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How Recruitment Process Outsourcing helps you win in a tough talent world
Introduction
Attracting, hiring and retaining top talent is the number one priority for today’s CEOs. At the same time, the job of securing the best people has become more challenging than it has been for many years – if not ever. Employees everywhere are on the move. According to Pew Research Center, 2.5% of U.S. workers – about 4 million – switched jobs on average each month from January to March 2022. This share translates into an annual turnover of 30% of workers – nearly 50 million – if it is assumed that no workers change jobs more than once a year. Meanwhile, demand for labour is greatly outstripping supply. The result is a highly candidate-driven market where good people get to pick and choose their employers according to an increasingly diverse list of concerns. Are there opportunities for me to progress? Can I work from home when I need to? How serious is this company about reducing CO₂?
In short, the pandemic has produced a tougher-than-ever hiring world. Organisations cannot expect to beat competitors to the best talent by sticking to the same old, same old. Instead, they need to take a more strategic, more holistic and more innovative approach to recruiting and retaining talent.
It’s a big challenge – but it’s not one you need to tackle alone. Over the next few pages, we look at some of the key ways in which an recruitment process outsourcing (RPO) partner can help your organisation optimise its hiring power in an increasingly competitive market.
“Our talent market has changed beyond recognition. Candidates are prioritising lifestyle choices and values, and the demand for skills in many categories still far outstrips the supply. As a result, we are finding that traditional recruitment practices are no longer effective.”
Steve Leach
Regional Managing Director, UK&I
“Many people dropped out of the labour market during the pandemic, creating a nationwide staff shortage, particularly for hourly roles. To compete, companies must work hard not only on their proposition but also on ensuring the application process is quick, straightforward, and mobile-enabled.”
Nicky Hancock
Regional Managing Director, Americas
“Traditionally, companies in APAC have cherry-picked talent. Post pandemic, however, there is not enough to go around. So organisations are working hard to establish where the skills are in the region – and whether hybrid working could enable them to hire people in locations where skills are more plentiful.”
Roop Kaistha
Regional Managing Director, APAC
“The talent landscape in EMEA is experiencing a perfect storm right now due to the effects of the pandemic and the Russian invasion of Ukraine. If they haven’t done so already, organisations need to factor these issues into their long-term plans and start working strategically to create an idealised workforce of the future.”
Maxine Pillinger
Regional Managing Director, EMEA
Navigating the market with greater speed and agility
Climate change. Soaring inflation. Geopolitical conflict. COVID-19. It’s no wonder RPO clients interviewed for NelsonHall’s RPO & Total Talent report predicted we would be seeing economic instability for some years to come.
To survive and thrive in the face of fluctuating demand, organisations must become as agile possible – particularly when it comes to recruiting permanent and contingent workers. Only then will they be able to respond quickly enough to changing market conditions, deploying people with the right skills and capabilities, when and where they are needed.
The good news is that RPO partners tend to be masters of scalability – ideal for managing all those peaks and troughs. During the COVID-19 pandemic, for example, AMS helped a global e-commerce company meet a sudden spike in demand by hiring 175,000 US-based warehouse employees within just six weeks. The company’s internal team wasn’t big enough to cope with the sudden influx of candidates, so we used our scalable model to rapidly assemble and deploy a Candidate Care team of 35 agents.
Here are three ways an RPO partner can make it easy for you to scale your TA function up (and, even more importantly, down) at pace.
Flexible resourcing
Most RPO partners will offer you the option of scaling costs up and down in line with demand. In fallow periods, the TA function can be pared back to a core team. Recruiters who are surplus to requirements are transferred temporarily to other clients, ready to return whenever volumes start rising again. This allows the organisation to downsize without losing vital skills and capabilities that will be needed in the long term.
Upskilling and reskilling
Struggling to cope with another large hiring peak? At AMS, we help our clients develop talent using the AMS Talent Lab, which focuses on upskilling and reskilling. So, whether it is helping established employees develop niche skills or finding new talent and equipping them with the skillsets you need, an RPO partner can help.
