14th April 2023

RPO set to be a big winner of the talent shortage

Recruitment

The talent shortage is a complex topic…

‘Gap’, ‘vacuum’, or ‘starvation’ – call it what you will, the shortage of talent is a widespread and complex issue to which there are no easy answers:

During and in the immediate aftermath of Covid, many workers disappeared from payrolls. Some burned out, retired early, or gave up work because of long Covid or mental health issues. Others encountered economic or personal issues such as the affordability of childcare, or the need to care for sick relatives.

Overcoming such problems and attracting workers back to their old trades is only a partial solution, and in many cases, it is only for the short term. Some specialist skills take years to fully train and develop and you cannot magic up thousands of experienced workers out of the blue.

Despite the complex nature of the topic, one thing we can say about the shortage of talent is that it is an opportunity for the recruitment industry. One of the big winners are firms that specialise in the Recruitment Process Outsourcing (RPO) business model.

550% growth of the RPO market expected by 2031

RPO is experiencing a period of sustained growth because of the global talent shortage. As businesses struggle to find qualified employees, they are turning to RPO providers to help them meet their recruiting needs.

The RPO business model provides clients with a number of compelling benefits, including:

According to a report by Allied Market Research, the global recruitment process outsourcing industry was valued at $4.8 billion in 2021 and is estimated to generate $26.4 billion by 2031, an increase of some 550%, and with a CAGR of 19.1% from 2022 to 2031.

As well as the global talent shortage, the growth of RPO is being driven by a number of other factors, including:

The RPO opportunity knocks!

The nature of the recruitment trade is highly entrepreneurial, and there is a strong tradition of startup, breakaway and pivoting activity in the industry.

Entering the RPO market is a challenging task, but with proper preparation, it is not unachievable. Here are some steps that will support your ambitions to get your recruitment business into the RPO market:

By following these steps, you can position your recruitment business to enter the RPO market and provide a valuable service to clients looking to outsource their recruitment needs.

Back Office Processing Optimisation (BOPO!) with ETZ

ETZ’s leading timesheet and invoicing solution streamlines the back office processing of your recruitment agency. Our complementary solutions, ETZ Comply for onboarding and document management and Caspian for business intelligence give agencies further capability to streamline and uncover opportunities. To find out more, call us on 0800 311 2266 or book a demo.



Download your free guide

7 smart ideas to grow your recruitment agency.

Download Now
Download your free guide

Latest Posts

Ideas

Job market and economic growth: What the 2024 Budget really needs to deliverJob market and economic growth: What the 2024 Budget really needs to deliver

7th October 2024

Stimulating the job market and increasing opportunities for recruiters There is much speculation about the UK Budget scheduled for 30...

Read more
AI

Opportunity knocks for recruiters driven by the boom in AIOpportunity knocks for recruiters driven by the boom in AI

30th September 2024

AI developing at astonishing pace To say that the recent rise of AI has been meteoric would be to do...

Read more
Recruitment

Is Return-to-Office creating employee churn and widening the talent gap?Is Return-to-Office creating employee churn and widening the talent gap?

23rd September 2024

Does RTO make it difficult for recruiters to attract candidates? Although the Covid pandemic seems to be fading away, it...

Read more

See what ETZ could do for your agency with an online demo

Save hassle, time and money with our powerful software.

Book a Demo