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Game-Changing RPO Market Trends For The Future

July 8, 2021
By
Techfetch RPO Team
Est. Reading Time : 5 minutes

There's good news for RPO providers and those who rely on their value-added services. Did you know that in the near future, you could be screening CVs with Artificial Intelligence or conducting self-scheduling interviews?

These RPO trends are very much a possibility, given the rate of market growth in the recruitment industry. Let us take a quick look at the current market scenario: The RPO market size was valued at $5.48 billion in 2019. It is expected to skyrocket at a CAGR of 18.5%. during the forecast period, 2020 to 2027. Talent acquisition leaders believe several key parameters are driving this incredible job market growth, including improved recruitment processes and reduction in overheads. The increasing number of fresh graduates and post graduates are also driving the need for RPO services . Additionally, the growing adoption of cloud and other web-based services has also driven steady growth in the RPO segment. And that's not all. Despite the raging COVID-19 pandemic, recruitment process outsourcing trends are shifting at an accelerated pace.

Driven by this market outlook, several organizations are redefining their business processes and have increasingly started opting for RPO-driven engagement models for their recruitment functions. They believe this will also help them to focus on their core business activities. RPO Service providers are already sprucing up their hiring processes with the adoption of next-generation technologies such as Artificial Intelligence, Predictive Analytics, Machine Learning, Chatbots, and whatnot to survive as key players in the market . AI, in particular, is expected to cause exciting, ground-breaking RPO trends for assessing market opportunity . Without any further delay, let's explore what they are.

Transformative Tech-Related RPO Trends To Look Forward To

1. Artificial Intelligence

It is certain that Artificial Intelligence will be the omnipresent power behind innovative recruiting solutions of the future. It has already proven its mettle in certain processes, such as assisting in ranking candidates for a job position. AI is also being used by companies to analyze accents and tonal qualities in recorded candidate interviews. Having said that, AI and other digital technologies do not totally negate the need for human intervention to oversee the outcome of these processes. But there is no doubt that AI-powered automation will benefit your strategies immensely. Here's how you will reap the rewards:

  • Completely automate recruiting tasks
  • Better talent acquisition strategies
  • Improved HR productivity
  • Reduced Cost Per Hire
  • Less human errors
  • Less manual workload
  • Streamlined HR processes

AI is already used by many RPOs & Total talent acquisition teams to refine and retain their market positioning. We believe that it is a wise decision and an astute investment that pays off well and helps client organization to adapt to the market dynamics.

2. Virtual Hiring

If remote working is here to stay, then so is remote hiring. This trend brings exciting prospects for RPO providers and their clients. With all geographical boundaries erased, it opens the door to a wider talent communities. Virtual-focused recruitment processes will expedite the hiring speed and expand the recruiting capabilities to identify and hire highly qualified candidates without burning too many resources.

Adding virtual tools to your recruitment strategy will open up an almost endless array of business opportunities . The entire recruitment process will be online. Global talent acquisition will be seamless from the time of job posting to the final interviews. Recruiters score big here in terms of time and cost reduction

3. Data-driven Recruiting

The term might be new, but chances are you are already implementing this trend if you are serious about your strategies paying off. Data-driven recruiting refers to the practice of using tangible data and statistical analysis to derive actionable insights to refine your hiring decisions and create effective strategies. It is a talent management process that allows you to delve deeper into your recruitment budgets and scrutinize hidden issues. Data gives you hard and reliable facts, and it will help you identify the pitfalls to speed up the screening process. Data-driven recruiting should be a part of your overall business strategy to ensure a favorable cost-to-benefit ratio.

4. Social Media Power

Social media is already establishing itself in the farthest corners and crevices of the business world. In the coming years, social media platforms will effectively bridge the gap between recruiters and job seekers. These platforms will help you target high-quality candidates with better advertising campaigns. And the most promising active candidates will have an easier time finding you. By the end of the day, you are speaking to the right people with the least amount of effort and expenditure.

Other Significant RPO Trends

1. Total Talent Acquisition

Total Talent Acquisition is set to be the next big thing in the recruitment industry. It is a fairly new concept where businesses incorporate their overall business strategies with their hiring strategies. This move aims to facilitate consistency in acquiring all types of employees - including freelancers and contractors to meet the demands of a tight labor market.

What drives this trend is the increase in work-from-home employees due to the pandemic. For the foreseeable future, more than 54% of employees who are already working from home are willing to continue doing the same. Consequently, Total Talent Acquisition will emerge as an agile solution as there are more freelancers and contractors available.

2. Employer Branding

As you may have guessed, employer branding is a fundamental recruitment strategy. Yet, clearly, it will be among the most significant RPO trends for recruitment processes going forward. According to surveys, a compelling employer brand can increase talent acquisition by up to 50%. So, employer branding will be one of your key business drivers for acquiring potential candidates, improving retention, and thus boosting productivity. In the coming years, companies will need to prioritize this trend to compete for the best talent.

3. Candidate Experience

The candidate is the main objective for both recruiters and clients. Every effort is made with the candidate in mind, as their experience has a direct impact on employer branding. Better candidate experience is the key trend if you want to avoid labor shortages and lack of talent. Recruiters will utilize the advanced technology to streamline their online recruitment process. Application processes that are unreliable, slow, and flawed will soon be obsolete. Ultimately, it will ensure you have a firm advantage in this competitive market.

4. Process Transparency

Complete transparency from recruiters is an important client requirement- from interviewing to salary negotiations. RPO service providers also understand the market dynamics and their significance. Corroborating this fact is the latest market research report by Robert Half. The survey was conducted among advertising and marketing leaders. Here's what it states about transparency in recruitment:

  • 23% believe it closes the remuneration gap.
  • 19% believe it increases productivity.
  • 20% understand it boosts retention.
  • 21% believe it creates trust.

If these numbers are anything to go by, process transparency is the trend that makes a huge difference.

Align With RPO Trends For Better Talent Acquisition

The recruitment process outsourcing trends play a huge role in determining the quality of your recruitment process as a whole. At Techfetch RPO, we thoroughly understand these trends and can ensure a holistic hiring solution for your organization. Our industry expertise and experience always keep us one step ahead of our competitors. Just get in touch with us and let us know how we can help you.

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