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RPO Continues to Grow
While internal recruiting staff cuts have hurt some businesses and employees, those same cuts are causing recruitment process outsourcing companies to see an increase in interest.
Employers who are realizing they will need to begin hiring again within the next few months, but have cut their own recruiting staff, are more and more turning to RPO providers. According to an article by Workforce Management, this trend seems to be across the board.
For instance, The RightThing, an RPO group based in Ohio, has signed three Fortune 500 companies during the past month, as those companies scaled back most of their own recruiting staff because of the economic recession.
“Over the last 45 days we have seen a surge in activity,” CEO Terry Terhark said in the article. “Generally when you see a downturn like this, the recruiting department is the first to be impacted, and so many of these recruiting organizations have been decimated.”
Spherion, an RPO company based in Florida, has seen a 40 percent average increase in new customers during the past four months.
“For many companies, their recruiting departments were the first to go, and as things started to turn around they are realizing that they don't have the capacity to get back to where they were,” Vice President Rebecca Callahan said. “All of a sudden RPO becomes a favorite item for them.”
RPO companies also are benefiting from the current state of the economy by having access to recruiters who have been laid off from large companies. For instance, The RightThing hired 100 recruiters during the past six months, and Spherion has hired recruiters as well.
Although RPO has grown by about 3.5 percent so far this year, NelsonHall, a global business process outsourcing consultant, predicts growth will increase to 12 percent during 2010.
“All of the providers that I have spoken to are seeing their pipeline bigger than ever,” Gary Bragar, HR outsourcing analyst at NelsonHall, said. “Even though contracts haven't all been signed, they are seeing people realizing that they need to get their recruiting capabilities back.
“This is the time to test out RPO because most companies don't have the pressure to fill hundreds of positions right away,” he added. “Companies can start out with a smaller number of hires and assess how things are going before going full speed ahead.”
Employers who are realizing they will need to begin hiring again within the next few months, but have cut their own recruiting staff, are more and more turning to RPO providers. According to an article by Workforce Management, this trend seems to be across the board.
For instance, The RightThing, an RPO group based in Ohio, has signed three Fortune 500 companies during the past month, as those companies scaled back most of their own recruiting staff because of the economic recession.
“Over the last 45 days we have seen a surge in activity,” CEO Terry Terhark said in the article. “Generally when you see a downturn like this, the recruiting department is the first to be impacted, and so many of these recruiting organizations have been decimated.”
Spherion, an RPO company based in Florida, has seen a 40 percent average increase in new customers during the past four months.
“For many companies, their recruiting departments were the first to go, and as things started to turn around they are realizing that they don't have the capacity to get back to where they were,” Vice President Rebecca Callahan said. “All of a sudden RPO becomes a favorite item for them.”
RPO companies also are benefiting from the current state of the economy by having access to recruiters who have been laid off from large companies. For instance, The RightThing hired 100 recruiters during the past six months, and Spherion has hired recruiters as well.
Although RPO has grown by about 3.5 percent so far this year, NelsonHall, a global business process outsourcing consultant, predicts growth will increase to 12 percent during 2010.
“All of the providers that I have spoken to are seeing their pipeline bigger than ever,” Gary Bragar, HR outsourcing analyst at NelsonHall, said. “Even though contracts haven't all been signed, they are seeing people realizing that they need to get their recruiting capabilities back.
“This is the time to test out RPO because most companies don't have the pressure to fill hundreds of positions right away,” he added. “Companies can start out with a smaller number of hires and assess how things are going before going full speed ahead.”
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