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Think outside.

global RPO
report 2009


global 01 (3) 07 (16–19)

RPO report Preface The decision


to outsource
2009 02
08
(4-5)

contents Executive summary (20)

Estimating the real


03 (7)
cost of recruitment
A profile of respondents
09 (22)

04 (8–10)
Respondents
– country of residence
The recruiting challenge

05 (11–13)
10 (23)

Global hiring intentions About sponsors

06 (14–15)

Internal recruitment
functions

graphs G1
G2
(7) Number of employees
(8) Hiring challenges, by region
G7 (12) Main job categories to be filled,
2008 and 2009
G10 (15) % of recruitment team solely
recruiting
G13 (19) Outsourced hiring program
expectations
G3 (9) Conditions slowing hiring, by region G8 (13) How organisations plan to use G11 (16) Outsourcing part or all of the G14 (19) Why firms don’t outsource
G4 (10) Conditions slowing hiring, by size recruitment firms HR function, by region G15 (20) Average cost per hire
G5 (11) Plan to hire 100+ G9 (14) Number of internal recruitment G12 (18) Provider selection criteria
G6 (11) Plan to hire staff, by size


global RPO report 2009 | 3

01 preface Claus-Peter Sommer, Vice-President, Center of Excellence – RPO, KellyOCG


Richard J. Crespin, Global Executive Director, HROA
01 Preface
02 Executive
summary
03 A profile of
➔ Following on from the Despite the short-term gloom, there environment to enable organisations respondents
outstanding feedback from the are some fundamentals which this to respond rapidly will be, if anything, 04 The recruiting
challenge
2008 survey, it gives us great research seems to reinforce. The even more pronounced.
05 Global hiring
pleasure to introduce the Global awareness of RPO continues to intentions
That is why, even in the current
RPO Report 2009. grow throughout the world, with a 06 Internal
climate, there remains a recognition recruitment
pronounced lift in the Europe, Asia & functions
This survey was conducted in the and underpinning sense of
Middle East (EMEA) and Asia-Pacific 07 The decision
final quarter of 2008, a time of fundamental shift towards the to outsource
regions. And whilst staffing volumes
great tumult and change across the strategic outsourcing of recruitment 08 Estimating
will be significantly impacted by the the real cost
world’s employment markets. As processes. As we move through of recruitment
crisis, the strategic intent of many
we write this preface, each week this downturn, it seems likely that 09 Respondents
organisations remains focused on the – country of
brings dramatic announcements of the rate of movement towards this residence
longer-term.
staff redundancies from a wide range model will accelerate as companies 10 About
sponsors
of iconic global businesses. Much When the current events pass, as who have weathered the storm
of the world is in recession, and they will, the war for skills and talent seek to capitalise on their
business confidence shows no signs shortages will return in even more growth opportunities.
of evening out in the short-term. dramatic forms. HR departments
■ ■ ■
which have been downsized in the
This survey then, represents a lean times will be overwhelmed
view of a rapidly shifting trend at with the complexities of identifying
a unique snapshot in time. Clearly and onboarding the quality and
many organisations’ 2009 staff quantity of talent they need to fuel
hiring strategy and needs will be their company’s renewed growth.
dramatically impacted by the current The value recruitment process
environment. Just how dramatically outsourcing can play in such an
remains to be determined.


global RPO report 2009 | 4

02 executive ➔ The Global RPO Report


2009, now in its second year, was
A shortage of skilled staff is the key
recruiting challenge for many (82
01 Preface
02 Executive

summary carried out by Kelly Outsourcing


and Consulting Group (KellyOCG)
percent), significantly outstripping the
next closest challenge, uncompetitive
summary
03 A profile of
respondents
and the HROA in September salary (35 percent). Challenges that 04 The recruiting
challenge
and October 2008 to continue to slow the hiring process are much
05 Global hiring
explore the views and practices less clear. Whilst more than half of intentions
related to recruiting and recruitment respondents point to quality of hire, 06 Internal
recruitment
process outsourcing (RPO) among the next most commonly cited brake functions
global business leaders. Our 614 on the hiring process are broadly 07 The decision
to outsource
respondents were a global set, at spread: time to hire (37 percent),
08 Estimating
companies ranging in size from fewer cost to hire (28 percent), and hiring the real cost
of recruitment
than 1,000 employees to more than manager satisfaction (27 percent).
09 Respondents
50,000 and representing a spectrum – country of
of industries. In comparing results from the 2008 residence

