Building out an RPO business from your Recruitment Agency – opportunity or risk? Howard Flint, Managing Director , HG Solutions

Building out an RPO from your recruitment agency

Opportunity or risk?

About me

10 years global IT outsourcing15 years recruitment

outsourcing and technology7 years leading UK RPO

In this session…

• Have a look at what RPO is• Examine the opportunity• Think about the risks• Leave you with 4 considerations to

maximise chances of success

Service Contract

Role Scope Process ScopeTempPermContract

BusinessProjectDepartmentDiscipline

RPOEntryExperiencedExecutive

Term

Success FeeManagement Fee

RetainerService Levels

PlanningFulfilmentOnboarding

DirectSupply chainInternal

On-Site/ Off Site

It’s a journey with people you don’t know very well, but have to get on with….

Types of RPO

On DemandFull Service

Project

MSP

Neutral Vend

Extended Service

What this means…

Different from your core business - handle appropriately

More than one type of RPO service you can offer – pick the one that’s right for you

6.7bn3.5bn

2016 2021

Market opportunity ….

RPO Global Growth

The financial opportunity…..

Long term recurring

(predictable) revenue

Higher business valuation

Why consider RPO?

I can see an opportunity

I can leverage the potential of my clients relationships and staff

I can increase return and value

It’s going to be quick and easy – solve my cash/ revenue/growth problem

It will secure roles for my contingent recruiters

No daily worry

The risks of launching an RPO service…..• Defocus core business• Compromise

relationships with existing clients

• Cost money – short term• Cause executive

relationship issues

4 considerations to maximise the

likelihood of success

Consideration 1.

Service Accountability- understand differences between core

and RPO

Consideration 2:

Type and Scope of Service- define what are you going to deliver and

how?

Consideration 3.

Internal Relationships – how is your core business and RPO team

going to work together?

Consideration 4.

Winning new business- what is your growth strategy and does it

recognise a long sales lead time

Conclusion

• Evaluate what you want to achieve• Understand the effort and risk• If yes - then define and plan carefully• Go for it – but be focussed and understand

it’s long term