The UK recruitment sector is facing an unprecedented period of challenge and change, with a record number of vacancies that now stands at 1,266,000 (June to August 2022).
Organisations are needing to work hard to attract new employees in these exceptional circumstances the UK now faces, and evidently traditional recruitment isn’t working. So, what else can employers do to help their growth over the short- and long-term?
Here, we take a look at the compelling reasons why a Recruitment Process Outsourcing (RPO) or Managed Services Provider (MSP) partner can help solve their problems with hiring directly or on a contingent basis.
There’s little doubt that organisations are currently struggling to recruit the talent they need. Unfilled positions are impacting growth and financial health. Many hiring managers have turned to recruitment partners to solve their people issues, but even agencies are finding the employment climate difficult and are failing to source the right people for the right roles.
It’s time for a new way of thinking about the recruitment process.
An MSP can offer an end-to-end recruitment proposition but focus entirely on contingent workers. This term includes temporaries, consultants, contractors, freelancers, Statement of Works (SoW) and other non-permanent staff who work for a company. An MSP will take over the management of this contingent workforce focusing on cost management, process efficiencies, and ensuring that the company remains compliant in its treatment of such workers whilst staying true to the values of the brand.
RPO Recruitment offers a different way to find and retain the permanent talent you need. Here’s why.
Employer branding is becoming increasingly important in attracting top talent.
Active candidates are becoming increasingly discerning, and therefore seeking out organisations that can demonstrate compatible values, hence the importance of social impact in their decision making when finding a new role and organisation to work for.
Your employer brand can make employees feel their contributions are valued, and passive candidates will be more persuaded to change roles if there is a culture of trust and feedback.
When you choose to outsource to an RPO partner, it will attract behind your branding and not its own, and it will manage your recruitment process as if it was an extension of your in-house team. This has multiple benefits:
RPO partners can offer exceptional value for money to organisations through a range of specialist resourcing options, which will allow them to concentrate on their core functions, secure in the knowledge that when they need to attract the right talent an experienced and motivated team is on their side.
Under an MSP we focus on CVP – Contractor Value Proposition – which takes elements of the above but also includes detail around projects, the value the contractor can add, and self-development.
In these days of constrained budgets, every organisation is looking for ways to cut costs without impacting on its core activities. Recruitment agencies’ fees are usually based on the percentage of the annual salary of the employee that they place with an organisation – these percentages can be between 20-30% – and average out at around £4,500 per placement.
RPO can significantly reduce that outlay because of the very nature of them sitting behind your brand vs that of an agency, alongside its scalability, flexibility, and use of innovative technology. Combine this with an RPO’s ability to reduce time to hire and increased quality of hire, and organisations can find themselves saving between 40-60% on traditional recruitment methods.
Under an MSP consolidation of suppliers, commercial terms, contractor pay rates, pay/bill, technology efficiencies, repeatable process management and many other functions drive significant cost savings across the lifetime of a programme.
Every organisation experiences peaks and troughs when it needs to expand the hiring process or reduce it. Failure to act in a timely manner can impact the bottom line significantly through under or over-staffing. However, in times of rapid growth, or due to unforeseen circumstances, traditional recruitment agencies are unable, simply because of the inflexible nature of their business, to respond to these urgent needs.
The answer is scalability – the ability to expand or downsize as and when an organisation needs it. Outsourcing RPO / MSP partners offer unique scalability options which can adapt to an organisation’s changing requirements, meaning that costs aren’t fixed, but respond according to your changing needs without compromising on quality or timeliness.
According to the Recruitment & Employment Confederation (REC) UK, organisations make the wrong hire in every two out of five roles, and such mistakes are costing the UK business sector billions of pounds every year in repeat recruitment, increasing employee turnover and loss of productivity. Getting it right the first time, therefore, has never been so important.
RPO providers pride themselves in finding the right talent, thanks to the expertise of their employees and the rigorous training they undergo. Furthermore, RPO providers conduct extensive searches using highly advanced technology to enable them to source and place the best possible candidate for the job.
An MSP sources temporary workers for an organisation by working in conjunction with third parties. Using a Vendor Management System (VMS), they may both source directly for suitable candidates and reach out to an established network of staffing agencies with their criteria.
The latest Hiring Trends Index tells us that the mean average time to hire in the first quarter of 2022 was 6.04 weeks; that’s just over 42 days, an increase of 1.74 weeks on the last quarter of 2021. When you consider that almost 50% of candidates have declined a position because the hiring process was just too long, it’s easy to see why organisations are losing out on the talent they need. And the longer a vacancy is open, the more impact it has on productivity and morale.
By using a combination of advanced technology, industry intelligence and recruitment process expertise, RPO and MSP partners can reduce organisations’ time to hire considerably, providing a more efficient recruitment process and a better candidate experience.
Equity, diversity and inclusion (EDI) has tangible business outcomes – not only for organisations in terms of competition, market growth and corporate reputation, but also for talent who actively want to work for organisations that value and respect them.
An RPO partner can assist your organisation to become more diverse and inclusive and build EDI into its recruitment strategy, so you can benefit from the ideas and innovations that diverse backgrounds and different experiences bring. By using diversity metrics which are unique to every organisation’s business objective, they are able to source and engage diverse talent, as well as train hiring managers in the specifics of creating an inclusive experience for candidates and inclusive selection. Whilst an MSP partner can replicate this, they are able to provide data across your entire workforce.
