Selecting the Right RPO Partner: How to Navigate Your RFP Journey

Whether your organization is looking to outsource some, most or all portions of your talent acquisition program, a recruitment process outsourcing (RPO) partner can help you.

So, how do you find an RPO partner? While there are plenty of roads you can take on your journey to finding the right RPO partner, the request for proposal (RFP) process is one of the most popular and effective methods.

In this article, we will outline the business case for RPO and guide you through the RPO RFP process to prepare your organization before embarking on your hunt for an RPO partner.

Getting Started on Your RPO RFP Journey

The first step in your RFP journey should be envisioning your organization’s ideal talent acquisition future. Then, ask yourself this question: How will outsourcing my talent program help reach this idealized future? The goal of this exercise is to get a clearer understanding of where your talent program is today, and where you want it to be in the coming years.

How an RPO Partner Can Help Improve Your Talent Program

Here are just three ways RPO can help you build and maintain a talent program that produces continued recruitment success.

  • Sourcing Hard to Find Talent: Skills gaps and talent scarcity have made sourcing talent an increasingly specialized field. An RPO partner can help proactively search for qualified candidates for current or planned job openings.
  • Talent Technology Support: Talent technology changes rapidly. It’s just about your applicant tracking system (ATS) or candidate relationship management (CRM) system anymore. AI, machine learning and recruitment marketing tools are evolving the recruitment tech stack. An RPO partner has experience working with multiple talent technology tools and can help you analyze and action your recruitment data. They may also provide proprietary talent technology, like we do at PeopleScout, that can complement your existing systems.
  • Recruitment Scalability and Flexibility: An organization’s talent needs are rarely static; they often fluctuate due to internal and external factors like the economy or product development. An RPO partner can scale its recruitment teams to support your business strategy, without increasing your in-house talent acquisition headcount.

👉 Learn more about what to expect from an RPO program.

Assessing Your Needs Prior to RFP 

The next step in the RFP process for RPO is assessing organizational needs and outlining a definition of success for your talent acquisition outsourcing engagement. Establishing needs and goals prior to sending out an RFP to potential RPO partners provides you with an opportunity to build a consensus within your organization, solidify key stakeholder support and give you something to go back to after an engagement is completed.

Your needs analysis will also help you avoid being swept away by grand vendor presentations and make your decision much more objective and aligned with your defined organizational needs.

As an example, imagine you are looking to procure a new talent technology platform. Your needs assessment process would begin with a discussion about what you would gain through adopting a new platform. In this case, you may look at your organization’s overall competencies regarding talent technology such as:

  • Do you have internal resources dedicated to talent data expertise and stewardship in managing candidate data?
  • Do you have a need for enhanced digital recruitment marketing capabilities?
  • Will you need to integrate your current internal technology systems and dashboards with a new platform?
  • Are you in need of strategic consulting and advice bundled in with the platform or do you have internal resources who can learn and manage a new system?

Your goals in this situation may include:

  • Enterprise-wide adoption of new talent technology
  • Improve talent metrics reporting and applicant tracking
  • Automation of the sourcing process
  • Improve time-to-hire
  • Improve candidate engagement and communication

Your needs assessment questions and goals will outline how you structure your official RFP, so be sure to plan them in detail. Your needs assessment will pay off before the first vendor responses, as your RFP will have a better representation of what you are looking for from outsourcing.

RPO Partner Relationships: Defining Your Stakeholders

Your needs assessment can’t be done in a silo. Deploying a successful RPO solution requires more than a relationship between hiring managers and the RPO partner’s recruitment team. The internal relationships between the drivers of the RPO engagement and other stakeholders at your organization will affect the success of your RPO partnership.

To create buy-in for RPO, it is essential to involve the right stakeholders from the beginning. To make sure the process runs smoothly, you should develop a plan that formalizes how each stakeholder will be involved in making the RPO RFP process a success.

When determining the stakeholders, you typically include:

  • CHRO
  • Procurement
  • Senior business line leaders
  • Front line management/Hiring managers
  • HR leaders
  • TA leaders 

👉 Learn how to create buy-in for RPO with our conversation guide.

Determine Your RFP Timeline

After assembling your team, bring everyone together to establish a timeline for the RFP process. The timeline should align with your organization’s goals and deliverables for the project—including when you want the solution implemented by.

Key items on your timeline include:

  • RFP launch date
  • Due date for questions from vendors
  • The date answers will be provided by your team
  • Due date of the RFP
  • Announcement of finalists
  • Date of finalist presentations
  • Final award

Your RFP timeline should include not only the due date for proposals but also due dates of when a contract must be signed and when work should begin.

RPO Partner

Developing Your RFP Document

Developing your RFP document should start with creating an outline. This outline can be as detailed as you want to make it. At a minimum, you should make a structured list of the sections you want to include in the final RFP, as well as the order in which they will be presented. Your procurement stakeholder will be an invaluable resource at this stage.

If you and your team conducted a needs assessment, gathered stakeholder input and have a timeline set, you have already done the groundwork. If you skip these early steps, it can lead to a lot more work in the end.

Finally, you need to edit the RFP document you and your team have created, as typos and misspelled words throughout the RFP look unprofessional. According to Tom Sant, CEO of The Sant Corp., which develops software for generating RFPs, typos in an RFP are one of four things that frustrate vendors. The other three are “RFPs that are disorganized, RFPs that ask redundant questions, and RFPs that have contradictory requirements,” Sant says.

The Bottom Line: Finding the Right RPO Partner

Finding the right RPO partner will help your organization gain a competitive advantage in talent acquisition by providing industry-specific hiring expertise and increasing your recruiting bandwidth.

This is why constructing a thorough RFP that carefully addresses your organization’s talent requirements and expectations of the engagement is a valuable weapon in the RPO selection process.

Talent Predictions: How Talent Acquisition Will Navigate 2024

By Simon Wright, Head of Global Talent Advisory Consulting 

We are in one of the most transformative periods in the history of work. Between technological disruptions, societal shifts and global events, the talent landscape five years from now will likely look very different than it does today. However, even in times of uncertainty, we can discern key trends that will impact the way organizations source, recruit and retain talent. 

As a leading talent solutions provider, PeopleScout has a unique vantage point to view the forces shaping the future of work. Based on our experience and industry insights, we believe there are eight core areas talent acquisition leaders should embrace in 2024 to up-level their strategic importance within the business.  

