Why Small and Medium Enterprises Should Consider Recruitment Process Outsourcing

Small and medium-sized enterprises (SMEs) face unique challenges in attracting and retaining top talent. Limited resources, lack of dedicated recruitment teams, and the need for agility in hiring can often put smaller businesses at a disadvantage.  

That’s where Recruitment Process Outsourcing (RPO) comes in— a versatile strategy that businesses of all sizes can leverage to their advantage.  

Yes, we’re here to dispel the misconception that RPO is a luxury reserved for large enterprises with deep pockets. By offering scalable, expert-driven talent solutions, RPO providers are leveling the playing field. They bring enterprise-grade hiring practices within reach of SMEs, allowing them to compete for talent on par with larger corporations.  

Let’s explore how RPO is reshaping the talent landscape for businesses of all sizes. 

The Shifting Landscape of RPO 

Data from Everest Group highlights a striking trend: the proportion of new RPO deals involving smaller organizations nearly doubled from 23% in 2017 to 43% in 2022. This significant shift underscores the growing recognition among SMEs of RPO’s value in scaling hiring efforts and navigating an unpredictable labor market. 

Leading providers are offering more flexible, short-term solutions designed to address immediate needs without the lengthy implementation periods traditionally associated with RPO. For instance, modular solutions like PeopleScout’s Amplifiers™ and our ready-to-go RPO solution, Accelerate™, allow smaller enterprises to harness the power of RPO faster. These innovations are making RPO more accessible and responsive to the dynamic needs of growing businesses, further democratizing access to professional recruitment expertise. 

Debunking the “Big Business Only” Myth: Why SMEs are Embracing RPO 

The notion that RPO is exclusive to large enterprises is a myth. In reality, RPO can be particularly effective for SMEs experiencing rapid growth or expanding their geographic reach. Here’s why: 

  • Unmatched Expertise: RPO providers bring a wealth of experience gathered from working with diverse clients across many industries. Smaller companies gain access to seasoned recruiters, best practices and industry insights to help them compete for top talent. Plus, an RPO partner will help you develop and refine your recruitment processes, setting a foundation for sustainable growth. 
  • Scalability and Flexibility: As you scale, an RPO solution will adapt to your fluctuating talent needs. Whether you need to ramp up hiring quickly for a new product launch or scale down during slower periods, RPO offers an agility that you can’t replicate in-house.  
  • Time-Saving Efficiency: By taking on time-consuming tasks like sourcing, interview scheduling and candidate management, RPO partners free up your internal teams—from HR to hiring managers—to focus on strategic priorities and business objectives.  
  • Cost Management: RPO streamlines processes and leverages cutting-edge recruitment technologies, often resulting in significant cost savings and more manageable recruitment spend compared to maintaining a full-time in-house team or relying on traditional staffing agencies.  
  • Access to the Latest Technology: Speaking of technology, leading RPOs have their finger on the pulse of the ever-expanding talent tech marketplace. Look for a partner who offers technology consulting to advise on how to capitalize on your existing recruitment tech stack or to recommend new tools to introduce more automation, analytics and innovation for better candidate experience.  
  • Enhanced Candidate Experience: RPO providers excel at creating a memorable candidate journey, from initial contact through onboarding, ensuring a positive experience that reflects well on your brand.  

Is RPO Right for Your Business? 

If you’re a small or medium-sized business looking to scale, improve your hiring processes, or simply manage recruitment more effectively, RPO is worth considering. The key is finding an RPO partner that will take the time to understand your unique needs and will tailor a solution to align with your company’s goals and culture. 

PeopleScout’s RPO solutions provide value for businesses of all sizes. We’re not just focused on filling positions; we’re here to help you build a talent acquisition strategy that can drive your business forward. Whether you’re a startup looking to make your first key hires or a mid-sized company aiming to optimize your recruitment process, PeopleScout RPO might be just what you need. Let’s connect! 

6 Benefits of Modular RPO in a Challenging Economy

By Jo Taylor, Head of RPO, EMEA

Amidst a tumultuous economy, employers continue to face challenges in talent acquisition and are seeking nimble solutions that allow them to address hiring needs quickly. Despite layoffs in some sectors, job openings surpass pre-pandemic levels in nearly every industry—averaging 31% more vacancies than in 2019. This is compounded by three million people having dropped out of the labor force.  

