‘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.
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 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.
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.
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