1. Talent Leaders Will Look to New Models to Ride the Economic Waves 

The power balance has now shifted back to the employer amidst a tight labor market, fewer vacancies and a cost-of-living crisis. But if you think it’s time to pause investment in your talent programs, think again.  

Talent acquisition teams shrunk during COVID-19 and then grew quickly as part of the bounce back only to shed jobs again this past year. With continued uncertainty, TA leaders must showcase the value they bring to business by minimizing the impacts of economic fluctuations.  

It’s time to leave behind the boom and bust and embrace agility through a strategic approach to workforce planning and forecasting. Talent solutions like recruitment process outsourcing (RPO), including modular RPO solutions, offer responsiveness to help stabilize operational delivery amidst unpredictable economic waves.  

2. Business Transformation Will Shape the Workforce 

The specific skills and capabilities companies need are shifting rapidly, which means the jobs and roles employers need to fill are changing too. According to McKinsey research, one-third of new jobs created in the U.S. in the past 25 years were types that barely existed previously, particularly in high-demand areas like data analytics, software development and renewable energy. According to Totaljobs, despite a general slowdown in hiring, the demand for green jobs continues to go up, skyrocketing by 677% between 2019 and 2023. 

However, this business transformation is being hampered by the lack of talent and relevant skills. Economic, social and labor market changes are evolving faster than workforce training and development systems can keep pace. There simply aren’t enough workers with experience in emerging fields and new technologies.  

TA leaders must work proactively to build the reputation and influence of their employer brand with potential talent now—ahead of the hiring they need to do in the future. This means being able to recruit the best talent in the market, not just the best talent in your pipeline. Investing in candidate nurturing and employer branding strategies now will ensure organizations can hire first—and fast—when the time comes. 

3. Employees Will Continue to Reevaluate Their Relationship with Work 

TA leaders must be the eyes and ears for their organization, tuning in to the candidate market and shaping the employer value proposition (EVP) to meet the changing needs and expectations of candidates. Today’s employees are demanding more, and the one-size-fits-all EVP approach must evolve to keep up.  

Organizations that refresh their EVP with a more human-centric approach that recognizes employees as people, not just workers, will go beyond traditional offerings to provide exceptional life experiences that match employee needs. Delivering a positive emotional connection will be crucial for improving retention, overcoming the productivity vacuum and attracting quality talent in 2024.  

4. Data Will Be the Key to Overcoming Talent Scarcity  

The labor market has shrunk due to the retirement of Baby Boomers, and companies face an enormous brain drain of institutional expertise. Not only is the upcoming population smaller and not replacing the Boomers who are leaving the workforce, but they lack the some of the soft skills of the departing generation. With this double depletion at play, organizations will need to work hard to attract and train Gen Z in order to keep their workforce development on track for the future. 

Additionally, long-term illness, including lingering complications from COVID-19, has sidelined many working-age adults. The latest ONS data shows that the number of people economically inactive because of long-term sickness is now over 2.5 million in the UK alone. 

The key to reducing the impact of talent scarcity in 2024 is data. It’s time for TA leaders to treat talent intelligence as business intelligence, bringing it to the C-suite to drive decision making and inform strategy. Organizations must leverage data to understand both internal and external talent pools, maximizing ROI on talent attraction and retention efforts. 

Talent Acquisition Predictions

5. Skills-Based Practices Will Take Center Stage 

In order to keep pace with changing roles and dwindling talent pools, leading organizations are taking a proactive and holistic approach to adapting their workforces. They are investing in upskilling and reskilling programs while also leveraging RPO partners to find professionals with the most in-demand and future-proof skills. 

More organizations will look to expand candidate pools and tap into diverse skill sets through skills-based recruitment. To do this, organizations must evolve their candidate assessment practices to focus on skills rather than credentials or pedigree. We’ll see more organizations follow the likes of Google and drop their university degree requirements. This will have the added benefit of promoting greater diversity, equity and inclusion (DE&I) in the workplace.  

6. Internal Mobility Will Receive Big Investment 

More than a third (36%) of HR professionals surveyed identified employee retention as a priority in 2024. Internal mobility will become the key to retention as well as filling open roles and skills gaps. Focus will shift from building external talent pools to internal talent pools, putting methods in place to identify transferable skills that can be boosted to support business transformation.  

We saw an uptick in labor hoarding in 2023 talent trends. In 2024, organizations must invest in transforming the skills of the workers they’ve kept on board in order to ensure they’re ready for what’s on the horizon. 

In 2024, career moves won’t take a linear path but will weave across departments and disciplines, providing workers with variety and rewarding work. Organizations must train hiring managers to look at candidates, not just for their fit for a specific role, but for the value they can bring to the organization.  

7. Long Overdue Tech Upgrades Will Happen for HR 

The Josh Bersin Company estimates the HR technology is a $250 billion market. 2024 will be the year of recruitment tech stack upgrade.  

Organizations will look to capitalize on AI-powered features to do the heavy lifting so their teams can focus on more valuable recruiting activities. TA leaders should look to technology to augment human touches throughout the candidate experience, to identify opportunities for streamlining through automation, and to help them better interrogate data for a more agile resourcing model.  

This is also an opportunity for TA leaders to demonstrate they can deliver digital transformation and deliver ROI from these investments. This has been a criticism of talent acquisition and HR in the past, and it’s time to dispel that narrative.  

8. AI Fever Will Hit an All-Time High 

And finally, it wouldn’t be a 2024 talent acquisition forecast without a mention of AI. Generative Artificial Intelligence (GAI) tools, like ChatGPT, were on the tip of our tongues in 2023. As organizations grapple with the ethics of AI, most will succumb to the transformative potential and begin to test and experiment with how AI can benefit their workforce and operations in 2024.  

The role of technology will keep evolving within talent acquisition, but it’s primed to have a pivotal role in streamlining recruitment tasks and improving efficiency in everything from screening to assessments to interview scheduling.  

Organizations should take a principled approach to leveraging AI and automation to augment recruiting, while ensuring human oversight and care for people remains central. Starting with a small project or two will clear the mist so you can see clearly where AI will add value to your recruitment tech stack and candidate experience. 

The Importance of the Right Talent Partner to Help You Ride the Waves 

The future of work holds exciting potential, but also some uncertainty. However, while individual trends are difficult to predict, TA leaders that embrace agility, skills practices and tech innovation will find themselves in a strong position to prove their value in driving business performance. As your talent partner, PeopleScout will be ready to support, challenge and inspire you for whatever lies ahead. 

By staying on top of key shifts like these and working with an expert talent solutions provider like PeopleScout, companies can build workforces with the skills, mindsets and diversity of experiences to thrive in the next era of business. 

