This document discusses the benefits of outsourcing recruitment processes to an expert partner rather than handling recruitment internally. It finds that companies partnering with an RPO (recruitment process outsourcing) provider are better able to understand skills gaps, establish talent pipelines, and attract and engage top talent. Specifically, RPO users are more likely to consider internal and external factors in recruitment strategies, adapt their definition of top talent, and closely align this definition with candidate expectations, leading to higher quality workforces. The document recommends RPO over internal recruitment or basic staffing partners due to RPO's holistic strategy approach.

1. RPO: Outsourcing or Modern
Necessity for Best-in-Class
Hiring

2. Today’s Agenda
• An Introduction to the Best-in-Class – Understanding the Data
• Are Employers Just Disengaged? – Propagating the Top Talent Problem
• Should You Go It Alone? – What Happens When Recruitment is an Internal
Matter
• The Power of an SME Partner – Removing some of the burden and improving
success

3. Research Methodology

4. External and internal
forces that impact an
organization’s market
position, competitiveness,
or business operations.
The strategic
approaches that an
organization takes in
response to industry
pressures.
The business
capabilities required to
execute corporate
strategy.
The key technology
solutions required to
support the
organization’s business
practices.
What is causing
organizations to
think differently?
What strategies are
they using to
respond?
Why are they
achieving greater
success?
What technologies and
services are enabling
them to succeed?
PRESSURES ACTIONS CAPABILITIES ENABLERS
P A C E
PACE: End-User Investigation

5. Selected Performance
Criteria (KPI)
Organizational Goals
Employee Performance
Bench Strength
Total
Respondents
Respondents are scored individually across KPI
Best-in-Class
Top 20%
Industry Average
Middle 50%
Laggard
Bottom 30%
Aberdeen Maturity Class Framework
Defining the Best-in-Class

6. Understanding Aberdeen’s Data Analysis:
204
150
Aberdeen surveyed 204 organizations to learn more about their all-
encompassing human capital management strategies. The full data set
was then cut to establish characteristics within HCM to compare and
contrast an organic HCM strategy with an all-in-one, long-term approach.
Aberdeen surveyed 150 organizations to learn more about how they
are managing employee engagement, incentivization, and general
performance optimization. The data was broken down per the metrics
shown resulting in a new framework for mapping productivity along
employee goals and objectives.
KPIs For Data Breakdown
Change in Y-O-Y Revenue per FTE
Change in Y-O-Y Employee Performance
Amount of High Quality Employees
Average change in Y-O-Y Turnover
KPIs For Data Breakdown
Change in Y-O-Y Revenue per FTE
Amount of Highly Engaged Employees
Amount of High Quality Employees
Average change in Y-O-Y Turnover

7. Are Employers Just Disengaged?

8. 59%
likely to find that
they are unable to recruit top quality talent.
The Best-in-Class are:

9. 80%
more likely than All Others
to consider low candidate engagement to be a top pressure facing today’s talent
acquisition efforts
59%
likely to find that
they are unable to recruit top quality talent.
The Best-in-Class are:

10. 80%
more likely than All Others
to consider low candidate engagement to be a top pressure facing today’s talent
acquisition efforts
12%
likely to admit
that they might actually be misreading the talent market
The Best-in-Class are:
59%
likely to find that
they are unable to recruit top quality talent.

11. Talent Acquisition Today
60% of organizations handle recruitment
internally.

12. Talent Acquisition Today
60% of organizations handle recruitment
internally.
Companies that internalize the recruitment
process are 11% more likely than those that
engage an external SME partner to lack a
formal understanding of what is causing their
skills gap.

13. Talent Acquisition Today
60% of organizations handle recruitment
internally.
Companies that internalize the recruitment
process are 11% more likely than those that
engage an external SME partner to lack a
formal understanding of what is causing their
skills gap.
When companies internally identify the
characteristics they want in incoming talent,
they often fail to account for what employees
want in an employer.

14. Talent Acquisition Today
60% of organizations handle recruitment
internally.
Companies that internalize the recruitment
process are 11% more likely than those that
engage an external SME partner to lack a
formal understanding of what is causing their
skills gap.
When companies internally identify the
characteristics they want in incoming talent,
they often fail to account for what employees
want in an employer.
Disconnecting from the workforce means
forcing incoming talent to conform to just your
needs.

