TrueBlue’s PeopleScout Named a Global Leader in Everest Group’s 2024 Recruitment Process Outsourcing Services Peak Matrix® Assessment

TACOMA, Wash., June 17, 2024 /PRNewswire/ — TrueBlue (NYSE: TBI), a leading provider of specialized workforce solutions, today announced that its global talent solutions brand, PeopleScout, has been named a global Leader in leading research firm Everest Group’s 2024 Recruitment Process Outsourcing (RPO) Services PEAK Matrix® Assessment for the sixth consecutive year.

“PeopleScout’s steady geographic expansion and expertise in hiring for a wide variety of roles across healthcare, retail, and manufacturing industries have enabled it to develop a comprehensive value proposition for RPO buyers,” said Arkadev “Arko” Basak, Partner, Everest Group. “Its recent launch of tech-driven agile and modularized RPO solutions, as well as continued investments in its talent advisory and proprietary Affinix technology platform, have helped it to maintain its position as a Leader in Everest Group’s Recruitment Process Outsourcing (RPO) Services PEAK Matrix® Assessment 2024 – Global.”

Everest Group classifies RPO service providers into three categories: Aspirants, Major Contenders and Leaders, the highest designation. The firm’s proprietary PEAK Matrix® characterizes Leaders as being ahead of the curve in “demonstrating strong vision and capability to support their clients” and at the forefront of “investing in developing emerging capabilities, including consulting, value-add services, skill-based support and generative AI.” Leaders are also selected for their multi-regional capabilities and significant global presence.

“We are honored to again receive a Leader distinction from Everest Group, which is a direct reflection of the continued dedication and best-in-class service our team delivers every day,” said Rick Betori, President of PeopleScout and EVP of TrueBlue. “As we forge stronger connections throughout the talent ecosystem with our best-fit technology, scalable offerings and unrivaled in-house talent advisory expertise, we remain unwavering in our commitment to building sustainable talent strategies that drive results and improve business outcomes for our clients.”

Everest Group’s assessment of PeopleScout on this year’s PEAK Matrix® highlighted the following key strengths:

  • PeopleScout has significant global capabilities, with proven expertise supporting large and mid-size enterprises across a variety of sectors, with solutions rooted in their partnership-led approach.
  • PeopleScout recently launched two agile RPO offerings in response to evolving buyer demands:
    • PeopleScout Accelerate™, a tech-enabled, quick implementation RPO solution.
    • PeopleScout Amplifiers™, a suite of modular talent solutions, providing customizable and stand-alone services for talent mapping, talent sourcing, Recruiter On-Demand™, candidate assessments, and onboarding and retention.
  • PeopleScout continues to invest in its proprietary and cloud-based technology platform Affinix™, which offers functionality across the talent acquisition spectrum, from candidate sourcing and matching to customized reporting and analytics.
  • PeopleScout’s talent advisory services include consulting and value-added services across employer branding, recruitment marketing strategy and activation, talent insights and workforce planning, DE&I strategy and candidate assessments.
  • By capitalizing on its contingent talent acquisition capabilities and technology, PeopleScout successfully delivers total talent solutions, and helps buyers with early careers hiring and high-volume recruitment.

Everest Group’s research is based on three key sources of information, updated annually: its database of approximately 6,400 RPO deals, the operational capability of the 50+ assessed RPO service providers, and buyer references interviews and ongoing buyer surveys and interactions. The analyses in the report are presented at two levels: overall market analysis and current market trends based on deal activity in the last five years.

To learn more about the RPO Services PEAK Matrix® Assessment 2024, visit the Everest Group website.

About PeopleScout 
PeopleScout, a TrueBlue (NYSE: TBI) company, is a global talent solutions leader that provides unmatched scalability to meet the hiring needs of organizations of all sizes. It connects clients with top talent through Recruitment Process Outsourcing (RPO), Managed Service Provider (MSP), Total Workforce Solutions, and talent and technology advisory services. PeopleScout is helping talent leaders harness the power of data, drive decisions and exceed expectations through tech-charged solutions founded on machine learning and AI. PeopleScout’s legacy of service and partnership has led to consistent recognition as a leader by industry analysts. For more information, visit peoplescout.com.

About TrueBlue
TrueBlue (NYSE: TBI) is a leading provider of specialized workforce solutions that help clients achieve business growth and improve productivity. In 2023, TrueBlue served 67,000 clients and connected approximately 464,000 people to work. Its PeopleReady segment offers on-demand, industrial staffing; PeopleScout offers recruitment process outsourcing (RPO) and managed service provider (MSP) solutions to a wide variety of industries; and PeopleManagement offers contingent, on-site industrial staffing and commercial driver services. Learn more at trueblue.com.

Contingent Workforce Solution Opens the Door to a $500K Cost Savings & a Total Talent Solution

Contingent Workforce Solution Opens the Door to a $500K Cost Savings & a Total Talent Solution

MSP for Manufacturing

Contingent Workforce Solution Opens the Door to a $500K Cost Savings & a Total Talent Solution

PeopleScout helped a leading door and window manufacturer achieve a $500K cost savings within twelve months of launching an effective MSP program. Plus, PeopleScout introduced Recruiter On-Demand™ to support an increase in demand for permanent recruitment, as part of a total talent solution.