Talent Trends: 2023 in Review

By Simon Wright, Global Head of Talent Advisory Consulting  

Earlier in 2023, we highlighted six key areas that would impact how companies attract, retain and develop talent. With the year wrapping up, we’re revisiting these critical topics to examine what transpired in the talent landscape and what may be on the horizon for 2024.  

From closing persistent skills gaps to offering more work flexibility, companies continue to face pressing talent challenges. Economic fluctuations have led some employers to pull back on hiring and remote work, while others doubled down on upskilling programs and expanded their talent pools.  

In the following review, we trace how the 2023 predictions played out amidst an uncertain economy and ever-evolving workplace. 

1. Closing Skills Gaps 

What We Said: 

With rapidly evolving technologies requiring new skills, companies are making upskilling and reskilling their workforce top priorities. Most employees feel unprepared for future jobs, so it’s important for organizations to invest in development to retain employees, build confidence, and help them adapt to changing business priorities. 

What We Saw: 

Skills gaps, and the upskilling and reskilling that must happen in order to close them, are still very much top of mind for HR leaders. The economic slowdown has increased candidate availability, so in the short term there has been more tech talent available, for example. But long term, there is still a skills crisis, and organizations are largely yet to shift to skills-based practices. 

We’ve seen front-runner organizations investing in skills development initiatives to grow the workforce they need. For example, Amazon’s program Career Choice is part of a wider initiative to invest over $1.2 billion by 2025 to provide 300,000 U.S. workers with the training they need to pursue careers in whatever field they choose.  

The average shelf-life of skills is now less than five years. So, the skills conversation is only going to get louder. If the World Economic Forum’s prediction is correct that over 85 million jobs will go unfilled by 2030 due to a lack of skilled talent, resulting in $8.5 trillion (USD) in annual lost revenues, then this is the most pressing issue facing talent leaders today.  

2. Offering More Flexibility 

What We Said: 

Amidst the acceleration of remote work, companies are facing mounting pressure to offer greater location and schedule flexibility to attract and retain talent.  

What We Saw: 

The return to the office debate is still raging. Employees want greater flexibility, but more and more employers are pulling people back into the office. Even Zoom, the video communications company that helps us all work from home, announced in August that it will start tightening its restrictions on remote work. Amazon, Disney and more have all reduced remote-work days. 

While power has shifted back to the employer, this issue won’t go away. If you really think your employees love coming to the office just because you’ve introduced free snacks, you don’t understand what flexibility means to your workers. Flexibility is not just about where you work. True flexibility is about giving more autonomy to your employees about the kinds of work they do and when and where they do it. 

3. Shifting to Contingent Workers 

What We Said: 

As the desire for work flexibility drives more professionals into freelance and contract roles, organizations are increasingly utilizing these temporary workers to fill pressing skills gaps and specific project needs while maintaining financial and strategic workforce flexibility. 

What We Saw: 

The economic uncertainty this year has made organizations less likely to make permanent hires. Plus, freelancers, consultants and contractors have developed into an essential part of the workforce as skills requirements become more complex. Maintaining a mix of traditional and flexible talent is crucial for businesses to stay ahead in today’s dynamic climate. 

With the enormous interest in ChatGPT and generative AI, it’s not a stretch to think the pace of business transformation will only accelerate in 2024. And demand for contingent workers will continue to rise. Indeed, according to Ceridian, 65% of organizations plan to increase their reliance on contingent workers in the next two years. 

Talent Trends 2023

4. Tapping into New Talent Pools 

What We Said: 

Facing workforce shortages, organizations are expanding their applicant pool by targeting untapped talent like Generation Z, unretiring Baby Boomers and boomeranging ex-employees.  

What We Saw: 

In 2023, the UK government launched a “returnership” initiative to inspire those over the age of 50 to come back to work. The goal is to help older workers retrain and learn new skills, providing them with a roadmap back to the workplace and encouraging organizations to hire them.  

We also saw organizations turn their attention to the talent pool sitting right under their noses. Internal mobility was a hot topic for talent leaders in 2023 as recruiting new talent became more and more challenging and costly.  

We were also reintroduced to the concept of labor hoarding, a term coined in the 1960s. This practice refers to organizations forgoing head-count reductions now, so they’re prepared when business picks up. In an era of labor shortages, organizations are keeping their workforces to avoid the risk of losing good talent to a competitor and to skip the costs associated with hiring again. 

5. Rallying Around the Mission 

What We Said: 

Our Inside the Candidate Experience research revealed that for 50% of candidates, an organization’s mission and purpose are a key influence on their decision to apply. Yet, when evaluating career sites, we found details on the mission or purpose of the organization less than half (48%) of the time.  

What We Saw: 

Employees are more dedicated than ever to finding an employer that shares their values and offers them a sense of purpose. However, workers within organizations that lack a sincere commitment to improving the community and supporting climate initiatives often report disengagement.  

According to Gallup data from June 2023, 59% of global workers say they’re not engaged at work. This is worrying as we move into a labor market that favors employers, as they will inevitably become less motivated to keep their employees engaged. Yet, a key reason why someone quiet quits hasn’t changed—and it’s down to a lack of connection to the company culture and purpose. 

A lack of engagement in the workforce is a leading factor in the productivity vacuum. Going into 2024, my hope is HR leaders will go beyond simply thinking about wellbeing to view their employees as whole people—not just workers. Updating your employee value proposition (EVP) to be more human-focused can help strike the right balance between compassion and business interests. Shifting to a Personal Value Proposition (PVP), and customizing offerings so that each employee feels valued as an individual, can help in fostering a positive emotional connection. 

6. Engaging Outside Talent Acquisition Solutions 

What We Said: 

Despite economic uncertainty, business leaders foresee revenue growth in the coming year, but may need flexible and agile workforces achieved through contingent staffing to meet their top challenge of filling critical roles amidst a shifting talent landscape. 

What We Saw: 

We saw an increase in talent acquisition teams looking for quick wins. At PeopleScout, we are investing heavily in talent solutions designed to boost agility for employers of all sizes and across all industries. This includes offerings like our Amplifiers and PeopleScout Accelerate solutions launched this year. 

Amplifiers provide modular, targeted recruitment process outsourcing tailored to specific hiring needs. Clients can implement RPO support for just part of the talent acquisition lifecycle, whether that’s filling the top of the hiring funnel with high volumes of qualified talent or gaining deeper insights to guide strategic workforce decisions. This “as-needed” model is ideal for companies that want to remain nimble. 

