8 Recruitment Process Outsourcing (RPO) Trends to Watch Out for in 2024

Allied OneSource • November 15, 2023

In the ever-evolving business landscape, staying ahead requires continuous improvement in candidate recruitment. Attracting the right talent is crucial for your company's growth.

Although research shows displaced candidates will increase as we approach 2027,¹ finding the perfect fit remains challenging, especially for roles driven by technological innovations. So, what can you do to find a good fit for your business? Consider taking advantage of Recruitment Process Outsourcing (RPO) to improve your talent acquisition compared to your competitors.

The Power of RPO

Recruitment Process Outsourcing is a strategic solution that has gained traction recently. It forms a collaborative partnership between your company and specialized RPO providers, typically third-party staffing agencies. These providers take over your entire recruitment process to make talent acquisition easier and more efficient.

According to 2023 research, the global RPO market size was valued at USD 6098.9 million in 2021 and is expected to expand at a CAGR of 6.62% during the forecast period, reaching USD 8959.65 million by 2027.² This predicts an undeniable increase in RPO's popularity, usage, and usefulness in workforce management.

One of business leaders' most frequently asked questions is how exactly RPO solutions can improve their companies. The following are benefits you can enjoy by opting for RPO services from your trusted staffing company:

Increased Cost Efficiency - Outsourcing your recruitment process can help you save on numerous overhead expenses. For example, you can save on staff salaries since you don't need to hire many recruiters to find the best fit for your open position.

Fast Hiring Process - Staffing agencies are equipped with tools and networks to give you access to the best professionals in the business. With good RPO providers, you could streamline your recruitment process and acquire talent that may not even be available in the regular candidate pool.

Flexibility and Scalability - Since talent acquisition is fast and easy with third-party companies, it becomes possible for you to scale your workforce based on your needs without facing any financial repercussions. This makes it easier for you to explore different opportunities and launch specific projects to help you reach company milestones.

8 Emerging Trends to Watch Out for in 2024

Recruitment Process Outsourcing is undeniably a helpful service that can aid in driving your business towards success. As a company leader, you must know more than just the service and its benefits. It's also necessary to stay informed about RPO and trends you must look out for.

By continuing to be informed about the latest developments in the industry, you're improving your competitive advantage and securing success in your talent management and acquisition efforts. In 2024, here are eight pivotal RPO trends to observe closely:

1. Technology Adaptation

As technological advancements continue to claim their place in different business processes, they're also gaining popularity when it comes to recruitment process outsourcing.

Expect RPOs to streamline talent acquisition with the help of technological tools such as artificial intelligence (AI), automation, and data analytics. Although these are already applied by most, companies are expected to continue exploring technological applications.

Additionally, improving guidelines and technology usage limitations are also anticipated as organizations strive to strike a balance between harnessing the capabilities of these innovations and maintaining ethical and compliant recruitment practices.

2. AI-Powered Candidate Matching

A great example of innovative technological usage in RPO is AI-powered candidate matching. This revolutionizes how RPO recruiters match their experts to the companies that hire them. AI-powered candidate matching analyzes vast datasets to identify the best fit for a company and its employer brand.

Focusing more than just their skills, AI also considers other factors such as cultural fit and the potential of candidates to grow within the client company. This trend would significantly boost RPO placements and provide quicker services. However, dependence on AI may inadvertently overlook candidates with unique qualities not noticeable through data analysis alone.

3. Automation Application

When partnering with an RPO provider in 2024, you can expect faster talent acquisition thanks to different recruitment tasks' automation. From screening thousands of resumes to scheduling interviews, your chosen recruitment agency would most likely be equipped with the latest tools that could accomplish these processes faster with ensured efficiency.

Leveraging automation is sure to reduce the administrative burden on your end and enable your third-party partner to focus on more essential steps of recruitment, such as candidate engagement and relationship building. But, while automating processes, you should ensure candidates receive personalized and empathetic interactions to safeguard the applicant experience.

4. Data-Driven Decision Making

As big data and the application of data analytics continue to improve throughout work, it will continue to play a significant role in candidate recruitment.

Like other organizations, recruitment agencies will rely on technology to analyze historical data and provide actionable insights. By having access to these, recruitment solutions would become more data-driven, leading to informed decisions and better hiring outcomes.

5. Hybrid and Blended Workforce

Even though the COVID-19 pandemic is behind us, the work structure developed during those years is expected to remain in 2024. Many companies still use the hybrid work structure where employees are expected to physically come to the office for only specific days of the week.

On the other days, they finish their responsibilities in the comfort of their own home. Related to this, RPO providers are expected to continuously develop tailored solutions for companies that use this workforce structure. Some examples that recruitment agencies may lean toward are virtual hiring and workforce management.

However, balancing the needs of a distributed workforce with inclusive recruitment practices could pose challenges.

6. DEI-centered Initiatives

Like the current working landscape, Diversity, Equity, and Inclusion (DEI) will remain a top priority when acquiring talent. This means companies that offer RPO will strive towards developing strategies that ensure diversity and inclusion throughout the hiring process. Reducing or eliminating biases in hiring will also be one of the ultimate goals of RPO providers in 2024.

7. Global RPO Expansion

Considering how a hybrid work structure will continue in 2024 and the need for robust DEI initiatives, a global RPO expansion is expected. This means companies that offer RPO will begin seeking talent in diverse regions and talent pools all over the globe.

Cross-border and offshore recruitment would become options you can consider. These would significantly increase your chances of finding the right professionals for your vacancies.

8. Candidate-Focused Recruiting

Moving away from traditional employer-centric hiring that prioritizes filling open positions, RPO agencies now focus on providing excellent candidate experience. By focusing on candidates, your chosen third-party partner could help you improve your employer branding and organically attract potential employees.

Candidate-focused recruiting is expected to strengthen through advanced technological tools. For example, streamlining applications and providing timely feedback with AI and automation wouldn't just benefit your company. They will also contribute to your candidates' positive experience regardless of whether they're accepted to the next phase of the recruitment process or not.

However, balancing your branding and applicant experience is essential to prevent overlooking critical employer-related factors.

UNLOCK RPO's BENEFITS WITH THE RIGHT PARTNER

If you're looking for a company experienced in adapting to the latest market trends, Allied OneSource is your partner. Having roots in the staffing and recruiting industry since 1898, we're adept at keeping up with the latest shifts and innovations in the work landscape.

Whatever your staffing problem, we're equipped with resources that can help offer personalized solutions. Our main goal is to connect you with outstanding people who are experts in their chosen fields. Allow us to find you professionals that would drive your business to success. Contact us today to begin!

References

1 Horowitz, Julia. "14 Million Jobs Worldwide Will Vanish in the Next 5 Years, New Economic Report Finds." Optum, 30 Apr. 2023, edition.cnn.com/2023/04/30/business/automation-jobs-world-economic-forum/index.html.

2 "Growth Opportunities and Future Outlook 2030: Recruitment Process Outsourcing (RPO) Market Size In 2023." LinkedIn, 11 September 2023, https://www.linkedin.com/pulse/recruitment-process-outsourcing-rpo-market-size-2023.

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