Focus on Talent and Performance Metrics is Redefining Recruitment Success
Volume of data, accuracy of metrics and alignment with business outcomes all pain points
LOS ANGELES--(BUSINESS WIRE)-- Just more than half (52 percent) of organizational leaders are satisfied with the data they currently receive from their Recruitment Process Outsource (RPO) provider, a report from HRO Today and Futurestep, a Korn Ferry (NYSE:KFY) company specializing in high impact talent solutions, revealed today.
Low volume of data, accuracy of metrics, and alignment with business outcomes were specifically highlighted as problem areas by businesses monitoring performance metrics, with satisfaction levels reaching 49 percent, 52 percent and 41 percent respectively.
While the findings emphasized the need for RPO vendors to go above and beyond to satisfy clients, the report warned of the importance of mastering basic analytics first and foremost. Good metrics go hand in hand with good RPO and achieving this pointed to the promise of a successful long-lasting partnership between the RPO provider and client. The findings also highlighted that given the rapid changes in the sourcing and technology space in the recruiting industry, organizations need to partner with providers that can provide innovation to address ongoing continuous improvements.
Other key findings for understanding how metrics are used revealed:
- ‘Time-to-hire’ is an almost universal key performance indicator (KPI), with 87 percent of business using it
- ‘Source of hire’ was voted the most useful KPI for evaluating RPO effectiveness at 75 percent
- More than half (57 percent) of those not satisfied with their metrics complained the data does not link with other systems
- ‘Increased quality of candidate pool’ was the most desired metric businesses are not currently capturing at 44 percent
The report revealed five recommendations to get the most out of metrics:
1. A clear understanding of how HR aligns with business objectives is essential – So decisions can be made in-line with the relevant metrics
2. A systematic approach must be taken, regardless of what metrics are employed – Client and their RPO providers must ask, why measure it, what value it provides and how much emphasis should be placed on the results
3. Creating a single integrated information system is key – Data and input from the RPO should exist within an online dashboard, integrated with the client’s Applicant Tracking System, and data should be presented in a way that is meaningful for decision making
4. Continuous innovation and improvement is imperative – RPO must offer value on the information and insight that metrics provide so satisfaction levels do not decrease over time
5. Trust is crucial to success – The quality of the relationship between client and provider and the extent to which sensitive data is shared and examined will determine a true partnership
Elliot Clark, CEO of HRO Today, added: “It’s clear from this report there is still some work to do when it comes to analytics. Continuous innovation and trust will make for an improved relationship, enabling success over a sustained period of time, but companies and RPO providers need to align metrics with business objectives from the offset to gather truly valuable data.”
Jeanne MacDonald, president, Global Talent Solutions at Futurestep, commented: “The whole point of metrics is to enable better decision-making, but the benefits of a true partnership can be felt beyond the realm of data. The real key to long-term satisfaction is ensuring clients have a well-rounded talent acquisition strategy that helps them not only find the best talent but also nurture it for future growth.”
Follow the conversation on Twitter @futurestep #RPOmetrics
The full study, entitled ‘Measuring Up’, is available for download from: http://futurestep.com/insights/measuring-up-a-new-research-report-about-rpo-metrics/
Notes to Editors
Futurestep and HRO Today Magazine conducted a series of in-depth phone interviews with HR executives who employ an RPO service provider. The results from this qualitative research were used to shape a survey to provide quantitative data on the issues covered. The online survey was launched via HRO Today Magazine in 2014. In total, 265 readers responded to the survey invitation. Respondents were screened so that only those directly involved in working with RPO services took part.
Futurestep is the global industry leader in high-impact recruitment solutions; offering fully customized, flexible services to help organizations meet their talent and recruitment needs.
Our clients turn to us for proven expertise, a global process and infrastructure, proprietary competency models, innovative sourcing and attraction strategies, and a unique approach to measure and optimize business impact.
As a Korn Ferry Company, Futurestep can meet a variety of workforce requirements; from RPO and project recruitment, to search and consulting, our solutions apply a truly world-class capability to deliver talent with impact, providing the experience and global reach to identify, attract and retain the people who drive business success. To learn more, visit www.futurestep.com.
About Korn Ferry
Korn Ferry is the preeminent authority on leadership and talent. For nearly half a century, clients have trusted us to recruit world-class leaders. Today, we are their partners in designing organizational strategy and developing their people to achieve unimaginable success. For more information, visit www.kornferry.com.
About HRO Today
HRO Today offers the broadest and deepest reach available anywhere into the Human Resources industry. Our magazines, web portals, research, e-Newsletters, events, and social networks reach over 140,000 senior-level HR decision makers with rich, objective game-changing content. Our number one strength is our reach. HR leaders rely heavily on the HRO Today’s Baker’s Dozen Rankings across seven different categories when selecting an HR service provider. To learn more visit www.hrotoday.com
Source: Korn Ferry
Released July 23, 2015