Additionally, our PeopleScout Accelerate technology-enhanced RPO solution is purpose-built for fast-scaling organizations that need to ramp up recruiting quickly. We can implement PeopleScout Accelerate in just two weeks, providing access to our proven recruitment methodologies and our industry-leading Affinix talent acquisition technology suite right out of the gate. 

As we close the books on 2023, it’s clear the talent landscape continues to shift in new and uncertain directions. In the coming year, agile organizations that invest in the longevity of their workforce and truly connect with their people on a human level will maintain an edge. Rather than recoiling from change, forward-thinking talent leaders have an opportunity to guide their organization’s evolution. Now is the time to build workforces that can pivot on a dime while staying true to their purpose. 

What is On-Demand Recruitment?

Organizations across all sectors are grappling with unprecedented uncertainty in their hiring needs. The job market’s volatility has created an environment where hiring requirements can change dramatically and unexpectedly, challenging even the most capable internal recruiting teams. Whether facing sudden talent shortages or needing to fill unforeseen workforce gaps, companies are seeking flexible solutions to supplement their talent acquisition efforts.

Amidst this uncertainty, on-demand recruitment services have emerged as a crucial tool for organizations looking to maintain agility and responsiveness in their talent acquisition strategies. By providing scalable, short-term support without the need for significant long-term investments, these services offer a lifeline to companies striving to adapt quickly to market fluctuations.

This article explores how businesses can effectively leverage on-demand recruiting solutions to address their immediate talent needs while maintaining the flexibility required in today’s ever-changing economic climate.

How Does On-Demand Recruitment Work?

On-demand recruitment is a specialized recruiting solution with a focus on flexibility, speed and industry-specific talent expertise. When your internal recruitment team needs a little extra help or if your organization has limited resources, think of it as “leasing” a team of recruiters to enhance your organization’s in-house talent acquisition capabilities. On-demand recruitment provides you with the flexibility of choosing when and for how long you need talent acquisition services based solely on your needs.

How does on-demand recruitment work?

  • The on-demand recruitment process begins with a quick 15-20 minute meeting to discuss your unique recruiting challenges.
  • An on-demand team of recruiters and sourcers are deployed and immediately work to recruit the talent you need.
  • You can engage your team of on-demand recruiters for a few weeks or a few months—as much time as you need to fulfill your talent requirements.
  • After the engagement, the on-demand team rapidly disengages and can be rehired should the need arise.

On-demand recruiting solutions differ from traditional staffing agencies and contract recruiters in that they can scale up or down instantly according to client need, they bring easy to implement recruiting programs, cutting-edge talent technology and work closely with hiring managers for the length of the engagement.

When Should You Engage an On-Demand Recruitment Partner? 

The speed, flexibility and scalability of on-demand recruitment benefits organizations of all sizes and across all industries. Consider engaging an on-demand recruitment provider if you are experiencing one or more of the following talent acquisition challenges: 

  • If your organization is experiencing rapid growth in hiring that eclipses your internal recruiting resources.
  • You have experienced an unexpected surge in employee turnover and need to backfill roles as soon as possible.
  • If your hiring needs are inconsistent or unpredictable and you need support for your in-house talent team on an on-again, off-again basis.
  • If you need to fill one or more niche or hard-to-fill roles quickly.
  • If you need support sourcing talent to fill your candidate pipeline with qualified talent.

If your organization is considering a full-cycle recruitment process outsourcing solution, an on-demand recruitment solution provides a low-risk, limited-time pilot program to see if outsourced talent acquisition is right for you. 

The Benefits of On-Demand Recruitment

On-demand recruiting services are an increasingly popular option for organizations that want to shift from staffing agencies and contract recruiters in favor of a more strategic partner with speed, efficiency and effectiveness at the core of their approach.

On-Demand Recruitment

With on-demand recruitment, you not only get an expert team of recruiters, but you also get the proven processes and technology needed to make the right hire, support for your internal efforts, improve candidate flow and reduce recruiting costs. Below, we cover the benefits of on-demand recruitment in more detail.

Access to a Readily Available Pool of Experienced Recruiters 

When you engage an on-demand recruitment partner, you are provided with a team of skilled recruiters with industry-specific expertise that supplement—not replace—your existing HR or recruiting teams. You get the support you need immediately, with the ability to scale and flex as your demands change. The recruiters follow your current recruitment processes and use your existing technologies, so there’s no disruption to your talent program. Recruiters also come with access to vast talent networks across multiple industries and professions.

Access to Proprietary Talent Technology 

Your team of on-demand recruiters not only comes with years of recruiting expertise, but they are also equipped with talent technology tools that provide greater reach and insights into your target talent markets. Recruiters are also trained in the use of many of the most popular ATS and CRM systems, so your legacy talent technology won’t be an obstacle to the team deployed at your organization.  

Address Urgent Hiring Needs Without a Long-Term Commitment 

On-demand recruitment provides organizations with recruiting support without long-term contracts or the fees associated with traditional staffing agencies. You can leverage the expertise of experienced recruitment professionals when and where you need them with a quick and seamless implementation process—all without increasing your permanent recruiter headcount. On-demand recruitment can be a one-time engagement, or you can re-engage at any point in the future when needs arise.

Workforce Insights and Performance Management 

On-demand recruitment solutions can provide deep-dive analytics on the candidate marketplace and recruiting landscape in your industry. These insights can be applied during and after the engagement to improve your recruiting outcomes. On-demand teams also work with stakeholders to set recruiting expectations and provide detailed weekly tracking of candidate pipelining, recruiting outcomes and provide transparency and accountability. 

Recruiter On-DemandTM, the PeopleScout Difference

With PeopleScout’s Recruiter On-DemandTM, you can leverage the expertise of PeopleScout’s experienced recruitment professionals who combine technology, data and expertise to provide a one-of-a-kind solution to help you elevate your organization’s growth and talent program.

Recruiter On-Demand Provides:

  • The ability to swiftly meet hiring needs with proven industry-specific talent acquisition solutions.
  • The ability to expand and contract your recruiting capacity when and where it’s needed. 
  • The ability to replace the process of hiring and training new recruiters with an approach that provides predictable variable costs.

PeopleScout’s Recruiter on On-Demand solution is not a one-size-fits-all answer to any single recruitment challenge. Rather, it’s the right solution tailored to the circumstances unique to your organization.