Many organizations lack the in-house recruitment resources—in terms of personnel or technology—to respond to fluctuations in a volatile talent market. Plus, with skills gaps growing, internal talent acquisition teams are too stretched to effectively manage the candidate lifecycle. Consequently, employers experience dwindling talent pipelines and an increase in drop-offs and ghosting between offer acceptance and onboarding. 

No wonder 91% of hiring managers say they’re experiencing hiring challenges and 45% say they’re struggling to find qualified workers for open roles at their companies. Many organizations are seeking recruitment support in the form of modular RPO (recruitment process outsourcing) as a cost-effective way to augment their recruitment capabilities where they need it most.  

That’s why we’re thrilled to announce our new suite of modular solutions, Amplifiers. Amplifiers has a solution that can help augment your team to meet your short-term talent needs—while providing lasting business value.   

What is Modular RPO? 

Modular RPO, or variable RPO, is a strategic approach to managing the recruitment process in an ultra-focused manner. It involves outsourcing specific components of the recruitment process to an RPO provider, or as a supplement to an existing outsourced recruitment engagement, providing quick access to targeted and customized recruitment support. With a modular or à la carte approach, you choose from a range of services based on your requirements. 

Our Amplifiers include: 

  • Talent Mapping 
  • Talent Sourcing 
  • Recruiter On-Demand
  • Assessment Transformation 
  • Talent Diagnostic 
  • Sure Start: Retention and Onboarding Support 

Modular RPO vs Full End-to-End RPO 

Modular RPO differs from traditional enterprise RPO in that it allows businesses to select and customize the specific recruitment services they need, rather than outsourcing the entire process.  

The main differences include: 

  • Scope: Modular RPO focuses on specific parts of the recruitment process or short-term initiatives, while end-to-end RPO can cover the entire recruitment function. 
  • Duration: Modular RPO engagements are typically short-term, while end-to-end RPO is a long-term strategic partnership. However, many of our RPO partnerships at PeopleScout have started as short-term engagements.  
  • Technology Integration: End-to-end RPO often involves more extensive use of technology, including integration with other HR systems as well as customization. 

The decision between modular RPO and a full RPO engagement depends on various factors, including organization size, hiring volume, budget and strategic workforce planning. It’s essential to assess your specific needs and evaluate the benefits and trade-offs associated with each approach before making a decision. 

6 Benefits of Modular RPO

Here are six key benefits of a modular approach to RPO. 

1. Cost Optimization 

Modular RPO gives you greater control over your recruitment costs. You select specific recruitment services based on your challenges, enabling you to allocate your budget more efficiently by avoiding unnecessary expenses for unused services. In uncertain economic times, this is a more cost-effective approach that still lets you benefit from the expertise of an RPO partner. 

2. Scalability and Agility 

The business landscape is unpredictable, which can cause your hiring needs to fluctuate rapidly. Modular RPO provides the agility to scale your recruitment capabilities up or down based on demand. You can quickly adapt your recruitment efforts in response to market conditions, ensuring you have the adequate resources during high-demand periods and avoiding unnecessary expenses during slower periods. Plus, some of our clients have added Amplifiers onto their full RPO engagement—whether they’re partnered with PeopleScout or another RPO—when an extra boost is needed.  

3. Customization and Control  

Some organizations prefer to maintain a certain level of control over their recruitment process, particularly during uncertain economic times. With modular RPO, you can customize your recruitment process according to your specific requirements. Select the services you need, such as candidate sourcing, screening or onboarding support, while retaining oversight of other aspects of the recruitment process. This level of control allows companies to align the outsourced services with their internal hiring strategies and maintain greater mastery of their talent acquisition function. 

4. Strategic Focus 

By outsourcing specific recruitment functions to an RPO partner, you can free up your internal HR teams and hiring managers to focus on core business activities, such as talent development, workforce planning and organizational restructuring. By opting for a modular approach, organizations can collaborate with their RPO partner to design a solution that addresses their specific challenges and aligns with their strategic goals. 

5. Access to Technology 

RPO providers have access to advanced recruitment technologies and tools. Even with modular RPO, you can leverage these technologies for specific recruitment functions without investing in them for internal use. This is particularly beneficial in challenging economic environments where capital expenditures are carefully managed. 

6. Risk Mitigation 

In uncertain economic climates, modular recruitment solutions are a great option for organizations who are new to RPO. By opting for a more targeted and flexible approach, you can evaluate the effectiveness and value of the outsourced recruitment partner before expanding the engagement further. 

PeopleScout’s Amplifiers offer you the ability to optimize costs, maintain agility, streamline recruitment processes and focus on strategic priorities—while still benefiting from our 30 years of expertise as an RPO partner. The benefits of modular RPO align your organizational needs with our current economic realities. 