and 2009 studies, hiring is expected 10 About


sponsors
Last year we noted that the buoyant to fall off in the coming year; those
world economy was having a anticipating hiring 100+ permanent
negative impact on recruitment, as employees have fallen from 43
70 percent of respondents reported percent to 36 percent. However,
recruitment difficulties. The recent 2009 still looks to be an active hiring
global economic situation appears year, with a similar percentage of
to be having, expectedly, impact, as organisations expecting to engage in
well, with many fewer respondents recruiting/hiring.
(54 percent) experiencing recruitment
difficulties. The EMEA region is faring
worst with 67 percent reporting
experiencing hiring troubles.


global RPO report 2009 | 5

02 The majority of respondents –


66 percent – are currently using
Less than half of respondents (43
percent) say they are outsourcing part
01 Preface
02 Executive
summary
recruitment firms, down from 2008’s or all of their HR function. Among
03 A profile of
78 percent. EMEA organisations, those who are outsourcing HR respondents
at 78 percent, are much more functions, recruitment and payroll are 04 The recruiting
challenge
likely than their American and Asia most common, at 65 percent and 54
05 Global hiring
Pacific counterparts to make use of percent respectively. intentions
recruitment firms, as are the largest 06 Internal
Familiarity with RPO appears to be recruitment
employers – those with 50,000+ functions
employees – 85 percent of which are on the rise; 62 percent say they are
07 The decision
familiar or very familiar with RPO to outsource
using recruitment firms.
versus 56 percent last year. 08 Estimating
the real cost
By far the most common use of of recruitment

recruitment firms is for sourcing, Just under a quarter of respondents 09 Respondents


– country of
screening and testing, with over 90 say they are outsourcing all or part residence

percent of these respondents making of their recruitment process. This 10 About


experience is most common in sponsors
use of those services. Half of these
respondents are using these firms EMEA (35 percent), followed by

for reference checking. Two thirds of the Americas (23 percent) and the

those using recruitment firms fill less Asia Pacific region (17 percent).

than a quarter of their job vacancies RPO is also much more common in

that way. EMEA organisations, companies with 50,000+ employees,

however, make the greatest use of 40 percent of which report engaging

these firms; 42 percent say they use in RPO.

them to fill between a quarter and


The three main priorities of RPO
half of vacancies.
are reducing time to hire, lowering
cost of recruitment, and integrating
multiple sourcing channels.

■ ■ ■


Familiarity with RPO
appears to be on the rise;
62 percent say they are
familiar or very familiar
with RPO versus 56 percent
last year.


global RPO report 2009 | 7

03 a profile of European respondents are more


likely to have multinational roles
Just under half of the respondents (46
percent) represent organisations with
Manufacturing, IT&T, Banking &
Finance, Health, Retail/Wholesale,
01 Preface
02 Executive

respondents than their American or Asia Pacific


counterparts; half all the European
fewer than 1,000 employees, and
about a third work in organisations
Government
summary
03 A profile of
respondents
respondents report having a of 1,000 to 10,000 employees. The Education, Bureau/Outsourcer,
04 The recruiting
Transport, Construction, Utilities, challenge
multinational role, as compared to remaining 20 percent work in the very
Insurance, FMCG / Consumer 05 Global hiring
29 percent of American respondents largest organisations – those with intentions
and 20 percent of Asia Pacific more than 10,000 employees. Products, Hospitality, Non - Profit /
06 Internal
Religious Organisations. recruitment
respondents. functions
➔ The survey was undertaken The results represent views from
07 The decision
■ ■ ■
by Kelly Outsourcing and Consulting Most respondents (61 percent) are a broad spectrum of industries, to outsource

responsible for only one country, including Professional Services, 08 Estimating


Group (KellyOCG) and the HROA the real cost
in September and October 2008 and just under a third (28 percent) of recruitment