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Debunking RPO Myths: How Savvy Talent Leaders Separate Fact from Fiction

In the ever-evolving landscape of talent acquisition, recruitment process outsourcing (RPO) has emerged as a go-to solution to help organizations redefine their recruitment strategies. However, many employers shy away from engaging an RPO provider because of common misperceptions. If you’re a talent acquisition leader stepping into the world of RPO for the first time, get ready to separate fact from fiction as we dismantle RPO myths. 

Myth 1: Outsourcing Means Losing Control Over the Hiring Process. 

Let’s set the record straight from the get-go: RPO doesn’t mean relinquishing control. You’re not sending your recruitment program into a mysterious void.  

In fact, reputable RPO providers thrive on collaboration. You maintain oversight, make strategic decisions and keep your finger on the pulse of the recruitment process. Your RPO partner should provide you with regular reports so you can track metrics and SLAs against your hiring goals.    

It’s like having a co-pilot who respects your position in the driver’s seat.  

Myth 2: RPO is Expensive. 

There’s a notion that RPO will drain your coffers faster than you can say “ROI.”  

With an ever-widening skills gap and climbing hiring costs, organizations are looking for recruitment solutions to reduce overhead and improve outcomes while reducing risk. By streamlining your hiring process, reducing time-to-fill and minimizing administrative burdens, RPO creates substantial value, particularly for high-volume or hard-to-fill specialty roles. While RPO may not be the cheapest option, a good RPO, and the technology they bring to the table, improves efficiency and delivers results.  

Think of it as an investment that not only bolsters your team but also your bottom line.  

Myth 3: RPO Only Works for Large Companies. 

You might be thinking, “RPO? That’s only for the large enterprises with deep pockets.”  

Not so fast! RPO isn’t an exclusive club for corporate giants. It’s an adaptable strategy for businesses of all sizes. Whether you’re a startup looking to scale or a mid-sized enterprise seeking an edge, RPO can be tailored to fit your unique needs.  

In fact, according to Everest Group, smaller organizations made up 43% of RPO of news deals in 2022, up from 23% in 2017, as they increasingly turn to RPO to help scale and reduce risk in an uncertain labor market. RPO helps these mid-sized and small organizations scale up their hiring efforts without the costly commitment of building talent acquisition teams in-house.  

Myth 4: RPO Takes a Long Time to Implement. 

With the economy see-sawing post-pandemic, we’ve seen our clients shift their focus to agility and speed with an increase in urgent hiring projects. Organizations often think that RPO is not a viable option in these situations due to the misperception that it takes 12 to 16 weeks to ramp up.  

While an RPO engagement can certainly be a long-term strategic partnership, there are also solutions for short-term recruitment projects where speed is the priority. For example, we developed PeopleScout Accelerate, a tech-powered, ready-to-go recruitment process outsourcing (RPO) solution that combines PeopleScout’s deep recruitment expertise and a pre-configured Affinix™ talent acquisition technology suite—implemented in just two weeks.  

Myth 5: RPO is Only for Filling Volume-Based Positions. 

Your talent needs are unique to your organization and the right RPO partner will know that a one-size-fits-approach isn’t effective. Don’t let the myth of “volume hiring only” keep you from experiencing the benefits of RPO. 

While RPO is an ideal solution for high-volume hiring in which many hires for similar job families are made annually, it’s also perfect for hard-to-fill specialist professional roles. With their networks, resources and expertise, RPOs have the ability to attract candidates from all corners of your industry. 

One huge bonus of the long-term relationship you build with an RPO partner is their ability to create talent pools. Having a pool of active and passive candidates speeds up time-to-hire by giving you fast access to qualified candidates when a new vacancy opens. Plus, RPO providers have access to leading technology featuring AI matching tools that can identify and source strong passive and active candidates within seconds of an open job requisition. 

Myth 6: RPO is Exclusively Cost-Cutting, Not Quality-Improving. 

Quality over quantity, right? Absolutely. And guess what? RPO providers are on the same page.  

Unlike working with a staffing agency, which is often a transactional relationship, an RPO partner won’t flood your inbox with résumés that miss the mark. Instead, they use targeted strategies to find the ideal candidate who aligns with your values and vision.  

RPO providers can help you develop and implement effective selection and assessment processes to identify high-performing candidates with the right skills and experience for the role. Plus, with their tech know-how, RPOs can help you leverage predictive analytics to gain a better understanding of the behaviors of top talent and predict factors such as cultural fit, willingness to change companies and future tenure potential. 

With RPO, quality isn’t compromised—it’s elevated.  

Myth 7: RPO is a One-Size-Fits-All Solution. 

While some providers have gained reputations for making their clients follow a rigid process, it doesn’t have to be this way. 

Good RPO partners are chameleons, adjusting their approach to your shifting hiring needs. Whether you’re gearing up for a hiring spree or scaling down temporarily, your RPO provider should deliver custom solutions based on your industry, job types, hiring budget and goals. 

And remember, you don’t have to outsource your entire full-cycle, end-to-end recruitment process. Look for an RPO partner that offers partial-cycle, project-based and even modular RPO solutions to help you scale your recruitment function to meet your needs—from talent mapping and sourcing to designing assessments and onboarding. In the fast-paced world of talent acquisition, flexibility is your secret weapon. An RPO partner should provide you with the agility you need to weather the ups and downs of the economy. 

Myth 8: RPO Providers Only Cover Recruitment. 

While RPO is focused on improving recruitment processes, it can also include other HR functions such as employer branding, talent management and workforce planning. RPO providers can offer a range of services that can be customized to meet the specific needs of the organization. 

RPO partners are increasingly offering a range of value-added services to meet the demand for proactive, innovative candidate experiences. When you partner with a leading RPO provider, you also access: 

  • Talent acquisition consulting and best practices 
  • Technology consulting and implementation 
  • Passive candidate engagement 
  • Market insights, talent mapping and analytics 
  • Recruitment marketing and candidate attraction strategies 
  • Employer branding and employer value proposition (EVP) development 
  • Assessment design and execution 
  • Diversity, equity and inclusion consulting 

When considering potential RPO providers, make sure they can provide you with value-added services that will optimize and streamline each phase of the recruiting process. 

Myth 9: RPO Replaces Your Internal HR Expertise. 

Your internal talent acquisition expertise is invaluable—and it’s here to stay. RPO isn’t about replacing your team; it’s about augmenting their strengths.  

Organizations often struggle to invest in growing the number of talent acquisition and HR resources required to keep up with the rate of change. RPO providers take on time-consuming, but necessary, recruiting activities such as sourcing and candidate engagement. This frees up internal HR staff to focus on higher value activities.  

