Now in its third year, this year's survey analyzes the key global trends in Recruitment Process Outsourcing. The survey sample includes more than 500 respondents from across the globe.

1. RecRuitment business contingent Human caReeR tRansition executive
pRocess pRocess woRkfoRce ResouRces & oRganisational seaRcH
outsouRcing outsouRcing outsouRcing consulting effectiveness
Think ouTside.
global RPo
RePoRT 2010



2. global 03 15
RPo RePoRT Preface internal recruitment functions
2010 04 17
contents executive summary The decision to outsource
06 22
a profile of respondents estimating the real cost of recruitment
08 24
The recruiting challenge about sponsors
11
global hiring intentions
graphs 06
07
(g1) Multinational roles
(g2) Number of employees
13 (g13) Current use of
recruitment firm services
16 (g20) Technology/functionality
used to source candidates
19 (g27) Areas of the hiring process
outsourced, by region
08 (g3) Hiring challenges, by region 13 (g14) % of vacancies filled by third 17 (g21) Outsourcing part or all of 20 (g28) Hiring process
08 (g4) Hiring challenges, by no. of staff party providers, by region the HR function, by region outsourced, by industry
09 (g5) Reasons for difficulties hiring 14 (g15) % of vacancies filled by third 17 (g22) Outsourcing part or all of 20 (g29) Plans to outsource, by industry
09 (g6) Reasons for difficulties party providers, by no. of staff the HR function, by no. of staff 21 (g30) Provider selection criteria
hiring, by region 15 (g16) How recruitment 17 (g23) HR functions currently 21 (g31) Outsourced hiring
10 (g7) Conditions slowing hiring functions are utilised outsourced, by region program expectations
11 (g8) Plan to hire 100+ 15 (g17) Number of internal 18 (g24) Hiring process 21 (g32) Primary reasons why
11 (g9) Plan to hire recruitment staff, by no. of staff outsourced, by region firms don’t outsource
12 (g10) Plan to hire, by region 16 (g18) % of recruitment 18 (g25) Hiring process 22 (g33) Average cost per hire (Euros)
12 (g11) Anticipated hires, by region team solely recruiting outsourced, by no. of staff
13 (g12) Plans to hire permanent 16 (g19) % of recruitment team solely 18 (g26) Areas of the hiring
employees, by industry recruiting, by no. of staff process outsourced


3. global RPo RePoRT 2010 | 3
01 preface Candy lewandoswki, Vice President, global Practice lead – RPo, kellyoCg
Richard J. Crespin, global executive director, hRoa
01 Preface
02 executive
summary
03 a profile of
➔ Welcome to the Global of senior hiring managers from small, the HROA, and it explores in respondents
RPO Report 2010, prepared by medium and large organizations detail, not only the state of labour 04 The recruiting
challenge
Kelly Outsourcing and Consulting across North America, Europe, markets and recruitment challenges
05 global hiring
Group (KellyOCG) and the Human Middle East and Africa (EMEA), and in the immediate period ahead, intentions
Resources Outsourcing Association the Asia Pacific Region. but also the latest developments 06 internal
recruitment
in the area of recruitment process
(HROA). It provides an ongoing functions
Even after a year when employment outsourcing (RPO).
record of the development of the 07 The decision
markets have been shaken like never to outsource
recruitment process outsourcing before, it is a significant finding Its insights will be of great value 08 estimating
the real cost
space, as well as trends in of this years’ survey that great to senior executives and HR of recruitment
recruitment and HR as reported by talent – the very core of a company professionals as they prepare their 09 about
sponsors
organizations across the globe. – remains such a difficult to find talent acquisition strategies for the
resource across the globe. year ahead.
At a time of profound upheaval
in the world economy, the report This is the third annual report ■ ■ ■
presents a glimpse into the thinking conducted by KellyOCG and


