{"id":1657,"date":"2010-06-22T07:05:00","date_gmt":"2010-06-22T07:05:00","guid":{"rendered":"http:\/\/localhost\/projects\/horsesforsources\/rpo-resistance-062210\/"},"modified":"2010-06-22T07:05:00","modified_gmt":"2010-06-22T07:05:00","slug":"rpo-resistance-062210","status":"publish","type":"post","link":"https:\/\/www.horsesforsources.com\/rpo-resistance-062210\/","title":{"rendered":"Surprise, surprise… HR still hates outsourcing. Is its next victim RPO, or will it get trumped this time?"},"content":{"rendered":"

I feel like we’ve been here before.\u00a0 Oh wait – we have!\u00a0 Remember the heady old days of HR BPO, when a couple of hundred enterprises shifted multiple HR\u00a0functions over to service providers, with the hope of saving money and – perhaps –\u00a0find a few smidgens of improvement with their HR strategy?<\/strong><\/p>\n

While a couple of service providers failed to get their delivery model right and ended up losing money, HR executives screamed from the rooftops to ensure every single negative view of HR BPO was\u00a0expounded in all the HR media, and anyone else who would listen.\u00a0 They got their wish, as firms such as Convergys and Hewitt got crucified by Wall St, and most of the providers made a hasty retreat from the business.\u00a0 In fact, it\u00a0proved such a grueling experience for\u00a0Convergys, it recently jettisoned<\/a>\u00a0one the industry’s largest\u00a0HRO businesses for\u00a0loose change.<\/p>\n

Now enter the latest threat to HR:\u00a0 Recruitment Process Outsourcing.\u00a0 And this time, our HR friends will have to try a\u00a0lot harder to throw this one under the bus.<\/em><\/strong>\u00a0<\/p>\n

Firstly, most of the providers in this space have been dealing with recruiting for years,\u00a0and, secondly,\u00a0the newer providers have been getting their feet wet with a host of successful pilots and early client engagements, which our forthcoming HfS Research report will discuss at greater length.\u00a0 And thirdly, these providers are fulfilling a badly-needed service for many enterprises today:\u00a0 helping them source new pools\u00a0talent, get a handle on managing the talent pipeline, access new recruiting technology and social networks, while helping drive out cost by running various back office recruiting tasks offshore.\u00a0\u00a0<\/p>\n

HfS Research’s\u00a0latest study, conducted in conjunction with Human Resources Executive Online, gleaned the views and dynamics of 238 HR executives towards RPO, of which 34 percent were senior VPs or VPs of HR. \u00a0And the first factor that was apparent, was that RPO was\u00a0low down the list of recruiting services HR executives are going to take a look at this year.\u00a0 Let’s examine this further…\u00a0<\/p>\n

HR’s major recruiting concerns <\/span><\/strong><\/p>\n

Quite simply, HR executives are struggling to cope with the demands of\u00a0developing and\u00a0nurturing their organization’s\u00a0talent pipeline, while trying to avoid the exorbitant fees of headhunters and staffing agencies.\u00a0Our new study\u00a0illustrates\u00a0these elements of recruiting new talent\u00a0are proving to be a “great concern”\u00a0to organizations:<\/p>\n

\"\"<\/span><\/p>\n

HR executives need help and\u00a0should consider transferring part of its recruitment function to an external service provider.\u00a0 The more leg-work they can offload, and the more help they can\u00a0receive to\u00a0develop the talent pipeline, and the more time they can actually devote to strategic functions, such as spending more time understanding the needs of their internal hiring managers and\u00a0facilitating ongoing\u00a0 staff development initiatives.\u00a0<\/p>\n

HR executives are highly resistant towards outsourcing any of their recruiting processes<\/span><\/strong><\/p>\n

Seven-out-of-ten HR executives claim they won’t looking into RPO because it “does not fit” with their corporate culture or ethos, which is consistent across all sizes of organization.\u00a0 And if you examine that datapoint further, you’ll find that attitude\u00a0running at 80%\u00a0for the SVPs \/VPs of HR:<\/p>\n

\"\"<\/span><\/strong><\/p>\n

Recruiting smartly is about engaging outside help that can infiltrate marketplaces effectively to get the best results – not too far removed from a PR agency which can engage markets with added expertise, technology and canny use of social media.\u00a0 HR\u00a0trying to perform\u00a0all\u00a0of its\u00a0recruiting inhouse is like marketing doing all their PR work internally.\u00a0 No CMO worth his\/her salt would really contemplate\u00a0running all of its\u00a0PR internally these days, unless it was a very small activity that didn’t warrant outside help.\u00a0 So why should the\u00a0SVP of HR\u00a0be any different, when it comes to running recruiting?<\/p>\n

Other business functions have all resisted outsourcing in the past:\u00a0 IT, finance, procurement, claims processing, clinical data\u00a0analysis\u00a0etc.\u00a0 However, once staff and managers got used to working with outside help and\u00a0expertise, and realized it was a vital part of their team, most have accepted that\u00a0it is a way of life for today’s organization.\u00a0 So why is HR so different that it has to try and run everything itself?\u00a0<\/p>\n

The HfS Viewpoint:\u00a0 If HR continues to resist RPO, key decisions over talent management will like be made for them in the future<\/span><\/em><\/strong><\/p>\n

Emerging from the Recession, the focus on developing new talent has never been so intense – especially in increasingly globalized markets where it’s getting harder and harder to manage the recruiting pipeline on tightening budgets.\u00a0If HR leadership\u00a0fails to seek the help it needs soon, it may find decisions being made in corporate meetings, where the SVP of HR isn’t even invited.\u00a0 The challenge for RPO providers is clearly to find avenues of communication with operational leaders outside<\/em> of the HR department.<\/p>\n

This little outsourcing saga has a few cycles yet\u00a0to run, and\u00a0is likely to\u00a0have a major impact on the way companies approach their talent management in the future.<\/strong><\/p>\n

HfS Research’s coverage of RPO will be featured for research clients in an upcoming new market landscape report,\u00a0in addition to\u00a0a forthcoming featured article in Human Resource Executive magazine<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

I feel like we’ve been here before.\u00a0 Oh wait – we have!\u00a0 Remember the heady old days of HR BPO,…<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[48,79,80],"tags":[416],"organization":[],"ppma_author":[19],"class_list":["post-1657","post","type-post","status-publish","format-standard","hentry","category-business-process-outsourcing-bpo","category-hr-outsourcing","category-hr-strategy","tag-hre-online"],"yoast_head":"\nSurprise, surprise... HR still hates outsourcing. 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