The role of RPOs and agencies in 2014

Howard Flint

This year presents a fantastic opportunity to strengthen the relationship between recruitment process outsourcers and recruitment agencies, forging a closer bond that best serves the needs of mutual clients. Howard Flint explains

The growth of the recruitment process outsourcing (RPO) market in recent years is testament to its success in addressing the recruitment needs of British businesses. The most mature and recognised RPOs within this booming industry have become strategic in their approach, and in exceptional instances are now seen as more of a partner to their clients.

We have termed this strategic recruitment outsourcing (SRO), extending the traditional RPO relationship and proposition to gain strategic involvement at board level. For recruitment agencies able to leverage their relationships with such RPOs, this presents a fantastic opportunity to get closer to the decision makers and help shape the way they recruit.

And for the end user, SRO is the most effective way to respond to the main areas of concern for businesses anticipating growth, which are primarily linked to the ongoing issue of demand outstripping supply.

There are some key areas that will be more important than ever in 2014, and strategic RPO partners and agencies can add real value to each.

Winning talent

The talent shortage within the British economy dominated the news agenda in 2013, particularly across science, technology, engineering and mathematics subjects. Research from the Social Market Foundation found 100,000 vacancies will arise every year requiring graduates with degrees in STEM subjects; over 50% more graduates than is currently predicted between now and 2020. If no action is taken, recruiters are left with a seemingly impossible task of sourcing candidates that do not exist on our shores.

With the support of suppliers and skilled agency recruiters, SRO can address this. The strategic approach will look at defining the long-term requirements of a business and shape the ongoing recruitment approach to ensure they are met. It will address elements such as employer brand, so that the very best candidates actively seek work within that particular business, even if the material prospects such as salary and benefits are less competitive than elsewhere.

Apprenticeships

Traditionally valued among sectors reliant on manual labour, apprenticeships are increasingly being viewed as a means to address the skills shortage across all areas of the British economy. According to the National Apprentice Service, 1.4 million online applications were submitted to UK organisations to attain a place on an apprenticeship recruitment programme from July 2012-13, with their popularity expected to rise in 2014.

Hiring an apprentice means businesses can mould that individual to their exact needs, training them on the job with company-specific skills and qualities typically lacking among new hires. This is especially true within technology companies, where young digital and technical apprentices are adding real value to businesses that typically struggle to keep up with fast-paced advances in these areas. Recruiters have a real opportunity to capitalise on this by showing expertise in sourcing and selecting the best apprentices for their clients.

Apprentices also add diversity to a workplace, setting it apart from its competitors. Businesses of all sizes are now expected to have a CSR policy in place and prove that this is being rigidly adhered to. Elements of CSR such as employee engagement, diversity and staff training are only possible with the input of the recruitment arm. A strategic approach can source and embed talent that complements a client’s CSR policy, helping to enhance the overall reputation of the business.

Brand guardianship

Developing a strong brand for the client that is well respected, wins and retains new business and attracts the best talent sets the foundations for growth. The best recruiters make this possible by supplying a reliable pool of candidates that fit the company culture and enhance the brand’s reputation.

SRO takes this one step further, with the ability to shape the recruitment process according to the wider business aims in the short and long term. The agencies and RPOs that will thrive in 2014 and beyond are those that take the time to truly understand the client at the deepest possible level, working together across the supply chain to gain the end user’s trust and confidence. Only then will recruitment be seen as a business enabler, rather than a transactional commodity.  

Agencies that have strong channels across each of these key themes for 2014 should communicate these assets to SROs, which can influence clients and prove this is a valid, superior alternative to traditional candidate sources.  By demonstrating agency capability to recruit apprentices, while feeding into CSR policies and nurturing the brand as a whole, RPO partners with a strategic influence can help dictate a shift in policy.

This can be moved towards a model that not only answers the client’s needs in a thorough way, but ultimately benefits agencies working within that RPO’s supply chain.

Howard Flint is managing director of OMNI RMS