A new RPO research, underwritten by the Recruitment Process Outsourcing Association, uncovers misalignment between the recruitment services that employers want versus what they receive from RPO providers.
According to the research data, 35 percent of employers want recruitment benchmark data against industry or similar companies. However, less than 10 percent receive this service from their RPO partner. Similarly, over 40% of employers are looking for their RPO partner to support overall hiring strategy and business alignment, but only 25 percent receive this service.
The research compared the value of RPO services offered and received along six other domains including, diversity recruitment, internal mobility, employer branding, technology optimization, labor market analysis, and innovative talent acquisition. The identified gaps offer great future opportunities for RPO providers to expand their service offerings to their clients.
The study found the number one thing employers want RPOs to support is overall hiring strategy and business alignment, followed by diversity recruitment and labor market analysis. On the other hand, the main talent acquisition function RPO partners currently support is diversity recruitment, followed by overall hiring strategy and business alignment, then both labor market analysis and employer branding at the same level.
RPO Relationship Value and ROI
In addition, the study shows that more than half of the employers surveyed found that their RPO relationship provides a positive return on investment (ROI) and that these relationships allow them to focus on other business priorities. Employers were most satisfied with the quality of candidates, diversity of candidates, and subject matter expertise (SME), and strategic guidance of their RPO partner.
The study looked into the correlation between the longevity of the RPO relationship and the type of results RPO buyers see. Shorter partnerships seem more tactical, while longer partnerships are more strategically focused on talent acquisition results.
When it comes to relationship commitment, 50 percent of RPO buyers said they’re likely to leave their current RPO provider in the next two years. The number one reason for changing providers is cultural misalignment.
Be on the lookout for the upcoming research report with impactful insights for RPO buyers and providers. The infographic below shows additional insights from the study.