6 Benefits of Modular RPO in a Challenging Economy

By Jo Taylor, Head of RPO, EMEA

Amidst a tumultuous economy, employers continue to face challenges in talent acquisition and are seeking nimble solutions that allow them to address hiring needs quickly. Despite layoffs in some sectors, job openings surpass pre-pandemic levels in nearly every industry—averaging 31% more vacancies than in 2019. This is compounded by three million people having dropped out of the labour force.  

Many organisations lack the in-house recruitment resources—in terms of personnel or technology—to respond to fluctuations in a volatile talent market. Plus, with skills gaps growing, internal talent acquisition teams are too stretched to effectively manage the candidate lifecycle. Consequently, employers experience dwindling talent pipelines and an increase in drop-offs and ghosting between offer acceptance and onboarding. 

No wonder 91% of hiring managers say they’re experiencing hiring challenges and 45% say they’re struggling to find qualified workers for open roles at their companies. Many organisations are seeking recruitment support in the form of modular RPO (recruitment process outsourcing) as a cost-effective way to augment their recruitment capabilities where they need it most.  

That’s why we’re thrilled to announce our new suite of modular solutions, Amplifiers. Amplifiers has a solution that can help augment your team to meet your short-term talent needs—while providing lasting business value.   

What is Modular RPO? 

Modular RPO, or variable RPO, is a strategic approach to managing the recruitment process in an ultra-focused manner. It involves outsourcing specific components of the recruitment process to an RPO provider, or as a supplement to an existing outsourced recruitment engagement, providing quick access to targeted and customised recruitment support. With a modular or à la carte approach, you choose from a range of services based on your requirements. 

Our Amplifiers include: 

  • Talent Mapping 
  • Talent Sourcing 
  • Talent Campaign: Surge Support
  • Assessment Transformation 

Modular RPO vs Full End-to-End RPO 

Modular RPO differs from traditional enterprise RPO in that it allows businesses to select and customise the specific recruitment services they need, rather than outsourcing the entire process.  

The main differences include: 

  • Scope: Modular RPO focuses on specific parts of the recruitment process or short-term initiatives, while end-to-end RPO can cover the entire recruitment function. 
  • Duration: Modular RPO engagements are typically short-term, while end-to-end RPO is a long-term strategic partnership. However, many of our RPO partnerships at PeopleScout have started as short-term engagements.  
  • Technology Integration: End-to-end RPO often involves more extensive use of technology, including integration with other HR systems as well as customisation. 

The decision between modular RPO and a full RPO engagement depends on various factors, including organisation size, hiring volume, budget and strategic workforce planning. It’s essential to assess your specific needs and evaluate the benefits and trade-offs associated with each approach before making a decision. 

6 Benefits of Modular RPO

Here are six key benefits of a modular approach to RPO. 

1. Cost Optimisation 

Modular RPO gives you greater control over your recruitment costs. You select specific recruitment services based on your challenges, enabling you to allocate your budget more efficiently by avoiding unnecessary expenses for unused services. In uncertain economic times, this is a more cost-effective approach that still lets you benefit from the expertise of an RPO partner. 

2. Scalability and Agility 

The business landscape is unpredictable, which can cause your hiring needs to fluctuate rapidly. Modular RPO provides the agility to scale your recruitment capabilities up or down based on demand. You can quickly adapt your recruitment efforts in response to market conditions, ensuring you have the adequate resources during high-demand periods and avoiding unnecessary expenses during slower periods. Plus, some of our clients have added Amplifiers onto their full RPO engagement—whether they’re partnered with PeopleScout or another RPO—when an extra boost is needed.  

3. Customisation and Control  

Some organisations prefer to maintain a certain level of control over their recruitment process, particularly during uncertain economic times. With modular RPO, you can customise your recruitment process according to your specific requirements. Select the services you need, such as candidate sourcing, screening or onboarding support, while retaining oversight of other aspects of the recruitment process. This level of control allows companies to align the outsourced services with their internal hiring strategies and maintain greater mastery of their talent acquisition function. 

4. Strategic Focus 

By outsourcing specific recruitment functions to an RPO partner, you can free up your internal HR teams and hiring managers to focus on core business activities, such as talent development, workforce planning and organisational restructuring. By opting for a modular approach, organisations can collaborate with their RPO partner to design a solution that addresses their specific challenges and aligns with their strategic goals. 

5. Access to Technology 

RPO providers have access to advanced recruitment technologies and tools. Even with modular RPO, you can leverage these technologies for specific recruitment functions without investing in them for internal use. This is particularly beneficial in challenging economic environments where capital expenditures are carefully managed. 

6. Risk Mitigation 

In uncertain economic climates, modular recruitment solutions are a great option for organisations who are new to RPO. By opting for a more targeted and flexible approach, you can evaluate the effectiveness and value of the outsourced recruitment partner before expanding the engagement further. 

PeopleScout’s Amplifiers offer you the ability to optimise costs, maintain agility, streamline recruitment processes and focus on strategic priorities—while still benefiting from our 30 years of expertise as an RPO partner. The benefits of modular RPO align your organisational needs with our current economic realities. 

