- Integrating artificial intelligence into the systems is one of the emerging offshore RPO trends.
- DEI initiatives and candidate care are a top priority for RPO providers.
- The on-demand segment of the industry will surge because of small and medium-scale enterprises (SMEs).
Recruitment takes time, money and energy, so it’s understandable if you feel on edge when a hiring need arises yet again and don’t know how long it’ll take to find the right hire or whether you’ll ever find what you need.
Luckily, recruitment process outsourcing (RPO) has transformed recruitment, helping companies streamline their hiring processes and find the right talent to stay competitive in an ever-evolving business landscape.
Whether you’re a seasoned HR professional, a business owner or a staffing company, keeping up with top RPO trends can help you find the right talent acquisition partner.
From integrating artificial intelligence (AI) to facilitating a customized candidate experience, these trends allow RPO providers to stay relevant by providing tailored solutions to their clients.
What is an RPO?
RPO refers to the outsourcing of recruitment to a third-party provider. Instead of you stressing over recruitment, you bring in professionals who are experts at attracting, screening and hiring top talents. Depending on your needs, an RPO provider might assume all recruitment functions or some parts of the process.
The Benefits of Hiring an RPO for Your Recruitment
RPO has redefined talent acquisition and your business can benefit from it in the following ways:
- Recruitment mastery: Apart from years of recruitment expertise, you’ll also bring in recruiters leveraging technology and data analytics to cast a wide net that can land you hard-to-find candidates.
- Two is better than one: You can take the pressure off your HR staff by having an RPO provider take care of resume screening and candidate interviews so they can focus on other vital functions, like addressing employee concerns.
- Scalability: RPO providers offer scalable hiring solutions so you won’t panic when your business suddenly needs an additional workforce or an entirely new department.
- Employer branding: RPO helps you strengthen your brand through positive candidate experience and efficient recruitment.
- Compliance: With their industry knowledge, you can also rely on RPO providers to ensure your recruitment’s compliance with rules and regulations.
Top Offshore RPO Trends You Need to Look Out
In 2022, the RPO industry was valued at $7.33B and is estimated to grow 16.1% by 2030. There are several RPO providers to choose from and these trends in the RPO industry will help you find the right partner.
1. Technology Adaptation
Efficiency is RPO’s main selling point and the best way to achieve this is by leveraging available technology. RPO providers will increasingly integrate artificial intelligence, cutting-edge applicant tracking system (ATS) and data analytics not only to source and screen candidates but also to offer personalized candidate experience. You can expect RPO services using chatbots for initial interactions with prospective hires.
2. Machine Learning and AI-Powered Candidate Search
You are probably aware how labor-intensive recruitment is. A Forbes article mentioned that an average hire takes 23 hours of resume screening and interview scheduling and not all resumes are worth the time. You want open positions to be filled as soon as possible, but you also want to make sure that the new hire is the right person for the job.
RPO providers will increasingly use AI and machine learning to reduce time-to-hire by automating resume screening and the shortlisting of top candidates. They will use AI to analyze the online presence of a prospect to determine candidate fit. Commercial Carrier Journal reported that 87 percent of business organizations surveyed plan to invest in AI for the next 12 months. RPO providers are no exception to this trend.
3. DEI-centered initiatives
As businesses expand globally, they are on the lookout for talents from diverse backgrounds to inform them of local preferences, values and demand. Diversity, equity, and inclusion (DEI) will remain a top priority in acquiring talent. We expect RPO providers to engage in DEI initiatives to help their clients diversify their workforce. These initiatives are beneficial for your brand, making your business appealing to a broader talent pool.
Brodzik and colleagues (2021) found that 57 percent of consumers are loyal to brands that address social inequality. They also found that 33 percent of high-growth organizations, as opposed to only 17 percent of negative-growth organizations, consider DEI a top performance metric. With their wealth of experience, connection with potential hires, and AI, you can also rely on RPO providers to also reduce bias in hiring.
4. Candidate Care
People like to feel valued and you can imagine the frustration one gets when it takes weeks for HR to simply acknowledge receipt of a resume. The slow response of internal recruiters is understandable given they have so much on their plate, which is why it pays to outsource recruitment instead. You might also be upset finding that a candidate on top of your list suddenly went off the grid.
A December 2023 Indeed poll found that 78% of job-seekers had ghosted a potential employer. It’s stressful because you have to start recruitment all over again or settle for the next best candidate. The job market, especially for those with technical knowledge and skills, has become so competitive that a positive candidate experience is crucial. RPO providers will invest more in candidate care, ensuring personalized experience and 24/7 applicant support.
5. Green Recruitment
Climate change is real and we expect the RPO industry to pivot to green recruitment, with the use of virtual recruitment events, paperless processes, sustainable sourcing, prioritizing remote work opportunities, and educational opportunities to teach candidates how to reduce their carbon footprint.
A study published in Frontiers found that companies practicing green human resource management (GHRM) are seen as reputable and responsible employers, which makes them more attractive to candidates. The same applies to RPO providers.