1,500 Annual contingent hires
500,000 Dollars in cost savings in the first year
250 Full-time hires over 11 months

Situation 

PeopleScout has partnered with this door and window manufacturer since 2017, providing Managed Service Provider (MSP) support for contingent talent solutions in the areas of light industrial, technology and professional roles. Initially, PeopleScout supported locations in the U.S. only, but in 2021 expanded into Canada, playing a key role in supplier vetting, contract negotiations, data collection and manager and supplier trainings.  

The organization was also having challenges filling full-time roles, providing the opportunity for PeopleScout to supplement their contingent staffing support with our Recruiter On-Demand™ solution.

Solution

Over the course of this partnership, PeopleScout’s MSP team has made several technology and process improvements, including a vendor management system (VMS) transition, streamlined documentation requirements, a new approach for managing and improving supplier performance, and a candidate experience assessment.

The team also collaborated with PeopleScout’s Recruiter On-Demand™ (ROD) team to conduct a discovery session to understand the primary areas of increasing demand for full-time roles. Together, the teams developed and implemented an ROD strategy, focused on ten primary locations. The ROD solution included a daily applicant tracker for client visibility into the talent pipeline, and marketing and employer brand support. PeopleScout’s recruiters sourced qualified candidates, who were then interviewed by the client’s hiring managers.

The candidate experience assessment, conducted by PeopleScout’s technical solutions architects, identified opportunities to improve the look and feel of the organization’s careers site, particularly to appeal more to full-time candidates.

Results

The updates PeopleScout has made to the client’s technology and documentation processes have eliminated administrative burdens on both suppliers and hiring managers. The MSP solution achieved cost savings of more than $500,000 in the first year alone.

PeopleScout also seamlessly integrated a Recruiter-On-Demand™ program to support full-time hiring needs, as part of a total talent solution for the door and window manufacturer. The ROD program generated 250 hires over just 11 months across the selected 10 locations.

At a Glance

  • COMPANY: Door and Window Manufacturer
  • INDUSTRY: Manufacturing
  • PEOPLESCOUT SOLUTIONS: Recruitment Process Outsourcing, Managed Service Program, Total Talent
  • ANNUAL HIRES: 1,500 contingent hires and 250 full-time hires
  • LOCATIONS: U.S. and Canada

PeopleScout Named a Leader on HRO Today’s 2024 MSP Baker’s Dozen 

PeopleScout ranked No. 5 overall, and No. 3 for Breadth of Service 

CHICAGO — May 28, 2024 — PeopleScout has been recognized as a leader in Managed Service Provider (MSP) solutions on HRO Today’s annual MSP Baker’s Dozen Customer Satisfaction Ratings. In addition to being named an overall leader, PeopleScout was ranked No. 3 in the Breadth of Service category and No. 5 in the Quality of Service category. 

“PeopleScout has once again earned its place as a leader on our MSP Baker’s Dozen list” said Elliot Clark, CEO and Chairman of SharedXpertise and HRO Today. “Their high-touch approach delivers insights and creative problem-solving, making them a valuable partner for employers looking to optimize their MSP program.” 
 
For 30+ years, PeopleScout’s industry-leading reputation for customer satisfaction has come from their 24/7 concierge-level service, client-first approach and vertically aligned teams. PeopleScout’s MSP capabilities support everything from requisition to invoicing and payment for temporary, temp-to-hire, direct hire, independent contractor (1099) administration, statement of work (SOW) engagements and other complex services across all skill categories and geographies. 

“In today’s market, many organizations are looking to contingent talent to fill skills gaps. Our MSP solutions are proven to drive workforce agility and create successful business outcomes,” said Rick Betori, President of PeopleScout and EVP of TrueBlue. “We are grateful to our valued clients, who trust us to elevate their connection to contingent talent with solutions that are grounded in our staffing and supplier management expertise, boosted by technology and fueled by diversity.” 

PeopleScout’s MSP solutions are powered by Affinix™ Analytics, which integrates with any Vendor Management System (VMS) to provide real-time data on supplier performance, spend and contingent workforce management. Built-in AI enables decision making through market intelligence and competitive benchmarking data. Over 30% of PeopleScout’s supplier community is certified diverse and the company’s proprietary scoring system and supplier dashboard provides detailed reporting to ensure diversity goals and spend requirements are met.  

PeopleScout has been named an industry leader on HRO Today’s MSP Baker’s Dozen Customer Satisfaction list every year since its inception. The list ranks the top 13 MSP providers based on feedback collected through a buyer survey. Providers are evaluated in three sub-categories: breadth of service, size of deal and quality of service. Learn more on the HRO Today website.  

About PeopleScout  
PeopleScout, a TrueBlue (NYSE: TBI) company, is a global talent solutions leader that provides unmatched scalability to meet the hiring needs of organizations of all sizes. It connects clients with top talent through Recruitment Process Outsourcing (RPO), Managed Service Provider (MSP), Total Workforce Solutions, and talent and technology advisory services. PeopleScout is helping talent leaders harness the power of data, drive decisions and exceed expectations through tech-charged solutions founded on machine learning and AI. PeopleScout’s legacy of service and partnership has led to consistent recognition as a leader by industry analysts. For more information, visit www.peoplescout.com.    

Press Contact 
Taylor Winchell 
Senior Manager, External Communications 
pr@trueblue.com 
1-253-680-8291 

PeopleScout Company Overview

PeopleScout Company Overview

Global talent solutions providing unmatched scalability to meet the professional, specialist, volume and contingent hiring needs of organizations of all sizes and sectors.

