Executive Summary The Global RPO Report 2007 was
labour markets has placed recruitment
experiencing increased cost pressures
conducted by Kelly HRfirst and HROA
at the forefront in determining business
and shortages of trained people.
Europe in June 2007 to explore
strategy and success. HR managers cite
Organisations seeking the best people
attitudes and practices relating to
growing difficulties in a number of key
will need to broaden their hiring efforts
Recruitment Process Outsourcing (RPO).
areas, notably the quality of candidates,
to an international pool of talent.
Respondents were mainly senior HR
the time-to-hire, and a less than
managers in a range of small, medium
efficient process.
Almost three quarters of organisations
Many HR units face their own
anticipated hires in 2007. The
responsibilities covering 89 countries.
skills challenge with a shortage of
overwhelming majority will use them
professionals and pressure to meet
for sourcing, screening and testing of
The impact of a buoyant world economy,
demanding recruitment benchmarks.
candidates. Large organisations are more
slowing population growth and retiring
Many seem to be under-staffed and
than twice as likely to use a recruitment
baby-boomers is contributing to a
overworked with some 40% having
firm as smaller organisations.
chronic and widespread skills shortage
two or less internal staff devoted to
with almost 70% of respondents
recruitment and more than 50% devoting
experiencing difficulties recruiting staff.
no more than 25% of HR staff to
and large national or multinational companies located in 25 countries with
will use recruitment firms to recruit
Slightly more than half of respondents were familiar or very familiar with RPO.
recruitment.
Approximately one third were somewhat
demand for skilled workers in a majority
As HR departments come under
heard of RPO.
of countries surveyed. Almost half of
increased scrutiny to meet their
respondents anticipated hiring more
organisational goals and metrics, the
than 100 permanent employees in 2007,
efficacy of the recruitment process
while one third said they would hire more
itself has become a key determinant of
than 100 temporary employees. Some
success. The survey found a median cost-
18% will hire more than 100 university
per-hire of 3,000 Euros with some HR
graduates.
managers reporting an average cost-per
There is a trend of strong underlying
familiar and just under 10% had not
More than half of the respondents currently outsource some or all of the HR function. The vast majority of respondents said that they would definitely consider outsourcing their recruitment in the future. The three
hire of more than 10,000 Euros.
priorities for an outsourced provider
employers need to fundamentally
Many businesses have avoided local
hire, lower the cost of recruitment,
reassess how they attract and retain
skills shortages through off-shoring work
and rationalise multiple sources of
those people who are vital to their
to lower cost countries such as China
recruitment.
business. The sharp tightening in
and India. Even these countries are now
The competition for talent means that
would be to reduce the time-to-
05