2010 global rpo report

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    RecRuitmentpRocessoutsouRcing

    businesspRocessoutsouRcing

    contingentwoRkoRceoutsouRcing

    HumanResouRcesconsulting

    caReeR tRansition& oRganisationaleectiveness

    executiveseaRcH

    Think ouTside.

    global RPo

    RePoRT 2010

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    03Prc

    04ectv mmr

    06a prf rpt

    08T rcrt c

    11g r tt

    06 (g1) Multinational roles07 (g2) Number o employees08 (g3)Hiring challenges, by region08 (g4)Hiring challenges, by no. o sta09 (g5)Reasons or diculties hiring09 (g6)Reasons or diculties

    hiring, by region10 (g7)Conditions slowing hiring11 (g8)Plan to hire 100+11 (g9)Plan to hire12 (g10)Plan to hire, by region12 (g11)Anticipated hires, by region

    13 (g12)Plans to hire permanentemployees, by industry

    13 (g13)Current use orecruitment rm services

    13 (g14)% o vacancies lled by thirdparty providers, by region

    14 (g15)% o vacancies lled by thirdparty providers, by no. o sta

    15 (g16)How recruitmentunctions are utilised

    15 (g17)Number o internalrecruitment sta, by no. o sta

    16 (g18)% o recruitmentteam solely recruiting

    16 (g19)% o recruitment team solelyrecruiting, by no. o sta

    16 (g20)Technology/unctionalityused to source candidates

    17 (g21)Outsourcing part or all othe HR unction, by region

    17 (g22)Outsourcing part or all othe HR unction, by no. o sta

    17 (g23)HR unctions currentlyoutsourced, by region

    18 (g24)Hiring processoutsourced, by region

    18 (g25)Hiring processoutsourced, by no. o sta

    18 (g26)Areas o the hiringprocess outsourced

    19 (g27)Areas o the hiring processoutsourced, by region

    20 (g28)Hiring processoutsourced, by industry

    20 (g29)Plans to outsource, by industry21 (g30)Provider selection criteria21 (g31)Outsourced hiring

    program expectations21 (g32)Primary reasons why

    rms dont outsource22 (g33)Average cost per hire (Euros)

    globalRPo RePoRT

    2010

    rh

    15itr rcrtmt ct

    17T c t trc

    22etmt t r ct rcrtmt

    24at pr

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    Welcome to the Global

    RPO Report 2010, prepared by

    Kelly Outsourcing and Consulting

    Group (KellyOCG) and the Human

    Resources Outsourcing Association

    (HROA). It provides an ongoing

    record o the development o the

    recruitment process outsourcing

    space, as well as trends in

    recruitment and HR as reported by

    organizations across the globe.

    At a time o proound upheaval

    in the world economy, the report

    presents a glimpse into the thinking

    C l, Vc Prt, g Prctc l RPo, koCg

    Rcr J. Crp, g ectv drctr, hRoa01 r

    o senior hiring managers rom small,

    medium and large organizations

    across North America, Europe,

    Middle East and Arica (EMEA), and

    the Asia Pacic Region.

    Even ater a year when employment

    markets have been shaken like never

    beore, it is a signicant nding

    o this years survey that great

    talent the very core o a company

    remains such a dicult to nd

    resource across the globe.

    This is the third annual report

    conducted by KellyOCG and

    the HROA, and it explores in

    detail, not only the state o labour

    markets and recruitment challenges

    in the immediate period ahead,

    but also the latest developments

    in the area o recruitment process

    outsourcing (RPO).

    Its insights will be o great value

    to senior executives and HR

    proessionals as they prepare their

    talent acquisition strategies or the

    year ahead.

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    02 ry

    When the Global RPO

    Reportwas launched in 2007 amid a

    thriving global economy and a skills

    shortage, there were real challenges

    being experienced by hiring

    managers 70 percent reported

    diculties in recruiting sta. In last

    years report, coinciding with global

    economic turmoil, the situation was

    dierent only 54 percent reported

    recruitment diculties.

    This latest report, prepared at a time

    when national economies are at aragile turning point, refects the

    uncertainty that pervades businesses

    large and small. There are signs o

    stability but still no marked upswing,

    and a sense o unease about the

    skill shortages that prevail in spite o

    massive job losses.

    More than hal o the hiring

    managers surveyed say they are still

    experiencing diculties in recruiting

    sta, a number that is virtually

    unchanged rom last year.