4. global RPo RePoRT 2010 | 4
02 executive ➔ When the Global RPO
Report was launched in 2007 amid a
difficulties. In Asia Pacific, there
has been a significant improvement
The share of firms outsourcing all
or part of their HR function stands
01 Preface
02 executive
summary thriving global economy and a skills over the past year, but still
50 percent report difficulties. In
at 46 percent, up slightly from the
previous year. Recruitment remains
summary
03 a profile of
shortage, there were real challenges respondents
the Americas, the position has the biggest area of outsourcing,
being experienced by hiring 04 The recruiting
and the largest organisations are far challenge
managers – 70 percent reported actually deteriorated.
more likely to outsource. 05 global hiring
difficulties in recruiting staff. In last intentions
The top recruiting challenge is a
year’s report, coinciding with global 06 internal
Familiarity with recruitment process recruitment
shortage of skilled staff, cited by
economic turmoil, the situation was outsourcing (RPO) continues to rise functions
58 percent of respondents. Europe is
different – only 54 percent reported steadily. Knowledge remains higher 07 The decision
the worst affected, while Asia Pacific to outsource
recruitment difficulties. in EMEA and in the Americas, and
is impacted by what is described as 08 estimating
among larger employers. the real cost
uncompetitive salaries. The quality of recruitment
This latest report, prepared at a time
of candidates is the biggest factor More than a quarter of firms are 09 about
when national economies are at a sponsors
slowing the hiring process. outsourcing their recruitment
fragile turning point, reflects the
process, with spectacular growth
uncertainty that pervades businesses Two thirds of organisations plan in the Asia Pacific region.
large and small. There are signs of to use recruiting firms in their
stability but still no marked upswing, hiring efforts. The biggest expectation from an
and a sense of unease about the RPO partner is improved hiring
skill shortages that prevail in spite of The top job categories to be filled times, followed by lower cost,
massive job losses. are business operations support, and integration of multiple
and mid-level executives. sourcing channels.
More than half of the hiring
Some 60 percent of HR units are The average cost-per-hire is
managers surveyed say they are still
reported between 1,801 Euros
experiencing difficulties in recruiting operating with five or less staff.
and 2,500 Euros (US$2,501
staff, a number that is virtually More than a third spend less than
and US$3,500).
10 percent of their time on
unchanged from last year.
recruitment, and only 20 percent
■ ■ ■
The greatest challenge is in EMEA devote at least 75 percent of time
where 65 percent are experiencing to recruitment.


5. global RPo RePoRT 2010 | 5
MoRe Than half of
The hiRing ManageRs
suRVeyed say They aRe sTill
exPeRienCing diffiCulTies
in ReCRuiTing sTaff, a
nuMbeR ThaT is ViRTually
unChanged fRoM lasT yeaR.


6. global RPo RePoRT 2010 | 6
EMEA
APAC
03 a profile of ➔ The survey was carried
out by KellyOCG and the Human
A higher percentage of respondents
AMERICAS
from EMEA0(40 percent) have
For the most part respondents
have responsibility for recruiting
01 Preface
02 executive
respondents
10 20 30 40 50
summary
Resources Outsourcing Association multinational roles than their within their own regions, with
03 a profile of
(HROA) between November 2009 only 20 percent of respondents respondents
counterparts in the Americas (27
and February 2010, and obtained overall saying they have global 04 The recruiting
percent) or Asia Pacific (18 percent). challenge
the views of 536 respondents, recruiting responsibilities. American
Most respondents (61 percent) are 05 global hiring
comprising mainly senior HR respondents are the most likely to intentions
managers from small, medium and responsible for one country, and have global recruiting responsibility 06 internal
recruitment
large organisations, with workforces 28 percent are responsible for 2 to (24 percent), followed by EMEA functions
ranging from fewer than 1,000 10 countries, while 11 percent are respondents (21 percent) and then 07 The decision
to outsource
employees to more than 50,000. responsible for 11 or more countries. Asia Pacific respondents (11 percent).
08 estimating
the real cost
Respondents came from a broad of recruitment
range of industry sectors across 09 about
sponsors
the Americas (39 percent), Europe, 1 Multinational role
Middle East and Africa (EMEA)
(39 percent), and Asia Pacific 50%
EMEA
(22 percent). 40%
20%
APAC
18%
Slightly more than a quarter of
29%
respondents are operating in more AMERICAS
27%
than one country. As a result, the
0 10% 20% 30% 40% 50%
responses reflect the situation in a 2009
total of 85 countries. 2010