are responsible for 2 to 10 countries. 09 Respondents


to continue our exploration – – country of
commenced the previous year - of Only 11 percent are responsible for residence
1 Number of employees
the attitudes and practices of global 11 or more countries. For the most 10 About
sponsors
organisations relating to recruitment part respondents have responsibility
generally and recruitment process for recruiting within their own regions,
12%
outsourcing (RPO) specifically. with only 18 percent of respondents
overall saying they have global 8%
Less than 1,000
The respondent pool is truly global, 1,000 to 10,000
recruiting responsibilities. EMEA 46%
10,000 to 50,000
with 41 percent located in the respondents are the most likely to More than 50,000
Americas, 37 percent in the Asia have global recruiting responsibility
Pacific region and the remaining 34%
(26 percent), followed closely by
22 percent in EMEA. Respondents American respondents (22 percent)
generally have a national role within and then Asia Pac respondents (9
their organisations – 70 percent say percent).
their role is mostly national, whilst
30 percent say their role is mostly
multinational. Not surprisingly,


global RPO report 2009 | 8

04 the recruiting ➔ Just over half of all


respondents (54 percent) say they
of respondents in the Americas (43
percent) say they are experiencing
salary) by more than two times. Whilst
respondents in all regions agreed
01 Preface
02 Executive

challenge are experiencing difficulties in


recruiting staff. This number is down
difficulties in recruiting staff, whilst
60 percent of Asia Pacific and 67
that the skilled staff shortage was
a significant challenge, American
summary
03 A profile of
respondents
fairly significantly from last year’s 69 percent of EMEA respondents respondents ranked uncompetitive 04 The recruiting
challenge
percent who indicated they were indicate recruiting challenges. salary the lowest of all challenges
05 Global hiring
having difficulties in hiring. (with 19 percent selecting it), below intentions
A shortage of skilled staff is by far location and the current recruitment 06 Internal
At the same time, the data point the most significant reason cited for recruitment
process. functions
out potential regional differences in recruiting difficulties, beating out the
07 The decision
recruiting challenges. Less than half next closest challenge (uncompetitive to outsource
08 Estimating
the real cost
of recruitment
09 Respondents
2 Hiring challenges, by region – country of
Hiring challenges by region residence
10 About
sponsors
Shortage of skilled staff

Salary uncompetitive

Location

Current recruitment processes

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Americas
APAC
EMEA


global RPO report 2009 | 9

04 Respondents cite a variety of


challenges that are slowing the hiring
hiring manager satisfaction (27
percent), performance monitoring
significant problem in the Asia Pacific
region than it is in the Americas
01 Preface
02 Executive
summary
process, the most common of which, (21 percent), quality of recruiters (18 or EMEA, time to hire is a more
03 A profile of
quality of hires, at 54 percent is the percent). significant problem among EMEA respondents
only one selected by more than half respondents, and poor processes is 04 The recruiting
Whilst there is general agreement challenge
of all respondents. Following that, more significant among American
among respondents from different 05 Global hiring
challenges include, time to hire (37 respondents than it is for respondents intentions
percent), cost to hire (28 percent), regions as to the main inhibitors in other regions. 06 Internal
to hiring, quality of hires is a more recruitment
functions
07 The decision
to outsource
3 Conditions slowing hiring, by region 08 Estimating
Conditions slowing hiring, by region the real cost
of recruitment

Quality of hires 09 Respondents


– country of
residence
Time to hire
10 About
sponsors
Hiring manager satisfaction

Cost to hire

Quality of recruiters

Performance monitoring

Poor processes

Technology effectiveness

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

Americas
APAC
EMEA


global RPO report 2009 | 10

04 The impact of some of these


challenges is also influenced by
employees than it is for larger firms.
Hiring manager satisfaction, poor
On the other hand, cost to hire
appears to be less noteworthy for
01 Preface
02 Executive
summary
company size. Quality of hires is processes, and especially technology the largest organisations, as is hiring
03 A profile of
a more significant challenge for effectiveness are more significant manager satisfaction for the smallest. respondents
organisations with less than 100 issues for the largest companies. 04 The recruiting
■ ■ ■
challenge
05 Global hiring
intentions
4 Conditions slowing hiring, by size 06 Internal
Conditions slowing hiring, by size recruitment
functions
07 The decision
Quality of hires
to outsource
08 Estimating
Cost to hire the real cost
of recruitment