    The greatest challenge is in EMEA

    where 65 percent are experiencing

    diculties. In Asia Pacic, there

    has been a signicant improvement

    over the past year, but still

    50 percent report diculties. In

    the Americas, the position has

    actually deteriorated.

    The top recruiting challenge is a

    shortage o skilled sta, cited by

    58 percent o respondents. Europe is

    the worst aected, while Asia Pacic

    is impacted by what is described as

    uncompetitive salaries. The quality

    o candidates is the biggest actor

    slowing the hiring process.

    Two thirds o organisations plan

    to use recruiting rms in their

    hiring eorts.

    The top job categories to be lled

    are business operations support,

    and mid-level executives.

    Some 60 percent o HR units are

    operating with ve or less sta.

    More than a third spend less than

    10 percent o their time on

    recruitment, and only 20 percent

    devote at least 75 percent o time

    to recruitment.

    The share o rms outsourcing all

    or part o their HR unction stands

    at 46 percent, up slightly rom the

    previous year. Recruitment remains

    the biggest area o outsourcing,and the largest organisations are ar

    more likely to outsource.

    Familiarity with recruitment process

    outsourcing (RPO) continues to rise

    steadily. Knowledge remains higher

    in EMEA and in the Americas, and

    among larger employers.

    More than a quarter o rms are

    outsourcing their recruitment

    process, with spectacular growth

    in the Asia Pacic region.

    The biggest expectation rom an

    RPO partner is improved hiring

    times, ollowed by lower cost,

    and integration o multiple

    sourcing channels.

    The average cost-per-hire isreported between 1,801 Euros

    and 2,500 Euros (US$2,501

    and US$3,500).

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    MoRe Than hal oThe hiRing ManageRs

    suRVeyed say They aRe sTillexPeRienCing diiCulTiesin ReCRuiTing sTa, anuMbeR ThaT is ViRTuallyunChanged RoM lasT yeaR.

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    03 rf rd

    A higher percentage o respondents

    rom EMEA (40 percent) have

    multinational roles than their

    counterparts in the Americas (27

    percent) or Asia Pacic (18 percent).

    Most respondents (61 percent) are

    responsible or one country, and

    28 percent are responsible or 2 to

    10 countries, while 11 percent are

    responsible or 11 or more countries.

    For the most part respondents

    have responsibility or recruiting

    within their own regions, with

    only 20 percent o respondents

    overall saying they have global

    recruiting responsibilities. American

    respondents are the most likely to

    have global recruiting responsibility

    (24 percent), ollowed by EMEA

    respondents (21 percent) and then

    Asia Pacic respondents (11 percent).

    The survey was carried

    out by KellyOCG and the Human

    Resources Outsourcing Association

    (HROA) between November 2009

    and February 2010, and obtained

    the views o 536 respondents,

    comprising mainly senior HR

    managers rom small, medium and

    large organisations, with workorces

    ranging rom ewer than 1,000

    employees to more than 50,000.

    Respondents came rom a broad

    range o industry sectors across

    the Americas (39 percent), Europe,

    Middle East and Arica (EMEA)

    (39 percent), and Asia Pacic

    (22 percent).

    Slightly more than a quarter o

    respondents are operating in more

    than one country. As a result, the

    responses refect the situation in a

    total o 85 countries.

    Mtt r1

    0 10% 20% 30% 40% 50%

    AMERICAS

    2009

    50%

    40%

    20%

    18%

    29%

    27%

    2010

    APAC

    EMEA

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    01 Prc

    02 excuivsummry

    03 a prf rspndns

    04 th rcruiinchn

    05 g hirininnins

    06 Inrnrcruimnuncins

    07 th dcisin usurc

    08 esiminh r cs rcruimn

    09 au

    spnsrs

    More than hal o respondents work

    in large organisations with more than

    1,000 employees while 45 percent

    represent organisations with ewer

    than 1,000 employees.

    A urther 21 percent work in

    organisations with more than

    10,000 employees.

    The results represent views rom

    a broad spectrum o industries,

    including proessional services, IT&T,

    manuacturing, banking & fnance,

    health, retail/wholesale, education,

    government, bureau/outsourcer,

    utilities, construction, insurance,

    transport, FMCG/consumer products,

    and hospitality.