7. global RPo RePoRt 2010 | 7
More than half of respondents work The results represent views from 01 Preface
in large organisations with more than a broad spectrum of industries, 02 executive
summary
1,000 employees while 45 percent including professional services, IT&T,
03 a profile of
represent organisations with fewer manufacturing, banking & finance, respondents
than 1,000 employees. health, retail/wholesale, education, 04 the recruiting
challenge
government, bureau/outsourcer,
A further 21 percent work in 05 global hiring
utilities, construction, insurance, intentions
organisations with more than transport, FMCG/consumer products, 06 Internal
10,000 employees. recruitment
and hospitality. functions
07 the decision
■ ■ ■ to outsource
08 estimating
the real cost
of recruitment
09 about
2 Number of employees sponsors
13%
12%
8%
8%
Less than 1,000
46%
1,000 – 10,000
45% 10,000 – 50,000
More than 50,000
34%
34%


8. global RPo RePoRT 2010 | 8
04 the recruiting ➔ In spite of the prevailing
economic weakness, and the loss
3
More than 50,000
hiring challenges, by region
10,000 –50,000
01 Preface
02 executive
challenge of millions of jobs globally, just over
half of respondents (55 percent) say
1,000 – 10,000
67%
summary
03 a profile of
EMEA
Less than 1,000 respondents
65%
they are experiencing difficulties 0 10 20 30 40 50 60
04 The recruiting
60%
APAC challenge
in recruiting staff, a number that’s 50%
05 global hiring
virtually unchanged over the AMERICAS
43% intentions
46%
previous year. 06 internal
0 20% 40% 60% 80% recruitment
functions
The greatest challenge in finding 2009
2010 07 The decision
talent is in Europe where 65 percent to outsource
are experiencing difficulties. In Asia 08 estimating
the real cost
Pacific, there has been a significant 4 hiring challenges, by number of staff of recruitment
improvement over the past year, but 09 about
sponsors
still 50 percent report difficulties. More than 50,000 47%
In the Americas, the position has
10,000 – 50,000 58%
actually deteriorated with 46 percent
1,000 – 10,000 57%
finding recruiting difficult.
Less than 1,000 55%
The largest companies are 0 20% 40% 60%
experiencing the least difficulty in
recruiting – that is the only segment
where less than half are facing
challenges in recruitment.


9. Current recruitment processes
Location
global RPo RePoRT 2010 | 9
Salary Uncompetitive
Salary of skilled sta
0 10 20 30 40 50 60
Current recruitment processes
With unemployment at historically percent) blame the shortage of The talent shortage is most acute Pacific face a similar problem. 01 Preface
Location
high levels in many countries, skilled talent for their recruiting in EMEA with 63 percent of However those in Asia Pacific also 02 executive
Salary Uncompetitive summary
labor should be plentiful. Yet the problems, well ahead of other respondents indicating it is their have a wage cost issue with a hefty
Salary of skilled sta 03 a profile of
overwhelming reason cited for the factors such as uncompetitive primary hiring issue. More than 40 percent blaming uncompetitive respondents 70
0 10 20 30 40 50 60
recruiting difficulties is a shortage salaries (25 percent) and location half of those in Americas and Asia salaries for hiring troubles. 04 The recruiting
challenge
of skilled staff. More than half (58 (24 percent).
05 global hiring
intentions
06 internal
recruitment
5 Reasons for difficulties hiring 6 Reasons for difficulties hiring, by region functions
07 The decision
to outsource
Current recruitment processes 14% 12%
08 estimating
Current recruitment processes 11% the real cost
Location 24% 17% of recruitment
Salary Uncompetitive 25% 25% 09 about
Location 23% sponsors
Salary of skilled staff 58% 22%
0 20% 40% 60% 25%
Salary Uncompetitive 40%
14%
63%
Salary of skilled staff 51%
56%
0 10% 20% 30% 40% 50% 60% 70%
EMEA
APAC
AMERICAS


