An RPO SWOT Analysis
Using a Recruitment Process Outsourcing (RPO) firm to outsource your hiring is something to be seriously considered when stepping up your recruitment efforts. However, it is important to choose the right RPO or the results may not be what was expected going into the deal. RPO providers have strengths, weaknesses, opportunities, and threats like every other aspect of business.
In choosing the right RPO, you will have some major strengths to consider. RPO firms typically lead to large cost savings; for example, Hire Velocity can drive down your recruiting costs by as much as 50%. Not only that, but outsourcing all or some of your recruiting efforts allows your recruiters and hiring managers more time to focus on other important business functions. It also provides your business the ability to scale up or down as needed gaining a flexible recruiting advantage. Another strength of using an RPO firm is the speed and quality of recruiting. An effective RPO can reduce your time-to-hire and fill those open positions faster. But filling open positions faster should not affect the quality of the candidates. Reputable RPO firms will be able to deliver qualified, available, and interested candidates for your open positions. RPO providers are process driven and leverage Service Level Agreements (SLA) to measure, reward and sometimes penalize based on attainment of results. The SLA is such an important part of the RPO process because it details the expectations, objectives, needs, numbers, procedures, and quality of the candidates.
While there are numerous strengths for using an RPO, there can also be weaknesses if the right firm is not chosen. It is important to meet with the RPO and ensure that the partnership is a good fit since it will become an extension of your team. Choosing an RPO that cannot deliver on what you expect can cause it to have a negative impact on your business. It is important to look at the experience that the RPO firm has. For example, Hire Velocity has over 70 years of recruiting leadership on our team and the client list includes Fortune 500 retailers, private to public healthcare companies, Fortune 1000 telecom companies, and Fortune 100 technology companies.
Using an RPO can also have its opportunities. In general, RPO firms have a proven record for high hiring numbers across the industry. Organizations that have previously used a reputable RPO firm can attest to the positive results achieved during the partnership. The partnership created during the RPO experience is another opportunity for an organization. When requiring fast and cost-efficient hiring in the future, the partnership that was created with the RPO in the past will allow for a quick start to the recruiting requirements and ensure successful results based on previous experience with the organization.
As with any other business task, there are threats involved. One of the initial threats is finding that the organization and the RPO do not have a partner relationship. Again, this goes back to meeting with the RPO and making sure there is compatibility before choosing it. Additionally, a well thought-out SLA will provide guidance and avoid one party being unhappy with the partnership.
RPO SWOT
Strengths
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Weaknesses
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Opportunities
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Threats
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Hire Velocity attends RPO Summit 2010
The annual RPO Summit was held earlier this week in Las Vegas. The RPO Summit brings together executive recruitment and talent acquisition decision-makers in the single largest gathering of the year. Hire Velocity was in attendance this year and had a great time meeting others in the industry.
We had a great time networking with RPO (Recruitment Process Outsourcing) buyers and with other successful RPO firms in the industry. It was especially beneficial to hear live from so many of the large enterprise buyers regarding how their relationship works and the tweaks that they have made along the way. The Summit enabled all of us to learn from each other, share insights, and work on challenges facing the industry as a whole.
This year we showcased our Hiring Suite of Services, our unique combination of recruiting technology, process, and people. The Hiring Suite of Services includes services such as Active Sourcing & Screening, Passive Candidate Development, Name Generation, Life Cycle Management, On Demand RPO, Project RPO, and Full RPO.
In an effort to document the wonderful experience at the RPO Summit, we have added a collection to our Flickr page with pictures taken during the event.
Seasonal hiring on the rise
The holiday season is right around the corner and retailers are preparing for an increase in foot traffic. 58 percent of stores expect to increase sales 6 percent this season compared to last year, according to the Michigan Retailers Association. These stores need to be able to meet the increasing demand and that means hiring temporary employees this season. There are tens-of-thousands of companies looking for season employees to help meet the customer demand. Additionally, many of these positions have the potential to turn into permanent employment.
Many companies see seasonal employment as an opportunity to attract and retain the best talent. Seasonal positions can be looked at as an audition and new hires should take initiative in showing how hardworking they are. JCPenney plans on hiring 30,000 seasonal workers this season, an increase from last year. Ann Marie Bishop, a spokeswoman for JCPenney, explains, “getting a seasonal position allows new associates to experience working at JCPenney and decide if it suits them.” She explains that the company sees seasonal hiring as an opportunity to attract and retail the best talent.
This increase in seasonal hiring does not come without great competition. According to Bloomberg, there are about five applications for each job opening. With about 15 million Americans without a job, there are a lot of people looking for employment, even if it is only temporary. While the increase in seasonal hiring looks appealing to the unemployed, it still may not make it easier to find a position this holiday season.