MODULAR RPO SOLUTIONS FROM PEOPLESCOUT

AMPLIFIERS: SCALABLE. FLEXIBLE. AGILE.

Progress in Action: Moving Toward A Globally Diverse and Inclusive Workplace

Progress in Action: Moving Toward A Globally Diverse and Inclusive Workplace

Improving organisational diversity is a honourable pursuit for employers across all industries and should be a consistent point of focus for forward-thinking talent teams. Building productive teams from a pool of qualified job seekers irrespective of nationality, gender-identity, ethnicity, religious background and sexual orientation is essential to creating a workplace that reflects the communities that it serves.

So, how can you help your organisation better connect with, source, engage and recruit a more diverse and inclusive workforce? In this ebook, we examine how your organisation can update your D&I program with modern diversity strategies.

In this ebook you will learn:

  • How to accurately measure your D&I program’s progress and goals
  • How to source candidates from underrepresented groups
  • Real-world D&I success stories and more

HR Compliance Trends

HR Compliance Trends

The patchwork of compliance laws across North America is complicated and constantly changing. That, combined with increased employment class-action litigation, leaves employers facing extraordinary risk. We constantly see major new developments when it comes to employer compliance. The landscape is constantly shifting, and regulations vary from one location to the next. From the momentum of the campaign to ban the box to the patchwork of marijuana laws, a lot of changes are taking place in worksites across the country.

Complete the form to access this ebook about HR compliance trends.

Legal Implications of Video Interviewing & Artificial Intelligence

People have always sought out new employment opportunities by convincing someone that they are the best choice. While the art of persuasion has not changed, technology and customs have shifted rapidly since the days of papyrus, vellum and fax machines; what was once strange and new becomes the norm, while the tried and true seem outdated.

For instance, going door to door with the classifieds in search of work seems as absurd now as recording a video interview on your phone would have been just a few years ago. As technology matures and hiring practices change, it’s important for employers to understand the new solutions being put into place.

This article explores video interviewing and related technologies and some of the legal implications to keep in mind before implementing a new tool as part of your hiring process. Please note that this article does not constitute legal advice and does not establish an attorney-client relationship. If you need legal advice, please contact an attorney directly.

Benefits of Video Interviewing

The most common form of video interviewing, and the subject of this article, is asynchronous or one-way interviewing. The candidate records answers to a series of predetermined questions on a laptop or smart device as part of the initial screening process. The recruiter or hiring manager is then able to review the candidate’s video and see how the questions were answered. There are a number of advantages to this approach to the hiring process.

PeopleScout’s Affinixtm

The video interview and digital assessment capabilities of PeopleScout’s proprietary talent technology, Affinix, provides our clients with a clearer picture and more insight into potential employees. This simplifies the screening process, allowing PeopleScout to share top candidates with hiring managers faster. The video interview process embedded within the Affinix platform is easy to use:  

Your team creates the questions you want candidates to answer.

You can choose a combination of video, multiple choice or essay-style questions as part of an assessment.

Candidates respond to your questions just like they would in a face-to-face interview; the only difference is that the responses are recorded and stored for you to review.

Your team evaluates, reviews and rates responses when convenient.

Because responses are recorded, your team can go over answers as many times as needed, allowing for a more careful analysis of candidate responses than traditional, face-to-face interviews.
 

Built on the Amazon cloud (AWS – Amazon Web Services), Affinix is a stable and secure platform. All information is secured in the AWS cloud for you to access at your convenience. Using the digital interview capabilities of Affinix is a great way to replace or supplement telephone or first-round interviews.  

Larger Candidate Pool

The hiring manager is able to review the interviews of a much larger pool of potential candidates. While a traditional interview might only be extended to the top five candidates, video interviewing allows the hiring manager to review every candidate who meets their other screening requirements. Additionally, candidates are not restricted to local markets, as interviews can be recorded from any location.

Consistency

The questions asked in the interview are consistent for all applicants. This allows for clear comparisons in responses. Furthermore, recording a set of pre-determined questions prevents interviewers from getting sidetracked or asking inappropriate or illegal questions during the interview. Finally, other decision-makers in the hiring process don’t need to rely on the impressions of the interviewer because the videos are available for review by multiple people.

Speed

Screening speed can increase with video interviewing because there is more flexibility for hiring managers. All questions are preset, so interviewers don’t need to spend time preparing for multiple individual interviews or coordinating schedules. Because the interviews are recorded, they can also be screened in batches and at convenient times for the reviewer.

Legal Implications to Keep in Mind

The advantages of video interviewing and other emerging technologies help promote a more consistent process that gives a greater number of candidates the opportunity to present themselves for consideration. However, the use of video interviewing technology does not absolve companies from their legal obligations in the hiring process from the risk of discriminatory practices; related technologies may even increase these risks. Companies should check with legal counsel, as well as human resources and information security experts, before adopting new hiring practices or technologies.