10. global RPo RePoRT 2010 | 10
04 There is another perspective to the
TechE ect
talent shortage that emerges when
cited by slightly more than half of all
respondents. All other factors rank
01 Preface
02 executive
Poor Process summary
firms are asked Quality
the question: What significantly lower including time-
03 a profile of
Performance
is the condition most likely to slow to-hire (36 percent), hiring manager respondents
Cost
the hiring process? The pervasive satisfaction (29 percent) and cost-to- 04 The recruiting
challenge
Hiring hire (28 percent).
factor that emerges across all 05 global hiring
Time
regions is the quality of candidates, ■ ■ ■
intentions
Quality 06 internal
recruitment
0 10 20 30 40 50 60 functions
07 The decision
7 Conditions slowing hiring to outsource
08 estimating
the real cost
of recruitment
Technology effectiveness 7%
09 about
Poor processes 12% sponsors
Quality of recruiters 17%
Performance monitoring 21%
Cost to hire 28%
Hiring manager satisfaction 29%
Time to hire 36%
Quality of hires 54%
0 20% 40% 60%


11. global RPo RePoRT 2010 | 11
05 global hiring ➔ A spark of optimism
emerges in the latest data on global
9 Plan to hire
01 Preface
02 executive
intentions hiring intentions. While it is clear that
there is still some way to go before
Graduate
82%
summary
03 a profile of
Graduate 84% respondents
there is a return to pre-recession Temp 79% 04 The recruiting
challenge
hiring levels, it certainly appears that 86%
Temporary 87% 05 global hiring
the worst is over. The latest figures Perm 91% intentions
show hiring intentions flat but stable. 06 internal
0 10 20 30 40 96% 50 recruitment
Permanent 96% functions
In the previous 2008 survey, at the 95%
07 The decision
height of the global financial crisis, 0 20% 40% 60% 80% 100% to outsource
just 36 percent of respondents 2010 08 estimating
the real cost
2009
anticipated hiring more than 100 of recruitment
2008
permanent employees, down from 09 about
sponsors
43 percent in 2007.
8 Plan to hire 100+
The latest data for 2009 shows the
outlook marginally better, with 37 12%
Graduate 13%
percent intending to hire 100 or
18%
more permanent employees. It’s a
20%
similar picture for both temporary Temporary 20%
33%
and graduate hires, suggesting that
the market is still cautious, but at 37%
Permanent 36%
least not deteriorating. 43%
0 10% 20% 30% 40% 50%
Firms plan to hire more permanent
2010
positions than temporary or 2009
2008
graduate staff, and a significant
number (over 80% in all cases)
intend to hire at least some
permanent, temporary, and
graduate staff.


12. global RPo RePoRT 2010 | 12
05 10 Plan to hire, by region
Arguably the most optimistic
outlook is for North American
The industry sectors that will be
most active in hiring over the
01 Preface
02 executive
summary
where nearly half of all respondents coming year are Health, Bureau/
EMEA 4% 65% 31% 03 a profile of
(49 percent) say they plan to hire Outsourcer, Banking & Finance, respondents
APAC 10% 67% 24% more than 100 employees in 2010, Retail & Wholesale, IT&T, and 04 The recruiting
challenge
AMERICAS 1% 50% 49% compared with just 31 percent in Government. In each of these
05 global hiring
0 20% 40% 60% 80% 100% EMEA and 24 percent in Asia Pacific. sectors, more than half of all intentions
respondents plan to hire 50 or more 06 internal
None recruitment
1 to 100
As in last year’s survey, planned permanent employees. functions
More than 100 hires in 2010 are more likely to be 07 The decision
The weakest hiring plans are in to outsource
replacing existing positions than
11 anticipated hires, by region Manufacturing, Education and 08 estimating
filling new roles, unlike the pre- the real cost
recession situation where more Utilities. of recruitment
15% 09 about
respondents anticipated expanding sponsors
Trades 12% The vast majority of organisations
13% their staff.
(66 percent) plan to use recruiting
14%
The top job categories that firms in their hiring efforts. Those
Other 17%
19% in EMEA are more likely to use
organisations plan to fill in 2010 are
24% recruiters than their counterparts
business operations support, and
Contact centre 17%
in the Americas or the Asia Pacific
26% mid-level executives. While these
region. Larger organisations
49% have been the top categories across
Senior executive or professional 41% are more likely to use recruiting
all years of research, they are slowly
38%
companies than their smaller
declining. Senior executive hiring
58% counterparts; just over half of
Administrative 57% has experienced the biggest fall,
53% the smallest firms use recruiting
down from a high of 49 percent in
77% 2008 to 38 percent in 2010.
Mid-level executive or professional 74%
70%
78%
Business operations support 74%
71%
0 10% 20% 30% 40% 50% 60% 70%
2008
2009
2010