Plus, through working across many clients and industries, RPOs have their finger on the pulse of what’s going on the labor market and can share best practices and insights to help you make informed workforce decisions.  

Consider your RPO team your ally, enhancing your internal capabilities and helping you and your team shine even brighter.  

Myth 10: RPOs Don’t Care About Your Company Culture. 

Your company culture is your crown jewel, and you’re not about to let it fade away in the name of outsourcing. Fear not! Reputable RPO providers understand the value of cultural fit.  

Your RPO team integrates your values, purpose and employer brand into every candidate touchpoint. An RPO provider can help you amplify your employer brand by leveraging your established candidate attraction assets in targeted recruitment marketing campaigns. Utilizing job postings, social media posts, your career site and email campaigns, your RPO provider will carry your carefully crafted employer brand to candidates, providing them with compelling reason apply to your open positions.  

It’s like having a partner who not only respects your company culture but actively works to preserve and enhance it. 

If your organization is looking to develop an employer brand from scratch or update your current one, a leading RPO partner can provide you with employer branding services to complement your recruitment strategy ranging from creative support to full-scale employer value propositions (EVP) development. 

From debunking misconceptions to revealing the true essence of RPO, you’ve now navigated through the labyrinth of misperceptions to arrive at the threshold of transformation. With RPO, you’re not just recruiting—you’re building a workforce that will grow your business for years to come. So, it’s time to shatter RPO myths and embrace the potential of of this powerhouse solution. 

You might also be interested in: 

PeopleScout Launches RPO Amplifiers—Modular Talent Solutions to Help Employers Boost their Recruitment Efforts

Curated suite of modular recruitment solutions helps augment recruitment efforts, deliver fast results and drive lasting business impact

CHICAGO—September 6, 2023—Recruitment process outsourcing (RPO) leader PeopleScout is proud to announce the launch of RPO Amplifiers, a curated suite of modular recruitment solutions to help employers augment their recruiting teams when and where they need it most. Whether it’s focused support for peak hiring seasons or onboarding hard-to-fill roles, RPO Amplifiers are designed to help organizations meet immediate talent goals and drive lasting business impact.  
 
“We are committed to meeting our clients’ unique needs with customizable talent solutionsand a full-cycle RPO engagement may not always be the best fit,” said Rick Betori, President of PeopleScout. “The flexibility of RPO Amplifiers allows organizations to scale quickly and augment their existing recruitment efforts, giving them the agility needed to compete in today’s talent landscape.” 
 
PeopleScout’s suite of RPO Amplifiers includes: 

  • Talent Mapping: PeopleScout experts harness research and analytics to help employers make better workforce planning decisions with insight into talent availability, salary benchmarks and more. 
  • Talent Sourcing: This talent sourcing solution helps employers boost their internal recruitment resources, engage with passive candidates and generate a list of qualified, enthusiastic applicants. 
  • Recruiter On-Demand™: This project-based solution leverages the expertise of PeopleScout’s recruitment pros when and where needed, without increasing permanent recruiter headcount. Recruiter On-Demand is implemented quickly and seamlessly, providing all the benefits of RPO expertise on a short-term basis. 
  • Assessment Transformation: This solution helps employers deploy assessments to make the right hires and enhance the candidate experience, leveraging cutting-edge technology and visionary design. 
  • Talent Diagnostic: PeopleScout’s 360-degree approach delves deep into every facet of the talent lifecycle. From evaluating an employer brand and enhancing attraction strategies, to optimizing the candidate experience and maximizing technology usage. 
  • Sure Start: Retention and Onboarding: This solution is designed to ensure that new hires not only start on their first day, but also feel valued and engaged from the get-go. Blending personal attention and technology, PeopleScout Sure Start keeps new employees excited, reducing early turnover, boosting productivity and creating a path to success for all new hires. 

RPO Amplifiers offer scalable, agile recruitment support for organizations in all industries, augmenting existing processes with focused support, backed by PeopleScout’s 30+ years of recruitment expertise. RPO Amplifiers can be added as a standalone service or combined with an existing RPO engagement—whether with PeopleScout or another provider—when extra support is needed. 

Learn more about PeopleScout’s RPO Amplifiers here

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.

PeopleScout Jobs Report Analysis – August 2023

U.S. employers added 187,000 jobs in August. This is slightly higher than analysts expected and shows that the Federal Reserve’s plan to slow growth may be working. The unemployment rate rose to 3.8%. Year-over-year wage growth fell slightly to 4.3%.

us jobs report infographic

The Numbers

187,000: U.S. employers added 187,000 jobs in August.

3.8%: The unemployment rate rose to 3.8%.

4.3%: Wages rose 4.3% over the past year.

The Good

While 187,000 jobs would have been a standard month of growth in 2019, in 2023, it shows signs that the labor market is slowing. As the Wall Street Journal reports, August’s report reflects a cooling job market in a strong economy, which is what the Federal Reserve has been hoping to see. Job growth was led by the education and health services sector, and leisure and hospitality saw continued strength. The increased unemployment rate was caused by more Americans looking for work, but the job market has remained tight, with more employers choosing to slow their hiring rather than opt for layoffs.

The Bad

Wage growth is slowing, but not as quickly as the Fed would like to see. Yearly wage growth fell to 4.3% in August, slightly lower than the previous month. However, wage growth has remained stubbornly higher than 4%. As the New York Times reports, Fed officials believe high wage growth could make it difficult to return to their long-term inflation goal of 2%.

The Unknown

The big question for analysts is whether or not the Fed will raise interest rates at its next meeting in September. According to MarketWatch, the latest report shows enough of a slowdown that could convince officials to hold the interest rates steady. Over the past year-and-a-half, the Fed has increased a key short-term interest rate from near zero to 5.5% in an attempt to slow inflation. At the same time, they want to avoid raising interest rates too high, which could trigger a recession.

August’s jobs report is also typically one of the trickiest of the year to interpret. Fewer businesses than usual respond timely to the monthly questionnaire as many people take summer vacations. Additionally, the strikes in Hollywood and the bankruptcy of a large trucking company could make hiring numbers appear to be artificially lower.

