Recruitment Process Outsourcing (RPO) is an embodiment of the Business Process Outsourcing strategy. Here the company transfers either the complete recruitment process or its part to an external provider. This external provider can take up roles in the organization, especially in the HR division. They can also provide valuable insights into the growth of the company.
An RPO provider can recruit new staff, technology, and methodology based on the client’s requirements. It assumes the role of designing and managing the whole recruitment process.
The RPO industry has been gaining popularity in recent years. It is slowly changing the form of how recruitment usually works. You can dive deeper into the strategies and emerging trends in RPO. Companies have been focusing on deriving the maximum benefits at sustainable costs through recruitment Process Outsourcing methods. And there have been quite a few trends emerging from the industry.
Here are some of the trends emerging in the RPO industry
1. Improving the Company Branding
Hiring an employee is no easy task. It requires a lot of effort because the level of competition has been continuously evolving. According to a recent RPO staffing survey, candidates prefer to join companies with the right brand name—thereby increasing the chances of getting more qualified and accomplished employees.
Recruitment agencies don the cap of marketers to focus on building attractive employer brands. They use channels like social media and video marketing to reach the right candidates apart from the conventional methods.
So, companies need to try and improve their branding to attract such candidates for hire. Better yet, with a compelling brand, you can also reduce the hiring cost per resource.
2. Implementing Automation
The evolution of Automation has made it easier to form new recruitment solutions. Around 74% of the companies have shown interest in implementing Automation for their HR departments. And most of these companies already utilize Artificial Intelligence to screen and process candidates. Recruitment agencies have come forward to use Intelligent screening software that automates screening of candidate resumes by using AI on their existing resume database. These techniques can be used to determine the existing employees’ experience, skills, and experience. This knowledge is then applied to new applicants to automatically shortlist the strongest candidates and grade and rank them accordingly.
This form of screening eliminates human error and manual workload. It can also give insights into which candidates can become successful or unsuccessful employees based on their performance, tenure, and turnover rates. Implementing Automation in recruitment can reduce the time and cost of hiring enormously.
3. Applying Analytics for Recruitment
It has always been known that hiring skilled talent requires much effort and analysis. And for that reason, data-driven tools are used for simplifying the entire hiring process. So, if the HR team recruits an individual based on data and analytics, it means that the RPO services have proven to be more effective for that company.
Most tech-based companies prefer using analytics for recruitment because of the valuable data it portrays. It also makes it easier for the company to estimate the scope of development within the HR department. Recruitment analytics uses statistical means and models for the recruitment process. It provides information to the HR teams and recruiters on the current and future performance potential of their recruiting processes to improve business outcomes.
Recruitment analytics determine the number of candidates who have applied and how many of them have actually qualified. You can also get to know which sources have the potential to produce the best hires. Analytics can even provide additional information about retention rates and characteristics shared by top industry performers. Recruiters and hiring managers, thus equipped with this knowledge, will be in a better position to know which characteristics to target.
4. Importance of Soft Skills
Experts say that soon, the main reason for a candidate to land a job will be his soft skills. These skills include communication skills, critical thinking, and decision-making skills. This criterion also emphasizes the importance of skills like communication, organization, time management, and team play. These personal qualities of candidates can help determine the candidate’s behavior along with his technical ability.
The top two soft skills that are generally preferred are dedication and commitment. Skills like these give proof of the candidate’s loyalty ad that he will stick to the company. Also, say if the companies were to give more importance to soft skills than technical skills, they could eventually experience a 20-30% growth in their businesses.
5. Job Experience and Value
Most companies believe that experienced candidates play a significant role in the growth of the organization. It is said that the company’s product services and customer relationships depend on the recruitment of the right staff members. Prior work experience can be effectively used by recruitment agencies as a selection criterion. This is because such candidates have the skills and knowledge that contribute to performance.
And with the introduction of the referral system, talent hiring has become more reliable these days. In addition to that, it also increases the chances of finding the right candidates through a credible source.
The trends mentioned above are currently emerging from the Recruitment Process Outsourcing (RPO) industry to hire better candidates. These trends will serve as a gateway for most businesses to attain maximum wealth and profits with minimal resources. The RPO industry is heading in the right direction in terms of growth and development. And it will be interesting to see what the industry has in store for us.