Centre of excellence
Organisations that have a specialist sourcing centre of excellence tend to be able to respond to business needs with greater speed and agility. These centres use data and deep market insight to identify, engage and nurture short-, medium- and long-term talent pools.
Navigating the market with greater speed and agility
Climate change. Soaring inflation. Geopolitical conflict. COVID-19. It’s no wonder RPO clients interviewed for NelsonHall’s RPO & Total Talent report predicted we would be seeing economic instability for some years to come.
To survive and thrive in the face of fluctuating demand, organisations must become as agile possible – particularly when it comes to recruiting permanent and contingent workers. Only then will they be able to respond quickly enough to changing market conditions, deploying people with the right skills and capabilities, when and where they are needed.
The good news is that RPO partners tend to be masters of scalability – ideal for managing all those peaks and troughs. During the COVID-19 pandemic, for example, AMS helped a global e-commerce company meet a sudden spike in demand by hiring 175,000 US-based warehouse employees within just six weeks. The company’s internal team wasn’t big enough to cope with the sudden influx of candidates, so we used our scalable model to rapidly assemble and deploy a Candidate Care team of 35 agents.
Here are three ways an RPO partner can make it easy for you to scale your TA function up (and, even more importantly, down) at pace.
Flexible resourcing
Most RPO partners will offer you the option of scaling costs up and down in line with demand. In fallow periods, the TA function can be pared back to a core team. Recruiters who are surplus to requirements are transferred temporarily to other clients, ready to return whenever volumes start rising again. This allows the organisation to downsize without losing vital skills and capabilities that will be needed in the long term.
Upskilling and reskilling
Struggling to cope with another large hiring peak? At AMS, we help our clients develop talent using the AMS Talent Lab, which focuses on upskilling and reskilling. So, whether it is helping established employees develop niche skills or finding new talent and equipping them with the skillsets you need, an RPO partner can help.
Centre of excellence
Organisations that have a specialist sourcing centre of excellence tend to be able to respond to business needs with greater speed and agility. These centres use data and deep market insight to identify, engage and nurture short-, medium- and long-term talent pools.
“The pharmaceutical and life sciences sector is grappling with scarce talent, rapidly changing skills requirements, and the challenge of developing and retaining employees. Without a doubt, those companies that approach talent in an integrated way will hold a competitive advantage.”
Jim Sykes
Managing Director | Pharmaceutical and Life Sciences
“The demand for renewable energy skills is expected to treble from 12 million globally in 2020 to 43 million by 2050. Much of this can be met by upskilling candidates from outside the sector who have the relevant transferable skills. To succeed, organisations will need to draw people in with a compelling employee value proposition and develop a large talent pool that they can nurture.”
Lynne Gardner
Managing Director | Energy, Engineering and Manufacturing
“Agility and creative thinking are crucial when sourcing high-demand and niche skills in the financial services sector. This could include looking for relevant skills within the company, using upskilling and reskilling programmes to fulfil niche areas, sourcing talent from underrepresented talent pools, and balancing a mix of contractor and permanent employees.”
Building a compelling employee value proposition
Having a strong, well-defined employee value proposition (EVP) has been linked to everything from decreased attrition to better productivity and bottom-line impact. A CEB study entitled Branding for Influence found that a strong employer brand can raise your quality of hire by 9% and improve applicant pool quality by 54%. According to LinkedIn, companies with stronger employer brands see a 43% decrease in the cost per hire.
The tougher the talent market gets, the more important your EVP becomes. Candidates today are subjecting organisations to ever greater levels of scrutiny. What will they make of your company’s market reputation? How attractive do you appear to them as an employer? These are critical questions that organisations must address if they want to survive and thrive in the current talent market. But data from Aptitude Research shows that less than 50% of recruiters spend time on employer branding or DEI initiatives each week.
