building out an rpo business from your recruitment agency – opportunity or risk? howard flint,...
TRANSCRIPT
Building out an RPO from your recruitment agency
Opportunity or risk?
About me
10 years global IT outsourcing15 years recruitment
outsourcing and technology7 years leading UK RPO
In this session…
• Have a look at what RPO is• Examine the opportunity• Think about the risks• Leave you with 4 considerations to
maximise chances of success
Service Contract
Role Scope Process ScopeTempPermContract
BusinessProjectDepartmentDiscipline
RPOEntryExperiencedExecutive
Term
Success FeeManagement Fee
RetainerService Levels
PlanningFulfilmentOnboarding
DirectSupply chainInternal
On-Site/ Off Site
It’s a journey with people you don’t know very well, but have to get on with….
Types of RPO
On DemandFull Service
Project
MSP
Neutral Vend
Extended Service
What this means…
Different from your core business - handle appropriately
More than one type of RPO service you can offer – pick the one that’s right for you
6.7bn3.5bn
2016 2021
Market opportunity ….
RPO Global Growth
The financial opportunity…..
Long term recurring
(predictable) revenue
Higher business valuation
Why consider RPO?
I can see an opportunity
I can leverage the potential of my clients relationships and staff
I can increase return and value
It’s going to be quick and easy – solve my cash/ revenue/growth problem
It will secure roles for my contingent recruiters
No daily worry
The risks of launching an RPO service…..• Defocus core business• Compromise
relationships with existing clients
• Cost money – short term• Cause executive
relationship issues
4 considerations to maximise the
likelihood of success
Consideration 1.
Service Accountability- understand differences between core
and RPO
Consideration 2:
Type and Scope of Service- define what are you going to deliver and
how?
Consideration 3.
Internal Relationships – how is your core business and RPO team
going to work together?
Consideration 4.
Winning new business- what is your growth strategy and does it
recognise a long sales lead time
Conclusion
• Evaluate what you want to achieve• Understand the effort and risk• If yes - then define and plan carefully• Go for it – but be focussed and understand
it’s long term