    Numr mpys

    46%

    12%

    34%

    8%

    2

    Less than 1,000

    1,000 10,000

    10,000 50,000

    More than 50,000

    45%

    34%

    8%

    13%

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    04 h rrh

    In spite o the prevailing

    economic weakness, and the loss

    o millions o jobs globally, just over

    hal o respondents (55 percent) say

    they are experiencing diculties

    in recruiting sta, a number thats

    virtually unchanged over the

    previous year.

    The greatest challenge in nding

    talent is in Europe where 65 percent

    are experiencing diculties. In Asia

    Pacic, there has been a signicant

    improvement over the past year, but

    still 50 percent report diculties.

    In the Americas, the position has

    actually deteriorated with 46 percent

    nding recruiting dicult.

    The largest companies are

    experiencing the least diculty in

    recruiting that is the only segment

    where less than hal are acing

    challenges in recruitment.

    hr c, r3

    0 20% 40% 60% 80%

    AMERICAS

    2009

    67%

    65%

    60%

    50%

    43%

    46%

    2010

    APAC

    EMEA

    hr c, mr t4

    0 20% 40% 60%

    47%

    58%

    57%

    55%

    More than 50,000

    10,000 50,000

    1,000 10,000

    Less than 1,000

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    With unemployment at historically

    high levels in many countries,

    labor should be plentiul. Yet the

    overwhelming reason cited or the

    recruiting diculties is a shortage

    o skilled sta. More than hal (58

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    R r fct r5

    0 20% 40% 60%

    14%

    24%

    25%

    58%

    Current recruitment processes

    Location

    Salary Uncompetitive

    Salary of skilled staff

    R r fct r, r6

    0 20%10% 30% 40% 50% 70%60%

    25%

    40%

    14%

    63%

    51%

    56%

    25%

    23%

    22%

    12%

    11%

    17%

    Current recruitment processes

    Location

    Salary Uncompetitive

    Salary of skilled staff

    EMEA

    APAC

    AMERICAS

    percent) blame the shortage o

    skilled talent or their recruiting

    problems, well ahead o other

    actors such as uncompetitive

    salaries (25 percent) and location

    (24 percent).

    The talent shortage is most acute

    in EMEA with 63 percent o

    respondents indicating it is their

    primary hiring issue. More than

    hal o those in Americas and Asia

    Pacic ace a similar problem.

    However those in Asia Pacic also

    have a wage cost issue with a hety

    40 percent blaming uncompetitive

    salaries or hiring troubles.

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    04 There is another perspective to thetalent shortage that emerges when

    rms are asked the question: What

    is the condition most likely to slow

    the hiring process? The pervasive

    actor that emerges across all

    regions is the quality o candidates,

    cited by slightly more than hal o all

    respondents. All other actors rank

    signicantly lower including time-

    to-hire (36 percent), hiring manager

    satisaction (29 percent) and cost-to-

    hire (28 percent).

    Ct r7

    0 20% 40% 60%

    28%

    29%

    36%

    54%

    7%

    12%

    17%

    21%

    Cost to hire

    Hiring manager satisfaction

    Time to hire

    Quality of hires

    Technology effectiveness

    Poor processes

    Quality of recruiters

    Performance monitoring

    01 Prc

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    05 hr

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    P t r 100+8

    0 10% 20% 30% 50%40%

    20%

    20%

    33%

    37%

    36%

    43%

    12%

    13%

    18%

    Graduate

    Temporary

    Permanent

    2010

    2009

    2008

    P t r9

    0 20% 40% 60% 100%80%

    86%

    87%

    91%

    96%

    96%

    95%

    82%

    84%

    79%

    Graduate

    Temporary

    Permanent

    2010

    2009

    2008

    A spark o optimism

    emerges in the latest data on global

    hiring intentions. While it is clear that

    there is still some way to go beore

    there is a return to pre-recession

    hiring levels, it certainly appears that

    the worst is over. The latest gures

    show hiring intentions fat but stable.

    In the previous 2008 survey, at the

    height o the global nancial crisis,

    just 36 percent o respondents

    anticipated hiring more than 100

    permanent employees, down rom

    43 percent in 2007.

    The latest data or 2009 shows the

    outlook marginally better, with 37

    percent intending to hire 100 or

    more permanent employees. Its a

    similar picture or both temporary

    and graduate hires, suggesting that

    the market is still cautious, but at

    least not deteriorating.

    Firms plan to hire more permanent

    positions than temporary or

    graduate sta, and a signicant

    number (over 80% in all cases)

    intend to hire at least some

    permanent, temporary, and

    graduate sta.

