RPOs are here to stay - get over it

09 June 2010

Having attended the Recruiter Awards for Excellence 2010 earlier this year, I was disappointed at the booing by the attendees whenever the acronym RPO [recruitment process outsourcing] or the names of key players was mentioned. I was uncomfortable, but certainly not surprised.

Since our inception in the UK, recruitment agents have always been wary of and reluctant to embrace relationships with third parties. I remember very clearly when I was a consultant for a national IT recruitment agency working with a supposedly ’independent’ vendor management company.

I duly submitted my CVs via the agreed portal and followed due process only to find one of my submitted candidates had subsequently been interviewed and offered a role via the agency who owned the ’independent’ vendor manager. These situations should now be few and far between as the RPO industry has matured, although the memories still appear to remain.

The use of RPOs has increased over the last few years and this is going to continue for some time to come as the practice becomes widely recognised and accepted. In fact, in the UK, most clients have always outsourced their recruitment, just in a crude fashion with multiple suppliers, processes and terms.

Organisations are always looking to improve their recruitment effectiveness while driving through cost efficiencies, and an RPO can deliver this.
So, having established that RPO companies are here to stay and increase market share, what can agencies do to embrace these relationships, rather than fight them, and what can RPOs do to build long-term relationships with suppliers?

The first lesson is that both types of organisation need each other. A good RPO will never fill 100% of its client’s roles via direct sources. Its role is to source the best candidates possible within agreed timescales, and this often means using an agency.

In a nutshell, RPO is here to stay, no matter how hard agencies fight. Recruitment consultancies must adapt and build long-term relationships with RPOs, as must RPOs with agencies.

For sure, RPOs are getting better at direct sourcing, and this will continue, but there will still be a place for niche suppliers who have a strong, current and targeted database. Agencies can no longer rely on placing a few ads on job boards and waiting to see who responds, as this task will almost always have already been undertaken by the RPO.

With RPO growth forecast to continue, suppliers need to build a long -term relationship with their relevant account manager within the RPO. Treat an RPO as you would a client, and ensure the relationship is reciprocal.

Do not try to fight against the RPO as, ultimately, this will damage your long-term relationship with your client and the RPO. Bear in mind that most RPO contracts are over a three-to-five year period. This could be a long time to wait for your next role. If you are not getting the service you require from the RPO, speak to them and discuss your issues. If the RPO is unwilling to discuss matters, I suggest you draw a line, and concentrate your efforts on working with an RPO that treats agency relationships as a partnership.

The RPO industry must understand that our customers aren’t just clients, but also candidates and suppliers.

In a nutshell, RPO is here to stay, no matter how hard agencies fight. Recruitment consultancies must adapt and build long-term relationships with RPOs, as must RPOs with agencies. Both parties must treat each other as they would expect to be treated themselves, and embrace new ways of working.

Clients must ensure they only sign up an RPO who has a proven history of quality agency relationships, backed up by quality agency references.

With a bit of work from both parties, agencies and RPOs can live happily ever after.

Robert Leggett is managing director of Omni Resource Management Solutions (RMS), winner of Outstanding Outsourced Recruitment Provider at the Recruiter Awards for Excellence 2010, supported by Innovate CV