Time to hire 09 Respondents


– country of
residence
Hiring manager satisfaction
10 About
sponsors
Performance monitoring

Quality of recruiters

Poor processes

Technology effectiveness

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

Less than 1,000


1,000 to 10,000
10,000 to 50,000
More than 50,000


global RPO report 2009 | 11

05 global hiring ➔ The impact of the current


global economic situation can be
that number dropped to 36
percent. Likewise, the percentage
Unlike last year, and again not
surprising given the economic
01 Preface
02 Executive

intentions seen in the anticipated number of


hires in 2009 versus the prior year.
of respondents who say they plan to
hire more than 100 temporary and
challenges of the past year, the
summary
03 A profile of
anticipated hiring focus for 2009 is respondents
In 2008, 43 percent of respondents graduate employees also dropped in replacing existing positions, rather 04 The recruiting
challenge
anticipated hiring more than 100 from the 2008 to the 2008 survey, than filling new ones.
05 Global hiring
permanent employees; in 2009, from 33 percent to 20 percent and 18 intentions
percent to 13 percent respectively. Nearly half (48 percent) of 06 Internal
organisations are recruiting for five or recruitment
functions
However, whilst the number of fewer locations; EMEA firms are most
5 Plan to hire 100+ 07 The decision
anticipated hires appears to be often (84 percent) recruiting for one to outsource
Plan to hire 100+
declining, respondents anticipate to 10 locations, whilst both American 08 Estimating
the real cost
Permanent
an active hiring year, with those and Asia Pacific firms are more of recruitment

expecting to make some number broadly spread from one to 20-plus 09 Respondents
Temporary
– country of
of permanent and graduate hires locations. residence
Graduate
increasing over the prior year. 10 About
sponsors
0% 10% 20% 30% 40% 50%

2008
2009

6 Plan to hire
Plan to hire

Permanent

Temporary

Graduate

0% 20% 40% 60% 80% 100%

2008
2009


global RPO report 2009 | 12

05 As we found last year, when asked


about the job categories they will fill
The majority of respondents (66
percent) use recruiting firms to aid
recruiting firms to aid them – 78
percent of EMEA respondents versus
counterparts; just over half of the
smallest firms (fewer than 1,000
01 Preface
02 Executive
summary
in the next year, the top categories in their hiring efforts, although this 67 percent of American and 59 employees) use recruiting firms, while
03 A profile of
are business operations support number is down slightly from last percent of Asia Pacific respondents. 85 percent of the largest (more than respondents
and mid-level executives, both at 74 year’s 71 percent. Organisations 50,000 employees) do. 04 The recruiting
Larger firms, too, are more likely challenge
percent of all respondents, although in EMEA are more likely than their
to seek the assistance of recruiting 05 Global hiring
in general slightly lower numbers counterparts in the Americas or intentions
than the prior year. the Asia Pacific region to call on companies than are their smaller
06 Internal
recruitment
functions
07 The decision
to outsource
7 Main job categories to be filled, 2008 and 2009
08 Estimating
Main job categories to be filled, 2008 and 2009 the real cost
of recruitment
Senior Exec 09 Respondents
– country of
Mid-level residence
10 About
Business Ops Support sponsors

Administrative

Contact Centre

Trades

Other

0% 20% 40% 60% 80%

2008
2009


global RPO report 2009 | 13

05 Of those organisations that use


recruiting firms, 90 percent use them
third-party providers. Just as EMEA
organisations are more likely to make
Most organisations – 83 percent –
will use cross border recruitment
01 Preface
02 Executive
summary
for sourcing, screening and testing, use of recruiting firms, they rely on to fill up to 25% of their vacancies.
03 A profile of
and half use them for reference them to fill more positions as well; Only 7 percent will use this method respondents
checking. the highest percentage of EMEA to fill more than 50 percent of their 04 The recruiting
challenge
respondents (42 percent) say they vacancies.
Two thirds of the companies that 05 Global hiring
fill between a quarter and a half of intentions
use recruiting firms say they fill 25 all vacancies through third-party ■ ■ ■
06 Internal
percent or fewer vacancies through recruitment
providers. functions
07 The decision
to outsource