Find out more about Resource in Motion, resource management for an agile workforce, here.
RPO, or Recruitment Process Outsourcing, is a strategic approach to talent acquisition where organisations outsource some or all of their recruitment processes to an external provider.
In traditional hiring, organisations typically manage recruitment processes in-house, from sourcing candidates to onboarding. This often requires significant time, resources, and expertise from internal HR teams or hiring managers. However, traditional hiring methods can sometimes struggle to keep pace with changing talent demands, especially in industries facing skill shortages or rapid growth.
RPO offers a holistic and strategic approach to talent acquisition. RPO providers like Omni act as an extension of an organisations brand, assuming responsibility for recruitment activities such as candidate attraction, sourcing, screening, assessment, and even onboarding. By outsourcing these functions to specialised experts, organisations can benefit from industry knowledge, resources, and technology to give access to the best talent at pace.
One of the key differences between RPO and traditional hiring lies in the level of specialisation and scalability offered by recruitment RPO providers. RPO partners often have dedicated teams of recruiters who specialise in specific industries or skill sets, allowing them to access niche talent pools and identify high-quality candidates more efficiently. Additionally, RPO solutions are highly scalable, meaning they can quickly adapt to fluctuating hiring needs, whether it’s scaling up recruitment efforts during peak periods or adjusting to changing market conditions.
Recruitment Process Outsourcing (RPO) can significantly enhance your Talent Acquisition strategy by providing specialised expertise, scalability, and strategic partnership. Here’s how:
Specialised Expertise: RPO providers have dedicated teams of recruiters who specialise in various industries, roles, and skill sets. These experts possess in-depth knowledge of the labour market, industry trends, and sourcing techniques, allowing them to identify and attract high-quality candidates efficiently. By leveraging their specialised expertise, RPO partners, like Omni, can access niche talent pools and ensure high-quality people for your organisation.
Scalability: One of the key advantages of recruitment RPO is its scalability. RPO providers can quickly scale recruitment efforts up or down based on your organisation’s hiring needs. Whether you’re experiencing rapid growth, seasonal fluctuations, or project-based hiring spikes, RPO can adapt to accommodate your changing requirements. This flexibility ensures that you have the right resources in place to meet demand without overburdening your internal HR team or sacrificing recruitment quality.
Cost-Effectiveness: RPO recruitment can offer cost savings when compared to traditional hiring methods. While there may be an initial investment in outsourcing recruitment to an RPO partner, the long-term benefits often outweigh the costs. RPO can help reduce time-to-fill, cost-per-hire, and turnover rates, resulting in overall cost savings for your organisation.
Strategic Partnership: RPO goes beyond transactional recruiting by forging a strategic partnership between the RPO partner, like Omni, and your organisation. At Omni, we become an extension of your employer brand and we work closely to understand business objectives, culture, and talent requirements. This collaborative approach allows RPOs to tailor recruitment strategies that align with your organisation’s goals. By working as an extension of your HR team, RPO providers can provide valuable insights, leading practices, and innovative solutions to help achieve talent acquisition objectives.
Recruitment Process Outsourcing (RPO) is a strategic approach to talent acquisition where organisations outsource some or all of their recruitment processes to an external provider, like Omni. The partner is known as the RPO provider and assumes responsibility for various aspects of the recruitment process, including candidate attraction, candidate sourcing, screening, assessments, interview coordination and onboarding.
Recruitment RPO is about leveraging specialised expertise, technology, and resources to streamline the recruitment process and improve hiring outcomes. Rather than relying solely on internal HR teams or traditional recruitment agencies, organisations partner with RPO providers to access a broader range of talent to enhance efficiency and drive better results.
The specific services offered by RPO providers can vary depending on the needs and preferences of the organisation. That’s the beauty of RPO. Some organisations may opt for end-to-end RPO, where the RPO provider manages the entire recruitment process from start to finish. Others may choose to outsource specific elements of the recruitment process, such as candidate sourcing or interview scheduling, while retaining other aspects.
There are several key advantages:
Access to Specialised Expertise: RPO providers have dedicated teams of recruiters who specialise in various industries, roles, and skill sets. This expertise allows them to identify and attract high-calibre talent more efficiently than internal HR teams or traditional recruitment agencies.
Scalability: RPO recruitment solutions are highly scalable, meaning they can quickly adapt to fluctuating hiring needs. Whether your organisation is experiencing rapid growth, seasonal fluctuations, or project-based hiring spikes, RPO can flexibly adjust to accommodate your changing requirements.
Cost Savings: RPO can offer cost savings compared to traditional hiring methods. By outsourcing recruitment processes to an external provider, organisations can reduce time-to-fill, cost-per-hire, and turnover rates, resulting in overall cost savings for the business.
Strategic Partnership: RPO recruitment goes beyond transactional recruiting by fostering a strategic partnership between the RPO provider and the organisation. At Omni, we work closely with our organisations to understand their organisation’s objectives, culture, and talent requirements, allowing us to tailor recruitment strategies that align with the organisation’s goals and values.