15. Talent Acquisition Today
Best-in-Class companies are 12% more likely
than All Others to partner with an external
staffing or recruitment firm.

16. Talent Acquisition Today
Best-in-Class companies are 12% more likely
than All Others to partner with an external
staffing or recruitment firm.
Among the Best-in-Class, 49% find that
recruiters and staffers reduce time to hire, but
just 29% find that they reduce the cost of the
hiring process or improve the quality of
candidate matches.

17. Talent Acquisition Today
Best-in-Class companies are 12% more likely
than All Others to partner with an external
staffing or recruitment firm.
Among the Best-in-Class, 49% find that
recruiters and staffers reduce time to hire, but
just 29% find that they reduce the cost of the
hiring process or improve the quality of
candidate matches.
While recruiters and staffers help solve the
volume problem with regards to time-to-hire,
they often rely on the employer to define the
corporate culture and the definition of top talent
they are seeking. 70% of organizations have an
inconsistent definition of top talent limiting the
potential of these partnerships.

18. Should You Go It Alone?

19. The Best-in-Class are:
43%
likely to
partner with an RPO provider.

20. 11%
more likely to
lack a formal understanding of what causes their skills gaps when they go it alone in
recruitment.
43%
likely to
partner with an RPO provider.
The Best-in-Class are:

21. 59%
more likely to find that they are
unable to establish a talent pipeline for their open positions when they do not
partner with an RPO partner.
The Best-in-Class are:
43%
likely to
partner with an RPO provider.
11%
more likely to
lack a formal understanding of what causes their skills gaps when they go it alone in
recruitment.

22. Talent Acquisition Today
Going it alone is a big risk

23. Talent Acquisition Today
While adding a recruitment or staffing partner
helps handle an increasing volume of
candidates, these partners design their efforts
solely on the goals of the client, limiting the
strategy offering for a lasting response to the
skills gap conundrum.

24. Talent Acquisition Today
RPO goes beyond the candidate load to
develop a start-to-finish strategy for attracting,
processing, and hiring top talent as defined by
the client and market best practices.

25. The Power of an SME Partner

26. Talent Acquisition Today
Companies using an RPO provider are 23%
more likely than All Others to find that
candidates and employees are more engaged,
contributing to higher innovation rates and
revenue per FTE.

27. Talent Acquisition Today
Companies partnering with an RPO provider are
2.1 times more likely than those not partnering
with one to increase their focus on internal and
external factors in the design of their
recruitment strategies and resulting talent
pipelines.

28. Using RPO to Improve Results
RPO users are better equipped with information
about the expectations of incoming candidates to
restructure the corporate culture to be more
attractive.

29. Using RPO to Improve Results

30. Areas of Focus for the Next 12 Months RPO Non-RPO
Accounting for Internal & External Business Drivers 53% 25%
Increased Use of Performance Data 44% 33%
Talent Branding & Analytics 44% 17%
Data Integration for Internal Drivers 31% 42%
Construction of Talent Pipelines 29% 0%
Behavioral Analysis 19% 0%
Applicant Tracking 11% 33%
Source: Aberdeen (January 2017) n = 104

31. Using RPO to Improve Results
57% of companies partnering with an RPO
provider consider more than 10% of their
workforce to be top quality.

32. Using RPO to Improve Results
RPO users are 17% more likely than non-RPO
users to find that more than half of their
workforce is top quality.

33. Using RPO to Improve Results
RPO users are able to adapt their definition of
top talent more acutely to the changing
demands of potential applicants – they are 3.6
times more likely than non-RPO users to
change their definition of top-quality talent more
than twice per year.

34. Using RPO to Improve Results
RPO users are 28% more likely than non-RPO
users to more closely align their definition of top
talent to candidate workplace expectations.

35. Thank you!
If you’d like to receive Aberdeen research to
your inbox, please join our community by
visiting: www.aberdeen.com
Questions?
@aberdeengroup
Aberdeen.com
@rpoassociation
rpoassociation.org