8 How organisations plan to use recruitment firms 08 Estimating


the real cost
How organisations plan to use recruitment firms of recruitment
09 Respondents
Sourcing, screening, testing – country of
residence
Reference checking 10 About
sponsors
Applicant and recruitment performance tracking

Vendor management

On-boarding

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%


global RPO report 2009 | 14

06 internal ➔ Our 2009 survey found


that slightly fewer than half of
recruitment. Asia Pacific firms are
most likely to have centralised
as organisation size grows; nearly
three quarters (73 percent) of firms
01 Preface
02 Executive

recruitment the respondents (49%) have


decentralised recruitment processes,
recruitment functions (56 percent)
and least likely to outsource
of 50,000+ employees are have 20+
recruitment staff.
summary
03 A profile of
respondents
functions and another 43% are centralised, (1 percent).
Similarly, decentralised organisations
04 The recruiting
challenge
whilst 4% are outsourced. (The
Most recruitment departments generally have larger recruitment 05 Global hiring
remainder use a broader hybrid of intentions
arrangements.) American and EMEA (61 percent) in our survey are staff sizes, but that difference is likely
06 Internal
operating with five or fewer internal owing to the fact that larger firms are recruitment
organisations follow similar patterns functions
with more reporting decentralised recruitment staff. It’s no surprise more likely to be decentralised.
07 The decision
that internal recruitment size grows to outsource
08 Estimating
the real cost
of recruitment
9 Number of internal recruitment staff, by size
09 Respondents
Number of internal recruitment staff, by size – country of
residence
10 About
Less then 1,000 sponsors

1,000 to 10,000

10,000 to 50,000

More than 50,000

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

1 to 5
6 to 10
11 to 20
More than 20


global RPO report 2009 | 15

06 Not only are many recruiting


functions limited in size, but few
of respondents say they have HR/
recruitment staff that are dedicated to
Respondents indicate that they use
a wide range of technologies to
01 Preface
02 Executive
summary
HR/recruitment staff are dedicating recruitment duties 75 to 100 percent source and track candidates. The
03 A profile of
significant time to recruitment of their time. This is often the case most popular are online applications respondents
functions. The highest percentage with larger organisations, 36 percent and assessment (73%) and applicant 04 The recruiting
challenge
of respondents – 37 percent – say (the highest total percentage among tracking (66%) programs, both of
05 Global hiring
less than 10 percent of their internal firms of 50,000+ employees) of which are used more than twice as intentions
HR/recruitment team perform whom say 76 to 100 percent of their often as the next most common 06 Internal
recruitment
recruitment duties only. On the internal HR/recruitment team perform technologies. functions
opposite end of the scale, 20 percent recruitment duties only. 07 The decision
■ ■ ■ to outsource
08 Estimating
the real cost
of recruitment
10 % of recruitment team solely recruiting 09 Respondents
% of recruitment team solely recruiting – country of
residence
Less than 10% 10 About
sponsors
10% to 25%

26% to 50%

51% to 75%

76% to 100%

0% 10% 20% 30% 40%


global RPO report 2009 | 16

07 the decision ➔ Our survey asked


respondents about their use of
The most commonly outsourced
HR processes among respondents
to be on the rise. Whilst last year
56 percent of respondents were
01 Preface
02 Executive

to outsource any outsourcing within their HR.


According to their responses, less
who do outsource are recruitment familiar or very familiar with RPO,
this year that number has climbed
summary
03 A profile of
(65 percent of those outsourcing HR respondents
than half (43 percent) are outsourcing to 62 percent. Still 9 percent (about 04 The recruiting
functions) and payroll (54 percent challenge
part or all of their HR function. the same as last year) are not at all
of those outsourcing HR functions). 05 Global hiring
These numbers vary significantly familiar with RPO; the remaining 29 intentions
These two HR functions are more
by region, with EMEA firms (at 63 percent are somewhat familiar with 06 Internal
than twice as likely to be outsourced recruitment
percent) considerably more likely it. Familiarity is somewhat higher in functions
than American (46 percent) and Asia as are any other. EMEA (69 percent) and the Americas 07 The decision
to outsource
Pacific (27 percent) organisations to (66 percent) than in the Asia Pacific
Familiarity with recruitment 08 Estimating
be outsourcing HR functions. region (53 percent). the real cost
outsourcing in particularly appears of recruitment
09 Respondents
– country of
residence
11 Outsourcing part or all of the HR function, by region
10 About
Outsourcing part or all of the HR function by region sponsors

