very well, but have to get on with….
- 5. Types of RPO On Demand Full Service Project MSP Neutral Vend Extended Service
- 6. What this means… Different from your core business - handle appropriately More than one type of RPO service you can offer – pick the one that’s right for you
- 7. 6.7bn 3.5bn 2016 2021 Market opportunity …. RPO Global Growth
- 8. The financial opportunity….. Long term recurring (predictable) revenue Higher business valuation
- 9. Why consider RPO? I can see an opportunity I can leverage the potential of my clients relationships and staff I can increase return and value It’s going to be quick and easy – solve my cash/ revenue/growth problem It will secure roles for my contingent recruiters No daily worry
- 10. The risks of launching an RPO service….. • Defocus core business • Compromise relationships with existing clients • Cost money – short term • Cause executive relationship issues
- 11. 4 considerations to maximise the likelihood of success
- 12. Consideration 1. Service Accountability - understand differences between core and RPO
- 13. Consideration 2: Type and Scope of Service - define what are you going to deliver and how?
- 14. Consideration 3. Internal Relationships – how is your core business and RPO team going to work together?
- 15. Consideration 4. Winning new business - what is your growth strategy and does it recognise a long sales lead time
- 16. Conclusion • Evaluate what you want to achieve • Understand the effort and risk • If yes - then define and plan carefully • Go for it – but be focussed and understand it’s long term
Editor's Notes
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