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TrueBlue’s PeopleScout Unveils “Connect More”™ Brand Promise

Demonstrating commitment to elevating connections with top talent

TACOMA, Wash., – April 30, 2024 – TrueBlue (NYSE: TBI), a leading provider of specialized workforce solutions, today announced that its global talent solutions brand, PeopleScout, has undergone a strategic brand refresh. PeopleScout’s new brand promise, “Connect More”™, and refreshed visual identity convey the importance of meaningful connections between employers and critical talent in the changing world of work.

“Today’s dynamic talent landscape demands an innovative approach to attracting candidates and engaging employees,” said Taryn Owen, President & CEO of TrueBlue. “PeopleScout’s ‘Connect More’ brand promise emphasizes the importance of these connections across the talent spectrum, furthers our mission to connect people and work, and underscores the important difference the right talent can make for our clients.”

PeopleScout knows that cultivating deeper, more profound connections is imperative. “Connect More” extends beyond connecting employers with talent. It spans PeopleScout’s industry-leading technology, scalable offerings, and unrivaled in-house talent advisory expertise to deliver actionable insights, transformative strategy, and a partnership experience unlike any other provider in the industry.

PeopleScout’s refreshed brand is grounded in its long legacy of exceptional service and differentiators that maximize results and improve outcomes for clients:

  • Proven Delivery: For more than 30 years, PeopleScout has built its reputation on integrity, transparent communication and a proven track record of success.
  • Meaningful Connection: PeopleScout excels at connecting with sought-after talent across diverse sectors—from the shop floor to the top floor; from healthcare clinics to innovation labs.
  • Digital Transformation: Leveraging its proprietary talent technology suite, Affinix™, PeopleScout provides candidates with a digital-first experience, harnessing AI, automation and data analytics to remove friction and enhance outcomes. 
  • Talent Advisory: With one of the industry’s largest in-house talent advisory teams, PeopleScout delivers fresh perspectives and innovative solutions to complex talent acquisition challenges.
  • Ultimate Scalability: PeopleScout’s unique blend of insight, experience and action offers flexibility and scalability to support specialty, professional, volume and contingent hiring for organizations of all sizes.
  • Speed and Agility: Flexible solutions like PeopleScout’s Accelerate™ and Amplifiers™ empower employers with the agility required to compete in today’s talent market and address immediate hiring needs.

“We believe in the transformative power of connection to drive results, and our new brand promise reflects our commitment to forging stronger connections throughout the talent ecosystem to improve business outcomes,” said Rick Betori, President of PeopleScout & EVP of TrueBlue. “By helping our clients ‘Connect More,’ we elevate employers’ connections to the right talent, build sustainable talent programs and achieve their immediate and long-term workforce goals.”

Discover how PeopleScout helps organizations “Connect More” with talent at the newly refreshed PeopleScout.com.

About PeopleScout

PeopleScout, a TrueBlue (NYSE: TBI) company, is a global talent solutions leader that provides unmatched scalability to meet the hiring needs of organizations of all sizes. It connects clients with top talent through Recruitment Process Outsourcing (RPO), Managed Service Provider (MSP), Total Workforce Solutions, and talent and technology advisory services. PeopleScout is helping talent leaders harness the power of data, drive decisions and exceed expectations through tech-charged solutions founded on machine learning and AI. PeopleScout’s legacy of service and partnership has led to consistent recognition as a leader by industry analysts. For more information, visit www.peoplescout.com.  

About TrueBlue

TrueBlue (NYSE: TBI) is a leading provider of specialized workforce solutions that help clients achieve business growth and improve productivity. In 2023, TrueBlue served 67,000 clients and connected approximately 464,000 people to work. Its PeopleReady segment offers on-demand, industrial staffing; PeopleManagement offers contingent, on-site industrial staffing and commercial driver services; and PeopleScout offers recruitment process outsourcing (RPO) and managed service provider (MSP) solutions to a wide variety of industries. Learn more at www.trueblue.com. 

Press Contact
Taylor Winchell 
Senior Manager, External Communications 
+1 253-680-8291
pr@trueblue.com

Total Workforce Solutions

PeopleScout Total Workforce Solutions

Total Workforce Solutions break down the walls between permanent and contingent workforce programs to help your workforce be ready for anything.

Download this fact sheet to learn how PeopleScout’s Total Workforce Solutions are helping our clients achieve workforce agility.

total workforce solutions

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Contingent Workforce Solution Opens the Door to a $500K Cost Savings & a Total Talent Solution
Case Studies

Contingent Workforce Solution Opens the Door to a $500K Cost Savings & a Total Talent Solution

Situation  PeopleScout has partnered with this door and window manufacturer since 2017, providing Managed Service Provider (MSP) support for contingent talent solutions in the areas of light industrial, technology and professional roles. Initially, PeopleScout supported locations in the U.S. only, but in 2021 expanded into Canada, playing a key role in supplier vetting, contract negotiations, data…

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Healthcare Talent Shortage: Changing Demographics, Growing Demand & Shifting Skills

As the world of work transforms, the healthcare industry is at the epicenter of change. The industry is growing rapidly and facing a healthcare talent shortage and skills gaps. At the same time, the accelerating pace of medical and technological advancements means medical professionals must constantly adapt to new breakthroughs and changing expectations. Talent acquisition and HR professionals need to be ready to meet the growing challenge. To do so, they must understand the full picture of the healthcare talent landscape.