6. Upskilling and Reskilling
With the current talent shortage, RPO providers will invest more in reskilling and upskilling their talent pipeline to meet client’s needs. RPO not only helps you fill open roles but also helps you identify skill gaps in your current workforce.
With their experience, offshore recruiters know what skills and traits employers are looking for that your current employees might lack. They understand the current industry landscape and where it is heading to advise you on what your HR should focus on in terms of skill upgrading. Upskilling and reskilling also improve candidate care, making potential hires trust the RPO provider more.
7. Reaching Remote-Only Employees
Your experience surviving or thriving amidst the pandemic showed the importance of remote work for businesses and employers have also seen its advantages. FlexJobs reported that 95% of working professionals want some form of remote work, while 51% prefer a fully remote job. 77% also stated that they are more productive working remotely.
Companies, especially small and medium-scale enterprises (SMEs), can also benefit from remote work by reducing operational costs. Expect RPO providers to target remote-work employees.
8. Growth of On-Demand Segment because of SMEs
There are different types of RPO arrangements. If you’re dissatisfied with your current approach to acquiring talents, a full or enterprise-wide RPO is best for you. The provider will take care of all stages of recruitment, from candidate sourcing to onboarding.
If your company plans to launch a new product line that targets Millennials and Gen Z and you are well aware that these groups prefer socially responsible brands, you might consider a project or on-demand RPO to help you with the formation of a corporate social responsibility department.
RPO providers will likely offer more on-demand RPO services because of the growth of SMEs. Grand View Research reported that full RPO accounted for 55% of RPO industry revenue in 2022, but on-demand RPO will grow the fastest by 2030 at a CAGR of 17.2%.
9. Need for Advanced Security Protocols
To find the right candidate, an RPO provider will ask you for information about your organization and its culture, and you will wonder how it handles your data. You might also worry about unauthorized use since data breach is all over the news. We expect RPO providers to improve their security protocols.
10. Knowledge Process Outsourcing
Knowledge process outsourcing (KPO) is another sector of the business process outsourcing (BPO) industry, like RPO. However, with top talents mostly possessing specialized skills and knowledge, RPO providers are bound to also adopt KPO. The global KPO market is valued at $31.14B in 2024 and is projected to reach $88.12B by 2030. These figures are significantly higher than those of RPO and the latter is expected to incorporate KPO best practices to ride the surge in the demand.
Stay Ahead with the Right RPO Partner
Given the emerging trends in the RPO industry, outsourcing recruitment is becoming a strategic need. It lets your business focus on core activities and achieve corporate objectives. The use of AI and other cutting-edge technology makes recruitment faster and more effective but they are expensive.
With an RPO provider, you can benefit from a wealth of recruiting experience, access to cutting-edge technology and a rich talent pool. To stay ahead of the competition, now is the time to partner with an RPO provider.
Sysgen RPO has more than three decades of experience empowering businesses worldwide, with skilled headhunters who stay up-to-date with hiring trends. Our full life cycle recruiting helps you attract and hire top talent at a fraction of the cost of traditional recruiting. Our rich talent pipeline and efficient technology-driven recruitment have helped business leaders and staffing companies meet their hiring needs.
Partner with us today and reap the benefits of RPO.
References
Awwad Al-Shammari, A. S., Alshammrei, S., Nawaz, N., & Tayyab, M. (2022). Green human resource management and sustainable performance with the mediating role of green innovation: a perspective of new technological era. Frontiers in Environmental Science, 10, 901235.
Brodzik, C., Cuthill, S., Young, N., & Drake, N. (2021, October 19). Authentically inclusive marketing: Winning future customers with diversity, equity, and inclusion. Deloitte Insights. https://www2.deloitte.com/xe/en/insights/topics/marketing-and-sales-operations/global-marketing-trends/2022/diversity-and-inclusion-in-marketing.html
Cannon, J. (2024, June 14). Survey: Companies plan to increase use of AI over the next 2 years. Commercial Carrier Journal. https://www.ccjdigital.com/technology/article/15677669/survey-companies-plan-to-increase-use-of-ai-over-the-next-2-years
Howington, J. (n.d.). Remote work statistics & trends: The latest in remote work. FlexJobs. https://www.flexjobs.com/blog/post/remote-work-statistics/
Knowledge process outsourcing market size and share analysis: Growth trends and forecasts (2024-2031). (n.d.). Coherent Market Insights. https://www.coherentmarketinsights.com/industry-reports/knowledge-process-outsourcing-market#:~:text=Market%20Size%20and%20Trends,16%25%20from%202024%20to%202031.
Naik, N. (2023, June 1). How artificial intelligence benefits recruiting. Forbes. https://www.forbes.com/sites/forbesbusinesscouncil/2023/06/01/how-artificial-intelligence-benefits-recruiting/
Recruitment process outsourcing market size, share & trends analysis report. (n.d.). Grand View Research. https://www.grandviewresearch.com/industry-analysis/recruitment-process-outsourcing-rpo-market
When candidates and recruiters vanish: Indeed’s ghosting in hiring report. (2023, December 7). Indeed. https://www.indeed.com/lead/indeeds-ghosting-in-hiring-report