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    P t r, r10

    49%

    0 20% 40% 60% 80% 100%

    31%EMEA

    APAC

    AMERICAS

    None

    1 to 100

    More than 100

    24%

    50%1%

    67%10%

    65%4%

    atcpt r, r11

    0 20%10% 30% 40% 50% 70%60%

    77%

    74%

    70%

    78%

    74%

    71%

    58%

    57%

    53%

    49%

    41%

    38%

    Senior executive or professional

    Administrative

    Mid-level executive or professional

    24%

    17%

    26%

    14%

    17%

    19%

    15%

    12%

    13%

    Trades

    Other

    Contact centre

    Business operations support

    2008

    2009

    2010

    05 Arguably the most optimisticoutlook is or North American

    where nearly hal o all respondents

    (49 percent) say they plan to hire

    more than 100 employees in 2010,

    compared with just 31 percent in

    EMEA and 24 percent in Asia Pacic.

    As in last years survey, planned

    hires in 2010 are more likely to be

    replacing existing positions than

    lling new roles, unlike the pre-

    recession situation where more

    respondents anticipated expandingtheir sta.

    The top job categories that

    organisations plan to ll in 2010 are

    business operations support, and

    mid-level executives. While these

    have been the top categories across

    all years o research, they are slowly

    declining. Senior executive hiring

    has experienced the biggest all,

    down rom a high o 49 percent in

    2008 to 38 percent in 2010.

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    The industry sectors that will be

    most active in hiring over the

    coming year are Health, Bureau/

    Outsourcer, Banking & Finance,

    Retail & Wholesale, IT&T, and

    Government. In each o these

    sectors, more than hal o all

    respondents plan to hire 50 or more

    permanent employees.

    The weakest hiring plans are in

    Manuacturing, Education and

    Utilities.

    The vast majority o organisations

    (66 percent) plan to use recruiting

    rms in their hiring eorts. Those

    in EMEA are more likely to use

    recruiters than their counterparts

    in the Americas or the Asia Pacic

    region. Larger organisations

    are more likely to use recruiting

    companies than their smaller

    counterparts; just over hal othe smallest rms use recruiting

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    P t r prmt mp, tr12

    0 20% 40% 80%60% 100%

    26% 11% 5%EMEA

    APAC

    AMERICAS

    Less than 10%

    10% to 25%

    26% to 50%

    51% to 75%

    76% to 100%

    37%22%

    1 0% 5 %35%40%

    1 0% 1%32%49%

    10%

    8%

    0 20% 40% 80%60% 100%

    Banking & Finance

    Bureau/Outsourcer

    Health

    >50 employees

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    Some 70 percent o respondents

    use recruitment rms to ll a quarter

    or less o their vacancies. Those

    in EMEA use them to ll a higher

    proportion o vacancies than their

    counterparts in APAC and Americas.

    The largest rms (with more than

    50,000 employees) consistently

    use outside rms or a smaller

    percentage o their total recruitment

    needs, with 55 percent o these

    rms using outside recruitment or

    between 10 and 25 percent o their

    total recruitment. Smaller rms are

    more diverse in their requirements

    and will utilize outside providers

    across a wider spectrum, ranging

    rom less than 10 percent, up to 100

    percent o their workorce needs.

    0 20% 40% 80%60% 100%

    35% 10%10,000 to 50,000

    More than 50,000

    1,000 to 10,000

    Less than 1,000

    Less than 10%

    10% to 25%

    26% to 50%

    51% to 75%

    76% to 100%

    19%35%

    23%55%22%

    1 0% 6 %33%39%

    19%31%39%

    13%

    11%

    % vcc f tr prt prvr, mr t15 01 Prc

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    06 rrr

    h rcrtmt ct r t16

    -

    0 10% 20% 40%30% 50%

    4%

    5%

    43%

    48%

    Outsourced

    Hybrid

    Centralised

    De-centralised

    nmr tr rcrtmt t, mr t17

    0 20% 40% 80%60% 100%

    14% 7%10,000 to 50,000

    More than 50,000

    1,000 to 10,000

    Less than 1,000

    1 to 5

    6 to 10

    11 to 20

    More than 20

    37%42%

    19%16%56%

    4%4%8%84%

    9%

    11% 77%7%4%

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    There is a mixed picture

    that emerges when it comes to

    the prevailing model adopted by

    organisations in managing their

    HR needs. For approximately

    90 percent o rms, there is roughly

    an even split between a centralised

    and a de-centralised recruitment

    unction. Just 5 percent adopt a

    hybrid model, and the remaining

    4 percent are outsourced.