Is a Generational Change Creating a Healthcare Talent Shortage?

The industry is facing challenges in both supply and demand. Hospitals and Health Networks magazine calls the generational change “the most powerful force operating in our health system right now.”

On the supply side, the baby boomer generation is reaching retirement age, and according to Becker’s Hospital Review, one-third of practicing physicians are more than 55-years old and nearing retirement. Replacing doctors and surgeons who have decades of experience is challenging, as those earlier in their careers lack the years of training, education and on-the-job hours. The next generation in the workforce, Generation X, is relatively small. While the millennial generation is the largest generation in the workforce, the oldest millennials are nearly 40 years old, and some of Gen Z are too young even to start medical school. As baby boomers retire, these generations will have to fill that gap.

Dig Deeper

How RPO Can Solve The Top Challenges In Healthcare Talent Acquisition

On the other side of this equation, the overall population is aging, with 10,000 Americans turn 65-years-old every day. Caring for an aging population will require even more healthcare professionals.

As baby boomers age, the demand for healthcare is increasing, including home health services, long-term and aged care. Chronic conditions like heart disease, diabetes, cancer are becoming more common with nearly half of the American population suffering from a chronic illness. According to a study JAMA Internal Medicine, , baby boomers have a longer lifespan but higher rates of hypertension, high cholesterol, diabetes and obesity. This means the largest generation to reach retirement age will likely also need more healthcare than any previous generation

The Healthcare Talent Shortage

The aging baby boomer generation is fueling industry growth. The healthcare industry is predicted to be the largest driver of growth in the U.S. economy through most of the next decade. Yet, most healthcare organizations continue to experience strains as the healthcare talent shortage increases. This is a multi-pronged issue driven by increased demand, retirement, burnout and a lack of new healthcare professional entering the field complicating healthcare recruitment.

And experts predict the healthcare talent shortage will only get worse. The Bureau of Labor Statistics (BLS) projects that the country will face a shortage of 195,400 nurses by the year 2031. While doctors and nurses are the most visible employees in the healthcare industry, growth in the industry will impact positions throughout the sector. An increase in patients, hospital visits and appointments will call for more support staff, like clinic support, medical technicians, billing and coding professionals and even non-clinical hospital staff like janitorial and food service.

Laboratory technicians are facing many of the same labor challenges as physicians and nurses. Many are reaching retirement age, and retirements are expected to accelerate. Replacing them will tough, as the number of students graduating from laboratory technician programs is declining.

Plus, due to a shift towards home-based care, home health aide shortages are projected to grow significantly. The BLS predicts that the number of openings for home health and personal health roles will increase 37% by 2028.

Healthcare Talent Shortage

Less visible roles are also impacted by healthcare talent shortages. The medical coding profession has been plagued for years by a shortage of coders. Job growth for the position accelerated after the implementation of the Affordable Care Act, and experts expect that growth to continue along with the rest of the industry.

A Transforming Workplace

In addition to the healthcare staffing challenges, the healthcare industry is not immune to the changes impacting organizations across the country—like the digitization of services and the growing gig economy. The healthcare industry is always experiencing change due to technological advancement, medical research and new regulations. However, to adapt to these trends, organizations will need to seek out talent in different ways and find people with new skill sets.

Use of telemedicine and virtual care expanded during COVID-19 and are continuing to rise as a way to improve access. Jobs in these types of workplaces require different technology and communication skills than more traditional hospital and clinic jobs.

While many think of the gig economy as a place for creatives or rideshare drivers, the contingent workforce is taking on a greater role in healthcare. SIA reports that hospitals are turning to contract physicians and traveling nurses to deal with the talent shortage. Some practitioners are turning to this freelance work to boost their earning potential, and the system helps increase staffing at rural healthcare facilities that struggle with healthcare recruiting.

Large hospitals are also bringing in a greater share of doctors due to consolidation within the industry. Since 2019, over 100,000 private practice doctors have transitioned into employees of larger corporate healthcare organizations. Nearly three-quarters of physicians are part of larger healthcare systems in the U.S., a record high.

A Necessary Response

To remain competitive in this challenging talent landscape, healthcare organizations must take a proactive approach to planning their workforces, sourcing and recruiting talent, retaining workers and appealing to millennials and Generation Z workers who will fill the roles of retiring baby boomers.

Areas across the United States are already feeling the impact of the healthcare talent shortage, and experts say the pressure will only grow. Organizations need to respond now to prepare. Here are some steps companies in the healthcare industry should take to manage skills shortages and how technology can help.

PeopleScout Jobs Report Analysis—January 2024

U.S. employers added 353,000 jobs in January, nearly doubling what economist had predicted and demonstrating employers’ willingness to keep hiring to meet steady consumer spending. The unemployment rate remained flat at 3.7% despite predictions of a slight increase. Year-over-year wage growth rose to 4.5%. 

The Numbers 

353,000: U.S. employers added 353,000 jobs in January.  

3.7%: The unemployment rate remained unchanged at 3.7%.  

4.5%: Wages rose 4.5% over the past year.  

The Good 

January’s jobs report defied expectations with job growth nearly doubling forecasts, the unemployment rate holding steady and wages outpacing predictions. Experts at The Wall Street Journal also point out that while the bulk of hiring in 2023 came from just three sectors: government, healthcare, and restaurants and hotels, job gains in January broadened, with nearly two-thirds of private sector industries adding to their payroll or keeping them steady. January’s report adds to months of data showing that economic growth is remaining stable, if not accelerating. And after being hit hard by inflation, Americans are finally starting to feel better about the economy, according to a University of Michigan survey which showed a 29% improvement in consumer sentiment compared to November 2023, the biggest two-month increase since 1991.  