CSR and ESG: How Markers of Sustainability and Social Responsibility Transform Talent Acquisition

Amid the alphabet soup of corporate jargon, buzzwords, and acronyms, you’ll find CSR and ESG. Respectively, the two stand for corporate social responsibility and Environmental, Social, and Governance. These concepts have been around for years but have been growing in importance. Now, CSR and ESG impact talent acquisition in new ways. As candidates become more knowledgeable and passionate about social responsibility and sustainability practices, employers need to respond. The issue is particularly salient for Gen Z, where 87% say it is important to work at a company that aligns with their values.

Job seekers want to work at organizations with values that match their own, with as many as 80% of workers in some industries saying that ESG issues play a role in whether they will resign from or remain at certain organizations.

So, how do CSR and ESG impact talent acquisition? In this article, we explore their impact and outline strategies to help talent leaders incorporate these concepts into their recruitment strategies.

What is Corporate Social Responsibility?

According to the United Nations, corporate social responsibility is “a management concept whereby companies integrate social and environmental concerns in their business operations and interactions with their stakeholders.” CSR focuses on issues including environmental management, eco-efficiency, responsible sourcing, stakeholder engagement, labor standards and working conditions, employee and community relations, social equity, gender balance, human rights, good governance, and anti-corruption measures.

CSR has been growing in importance over the last several decades, according to Harvard Business School, and has led to specific designations like B Corporations (B Corps), social purpose corporations (SPCs), and low-profit limited liability companies (L3Cs). But for many organizations, CSR is simply a self-imposed regulation. Employers can express it through initiatives and strategies and often report back their results through corporate social responsibility reports.  

What is Environmental, Social, and Governance?

According to Gartner, Environmental, Social, and Governance (ESG) is “a collection of corporate performance evaluation criteria that assess the robustness of a company’s governance mechanisms and its ability to effectively manage its environmental and social impacts.”

Each pillar of ESG includes different criteria. McKinsey outlines environmental criteria as relating to how much energy a company takes in, how much waste it produces, what resources it requires and how that impacts life around the world. Social criteria address the relationships between an organization and the institutions and communities where it does business. Finally, governance represents the internal procedures and checks and balances an organization uses to make decisions and govern itself.

How CSR and ESG Impact Talent Acquisition

Once little-known terms, these markers of corporate responsibility and sustainability now play a role in job seekers’ decision-making.

One survey found that more than half of employees would not work for a company that doesn’t have strong policies addressing social or environmental sustainability issues. Additionally, 74% of employees said their job is more fulfilling when they’re given the chance to make a positive impact on social and environmental issues, and 70% indicated they’d be more loyal to a company in which they can help contribute to solutions.

The changing environment and increasing pace of climate-related disasters plays a role. Compiled data shows that Google searches for sustainable companies have been growing rapidly since 2016, reaching the highest volume yet in 2023, with no signs of slowing down. In that time, a number of environmental events have dominated headlines, from the devastating 2017 floods caused by Hurricane Harvey in the U.S. to the disastrous 2019-2020 Australian bushfires and 2023 Canadian wildfires. Spikes in searches often follow global climate meetings like the United Nations Climate Change Conferences.

Job seekers are paying attention, and employers can only expect that interest to increase. One survey found that 40% of Gen Z and millennial employees have changed jobs or sectors due to climate concerns or plan to in the future. Additionally, 60% of respondents reported feeling anxious about the environment over the past month, and more than 70% said that they are actively trying to minimize their impact on the environment.

3 Approaches for Including CSR and ESG in Your Recruitment Strategy

To stay ahead of the competition, talent leaders should include CSR and ESG in their talent strategies. Below we outline three approaches.

1. Build a Responsible, Sustainable Employer Brand

Your employer brand is your most powerful tool in attracting top talent, and your ESG and CSR initiatives should be featured throughout your branding materials. Think about your efforts to reduce carbon emissions, support local communities or promote diversity and inclusion. You may measure or report on progress of these initiatives for investors, so consider sharing with candidates as well. Even if you haven’t reached your goals yet, being transparent about your progress can demonstrate to candidates that these initiatives are genuine—not just lip service. Share your next steps and the strategies you have in place for reaching these goals.

There are several ways to showcase your progress to candidates:

  • Highlight ESG initiatives in your job descriptions
  • Create an ESG page on your career site
  • Leverage social media to share your progress toward ESG goals
  • Tap into current employees who can share their experiences
  • Train recruiters and hiring managers on ESG initiatives

2. Get Employees Involved

Your social responsibility and sustainability goals should be at the core of your culture. Make your goals and initiatives a regular part of conversation rather than distant promise. This will not only help retain top performers but will also help engage candidates.

You can get your employees involved in reaching your CSR and ESG goals by communicating progress and adding performance targets where appropriate. You can also consider benefits that align with your goals so that employees feel as though your commitment to social responsibility and sustainability are part of your DNA, not just marching orders.

Here are a few strategies you can employ:

  • Communicate updates on ESG initiatives regularly, like in team meetings or all-company updates
  • Encourage leadership to display day-today behaviors that align with goals
  • Add ESG-related performance goals
  • Consider ESG-related benefits, like days off for volunteer work, a cycle-to-work scheme or vouchers for public transit
  • Recognize employees for ESG-related contributions

3. Avoid Greenwashing

As you focus on and promote your social responsibility and sustainability work, avoid falling prey to greenwashing. Greenwashing happens when an organization spends more time and money showcasing sustainability initiatives than actually performing them. It’s often seen as a marketing gimmick, and consumers and candidates are growing more savvy in recognizing it. To maintain a positive reputation and brand perception, ensure that your organization lives up to the values you’re advertising from the top down.

Here are some tips to avoid greenwashing:

  • Avoid overly flowery language
  • Don’t use dishonest imagery
  • Ensure your business practices reflect your marketing promises
  • Be honest, even if you aren’t perfect
  • Share real data
  • Make concrete claims

A Sustainable Future: CSR and ESG in Talent Acquisition

As we move toward a more sustainable future, your CSR and ESG initiatives are important factors for job candidates. The right RPO partner can help you communicate the environmental work you’re already doing to attract top talent. The desire for sustainable employment isn’t going anywhere, and employers should only expect it to get stronger.  

Check out our predictions for the future of work in our ebook, Destination 2030: 10 Predictions for What’s NEXT in the World of Work.

future of work

DESTINATION 2030: 10 Predictions for What’s NEXT in the World of Work

Checking In: Updating Your Hospitality Recruitment Strategies for the New World of Work

Travel is back, but hospitality employers are still playing catch up. Travelers around the world are booking flights, checking into hotel rooms, making reservations and buying tickets. Brands are attracting customers but struggling to attract employees with the right hospitality recruitment strategies.

