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Building out an RPO from your recruitment agency Opportunity or risk?
16

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

Mar 21, 2017

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Page 1: 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?

Page 2: Building out an RPO business from your Recruitment Agency – opportunity or risk? Howard Flint, Managing Director , HG Solutions

About me

10 years global IT outsourcing15 years recruitment

outsourcing and technology7 years leading UK RPO

Page 3: Building out an RPO business from your Recruitment Agency – opportunity or risk? Howard Flint, Managing Director , HG Solutions

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

Page 4: Building out an RPO business from your Recruitment Agency – opportunity or risk? Howard Flint, Managing Director , HG Solutions

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….

Page 5: Building out an RPO business from your Recruitment Agency – opportunity or risk? Howard Flint, Managing Director , HG Solutions

Types of RPO

On DemandFull Service

Project

MSP

Neutral Vend

Extended Service

Page 6: Building out an RPO business from your Recruitment Agency – opportunity or risk? Howard Flint, Managing Director , HG Solutions

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

Page 7: Building out an RPO business from your Recruitment Agency – opportunity or risk? Howard Flint, Managing Director , HG Solutions

6.7bn3.5bn

2016 2021

Market opportunity ….

RPO Global Growth

Page 8: Building out an RPO business from your Recruitment Agency – opportunity or risk? Howard Flint, Managing Director , HG Solutions

The financial opportunity…..

Long term recurring

(predictable) revenue

Higher business valuation

Page 9: Building out an RPO business from your Recruitment Agency – opportunity or risk? Howard Flint, Managing Director , HG Solutions

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

Page 10: Building out an RPO business from your Recruitment Agency – opportunity or risk? Howard Flint, Managing Director , HG Solutions

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

relationships with existing clients

• Cost money – short term• Cause executive

relationship issues

Page 11: Building out an RPO business from your Recruitment Agency – opportunity or risk? Howard Flint, Managing Director , HG Solutions

4 considerations to maximise the

likelihood of success

Page 12: Building out an RPO business from your Recruitment Agency – opportunity or risk? Howard Flint, Managing Director , HG Solutions

Consideration 1.

Service Accountability- understand differences between core

and RPO

Page 13: Building out an RPO business from your Recruitment Agency – opportunity or risk? Howard Flint, Managing Director , HG Solutions

Consideration 2:

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

how?

Page 14: Building out an RPO business from your Recruitment Agency – opportunity or risk? Howard Flint, Managing Director , HG Solutions

Consideration 3.

Internal Relationships – how is your core business and RPO team

going to work together?

Page 15: Building out an RPO business from your Recruitment Agency – opportunity or risk? Howard Flint, Managing Director , HG Solutions

Consideration 4.

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

recognise a long sales lead time

Page 16: Building out an RPO business from your Recruitment Agency – opportunity or risk? Howard Flint, Managing Director , HG Solutions

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