The Bad 

With few signs of weakness, the January report was described by many as universally positive. Yet, some analysts have argued that after such a big rally, further gains will be more difficult to come by. Further, despite markets buoying, stock gains did not extend across the entire market, with shares of smaller companies falling in general. These businesses may continue to suffer if the Fed takes longer to cut rates, which as reported by the New York Times, they are now in no hurry to do.  

The Unknown 

January jobs reports have been somewhat hard to read since the onset of the pandemic. While job gains have consistently been above economist’s expectations for the past few years, some believe that may be the result of shifts in seasonal hiring patterns, according to The Wall Street Journal. Further, recent high-profile layoffs from companies like UPS signal for some that demand for workers may cool in the coming months, but for now as reported by Bloomberg, there’s still plenty of evidence that employers are still hiring.  

Conclusion 

For months, U.S. jobs data has pointed to a gradually cooling labor market, which along with receding inflation led experts to believe the Fed would start cutting interest rates in early 2024. However, this “blockbuster” January report has turned that narrative on its head, suggesting a reacceleration that is likely to delay any rate cuts, at least for the time being.  

Building a Business Case for RPO

Amidst the most turbulent labor market in recent memory, talent acquisition leaders and procurement professionals alike are turning to partners for creative, agile and adaptable solutions for their current and future talent challenges. Because recruiting touches the whole organization, stakeholders across the business will have opinions on the benefits and drawbacks of recruitment process outsourcing (RPO) as well as unique ideas about the best approach. The process to secure buy-in and budget doesn’t have to be difficult. By having a few conversations with the right people in your organization and gathering some information around current recruitment processes and costs, you can present a solid business case for RPO to your leadership team and create a path forward to an effective and resilient talent acquisition program.

What is RPO?

First things first—what is recruitment process outsourcing? Recruitment process outsourcing, abbreviated as RPO, is a type of business process outsourcing in which an employer transfers some or all portions of the recruitment process to an external service provider. These facets may include job postings, sourcing, screening, assessments, offer management, background verifications, some onboarding elements and more.

RPO can support hiring for high volume or niche professional roles and often involves technology and talent advisory consulting—including employer branding. An RPO provider embodies the best of your culture, employer brand and values in all the activities they perform on your organization’s behalf, while integrating with your systems, processes and people. Plus, your RPO team brings new ideas, innovation and expertise to bolster your talent strategy and plans. They may sit on-site, work remotely, work offshore or a combination, and they typically take on your company name and email domain as an extension of your organization.  

👉 Get our RPO buyer’s guide.

RPO can be leveraged to augment existing in-house recruitment teams and can complement your current recruitment program by taking over recruiting for specific job groups, locations or business units. Moreover, across your enterprise, you can leverage different RPO models to maximize the benefits.

When evaluating whether RPO is right for your organization, it’s important to determine which RPO blueprint is the right one. As you speak to stakeholders, one key challenge you may run into is that stakeholders have different views on what you mean by RPO. In your business case presentation, you’ll want to compare different models—and clearly define them—in order to help the decision-making process.

Benefits of RPO

RPO engagements are not only about outsourcing your recruiting but also about finding the best partner to help manage the people, process, technology and strategy of your talent acquisition function. There is no single best option, only the option that best aligns with your organizational needs.

You should focus on finding the solution that provides the most value for your investment. RPO will create benefits that will be felt across your organization in terms of both cost and operational efficiencies.

Cost Benefits of RPO

Whether through direct or indirect cost savings, RPO can provide advantages that impact your bottom line. As you prepare your business case for RPO, here are some cost benefits to keep in mind:

  • Reduced Time-to-Fill: The longer a position goes unfilled, the more likely your business is to experience productivity loss—and loss of revenue. RPO teams find candidates and fill roles faster through talent pipelining.
  • Lower Cost-per-Hire:  RPO offers cost efficiencies by shortening hiring timelines and improving the quality of your talent, while also lowering recruitment marketing spend. By streamlining and optimizing recruitment processes, improving time-to-hire and retention rates, RPO increases your return on investment and delivers savings to your bottom line.
  • Reduced Agency Spend: A huge benefit of RPO is the reduced reliance on disparate third-party staffing agencies. By consolidating recruitment under a single partnership, you reduce agency usage and make your recruitment costs more predictable.

👉 Learn the top differences between an RPO and a staffing agency.

