The contingent workforce continues to grow, and organizations are having to manage a mixture of permanent and temporary staff. In 2015, contingent workers (contractors, freelancers, and other non-permanent workers) made up 18 percent of the total workforce. This number is expected to more than double to about 40 percent in 2020. What do organizations do to attract and hire all types of workers in a holistic manner? In comes total talent solutions.
For over 20 years, Jason Krumwiede has built and led recruitment process outsourcing (RPO) firms, technology startups, and talent acquisition functions. He helps clients achieve their goals by integrating proven recruiting and workforce solutions to attract talent that meets all his clients’ unique hiring needs.
Currently, Jason is the RPO Practice Leader for Broadleaf Results, Inc., a talent and workforce management company within the Aleron Group of brands. Prior to Broadleaf, Jason worked for TalentRISE, a Chicago-based RPO firm which was acquired by Aleron in February 2019.
As the leader of Broadleaf’s RPO business, Jason is a steadfast advocate for RPO. He recently joined the Advisory Board of the Recruitment Process Outsourcing Association (RPOA) and is leading new initiatives for the organization that deliver on their vision of educating the marketplace on RPO’s numerous benefits.
Jason was recently interviewed by fellow RPOA Advisory Board member, Cory Kruse with Orion Novotus, and he spoke candidly about his work, life, and career in RPO. The following is a transcript of their conversation.
Global RPO teams lack the communication skills needed for a successful engagement. A bold statement by some but, is this really true? Well, before partnering with any RPO provider, you’ll need to be thoroughly prepared and informed with what they’re willing to provide in order to meet your expectations.
For over 20 years, Pam Verhoff has built businesses and helped clients build effective recruitment solutions. She spent five years as a Sr. Vice President leading Aon Consulting’s human capital practice and the next five years building The Right Thing, with Tim Oyer before it was acquired by ADP. She joined The Advanced Group in 2011 as Vice President of Strategic Operations in which she was responsible for the HR, Operations, Training, Marketing and IT teams supporting the Advanced Group businesses. In January 2016, she took on the role as President of Advanced RPO. She attributes her successes to surrounding herself with the right people and prioritizing a values-driven culture.
In 2016, John Younger, co-founder of the Recruitment Process Outsourcing Association and an early RPO pioneer, suggested that recruitment process outsourcing (RPO) crossed the Chasm of the Adoption Curve and is climbing the Early Majority stage (accounting for 16 percent of the potential market) but is "nowhere near Main Stream yet." He also argued that as more and more companies try RPO, they will be "blown away with how much control they have and how much more elasticity it gives them in their recruiting and hiring functions."
At the end of the first quarter this year Research & Markets published a Global Analysis of the recruitment process outsourcing market. With this analysis it also conducted a forecast of our current year 2019 through 2027. It states that the RPO model currently accounts for $4.16Bn USD now and that number will be $40.57Bn USD. Incredible numbers in a relatively short time span!
North America is leading the way, and due to the global demand other regions are at the forefront such as Europe and the Asia Pacific regions. This demand is showing how beneficial it is for recruitment process outsourcing providers.
Recruiting practices that once were tested and proven no longer work today. In his recent Harvard Business Review article, “Your Approach to Hiring is All Wrong,” professor Peter Cappelli explains why.
Recruitment process outsourcing (RPO) providers bring higher expertise to organizations from recruiting best practices to technology and metrics that drive business success. Having the relevant data and the right metrics make all the difference. According to the Q4 2018 Insights report from Advanced RPO, “74 percent of recruiters believe hiring will become more competitive in the next 12 months.”
In this day and age, finding talent with the right mix of skills and personality to fit the organization's culture, is not that easy. For consulting and professional services firms it is even more difficult, as their reputation comes in to play. In an article by Consultants 500, they list some of the largest causes or disruptors this industry is facing. For example, increased competition, deregulation, globalization, changing client demands, and technology and artificial intelligence.
“Competition to attract the type of talent your business needs is coming from all sectors—it’s no longer possible to simply talk of an FS [financial services] talent market as boundaries are now increasingly blurred, if not non-existent,” according to a report from PwC. With the U.S. unemployment rate at a record low, competition for top talent remains at an all-time high. In addition to the tight labor market, financial services are challenged by digital disruptions that require changes in the operating models, changing consumer needs and expectations, and regulatory shifts and security concerns. PwC states, “As financial institutions’ business models evolve, they’re really going to have to think differently, and that means hiring and developing people with vastly different skills and views.”