    American organisations are more

    likely than their counterparts in

    other regions to have de-centralised

    or outsourced recruitment unctions.

    Asia Pacic organisations are

    more likely to have centralised

    unctions, and EMEA leans toward

    a hybrid model.

    It is not surprising that the smallest

    organisations are the ones

    most likely to have centralised

    recruitment, while the largest are

    more likely to outsource.

    Sta numbers attached to

    recruitment departments are airly

    modest, with 60 percent operating

    with ve or less sta. The size o

    internal recruitment sta correlates

    closely to overall organisational

    size: 84 percent o the smallest

    respondents employ 1 5 internal

    recruiters; 77 percent o the

    largest rms employ more than

    20 internal recruiters.

    Not only are internal HR teams

    relatively lean, they are generally not

    spending a large amount o time

    on recruiting duties. More than a

    third (37 percent) spend less than 10

    percent o their time on recruitment.

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    Tc/ctt t rc ct20

    0 20% 40% 60% 80%

    27%

    40%

    66%

    73%

    4%

    15%

    15%

    CV search capability

    CV management

    Applicant tracking

    Online applicationsand assessment

    Job order tracking

    Automated reporting

    Electronic scheduling

    % rcrtmt tm rcrt, mr t19

    0 20% 40% 80%60% 100%

    14% 21%10,000 to 50,000

    More than 50,000

    1,000 to 10,000

    Less than 1,000

    Less than 10%

    10% to 25%

    26% to 50%

    51% to 75%

    76% to 100%

    33%33%

    31%7% 24% 9%29%

    12% 26%22%23%

    13%18%10%50%

    17%

    9%

    In all, 70 percent o respondents

    spend less than 50 percent o their

    time on recruitment. There are only

    20 percent o organizations where at

    least 75 percent o time is devoted

    to recruitment.

    Generally, the larger the

    organization, the more likely it is to

    Respondents employ a variety o

    technologies to source and track

    candidates, most oten online

    applications and assessment (73

    percent) and applicant tracking (66percent) programs, both o which

    are used much more requently than

    the next most common process, CV

    management (40 percent).]

    % rcrtmt tm rcrt18

    0 10% 20% 30% 40%

    9%

    18%

    15%

    37%

    20%

    51% to 75%

    26% to 50%

    10% to 25%

    Less than 10%

    76% to 100%

    specialise ocusing HR/recruiting

    sta on recruitment duties. The

    relatively scant resources directly

    allocated to recruitment tasks in

    many rms raises the question as

    to whether this, in part, explains

    the reported problems being

    encountered in the hiring process.

    Organisations in all regions and o

    all sizes ollow the general pattern

    outlined above, although the

    largest rms are signicantly more

    likely to be using applicant tracking

    (91 percent) than are their smaller

    counterparts (58 percent).

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    07 h d r

    The study suggests that the

    decision to outsource is growing in

    popularity, with the proportion o

    rms outsourcing all or part o their

    HR unction standing at 46 percentin 2010, up rom 43 percent in the

    previous year.

    Organisations in EMEA (at

    56 percent) are more likely than

    those in America (46 percent) and

    Asia Pacic (29 percent) to outsource

    HR unctions.

    otrc prt r t hR ct, r21

    0 20% 40% 60%

    56%

    29%

    46%

    EMEA

    APAC

    AMERICAS

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    otrc prt r t hR ct, mr t22

    0 20%10% 50%40%30% 70%60%

    69%

    47%

    42%

    44%

    More than 50,000

    10,000 50,000

    1,000 10,000

    Less than 1,000

    hR ct crrt trc, r23

    0 20% 40% 60% 80%

    58%

    42%

    53%

    69%

    67%

    71%

    27%

    27%

    18%

    18%

    12%

    41%

    Benefits

    Training

    Payroll

    18%

    6%

    16%

    24%

    6%

    3%

    3%

    5%

    Performancemanagement

    Compensation

    HRIS

    Recruitment

    EMEA

    APAC

    AMERICAS

    4%

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    The largest organisations, with more

    than 50,000 employees, are ar more

    likely to outsource than those with

    ewer employees.