Operational Benefits of RPO

In addition to the cost benefits of RPO, there are operational benefits that can be felt across your business, including:

  • Elevated Role for HR: Leading RPO providers can provide labor market insights, talent intelligence and benchmarking data. With access to these insights, you have the data you need to support your workforce strategy as well as tactical business decisions. You can capitalize on the latest market analysis, thought leadership and competitive intelligence to inform your talent strategy. Your RPO partner can provide analytics to help you understand what’s working so you can maximize your ROI. Your RPO partner should also be able to give insights into how your organization is perceived as well as tactical steps to fundamentally change perceptions through your employer value proposition (EVP) and employer brand and even recruitment marketing and media purchasing services.
  • Improved Candidate Quality: As skills gaps and talent scarcity becomes more challenging, having an RPO team digging into passive sourcing to access niche skills sets will expand your talent pool and improve quality-of-hire. RPO providers leverage their comprehensive talent networks and effective screening and assessment tools to produce stronger candidates and more diverse talent pools.
  • Better Candidate Experience: You want your recruitment process to leave every applicant, regardless of whether they get the job, with a positive experience. Your RPO partner can advise on ways to improve the candidate experience including career site audits, job application recommendations and how to leverage technology to speed up the process and reduce friction.
  • Improved Hiring Manager Experience: Your RPO team reduces the administrative burden on your hiring managers by taking over résumé and CV screening, assessment administration, interview scheduling, candidate communication and feedback tasks. RPO teams prepare hiring managers for interviews, provide them with feedback and identify any candidates at risk of dropping from the process so managers can make informed decisions.
  • Diversity, Equity and Inclusion: Through experience collected over many client engagements, RPO teams are knowledgeable about enhancing your employer brand for wider audiences and expanding your talent attraction efforts to new job boards, social media groups, online forums and events to target more diverse candidates.
RPO business case

3 Steps to Building Your Business Case for RPO

RPO solutions are designed to provide transformative recruitment strategies that are flexible enough to help you achieve competitive advantage at a predictable cost. Let’s explore the steps you can take to gather the information you need for your business case.

1. Engage Internal Stakeholders

Before embarking on your business case, it’s essential to engage the right stakeholders from the beginning. Human resources (HR), procurement, hiring managers and the C-suite will all have different pain points, desires and recruitment costs impacting their budgets. Their support will be crucial for not only securing resources but for the overall success of the RPO program.

👉 Create buy-in with our conversations guide for RPO.

By understanding what each stakeholder cares about, you can show how RPO can provide the solution for their challenges. Plus, once you’ve secured budget and selected an RPO provider, these stakeholders will be more open to change to make your RPO program successful.

The goal in this step is to be able to define current pain points and desired future outcomes so you can address these issues through an RPO solution.

Here are 10 questions you can use as conversation starters to uncover your organization’s biggest challenges:

  1. Do we have the talent we need to achieve business goals now and into the future?
  2. Are we attracting quality talent with the right mix of skills, experience and cultural fit?
  3. How are we doing with our diversity, equity and inclusion (DE&I) goals? Are we attracting and hiring underrepresented candidates?
  4. Is our talent acquisition program able to respond quickly to changes in the market (i.e., easily and quickly scale up or down)?
  5. Are we providing an excellent candidate experience consistently?
  6. Are hiring managers getting the support they need to fill their vacancies?
  7. What recruitment technology are we currently using, and is it sufficient for our needs going forward?
  8. Do we have the data and insights we need to do effective workforce planning?
  9. How much are we spending annually on talent acquisition? Are we getting the best value for money?
  10. What are the differences in recruitment strategies between different countries or regions?

2. Assess Your Current Recruitment Landscape

As part of your engagement with stakeholders, it’s important to understand the current lay of the land when it comes to your talent acquisition program. You’ve got to know where you’re starting from in order to improve it.

This may seem like a straightforward question if your company has one in-house recruitment team. However, things get more complicated when there are separate in-house teams sitting in different regions who are using different processes or different local third-party agencies. Worse yet, individual departments and hiring managers may be handling their own recruitment. Ask around and get it all down on paper.

Metrics to help measure your recruitment process:

  • Applicant-to-hire ratio
  • Interview-to-offer ratio
  • Time-to-hire and time-to-fill
  • Time-in-stage or hiring velocity
  • Offer acceptance rate
  • Cost-per-vacancy

Sourcing & Attraction

Who sources candidates for your organization? What channels are you using to get in front of candidates? Are you attracting lots of active candidates, or are recruiters having to engage mostly passive candidates? What are the average costs associated with attracting active candidates versus sourcing passive candidates?

What are you doing to attract candidates to your job ads? Who manages this budget? Are you using any suppliers like creative agencies or advertising platforms (e.g., LinkedIn, Indeed, industry publications, etc.)? How are these channels performing?

Screenings, Interviews & Assessments

Beyond sourcing candidates, who reviews résumés and CVs? Who manages the interview process? How many interview or assessment steps are currently required for each role type?

Are there any delays or bottlenecks that are contributing to longer hiring cycles, poor candidate experiences or increased candidate drop-off rates?

What role is technology playing at each stage? Is there opportunity to build more automation into your processes?

Offers & Negotiation

Once you get to an offer stage, who signs off on offers? What is your offer acceptance rate? If it’s lower than you’d like, is there something about the candidate experience that’s turning them off?

Are you leveraging candidate surveys? What is your candidate Net Promoter Score (NPS)? What are your ratings on review sites like Glassdoor?

It’s also worth looking at attrition and tenure metrics to identify any issues causing new hires to leave soon after joining.

Uncovering this information will help you understand your gaps and opportunities. An RPO provider will be able to develop customized solutions to address your unique challenges.

3. Calculating the Cost of Talent Acquisition

Now that you understand what goes into your recruitment efforts, you can assess how much the overall talent acquisition program will cost to run. It’s preferrable to understand how your staffing spend has changed over the last three to five years.

Unfortunately, this isn’t as simple as asking HR for their budget details. You’ll want to incorporate both direct and indirect costs when assessing your talent acquisition program costs. Let’s break this down.

