Tag: AMS

The combination of the large-scale downsizing of recruitment teams last year and the huge hiring surge this year has led to a significant increase in the number of companies using project RPO.

For a report commissioned by talent outsourcing and advisory firm AMS, Aptitude Research surveyed 342 TA and HR leaders at director level and above to understand the key drivers of project RPO.

Some 42% of survey respondents said needing help to face a hiring surge was the biggest reason for using project RPO. A similar percentage (40%) reported that their recruiting teams had been downsized in 2020.

“The challenge for many employers globally is that hiring hasn’t just increased slightly, many TA teams are dealing with significant spikes in hiring, while doing so with fewer internal resources in a highly competitive talent environment,” said Maxine Pillinger, Regional Managing Director for EMEA at AMS.

“We’ve been working with our RPO clients globally on a project basis for years, but now we’re seeing an increased level of demand for a partner to help them meet their short-term demands while they still support the ‘business as usual.”

Multiple secondary drivers

The second largest driver of firms’ decisions to opt for project RPO was reducing the time taken to fill vacancies, with 75% responding that with project RPO they were able to reduce their time to fill to less than 30 days.

Expanding into new markets (31%), supporting high growth (27%) and having fewer recruiters and resources (23%) were the other main drivers.

The report outlined that while traditional RPO partnerships often lasted more than two years, project RPO engagements are most commonly for less than six months, and for more than 70% of firms they are for less than six weeks.

But as is outlined in a new TALiNT Partners white paper, this lower level of commitment, combined with the current high demand, has led many RPO providers to become increasingly choosy about which projects they take on.

The report, entitled: The art of saying ‘no’ and the rise of ESG’, presents insights from an event co-hosted by TALiNT Partners and Cornerstone-On-Demand, with views from leaders at Gattaca, IBM, Lorien, Reed Talent Solutions, PeopleScout, KellyOCG, Hudson RPO, Green Park Interim & Executive Ltd, Aston Holmes, Armstrong Craven, Manpower Group Talent Solutions, LevelUp HCS, Datum RPO, Group GTI, RGF Staffing, Page Group, Resource Solutions and Comensura.

Providers get picky

A number of guests at the event said the high level of demand in today’s marketplace meant they were having to push back on some clients, either turning down work or tempering expectations about when projects could start.

Joanna Fagbadegun, Sales Director at Lorien, said: “The market is exceptionally busy, especially on the tech and professional side. We’re starting to notice more urgent requests from customers looking for recruitment team augmentation or a head to manage workload. Sometimes the ask is just for a price rather than a detailed proposal, which can indicate they may not have a clear idea of exactly what they need, just that they know they need help”.

Several providers said the sector’s own talent shortages have become a barrier to taking on all the work currently on offer. “The market challenge is always quality of workers in recruitment to support growth and enable the flexibility for new offerings. We haven’t learned from past downturns and upturns in demand,” said Adam Shay, Global Marketing Director of Resource Solutions. Nick Greenston, CEO of Retinue Talent Solutions agreed, adding that the industry has focused on growing outsourced juniors instead of attracting and retaining more experienced talent.

Photo courtesy of Canva.com

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