What You Need to Know about RPO in 2014

by Allison Reilly

RPO changes 2014The only way to succeed in recruitment process outsourcing is to be ready for change. Change is the only constant, and this year will see many massive changes to the industry much like how 2013 say many big changes as well. What's really going to change in the next 12 months? How can providers and buyers prepare for these changes? Here's what you need to know about RPO in 2014:

Rapid Consolidation and Expansion

One of the biggest trends in the RPO industry last year, which is going to continue, if the rapid consolidation and expansion of the industry. New players are continually jumping into recruitment process outsourcing, while other companies are engaging in mergers and acquisitions.

"[This is] really going to help reshape our industry... in a very positive way," said David Pollard, CEO of TalentFusion. "When the big guys move in, we all benefit. The RPOA benefits, the members benefit, and we're starting to clearly see that shakeup occur."

Pollard thinks these changes will be helpful for everyone because they will create a much more strcutured enviroment going forward. A structured environment is a healthy environment for buyers and providers.

Solid Global Solutions are a Must-Have

An RPO trend that Pollard is noticing in TalentFusion is that RPO buyers are demanding a global reach with their solutions. To accommodate this, Pollard suggests that RPO providers partner with each other to meet that global need, or at least be mindful of the trend so that the RPOA and its members can be global players in 2014 and beyond.

"Even the small and mid-sized companies have some level of global footprint, and that's certainly driving change," Pollard said. "It's spanning their level of control."

Global orientations are going to affect the RPO solutions provided to most buyers, so it's critical that this is seen as a trend that applies to all other trends. Global orientation can't be viewed in a silo. It will affect all parts of the delivery and recruting processes.

New RPO Paradigms

About 500 end-to-end, full life cycle RPO contracts are up for renewal over the course of the next year, and this is leading to questions about the enterprise, big box view of RPO. Buyers are wondering if this is the right way to do things, and because of these questions, RPO providers will have to adjust their business models and service deliveries to meet these demands.

"I think we're seeing, in RPO, that there's demands in specific niches, particularly in technology-driven organizations," Pollard said. "Perhaps... big box, end-to-end RPO is not the best solution for those specialized needs at the most mission-critical areas of the company."

Part of these questions about the big box view is that RPO buyers are more sophisticated than ever before. Therefore, they are coming into the relationship knowing what they need and are willing to bring in multiple players to provide those needs, instead of just one big box provider. This sophistication means buyers are demanding more flexible and scalable pricing models, as well as an increase in on demand, as needed RPO delivery models.

Overall, everyone ought to be excited for the changes that are happening now and over the course of 2014. Buyers are getting smarter about how they approach RPO and how they are purchasing services. Processes and candidate identification are also transparent because of technology, so the human factor is more important than ever. Candidate identification is no longer the cornerstone and the value proposition. For RPO and other recruiting services, it comes down to selling opportunities and knowing the businesses for which you are working.

If you thought these changes were overwhelming, then you are unprepared for the next 12 months. The RPO industry is undergoing many more massive changes! Come hear about those changes in this 30-minute webinar, and what buyers of RPO should be considering when considering strategic partnerships with an RPO provider.

  • What is coming in terms of industry consolidation and changing alignment? 
  • How should buyers navigate this changing landscape? 
  • What are the right questions to ask? 
  • Where is the industry headed?

View the slides and video today and get ready for amazing 2014 for the RPO industry!

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