MODULAR Recruitment SOLUTIONS FROM PEOPLESCOUT

AMPLIFIERS: SCALABLE. FLEXIBLE. AGILE.

The London Borough of Hounslow: A Collaborative Partnership Increased Their Offer Acceptance Rate to 87%

The London Borough of Hounslow: A Collaborative Partnership Increased Their Offer Acceptance Rate to 87%

The London Borough of Hounslow: A Collaborative Partnership Increased Their Offer Acceptance Rate to 87%

The London Borough of Hounslow needed to source candidates that shared their values and vision as part of delivering their ambitions for a new Corporate Plan. They partnered with PeopleScout for RPO to help build new high performing teams from diverse backgrounds.

87 % Acceptance Rate
65 % of New Hires Identify as a Person of Colour
39 % Boost to Social Media Engagement

Situation

In July 2022, the Cabinet of the United Kingdom approved a new Corporate Plan and the first version of a new Delivery Plan for the London Borough of Hounslow. The Delivery Plan sets out the first set of programs to enable the Council to deliver its ambitions over the term of the new administration. This was large-scale, initially incorporating 19 programs of work, with more to come in future iterations of the plan. To make this happen, they required a high-quality workforce to be execute on their ambitions.

Hounslow were looking for a recruitment partner to develop and deliver an innovative and high-quality recruitment campaign that would enable them to recruit across a range of roles in the corporate Project Management Office (PMO) and the Service Design and Transformation team, as well as other roles that were vital to program delivery. It was critical that candidates aligned with the Council’s values and that the campaign reached those with diverse backgrounds and experiences from local communities and beyond.

Hounslow didn’t have the internal capacity or market knowledge to do this on their own. However, previous outsourcing interactions had been with agencies with a very transactional relationship. Hounslow felt this didn’t meet their needs, so they partnered with PeopleScout for a consultative approach, utilizing RPO for the very first time.

Solution

In winning a 12-month award with the Council, our initial focus was on six key job profiles, hiring between 35 and 40 individuals. It was imperative for Hounslow to build a team with the right skills, experience and ambition to deliver the Corporate Plan.

Due to our initial success, we will continue to support Hounslow’s recruitment needs for another 12 months under the award.

A Consultative Approach

Our dedicated and skilled senior recruiters acted as brand ambassadors and became an extension of the in-house team, optimizing and managing Hounslow’s recruitment process from attraction to offer. We managed each position in its entirety, from briefing through to verbal offer acceptance, including creating a sourcing and attraction plan for each role profile.

Keeping Candidates Engaged

Historically, the public sector has struggled to engage candidates. We utilized many touchpoints to improve engagement and retention rates throughout the candidate journey. Our dedicated recruitment marketer focused on creating engaging copy and provided recommendations on the best supplementary media options for the target audiences. This included a sourcing-led service, in which the focus was on brand awareness, targeting candidates within niche roles. This sourcing approach gained an engagement rate of 39% on LinkedIn.

Our recruitment marketing strategy included a social media attraction campaign to further increase Hounslow’s brand in the market. Social content included showcasing projects and testimonials from current employees. We also built a a landing page, for which we worked with Hounslow to understand and showcase their employer value proposition to boost talent attraction. This helped to increase brand awareness, bringing in higher quality candidates.

On top of these attraction efforts, we directly sourced passive candidates to raise Hounslow’s profile in the market and increase diversity within the talent pools.

“The London Borough of Hounslow has shown through their recruitment process that they are keen to remove unconscious bias and attract a diverse pool of candidates.”

Candidate feedback

Utilizing Technology

As part of the project, we leveraged our tech stack to enable better data capturing, to make better data drive decisions, to track and monitor their DE&I agenda and to provide a better overall candidate journey.

Throughout the project, we gathered market feedback and tracked hiring metrics, presenting data through bespoke dashboards to guide hiring decisions and educate. Hounslow received weekly reports from us, including regular analysis of market insights, salary benchmarks and candidate feedback.

Results

Our consultative approach to hiring and tailored strategies for each role resulted in:

  • An 87% offer acceptance rate.
  • An enhanced candidate and hiring manager experience, through a consultative approach.
  • Increased diversity within roles filled, with over 65% of candidates hired identifying as non-white.
  • 2:1 to interview-to-hire, exceeding the average of 3:1.
  • Increased social media engagement to 39%.