    Recruitment is by ar the biggest

    area or outsourcing. O those rms

    outsourcing all or part o their HR

    unctions, 69 percent outsource

    recruitment, up slightly rom 63

    percent the previous year. The other

    main areas o outsourcing are payroll

    (54 percent), benets (26 percent),

    training (24 percent), HR inormation

    system (16 percent), compensation

    (8 percent) and perormance

    management (4 percent). There are

    some notable regional variations.

    Firms in the Americas are much

    more likely to outsource benets

    and much less likely to outsource

    training. Those in Asia Pacic are

    much less likely to outsource payroll

    and inormation systems, but more

    likely to outsource compensation.

    Familiarity with recruitment process

    outsourcing (RPO) continues to rise

    steadily, rom 56 percent in 2007 to

    62 percent in 2008, and 65 percent

    in 2009. Overall 8 percent are not at

    all amiliar with RPO; and 27 percent

    are somewhat amiliar. Knowledge

    remains higher in EMEA (67 percent)

    and the Americas (66 percent)

    than in Asia Pacic (56 percent).

    Larger organisations are more

    knowledgeable about RPO than

    smaller rms.

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    hr prc trc, mr t25

    0 10% 20% 30% 40% 50%

    49%

    35%

    26%

    23%

    More than 50,000

    10,000 50,000

    1,000 10,000

    Less than 1,000

    hr prc trc, r24

    0 10% 20% 30% 40%

    AMERICAS

    2009

    35%

    34%

    17%

    34%

    23%

    20%

    2010

    APAC

    EMEA

    ar t r prc trc26

    0 5% 10% 15% 20% 25% 30%

    17%

    17%

    17%

    26%

    6%

    16%

    16%

    Temporary

    Contingent

    Business Unit

    Company wide

    Graduates

    Professional

    Administrative

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    07 ar t r prc trc, r27

    0 10% 20% 30% 40%

    15%

    8%

    24%

    24%

    15%

    40%

    17%

    26%

    10%

    17%

    26%

    10%

    Temporary

    Contingent

    Administrative

    15%

    18%

    19%

    10%

    23%

    19%

    6%

    5%

    7%

    Graduates

    Professional

    Business unit

    Company wide

    EMEA

    APAC

    AMERICAS

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    More than a quarter (28 percent)

    o rms outsource their recruitment

    or hiring process, up slightly rom

    24 percent in 2008. However,

    that increase was conned almost

    exclusively to the Asia Pacic

    region, which saw its activity double

    over 2008.

    Consistent with the pattern or

    outsourcing generally, the larger

    the organisation, the more likely it

    is to be outsourcing its recruitment/

    hiring process.

    The pattern or outsourcing

    recruitment varies between those

    rms that outsource it as part o

    a larger HR outsourcing contract,

    and those that simply use a

    separate provider or recruitment.

    The proportion o rms that are

    outsourcing recruitment as part o

    a larger HR outsourcing contract

    was down slightly in 2010 to 29

    percent, rom 34 percent in 2009.

    Respondents in all regions are most

    likely to be opting or a separate

    provider o recruitment processes.

    O those that outsource recruitment,

    the most prevalent approach is to do

    so company-wide.

    Across the globe, approaches

    vary, with American rms much

    more likely to outsource company-

    wide, while those in Asia Pacic

    the becoming the largest userso outsourcing or contingent,

    temporary and proessional labour.

    While 28 percent o all rms currently

    outsource, there is considerable

    variation across industry, with the

    biggest outsourcers being Utilities,

    IT&T, Health, Banking & Finance,

    and Proessional Services.

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    Approximately hal o all

    respondents say they would

    consider outsourcing recruitment

    processes, something that is

    consistent across regions, but morelikely with the larger employers.

    O those who currently do not

    outsource recruitment, 40 percent

    say they would consider it, while

    36 percent o those who do

    outsource recruiting say they would

    not consider it in the uture.

    Amongst those considering

    outsourcing, the industries likely

    to be most active are Utilities,

    Education, Health and IT&T. O

    those considering outsourcing

    who are not currently doing so, the

    most interest emanates rom the

    Education sector.

    When it comes to selecting an RPO

    partner, the top three criteria are

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    recruiter quality, industry knowledge

    and cost.

    Expectations o an RPO partner

    relate directly to the hiringissues that are at the heart o the

    prevailing recruitment challenge.