Understanding Direct Costs with Cost-per-Hire

A great place to start to understand your direct costs is with your cost-per-hire (CPH). This is the average cost you incur to hire a new employee. This includes total internal expenditures and external expenditures divided by your total number of new hires. You can calculate cost-per-hire using a monthly or annual measurement period.

cost per hire = total external costs + total internal costs / total number of hires

Internal costs include things like:

  • In-house recruiter salaries
  • Training costs for recruiters or hiring managers
  • Salary costs of time invested by hiring manager and other employees
  • Employee referral awards

External costs are any expenses incurred from external vendors, like:

  • External agency fees
  • Recruitment marketing and advertising costs
  • Assessment costs
  • Fees from drug tests and background checks
  • Technology costs
  • Hiring event and career fair spend
  • Candidate travel and lodging
  • Relocation expenses
  • Visa expenses
  • Signing bonuses

It may be useful to look into the differences in CPH for each job function, experience level, candidate source, geography and labor market. This may mean doing several calculations to capture these categories.

Keep in mind, cost-per-hire doesn’t capture quality of hire or take into account the costs of making a bad hire. If your cost-per-hire is low, but your new hires are leaving quickly or don’t pass their probationary period, is that really an advantage? On the flip side, a high cost-per-hire that brings in new employees that are engaged, productive and invested in your organization is worth the expenditure. Ultimately, your talent acquisition program shouldn’t focus solely on cost but should concentrate on creating more value for the business.

Sussing Out Indirect Recruitment Costs

There are also indirect costs around recruitment that can be more difficult to measure and present in hard numbers. These could include:

  • Loss of productivity due to vacancy
  • Cost of overtime to cover vacancies
  • Impact on employee morale
  • Customer churn
  • Knowledge loss from turnover (and subsequent training costs)
  • Reputational damage from bad candidate experiences
budget for RPO

Presenting Your Business Case for RPO

Now that you’ve gotten to the bottom of your current recruitment efforts and the associated costs, you can present the business case for the RPO models that will address your challenges. Don’t be afraid to reach out to RPO providers for help with this step. By providing them with the information you gathered in the previous steps, they can provide a breakdown of the services they offer and how they could address your unique needs.

How you go about putting your business case on paper will depend on your organizational requirements and personal preference. We recommend getting everything onto one page. This gives C-suite leadership an easy-to-digest snapshot of your recommendations. While there is often a need to present high-level decisions in hard financial terms (e.g., ROI, NPV, IRR), presenting the business case simply will also help garner expert support to create any detailed financial assessment needed. You can always link to additional documentation to back-up your presentation (e.g., a flow chart of the current hiring steps, a SWOT analysis, etc.).

Your business case one-pager should consist of the following:

  1. Options: These are the solutions you’ve identified as best at addressing the pain points you uncovered in your conversations with stakeholders. Keep in mind that staying as-is is always a viable option. It’s also essential both to include your current situation as a contrast to the new RPO models and ensure each option is adequately described (for example, in supporting documents) so decision makers understand what is being compared. 
  2. Benefits and Drawbacks: These are the positives and negatives you could gain with each option. These should be aligned to the pain points identified by your stakeholders. The risk section (see number 4 below) is the place to capture any uncertainties about the expected benefits. Cash and non-cashable savings can be highlighted here, though most should be covered in the Costs section below.
  3. Costs: This should be both the direct (monetary) costs as well as indirect costs (like investments of time) and should be profiled to cover the whole life of each option (i.e., implementation, operation, close). A leading RPO provider should offer consultation that will help you complete this section.
  4. Risks and Opportunities: By showing the risks for each option, you give leadership the confidence that you’ve explored all the issues when coming to these conclusions. It also helps everyone make more informed decisions. Risks and opportunities are not guaranteed to happen, and in all cases should be evaluated both by likelihood and by impact. They are entirely future focused, so if you have a current issue, it should be listed as a drawback (see above).
  5. Assumptions: Explaining any assumptions you’ve made while preparing this document, helps you acknowledge any possibilities that might impact recruitment plans but that are out of your control or that could change in the future. For example, you could document current plans around mergers and acquisitions or geographical expansion. If there’s anything you want to exclude from the scope of your RPO engagement, you’ll want to document this here too.  

On the next page we’ve included an example of a business case for RPO created for a client who was hoping to move away from a combination of in-house recruiters and staffing agencies to an RPO solution.

Example Business Case for RPO

example business case for RPO

The Business Case for RPO

Going through the steps we’ve detailed in this guide will arm you with everything you need to prove that an RPO partner will create measurable value for your organization. Presenting a winning business case for RPO—that depicts the process and cost efficiencies in an easily digestible document—will help you to secure budget and buy-in and put you well on your way to achieving talent advantage.

Countdown to Skills Crisis? What Our Latest Research Tells Us About Skills Gaps

By Simon Wright, Global Head of Talent Advisory Consulting

The workforce skills landscape is transforming at blinding speed. Automation, AI, sustainability initiatives, demographic shifts—global forces are conspiring to make skills gaps and talent shortages more acute by the day. Don’t think it’s moving that fast? Well, the World Economic Forum predicts that a jaw-dropping 85 million jobs could sit vacant by 2030, resulting in $8.5 trillion in lost revenue.

The very meaning of “skills” is shifting beneath our feet. Skills requirements have already changed 25% since 2015, and experts forecast 65% more change by 2030. However, companies still rely heavily on degrees and experience over skills when it comes to making hiring decisions. No wonder we’re careening towards a global skills crisis.