13. 0 20 40 60 80 100
manufacturing
global RPo RePoRT 2010 | 13
Education
Utilities
Prof Services
Gvot
companies, compared with almost quarter for applicant and recruitment
13 Current use of recruitment firm services
01 Preface
IT&T
90 percent of the largest employers. performance tracking. 02 executive
summary
Retail/Wholesale Respondents in Asia Pacific and On-boarding 9% 03 a profile of
Bank & Fin
Of those organisations that use
Americas are more likely than Vendor management 11%
respondents
04 The recruiting
Bur/Out
recruiting firms, nearly all make
their counterparts in EMEA to Applicant and recruitment
EMEA
challenge
27%
Health
use of sourcing, screening and
make use of recruiting firms for
performance tracking 05 global hiring
intentions
0 20 reference 40 60 80 100
testing services; half use them for Reference checking
APAC 52%
checking
06 internal
reference checking and another Sourcing, screening, testing
AMERICAS
93% recruitment
functions
00 20% 20 40% 4060% 80%
60 100%80 100
07 The decision
to outsource
08 estimating
14 % of vacancies filled by third party providers, by region the real cost
12 Plans to hire permanent employees, by industry
of recruitment
09 about
sponsors
Manufacturing 21% 79% EMEA 22% 37% 26% 11% 5%
Education 21% 79% APAC 40% 35% 10% 10% 5%
Utilities 25% 75% AMERICAS 49% 32% 8% 10% 1%
Professional Services 46% 54% 0 20% 40% 60% 80% 100%
Government 56% 44% Less than 10% 51% to 75%
10% to 25% 76% to 100%
IT&T 57% 43% 26% to 50%
Retail/Wholesale 59% 41%
Banking & Finance 62% 38%
Bureau/Outsourcer 81% 19%
Health 83% 17%
0 20% 40% 60% 80% 100%
>50 employees
<50 employees


14. 0 20 40 60 80 100
10 to 50
1 to 10
global RPo RePoRT 2010 | 14
Less
0 20
Some 70 percent of respondents needs, with 55 percent of these 01 Preface
15 % of vacancies filled by third party providers, by number of staff
use recruitment firms to fill a quarter firms using outside recruitment for 02 executive
summary
or less of their vacancies. Those between 10 and 25 percent of their
More than 50,000 22% 55% 23% 03 a profile of
in EMEA use them to fill a higher total recruitment. Smaller firms are respondents
10,000 to 50,000 35% 19% 35% 10%
proportion of vacancies than their more diverse in their requirements 04 The recruiting
challenge
1,000 to 10,000 39% 33% 13% 10% 6%
counterparts in APAC and Americas. and will utilize outside providers
05 global hiring
across a wider spectrum, ranging Less than 1,000 39% 31% 11% 19% intentions
The largest firms (with more than 06 internal
from less than 10 percent, up to 100 0 20% 40% 60% 80% 100%
recruitment
50,000 employees) consistently
percent of their workforce needs. Less than 10% 51% to 75% functions
use outside firms for a smaller 10% to 25% 76% to 100% 07 The decision
26% to 50% to outsource
percentage of their total recruitment ■ ■ ■
08 estimating
the real cost
of recruitment
09 about
sponsors