Many RPO providers are also employer branding experts. They know how to develop an authentic and compelling EVP – and how to communicate it in a way that will help you stand out from the crowd and attract the top performers in your market. It doesn’t even need to be a costly or time-consuming process. In many cases, the basics are already there – the task is merely to bring your culture to life by engaging with employees, listening to their experiences, and retelling their unique stories to the outside world.
This is the approach we took with our long-standing client, Synchrony, one of the largest issuers of store credit cards in the US. They were looking to build their team with qualified professionals and recognised that having a distinct employee value proposition was crucial for achieving standout in a crowded market. We have helped them establish their reputation as a top employer by focusing on their culture, telling their unique story, and remaining committed to a strong candidate experience. As a result, they have been able to grow their business significantly while at the same time decreasing cost per hire and cost per application.
“Modern businesses are no longer judged purely on their products and services or financial success. Employers therefore need their careers pages to focus not only on available roles but also on culture, how they are serving their community, their impact on society, and how staff can grow their career beyond pay and benefits.”
Creating a more diverse and inclusive workforce
Diversity, equity and inclusion (DEI) is not an issue – it’s a necessity. Study after study shows that when organisations truly harness the diversity of their workforce, they make better decisions, do smarter, more innovative work, and can financially outperform their peers.
Research also shows that a robust DEI strategy can make an organisation a more attractive place to work. According to Glassdoor, more than 3 out of 4 jobseekers and employees (76%) report that a diverse workforce is an important factor when evaluating companies and job offers.
But increasing diversity, equity and inclusion is easier said than done. Despite best efforts, DEI initiatives often fail to deliver promised outcomes. Even when issues are identified and understood, many companies still find it impossible to develop solutions that work. This is where having a quality RPO partner can make a real difference – because they should have the DEI insights and expertise needed to move the dial.
At AMS, we like to start with a DEI diagnostic, providing clients with an objective view of the current state of diversity, equity and inclusion within their organisations and identifying areas where structures and processes can be improved.
The diagnostic we recently conducted for our client, Staples Inc., included an end-to-end review of their TA operations, policies and procedures. We carried out market and competitor research, facilitated interviews with senior leadership, engaged with individuals across the TA and HR teams, and conducted multiple workshops.
Through our diagnostic work, we were able to gain a clear picture of the situation on the ground, understand the processes and technologies the company had in place, and identify obstacles and opportunities associated with hiring diverse talent. This meant we could then provide Staples with a carefully tailored roadmap for sustainable and scalable DEI success.
Creating a more diverse and inclusive workforce
Diversity, equity and inclusion (DEI) is not an issue – it’s a necessity. Study after study shows that when organisations truly harness the diversity of their workforce, they make better decisions, do smarter, more innovative work, and can financially outperform their peers.
Research also shows that a robust DEI strategy can make an organisation a more attractive place to work. According to Glassdoor, more than 3 out of 4 jobseekers and employees (76%) report that a diverse workforce is an important factor when evaluating companies and job offers.
But increasing diversity, equity and inclusion is easier said than done. Despite best efforts, DEI initiatives often fail to deliver promised outcomes. Even when issues are identified and understood, many companies still find it impossible to develop solutions that work. This is where having a quality RPO partner can make a real difference – because they should have the DEI insights and expertise needed to move the dial.
At AMS, we like to start with a DEI diagnostic, providing clients with an objective view of the current state of diversity, equity and inclusion within their organisations and identifying areas where structures and processes can be improved.
The diagnostic we recently conducted for our client, Staples Inc., included an end-to-end review of their TA operations, policies and procedures. We carried out market and competitor research, facilitated interviews with senior leadership, engaged with individuals across the TA and HR teams, and conducted multiple workshops.
Through our diagnostic work, we were able to gain a clear picture of the situation on the ground, understand the processes and technologies the company had in place, and identify obstacles and opportunities associated with hiring diverse talent. This meant we could then provide Staples with a carefully tailored roadmap for sustainable and scalable DEI success.
“Having a strong DEI strategy and good management practices makes an organisation a better place to work – not just for diverse candidates but for everyone.”