APAC

EMEA

AMERICAS

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


global RPO report 2009 | 17

07 The largest firms (more than 50,000


employees) are more likely to be
23 percent of American respondents
and 17 percent of Asia Pacific
processes are doing so as part of a
larger HR outsourcing contract.
be using RPO to recruit graduates. 01 Preface
02 Executive
familiar or very familiar (53 percent) respondents say they are involved in When asked about future plans, summary

A little over a third (36 percent) of across all respondents, 48 percent 03 A profile of
with RPO than are smaller firms, outsourcing recruitment or hiring. respondents
which range from 32 percent to 38 those who are engaged in RPO are say they would consider outsourcing
04 The recruiting
With 40 percent saying they are outsourcing company wide. Other recruitment processes. Of those not challenge
percent.
engaged in recruitment/hiring than that, their organisations are currently outsourcing any part of 05 Global hiring
intentions
Among all respondents, 24 percent outsourcing, the largest organisations using RPO in a wide variety of ways, their recruitment process, 41 percent
06 Internal
say they are outsourcing some part are about twice as likely as smaller with just over a quarter saying they say they would consider it; those recruitment
functions
of the recruitment/hiring process. ones to be outsourcing in that area. are using RPO in the following job numbers do not vary significantly
07 The decision
Those numbers vary significantly by types: administrative, contingent, by region. However, the larger the to outsource

region, with 35 percent in EMEA About a third of those who are temporary, business units, and organisation, the more likely they are 08 Estimating
the real cost
saying they’re involved in RPO, while outsourcing recruitment/hiring professional. Firms are least likely to to consider RPO, with 35 percent of of recruitment
09 Respondents
– country of
residence
10 About
sponsors


global RPO report 2009 | 18

07 the smallest firms and 47 percent of


the largest firms saying they would
recruitment in the future. The vast
majority of the largest companies
The recruitment processes
organisations would consider
(26 percent considering versus
13 percent currently outsourcing).
01 Preface
02 Executive
summary
consider it. that are currently outsourcing would outsourcing in the future are not
As we found last year, recruiter quality 03 A profile of
consider it in the future (90 percent), significantly different than those that respondents
Interestingly, of those who say they but that number drops to two-thirds are currently outsourced, with the (77 percent), industry knowledge
04 The recruiting
are currently outsourcing recruiting, (63 percent) and cost (53 percent) challenge
of all companies smaller than exception that twice as many would
nearly a third (31 percent) say they were the top three criteria for 05 Global hiring
50,000 employees. consider outsourcing recruiting for intentions
would not consider outsourcing the business unit than currently do selecting an RPO partner.
06 Internal
recruitment
functions
07 The decision
to outsource
12 Provider selection criteria 08 Estimating
the real cost
Provider selection criteria of recruitment
09 Respondents
Recruiter quality – country of
residence
Industry knowledge
10 About
sponsors
Cost

Years of RPO experience

Technology

Global Reach

International

0% 10% 20% 30% 40% 50% 60% 70% 80%


global RPO report 2009 | 19

07 The majority of organisations


(86 percent) would expect a partner
(69 percent). Program expectations
fall off after that, with less than half
looking to the vendor to manage
or limit the number of third-party
01 Preface
02 Executive
summary
to speed hire times if they outsourced (46 percent) expecting partners to providers, and less than a quarter
03 A profile of
their hiring programs, followed next integrate multiple sourcing channels, (21 percent) seeking to gain access to respondents
by lowering the cost of recruitment just over a quarter (29 percent) technology. 04 The recruiting
challenge

