There are days in this post-COVID world when it seems the business of doing business has never been harder. From supply chain issues and travel restrictions to the economic uncertainty that comes with a global pandemic, organizations have been forced to navigate a myriad of hurdles that have appeared or grown since the early months of 2020.
Then there is the internal function that is causing untold headaches – human resources (HR) and recruitment.
While the Y2K scare at the turn of the century put a spotlight on IT teams and the Global Financial Crisis of 2008-09 accentuated the roles of finance executives, COVID-19 has thrust HR leaders into the hot seat. The pandemic is essentially a human crisis and it has forced businesses around the world to reconsider where their people work, reimagine how their jobs are designed and reflect on their own recruitment processes.
The cause for concern was reflected at the dawn of the crisis in an AON survey of more than 300 small, medium-sized and large companies in the Asia-Pacific region. Less than half or 42% believed their HR departments were moderately ready to deal with the looming challenges, while 5% went as far as to say they felt completely ill-equipped. Asked to rank specific challenges, they highlighted business continuity planning (67%), implementing flexible working arrangements (64%) and managing employee communication (56%).
Then there is recruitment itself. A survey of senior HR and talent acquisition professionals earlier this year found half believed COVID had negatively impacted executive search budgets, while 35% said it had taken a toll on the number of searches they were undertaking. When coupled with a study in the early weeks of 2021 that showed 69% of U.S. employers were having difficulty filling jobs, it is clear organizations are under increasing pressure to meet their HR and recruitment needs.
Fortunately help is at hand and, befitting the modern business world, that help is identified by two acronyms – HRO and RPO.
Starting with the former, HRO stands for Human Resource Outsourcing and sees a third party employed to perform some or all of a company’s HR functions. While such agreements and partnerships will differ from one company to the next, human resource outsourcing examples include:
Then there is RPO – aka Recruitment Process Outsourcing. As the name suggests, RPO involves a business transferring all or part of its recruitment processes to an external service provider and is considered one of the outsourcing industry’s fastest-growing segments. Recruitment Process Outsourcing examples include:
Outsourcing has soared across countless business areas in recent times on the back of its ability to help companies increase efficiencies and reduce costs by up to 70%. Along with those advantages, HRO offers various other benefits.
With the global search for talent becoming harder, recruitment process outsourcing offers many more benefits than the obvious advantages of saving money and improving efficiencies.
Along with implementing entire human resources and recruitment teams, RPO and HRO providers can facilitate a variety of individual roles including:
Selecting the ideal HRO or RPO model can be daunting for executives unfamiliar with the concept. It’s all about choosing what works best for your company’s circumstances.
There are many reasons organizations of all sizes – from small and mid-range businesses to global organizations – are turning to RPO and HRO as a business strategy. Cost reductions and increased efficiencies. Access to larger talent pools and the streamlining of payroll processes. However, at the end of the day, there is one overriding reason and that is because it works, which leaves just one question – which model works best for your company?
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