Unleash the power of technology
HR technology brings huge benefits to employers and candidates everywhere. By adopting up-to-the-minute solutions for recruitment marketing, candidate relationship management and assessment, organisations can engage with new generations of digital natives in the ways they expect and prefer. The use of technology to streamline recruitment processes and reduce time-to-hire also allows talent teams to concentrate on higher-value activities, such as engaging with candidates and stakeholders or delivering intelligence, insights and thought leadership.
Nearly $10 billion has been invested in TA technology over the last five years. And demand shows no sign of slowing. Data from Aptitude Research reveals that 73% of companies will increase their talent acquisition technology investment in 2022.
But the bigger the HR tech market becomes, the more complex it gets – and with so many different solutions available, it can be difficult for HR professionals to identify what trends and technology will really help them get ahead. Many organisations are also struggling to make the most of the technology they adopt. In a recent survey, 60% of recruiters stated that poor integration is the greatest frustration with technology.
Here are four ways your RPO partner can work with you to get the most out of your HR tech:
Understand the business problem
What exactly is the problem you’re trying to solve? How can technology add value? Who will be using the technology and how will they be using it? These are all questions a partner can help you answer in order to find the right solution for your business.
Identify the best available technology solution
RPO providers are regularly demoing, rating and ranking new solutions on behalf of their clients. This gives them deep insight into the HR tech landscape and means they are well-placed to select the technology that will best meet your organisation’s needs.
Embed the new technology
Finding the right technology is only the start. To get the most out of your solution, you need to make sure it is properly integrated and deployed – and, crucially, you need to bring all the potential users in your workforce fully up to speed with the new technology. This means delivering training to all relevant employees, as well as clearly communicating what’s changing and why.
Innovate your way ahead of the competition
We recently helped McDonald’s become the first organisation to provide a voice-activated job search. The custom-built technology has helped to reduce candidate application times and to promote McDonald’s as an innovative employer. It’s just one example of how working with an RPO provider can help organisations beat their competitors to new technology and gain a clear advantage in the talent marketplace.
“From a sourcing perspective, AI can now do the work that would have taken hundreds of recruiters to do in the past – and it can do it with impressive effectiveness and accuracy.”
Laurie Padua
Managing Director | Advisory
“While technology will help maximise efficiency, its success lies in its adoption. Organisations must focus on a clear adoption strategy and change management process, alongside the implementation plan, paying attention to new ways of working and the people process.”
Jonathan Kestenbaum
Managing Director | Tech Strategy and Partners
“Talent management technology can help organisations find and recruit candidates with the right skills and experience and also the right attitudes, values and growth mindset that will allow them to develop as the organisation needs. This helps ensure a company’s workforce is future-fit and aligned with the vision.”
Joy Koh
Head of Growth and Advisory | APAC
Conclusion
A world-class RPO partner won’t just get your hiring done. With their insight and expertise, you can continue to attract, recruit, retain and reskill the right people for your business, no matter how tough the talent market becomes.
It’s about building a future pipeline as well as meeting your immediate hiring needs.
It’s about developing and communicating an authentic employee value proposition that attracts the very best talent and creates advocates among existing employees.
It’s about embedding DEI at every level of the organisation.
It’s about knowing how to use the latest and greatest technology to streamline your recruitment process and create consumer-level experiences for candidates and hiring managers alike.
Want to find out more about what RPO can do for your business? Whether you are entering a new market, scaling up a team or looking to optimise your whole recruitment process, we have a solution to match.
Looking for more resources on a specific topic?
Read our paper to have a quantitative look at the power of technology to improve sourcing success, AI matching: The future of sourcing.
Read more about the rise of internal mobility and embedding DEI initiatives in our paper, Four Critical Talent Priorities Defining The New Workplace.
Read more about the challenges of recruiting scarce talent in the Pharmaceutical and Biotech sector in our paper, Securing Scarce Talent in the Pharma and Biotech Sector.
Read about the rising importance of ESG in the retail banking sector in our paper, Why the ‘S’ of ESG may be the rose between two thorns for retail banking.
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