Recruitment Process Outsourcing set to grow over the next two years
It was announced at the Recruitment Live event in London this week that the recruitment process outsourcing (RPO) industry generated £2.8bn in revenue in 2013, a figure that could increase by another £500m a year over the next two years.
Statistics from a recent recruitment outsourcing survey conducted by leading industry experts, Staffing Industry Analysts (SIA) – a US-based research and advisory service that focuses on contingency staffing
Adam Pode, director of International Research & Analysis at SIA, said that 75% of European and 62% of North American businesses either have RPO arrangements in place today or are likely to “seriously explore” doing so over the next two years, making the industry a very “big deal”.
Pode’s comments were based on a recent RPO survey conducted by SIA, a US-based research and advisory service that focuses on contingency staffing. The company’s reports and survey results are released only to members, but Pode offered highlights at his talk, attended by Recruiter.
The average RPO serves three countries, has 24 clients and has been around for 11 years. The smallest surveyed by SIA has five and the largest 265, Pode said.
Of the RPOs surveyed, 85% of the work focuses on external hires, with 15% involving internal hiring. Pode said that internal hiring offerings might actually not be cheaper to put into place, with “white glove treatment” required to ensure quality practice.
At 90%, the most purchased RPO service is candidate sourcing, Pode said. He said he was surprised that relocation management, a service purchased by 18.5% of users, did not represent “a bigger chunk” of RPO business.
Talent exchanges – a buzz phrase of RPO providers for such tools as social networks and job boards – get significant use by the RPOs themselves. Social networks are most popular, with 91% of RPOs surveyed using them, while 89% use job boards, Pode said.
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Orbital set for growth and future challenges
“We’re delighted to hear the recent statistics here at Orbital, but we are not at all surprised. This year has been exceptionally busy in terms of delivering bespoke solutions throughout the UK. Furthermore, we have been working relentlessly to meet the needs of many who are exploring and commissioning the outsourcing of their staffing solutions.” Comments Neil Powell, Director of Orbital Recruitment.
“We’re already set for growth and have put many practices and processes in place this year that will see the continued delivery of a harmonious relationship between worker and employer. We will continue to remain committed to providing, not only the best but most efficient recruitment solutions for our clients.” Added Mark Burton, Director.
Orbital Recruitment are a supplier of personnel both temporary and permanent to companies throughout the UK and are a specialist in delivering onsite recruitment services, in particular e-fulfilment recruitment services. Find out more about the recruitment services we offer.