Saturday, January 19, 2008

Outsourcing for the Permanent Recruitment Industry


Does a full RPO Solution seem a leap of faith? Are you interested in outsourcing some parts of recruitment process but want to maintain control of key elements like your employee brand?

According to the latest industry figures, outsourcing is on the up, with the number of companies outsourcing critical business functions rising year on year. A recent survey of some 3,500 procurement, supply chain and finance professionals worldwide revealed that 95% of firms want to use procurement outsourcing to improve their sourcing strategy.

Along with key findings from the Recruitment and Employment Confederation highlighting recruitment to be the primary problem for more than half of all UK companies, ahead of business strategy or management, it is not surprising that more UK companies are turning to RO (Recruitment Outsourcing).

Some companies are, however, reluctant to use the services of specialist recruitment outsource providers to outsource elements of their business. At the yearly CIPD event in Harrogate last September, HR Directors were surveyed about their attitudes to RO. The results showed that although 60% of respondents are frustrated that it takes between three and five months to fill a management position, 56% feel outsourcing recruitment is a risk to their organisation.

The search for a suitable RO provider can be confusing because suppliers come from various backgrounds and bring different skills. Some firms were born out of executive search companies while others are recruiters who have relabeled their staffing business as RO so they can offer a fully managed service. There are also software companies that have developed online recruitment tools and are moving into the service sector.

One of the more recent arrivals in the permanent recruitment outsourcing sector is de Poel Consulting. Although they have been in operation since 2001 their focus has been predominantly within the temporary labour industry working successfully with clients such as Sainsbury’s, Royal Mail, TNT, Eddie Stobart, MFI and the Co-op. Since moving into the permanent sector a year ago de Poel can boast a similar success story. Their permanent recruitment service has attracted the attention of existing clients, as well as triggering interest from several new sectors, including a very prominent broadcasting station.