    The greatest expectation revolves

    hr prc trc, tr28 P t trc, tr29

    0 20% 40% 60% 80% 100%

    31%

    34%

    42%

    81%

    16%

    18%

    26%

    Banking & Finance

    Health

    IT&T

    Utilities

    Education

    Manufacturing

    28%

    6%

    Total

    Bureau/Outsourcer

    Professional Services

    0 20% 40% 60% 80% 100%

    55%

    62%

    79%

    81%

    36%

    39%

    47%

    IT&T

    Health

    Education

    Utilities

    Banking & Finance

    Government

    31%

    36%

    Retail/Wholesale

    Manufacturing

    47%

    25%

    Total

    Bureau/Outsourcer

    Professional Services

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    around improved hiring times,

    ollowed by lowered cost o

    recruitment, and integrating

    multiple sourcing channels.

    Larger rms tend to be more

    concerned with decreasing hiring

    costs and improving hiring times,

    while the very biggest, with more

    than 50,000 employees, want

    rationalization o multiple

    sourcing channels.

    Among those who would not

    consider outsourcing recruitment,

    40 percent say outsourcing is

    unnecessary because they do it

    well without outside assistance.

    The next most commonly

    reported reasons relate to

    cost, and internal cultural issues.

    American respondents cite internal

    cultural issues (30 percent) nearly

    twice as oten as those rom

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    EMEA (16 percent) and three

    times more than Asia Pacic

    respondents (10 percent). Small to

    mid-sized organisations are more

    likely to believe outsourcing istoo expensive.

    0 5% 10% 15% 20% 25% 30% 35%

    20%

    22%

    27%

    33%

    10%

    10%

    15%

    Years of RPO experience

    Cost

    Industry knowledge

    Recruiter quality

    International

    Global reach

    Technology

    Prvr ct crtr30

    0 10% 20% 30% 40%

    10%

    20%

    22%

    40%

    6%

    9%

    9%

    Unable to measure thefinancial benefits

    Internal cultural issues

    Outsourcing is too expensive

    Not necessary as we do agood job ourselves

    Unable to identify a goodpotential outsourcing partner

    Knowledge of outsourcing

    Lack of internal expertise

    Prmr r frm t trc32

    otrc r prrm pctt31

    0 10% 20% 30% 50%40%

    14%

    22%

    35%

    42%

    9%

    Manage or limit number ofthird party providers

    Integrate multiplesourcing channels

    Lower cost of recruitment

    Faster time to hire

    Gain access to technology

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    08 h

    rr

    Across all respondents, the

    average cost-per-hire is between

    1,801 Euros and 2,500 Euros

    (US$2,501 and US$3,500). However,

    the largest number o respondents(25 percent) say that the average

    cost-per-hire is 500 Euros to 1,000

    Euros (US$700 to US$1,400).

    Although still within a airly narrow

    range, Asia Pacic organisations tend

    to spend the least per hire, ollowed

    by the Americas and EMEA, while

    larger organisations tend to spend

    more than smaller ones.

    avr ct pr r (er)33

    0 5% 10% 15% 20% 25%

    6%

    15%

    18%

    25%

    3%

    7%

    6%

    2,501 to 3,500

    1,801 to 2,500

    1,001 to 1,800

    500 to 1,000

    More than 10,000

    5,001 to 10,000

    3,501 to 5,000

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    The laTesT daTa oR 2009 showsThe ouTlook MaRginallybeTTeR, wiTh 37 PeRCenTinTending To hiRe 100 oR MoRe

    PeRManenT eMPloyees.

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    09 hr

    k oCg RPo Prctc

    KellyOCGs RPO Practice has been

    an industry leader in Recruitment

    Process Outsourcing (RPO) since

    1995. Building a global ootprint

    with the combination o the HRfrst

    and Access AG business units,

    KellyOCGs RPO Practice provides

    businesses around the world with

    strategies to optimise recruiting

    eciency, while attracting the highest

    calibre o talent to organisations.

    c.cm

    hRoa

    The HROA is the denitive

    independent organization or all

    those who purchase, provide, or

    participate in HR transormation

    and outsourcing. Our membership

    encompasses over 7,500 HR

    executives, including the largest

    50 buyers, the top 30 providers,

    the leading sourcing advisors and

    attorneys, and the best thought

    leaders in HR Transormation. The

    HROA brings its diverse membership

    together to set standards andpractices, provide peer networking,

    and maintain a robust curriculum.

    r.r

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    http://www.kellyocg.com/http://www.hroa.org/http://www.hroa.org/http://www.kellyocg.com/
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