RPO report

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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-

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