In 2020, the size of the global tourism market fell by nearly a trillion dollars as travel came to a halt. The industry finally surpassed its prepandemic highs in 2023, reaching a market size of $2.3 trillion (USD). But employment in the industry lags behind. In the U.S. alone, nearly 2 million hospitality jobs remain unfilled, according to the Washington Post.

The old hospitality recruitment strategies aren’t working anymore. The world of work has changed.  Many sectors have expanded the availability of remote and hybrid work, and many front-line hospitality workers left the industry for more flexible roles.

Employers must update their employer branding and candidate attraction strategies to draw in top hospitality talent. In this article, we cover the hospitality brain drain and provide hospitality recruitment strategies that talent leaders can put into place now to get ahead of the competition.

The Hospitality Industry Brain Drain

One of the largest lasting impacts from the COVID-19 pandemic is the permanent loss of talent.  as workers fled the travel and hospitality industry for more stable, more flexible or less customer-facing positions. While employment in the hospitality sector still lags, professional and business services saw 1.4 million new jobs added during the pandemic.

Rather than returning to employment in hotels or with airlines, many laid off workers looked for behind-the-scenes office work where they were offered more flexibility, more traditional hours and often higher pay.

In 2022, the U.S. Bureau of Labor Statistics reported record quit rates during the Great Resignation, with the quit rate in leisure and hospitality jumping by a percentage point to 6.4%.

This phenomenon, sometimes called “brain drain,” has left hospitality employers with not just fewer workers but also those with less experience. This has led to increased competition for experienced hospitality workers and often increased time-to-fill rates for more specialized hospitality roles. Talent leaders must work to coax experienced workers back to the industry while also focusing on the next generation. Below, we outline three strategies to bring back and bring in hospitality talent.

Top 3 Hospitality Recruitment Strategies

1. It’s Time to Update Your Employer Brand

In today’s talent market, hospitality employers need to stand out in a crowded field of competition. Your employer value proposition and employer brand will be what convinces top talent to join your organization, rather than the hotel down the street or the customer service job that will allow them to take calls from their home offices.

However, after the past several years, few have had the resources to invest in and update their employer brands. If you haven’t refreshed your employer brand in a few years, now is the time. Each hospitality brand has its own distinctive personality and style that should be reflected in both consumer marketing and employer branding.

Your employer value proposition, or EVP, is the foundation of your employer brand. Your EVP describes the give and get between employer and employee. At PeopleScout, our EVP work has five phases:

  1. Define
  2. Discover
  3. Develop
  4. Design
  5. Deploy

In the define stage, we build a baseline understanding of you and your competition through competitor audits, social listening, candidate experience diagnostics and collaborative sessions. In the discover phase, we go deeper to understand what makes your organization unique through interviews with leaders and employees throughout the organization.

From there, we analyze the data and develop an EVP prototype that we validate through workshops and interviews with employees. In the design phase, we create the creative concepts to bring your EVP to life with an employer brand playbook and employer brand toolkit. These include deliverables like EVP positioning and messaging, social media posts and ads, and printed materials like posters and exhibition stands for job fairs.

Finally, we deploy, focusing on an employee ambassador program that helps your current employees share their stories with prospective candidates. From there, your EVP and brand can flex and evolve to adapt to changing candidate expectations.

By honing your employer value proposition and attraction messaging, you can zero in the characteristics you need for the variety of roles you need filled. By shifting your mindset from focusing on getting the most applications, or even those with certain experience, to getting applications with the right profile, you can reduce attrition by increasing the likelihood of your new hires being successful.

2. Are Your Offers and Benefits Competitive?

The leisure and hospitality sector has seen some of the highest wage increases across all employers in recent years. In the U.S., wages in hospitality have risen 23% over the past three years. Additionally, workers have more options for hybrid or flexible work in other industries where the pay is similar or even higher. This makes it more difficult for hospitality employers to compete. According to the Boston Hospitality Review, compensation was one of the most cited reasons that people left the hospitality industry during the pandemic.

To stand out in this market, you need offers that are not only competitive in terms of salary but also provide the types of flexibility and benefits that candidates are looking for and can likely find in other industries. Hospitality candidates are increasingly interested in remote work. Google searches for “remote hotel jobs” have increased about 400% since 2019.

Many hospitality jobs require being on site, making hybrid work only possible for a small percentage of roles; however, employers should evaluate and offer the option when possible. Additionally, consider flexible work arrangements or scheduling that would allow front-line workers time to do things like pick children up from school.

Other benefits can also help bring in or bring back hospitality workers. While 88% of employees say that health benefits are important to them, only 30% of restaurants offer medical insurance. Not every employer will have the budget for health insurance, so consider other benefits, like caregiver benefits, parental leave or a commuting allowance.

You can also consider different compensation models. Consider a salaried front-of-house staff. According to Monster, employers who pay their front of house staff a salary gain an advantage for attracting top talent, and those workers create a better customer experience because they aren’t focused on “turn-and-burn” tactics. You can also consider profit sharing or bonuses to help attract and retain employees.

3. Focus on Culture

Your company culture may not be listed as a line item on a paystub, but it can serve as a benefit for attracting top talent in a tough industry. In any customer-facing role, employees can be subject to stressful situations, but a supportive culture can increase employee retention.

One survey found that 91% of hospitality workers have dealt with customers who believed they inherently deserved privileges or special treatment. Of those workers, 70% wanted to leave the industry entirely after confronting a demanding consumer. Employers need to ensure that they not only meet traveler expectations but also keep workers happy and focus on retention.

Hospitality employers should focus on building a supportive culture. This should start from day one with structured training and can include things like mentorship programs to support new employees and help them feel like part of the team. Additionally, consider adding wellness programs that include things like counseling or employee assistance programs.

Finally, the travel and hospitality sector has a unique opportunity to build a fun culture by creating ways for employees to enjoy the services normally provided to guests. This can look like VIP perks for employees and their friends and families, discounted meals or free meals during shifts, yearly overnight stays at hotels to celebrate work anniversaries or discounted tickets to events.

Choosing the Right Hospitality Recruiting Strategies

Candidate expectations are always changing, so hospitality employers need to find the recruitment strategies that work best to attract the right candidates at the right time. An experienced RPO provider can help talent leaders narrow down the best solutions and help build an employer brand to bring in top talent with the right skills and mindset.

To get more strategies for attracting and hiring hospitality, travel and tourism talent, download our Recruitment Handbook for Travel and Hospitality.

The Recruitment Handbook for Travel and Hospitality