PeopleScout partnered with skills-based workforce management platform provider Spotted Zebra to survey over 100 senior HR and talent acquisition leaders globally, plus over 2,000 employees worldwide, to compare perspectives. Our new research report, The Skills Crisis Countdown, maps the skills landscape and diagnoses the disconnects between employers and their workforce.

Read on for some key findings from our report.

HR Leaders are Ill-Prepared for the Skills Crisis

According to a study by PwC, 40% of global CEOs believe their business will be economically unviable in 10 years unless they reinvent for the future. Our study revealed that nine out of 10 HR leaders believe that up to 50% of their workforce will require new skills to effectively perform their job in the next five years. Yet, when asked if they are currently undergoing or planning a workforce transformation initiative in the next three years, nearly half (45%) of HR leaders admit to having no plans to undertake one.

So, in other words, half of employees will soon be underprepared for the future, but most companies have no strategy in place to address the issue.

According to LinkedIn, 84% of members are in occupations that could have at least one quarter of their core skills affected by generative AI (GAI) technologies, like ChatGPT. So, how are HR leaders preparing for this digital transformation and the AI era? Shockingly, a full third (34%) say they have no preparations in place to prepare for new technologies. Those who are preparing emphasize bringing in outside talent rather than reskilling existing employees.

Industry Composition by GAI Segment
Percentage of LinkedIn Members by Industry

Impact of GAI on workplace skills
(Source: LinkedIn Economic Graph Research Institute)

This is likely because they lack an understanding of the skills they have within their existing workforce. Our data revealed that 68% of organizations identify skills from manager feedback, which is highly subjective. So, it’s no surprise that 56% of employees think their skills are underutilized in their current roles, and 61% think there are other roles in their organization where their skills could be utilized.

An unprecedented skills revolution is barreling down the tracks, but companies are fast asleep at the switch. It’s time to wake up and get employees future-ready or risk a global skills crisis and talent scarcity for decades to come.

Digital & Tech Skills Gaps are Widening but Tech Skills are Viewed as Unimportant

Both employers and employees dangerously underestimate the importance of tech and digital skills. In our survey, both parties listed tech and digital literacy skills with low importance. With the skyrocketing demand for tech and digital talent, this does not bode well.

skills in the workplace

Mobile apps, ecommerce and digital transformation have made technology integral to every corporate strategy. However, supply isn’t keeping up with demand. McKinsey analyzed 3.5 million job postings in high-tech fields and found there’s a wide divide between the demand for tech and digital skills and the qualified talent availability. The most sought-after skills have less than half as many qualified professionals per posting compared to average global figures. 

No wonder 63% of HR leaders in our survey admit they struggle to recruit the skills they need. Closing tech and digital skills gaps through recruitment alone is no longer sufficient. So, we were concerned when our research showed that 73% of the workforce haven’t been offered opportunities to reskill.

Organizations must invest in helping their employees evolve their skills via reskilling and internal mobility to cultivate digital and tech literacy across their entire workforce.

Case Study: Reskilling in Action

The Challenge:

A large global financial services company needed to undertake a major digital transformation program. The organization needed to acquire key digital and tech skills while leveraging the existing company knowledge of employees in declining customer service roles by reskilling them.

Previous efforts by the organization to assess employees’ suitability for reskilling were led internally and included multiple, time-consuming line manager interviews. Of even greater concern, around a quarter of those who began the reskilling program dropped out.

The Solution:

The bank worked with their long-time RPO partner, PeopleScout, and Spotted Zebra to assess customer service staff in bank branches and call centers to find ideal candidates for its tech and digital skilling program. Skills profiles were created for tech roles, which employees were assessed against to find the best fit.

The Results:

  • Redeployed 150 people, saving over $2.5M in exit costs
  • Saved over $350,000 in training and development costs
  • Reduced time investment by hiring managers
  • Reduced the reskilling cost-per-person by 70%

Employees Don’t Feel Confident in their Skills for the Future

A third (34%) of workers have doubts about how their skills will keep pace with new technology and automation. Meanwhile, just 17% of organizations are offering targeted reskilling programs for existing employees.

Where are HR Leaders Deploying Skills-Based Practices?

Skills-Based Practices in the workplace
(Source: PeopleScout and Spotted Zebra)

This imbalance spells disaster. As change overwhelms existing skill sets, most workers will begin to feel unsure of their career paths or left struggling to stay relevant.

Investing in reskilling makes solid business sense. We must bridge the gap between workers anxiously facing uncertainty and leaders failing to invest in their resilience. HR leaders who empower their workforce with adaptable skill sets today will drive continued success in times of swift and sweeping change.

Finding a Talent Partner to Support Your Skills Transformation

The agility to match emerging skill requirements will soon become a competitive necessity. If you haven’t started your skills-based transformation, now is the time.

In our survey, one in two HR leaders admitted to a lack of understanding of skills-based practices. If you’re struggling to understand how to take advantage of skills-based practices in your organization, PeopleScout is here to be your guide.

As a recruitment process outsourcing (RPO) partner, we can help you understand the skills within your existing workforce as well as the external market supply and demand. We offer solutions across the skills agenda, from skills-based talent intelligence and market insights, building skills frameworks, and creating skills-based success profiles to redesigning recruitment processes, skills-based hiring strategies, and helping you maximize the potential of your existing workforce.  

To learn more about PeopleScout’s skills-focused talent solutions, get in touch.