Rise of Blended RPO
Addressing the Total Talent Acquisition Need
Blended RPO for
Better Workforce Utilization
What is the “total talent acquisition approach?”
According to Everest Group's recent report, it's the process of blending both temporary staffing and permanent hiring into one single, integrated hiring program. The key drivers behind a blended RPO solution include globalization, technology, economic forces, and demographic shifts.
In the report, Hudson RPO is pleased to be named as one of the few service providers that can deliver a blended recruitment process outsourcing with a managed service provider solution in one package.
Why Consider a Blended RPO Model:
- Growth in the contingent workforce: Up 33% since 2009 according to the American Staffing Association.
- Economic forces: Need to scale up or down given the volatile nature of the economy.
- Demographic shifts: Generations X and Y seek greater work/life balance as temp workers. Also, knowledge workers often work as contractors for some time and as permanent at others, leading to an increasing overlap in permanent and temporary talent pools.
- Technology: Advances are making it possible to do increasingly high-value activities from remote locations.
- Globalization: Companies need to have the flexibility to access talent sources from different geographies.
What are the Potential Financial Impacts of a Blended Model?
- Overall savings of nearly 25% as compared to separate MSP and RPO providers.
- 10-15% savings resulting from better workforce utilization.
- 7-11% savings in demand management, whereby the provider helps the buyer understand what roles can be filled with temporary employees, thus decreasing cost of ownership.
- 3-4% savings due to lower service and vendor management costs.
How else does a Blended Model Positively Impact the Business?
- Alignment of workforce plan to overall business strategy
- Competitive differentiation and higher employee engagement
- Greater flexibility
- Concentration of talent acquisition knowledge and standardization of hiring practices
- Freeing up internal resources to focus on strategic talent management issues
- Greater accountability and compliance.