We have become an embedded and trusted partner to Hounslow, due to our effective articulation of their brand story, ambitions, and values to their target audience.

“PeopleScout ensured that communication and planning were at the forefront. What really set them aside is the time they spent listening and understanding what the roles were and what type of people we wanted.

The end result is that we trusted PeopleScout’s shortlisted candidates. The Hounslow Service Design team is now full of talented people with the mindset and values we share as an organization.”

Mike Burch, Head of Service Design and Transformation

“The collaborative approach was key. PeopleScout took the time to fully understand our requirements and source quality candidates. We now have fantastic teams in place delivering great value to the organization and residents of Hounslow.”

Kieron McQuade, Head of PMO

At a Glance

  • COMPANY
    The London Borough of Hounslow
  • INDUSTRY
    Government & Public Sector
  • PEOPLESCOUT SOLUTIONS
    Recruitment Process Outsourcing, Talent Advisory
  • ABOUT BOROUGH OF HOUNSLOW
    The London Borough of Hounslow is an area of West London, England, governed by Hounslow London Borough Council.

University of Central Lancashire: Sourcing in Competitive UK Education Sector

University of Central Lancashire: Sourcing in Competitive UK Education Sector

University of Central Lancashire: Sourcing in Competitive UK Education Sector

As a leader in higher education in the UK, The University of Central Lancashire attracts students from around the world. However, filling a vacancy for Schools & Colleges Liaison Manager proved to be more challenging in a competitive market. PeopleScout delivered top candidates through a high-touch executive search engagement in just four weeks.

5 Secured five strong candidates for interview shortlist
90 Reached an audience of over 90 job seekers
4 Four week turnaround from briefing call to shortlist of candidates for interview

Situation 

The vacancy for the Schools & Colleges Liaison Manager position at The University of Central Lancashire (UCLan) had been posted to the university’s website and a leading UK job board for over 30 days with few applications received. The position was located in the West Midlands, home to many higher education institutions, creating a competitive environment for recruitment. 

Following a positive experience with PeopleScout as a job seeker, Adam Mitchell, Head of UK Recruitment at UCLan, engaged PeopleScout from the client side this time to address the challenges faced by the university for this role.  

Solution 

Knowing that today’s talent market consists mostly of passive candidates, our strategy targeted individuals working within the higher education sector and those employed by private training providers. Leveraging LinkedIn and the CV Library website, we looked for professionals with experience indicating a strong understanding of the education of young people aged 16 to 18 in UK, the student recruitment cycle and the University and Colleges Admissions Service (UCAS) process.  

We also scoured the websites of other universities and colleges across the West Midlands region to identify potential candidates as well as individuals in learning and development roles at private training companies and other companies in the private sector.  

Throughout the project we continued searching to maximize our engagement within the target talent pool. We reviewed hundreds of profiles and approached 92 people, producing a shortlist of potential matches. Finally, we encouraged all candidates to provide feedback and recommendations from their networks to help us to grow the talent pool. 

Results 

Out of the 92 candidates we reached out to, a total of 49 people engaged with us, creating an engagement rate of 53%. In just four weeks, we were able to present a shortlist a of five strong candidates for consideration, who were sourced via headhunting and networking within our targeted talent pool. 

  • Reached out to 92 candidates 
  • 49 candidates engaged with us creating an engagement rate of 53% 
  • We presented a shortlist of five candidates who were invited to interview 
  • Two candidates passed to a second interview 
  • One offer was made 

“PeopleScout immediately understood the challenge we had in recruiting for a specialist position out of region and in an area awash with vacancies in similar organizations. The approach of understanding the role and the type of experience required, and then refining this through presenting a selection of candidate profiles, was excellent. I was reassured that the PeopleScout recruiter knew precisely what we were looking for. I was kept fully updated throughout, with regular conversations and emails. The shortlist provided was excellent, with all candidates suitable for interview. I was delighted to appoint a fantastic candidate who we would not have reached without PeopleScout’s efforts.” 

Adam Mitchell, Head of UK Recruitment at The University of Central Lancashire

At a Glance

  • COMPANY
    The University of Central Lancashire
  • INDUSTRY
    Higher Education
  • ABOUT UCLAN
    The University of Central Lancashire (UCLan) is an international university with campuses in Preston, Burnley, Westlakes in the UK as well as Cyprus. As one of the UK’s largest universities, UCLan offers 350 undergraduate and over 200 postgraduate programs, and the university is ranked in the top 7% of universities worldwide. Their community is made up of approximately 38,000 students from more than 100 countries around the world.