Among those who would not 05 Global hiring


intentions
13 Outsourced hiring program expectations consider outsourcing recruitment,
06 Internal
Outsourced Hiring Program Expectations recruitment
nearly three-quarters (74 percent)
functions
Faster time to hire say outsourcing is unnecessary
07 The decision
because they are confident in their to outsource
Lower cost of recruitment
own capabilities. The next most 08 Estimating
Integrate multiple sourcing channels the real cost
commonly reported reasons firms of recruitment
Manage or limit number of third party providers
do not outsource recruitment are 09 Respondents
– country of
Gain access to technology
because outsourcing is viewed as residence
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% too expensive (41 percent) and for 10 About
sponsors
internal cultural issues (35 percent).

14 Why firms don’t outsource ■ ■ ■

Why firms don’t outsource

Not necessary as we do a good job ourselves

Outsourcing is too expensive

Internal cultural issues

Unable to measure the financial benefits

Lack of internal expertise

Knowledge of outsourcing

Unable to identify a good potential outsourcing partner

0% 10% 20% 30% 40% 50% 60% 70% 80%


global RPO report 2009 | 20

08 estimating ➔ Across all respondents, the


average cost per hire is between
just under a quarter, indicated that
average cost of recruitment is 500
01 Preface
02 Executive

the cost of 1,801 Euros and 2,500 Euros


(US$2,501 and US$3,500). However,
Euros to 1,000 Euros (US$700 to
US$1,400).
summary
03 A profile of
respondents
recruitment the largest number of respondents, ■ ■ ■ 04 The recruiting
challenge
05 Global hiring
intentions
15 Average cost per hire 06 Internal
Average cost per hire recruitment
functions
500 to 1,000 07 The decision
to outsource
1,001 to 1,800
08 Estimating
the real cost
1,801 to 2,500
Euros of recruitment
2,501 to 3,500 09 Respondents
– country of
3,501 to 5,000 residence

5,001 to 10,000 10 About


sponsors
More than 10,000

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


The three main
priorities of RPO are
reducing time to
hire, lowering cost
of recruitment, and
integrating multiple
sourcing channels.


global RPO report 2009 | 22

09 respondents Argentina Hungary Poland


01 Preface
02 Executive

– country of Australia
Austria
India
Indonesia
Qatar
Romania
summary
03 A profile of
respondents
residence Belgium Iraq Russia 04 The recruiting
challenge
Brasil Ireland Saudi Arabia
05 Global hiring
intentions
Bulgaria Israel Singapore
06 Internal
Canada Italy Slovakia recruitment
functions
Chile Japan South Africa
07 The decision
to outsource
China Luxembourg South Korea
08 Estimating
Czech Republic Macedonia Spain the real cost
of recruitment
Cuba Malaysia Switzerland 09 Respondents
– country of
Denmark Mexico Taiwan residence
Egypt Morocco Turkey 10 About
sponsors
France Netherlands United Arab Emirates
Germany New Zealand United Kingdom
Greece Nigeria United States
Guatemala Norway Venezuela
Hong Kong Philippines Vietnam


global RPO report 2009 | 23

10 about the ➔ Kelly OCG – RPO Practice ➔ HROA 01 Preface


02 Executive
KellyOCG’s RPO Practice has been The HROA is the definitive
sponsors an industry leader in Recruitment independent organization for all
summary
03 A profile of
Process Outsourcing (RPO) since those who purchase, provide, or respondents

1995. Building a global footprint participate in HR transformation 04 The recruiting


challenge
with the combination of the HRfirst and outsourcing. Our membership
05 Global hiring
and Access AG business units, encompasses over 7,500 HR intentions

KellyOCG’s RPO Practice provides executives, including the largest 06 Internal


recruitment
businesses around the world with 50 buyers, the top 30 providers, functions

strategies to optimise recruiting the leading sourcing advisors and 07 The decision
to outsource
efficiency, while attracting the highest attorneys, and the best thought
08 Estimating
calibre of talent to organisations. leaders in HR Transformation. The the real cost
of recruitment
HROA brings its diverse membership
09 Respondents
together to set standards and – country of
residence
practices, provide peer networking,
10 About
and maintain a robust curriculum. sponsors

kellyocg.com hroa.org

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