15. global RPo RePoRT 2010 | 15
06 internal ➔ There is a mixed picture
that emerges when it comes to
or outsourced recruitment functions.
Asia Pacific organisations are
with five or less staff. The size of
internal recruitment staff correlates
01 Preface
02 executive
recruitment the prevailing model adopted by
organisations in managing their
more likely to have centralised closely to overall organisational
size: 84 percent of the smallest
summary
03 a profile of
functions, and EMEA leans toward respondents
functions
Outsourced
HR needs. For approximately a hybrid model. respondents employ 1– 5 internal 04 The recruiting
Hybrid
challenge
90 percent of firms, there is roughly recruiters; 77 percent of the
Centralised 05 global hiring
an even split between a centralised It is not surprising that the smallest largest firms employ more than intentions
De-centralised
and a de-centralised recruitment organisations are the ones 20 internal recruiters. 06 internal
0 10 20 30 40 50 recruitment
function. Just 5 percent adopt a most likely to have centralised functions
hybrid model, and the remaining recruitment, while the largest are Not only are internal HR teams
07 The decision
relatively lean, they are generally not to outsource
4 percent are outsourced. more likely to outsource.
spending a large amount of time 08 estimating
More
the real cost
American organisations are more Staff numbers attached to
10 to 50
on recruiting duties. More than a of recruitment
likely than their counterparts in recruitment departments are fairly third (37 percent) spend less than 10 09 about
1 to 10 sponsors
other regions to have de-centralised modest, with 60 percent operating percent of their time on recruitment.
Less
0 20 40 60 80 100
16 how recruitment functions are utilised 17 number of internal recruitment staff, by number of staff
More than 50,000 4% 7% 11% 77%
Outsourced 4%
10,000 to 50,000 42% 37% 14% 7%
Hybrid 5%
1,000 to 10,000 56% 16% 9% 19%
Centralised 43%
Less than 1,000 84% 8% 4% 4%
De-centralised 48%
0 20% 40% 60% 80% 100%
0 10% 20% 30% 40% 50%
1 to 5
6 to 10
11 to 20
More than 20


16. global RPo RePoRT 2010 | 16
76 to100
JOb
51 to 75
In all, 70 percent of respondents specialise – focusing HR/recruiting Respondents employ a variety of Organisations in all regions and of
Automated 01 Preface
26 to 50
spend less than 50 percent of their staff on recruitment duties. The technologies to source and track all sizes follow the general pattern 02 executive
Electronic summary
time on recruitment. There are only candidates, most often online outlined above, although the
relatively scant resources directly CV Search
10 to 25 applications and assessment (73
03 a profile of
20 percent of organizations where at largest firms are significantly more respondents
allocated to recruitment tasks in CV management
Less than 10
least 75 percent of time is devoted percent) and applicant tracking (66 likely to be using applicant tracking 04 The recruiting
many firms raises the question as Applicant challenge
percent) programs, both of which
0
to recruitment. 5 10 15 20 25 30 35 40 (91 percent) than are their smaller
to whether this, in part, explains Online
are used much more frequently than
05 global hiring
counterparts (58 percent). intentions
the reported problems being 0 10 20 30 40 50 60 70 80
Generally, the larger the the next most common process, CV 06 internal
recruitment
organization, the more likely it is to encountered in the hiring process. management (40 percent).] ■ ■ ■ functions
07 The decision
to outsource
08 estimating
18 % of recruitment team solely recruiting 20 Technology/functionality used to source candidates the real cost
of recruitment
09 about
76% to 100% Job order tracking 4% sponsors
20%
More
Automated reporting 15%
51% to 75% 9%
10 to 50
Electronic scheduling 15%
26% to 50% 18%
1 to 10
CV search capability 27%
10% to 25% 15%
Less
Less than 10% 0 20 40 60 80 37% 100 CV management 40%
0 10% 20% 30% 40% Applicant tracking 66%
Online applications
and assessment 73%
0 20% 40% 60% 80%
19 % of recruitment team solely recruiting, by number of staff
More than 50,000 29% 7% 24% 9% 31%
10,000 to 50,000 33% 33% 14% 21%
1,000 to 10,000 23% 22% 17% 12% 26%
Less than 1,000 50% 10% 18% 9% 13%
0 20% 40% 60% 80% 100%
Less than 10% 51% to 75%
10% to 25% 76% to 100%
26% to 50%