Emerging Technologies & Non-Discrimination

Video Interviewing

Video interviews have been around for a while. But, as they grow more common, new technologies emerge to complement them. One such technology is AI-assisted assessments, which use computers to analyze responses, facial gestures, intonations and other displayed characteristics and screen out applicants that fail to meet the requirements of the specific algorithm. While technology that can prevent the hiring manager from having to even physically watch the interview has a powerful allure, AI-assisted assessments are not yet proven to be effective or non-discriminatory. For instance, a large online retailer encountered the unintended consequences of AI screening out protected classes of employees and determined that such solutions are not yet feasible. Plus, privacy advocates have requested government investigations into the secret algorithms used by a provider of AI-assisted interview technology. And, in the U.S., states are starting to look critically at AI-assisted hiring, with Illinois leading the way with new legislation.

In the U.S., the Equal Employment Opportunity Commission (EEOC) allows for video interviewing, but the rules against non-discrimination in hiring and employment do not change. Meanwhile, record-keeping requirements apply equally to video interviews; if a candidate has a disability that prevents them from providing a video interview, the employer must provide an alternative method of applying. And, while it is not illegal to learn of an applicant’s disability, such knowledge cannot be used to discriminate against that applicant.

Technology cannot eliminate human prejudices, and there will always be a risk of discriminatory behavior by bad actors. However, this risk can be mitigated to some degree by good processes, which can include video interviewing for the reasons set forth above.

International Considerations

Internationally, the European Union has one of the most expansive digital privacy laws in the world. The General Data Protection Regulation (GDPR) protects the data of EU citizens, giving them a broad array of rights including the “right to be forgotten.”

The regulation, which became official in May 2018, requires companies that recruit and process job applicant data to reveal all of the information it has on file about an individual when asked by the candidate. Under the GDPR, companies must rectify any inaccuracies and, at the candidate’s request, delete the information within 30 days.

The GDPR applies to all companies recruiting Europeans – regardless of whether the company itself is inside or outside EU borders. Fines for non-compliance to GDPR can amount up to a staggering €20M ($22.2 million U.S. dollars), or 4% of a company’s global revenue, whichever is higher.

What’s more, in Australia, before an Australian Privacy Principal (APP) entity discloses personal information to an overseas recipient, the entity must take reasonable steps to ensure that the overseas recipient does not breach the APPs in relation to the information (APP 8.1).

An APP entity that discloses personal information to an overseas recipient is also accountable for any acts or practices of the overseas recipient in relation to the information that would breach the APPs (s 16C).

New technology will not eliminate the need for employers to have a compliant hiring process or absolve them from decision-making. But, carefully selected solutions like asynchronous video interviews can bring significant advantages for both hiring managers and potential employees. With more candidates able to apply and a more consistent experience for both sides, video interviews can benefit everyone.

Compliance Corner: Modern Slavery and Supply Chain Reporting

In an effort to fight modern slavery and human trafficking, some nations, including the UK, France and Australia, have implemented supply chain reporting laws that require larger companies to publish yearly statements about the steps they take to minimise the risk of modern slavery infiltrating their business, including supply chains. The goal is to get large companies involved in eradicating modern slavery.

According to the International Labour Organisation, an estimated 40.3 million people are in modern slavery, including forced labor, and 25% of modern slavery victims are children. Forced labor is defined as, “all work or service which is exacted from any person under the threat of a penalty and for which the person has not offered himself or herself voluntarily.”

Both the UK and Australia have passed laws designed to fight modern slavery. The Modern Slavery Act of 2015 applies to companies who do business in the UK with a global annual revenue of £36 million. Each company is required to annually produce and publish a slavery and trafficking statement in a “prominent” place on their company website every year. This requirement applies to any company doing business in the UK, regardless of where that business is located.

Australia passed a similar law in 2018, the Modern Slavery Act of 2018, which took effect at the start of 2019 with the first public statement due by mid-2020. The Act requires companies who do business in Australia with a consolidated revenue of $100 million or more to report annually on the risks of modern slavery in their operations and supply chains and the steps they took to address those risks. The statements will be stored and publicly available on the Modern Slavery Statements Register.

In both cases, noncompliant companies run the risk of negative public perception, including with job candidates and customers. Moreover, the UK law is currently under review, with legislators proposing to significantly strengthen the law by imposing a fine and banning non-compliant companies from public contracting.

Compliance Corner is a feature from PeopleScout. Once a month, we’ll be featuring a compliance issue that’s in the news or on our minds. Understanding the patchwork of labor laws across the world is complicated, but it’s part of what we do best. If you have questions on the compliance issue discussed in this post, please reach out to your PeopleScout account team or contact us at marketing@peoplescout.com.au.

Compliance Corner: GDPR

Commonly known as the GDPR, the EU General Data Protection Regulation requires businesses to protect the personal data and privacy of EU citizens for transactions that occur within EU member states.


GDPR aims to protect all EU citizens from privacy and data breaches in an increasingly data-driven world.


The GDPR applies to all organizations that collect the data of people who live in the EU, regardless of the organization’s physical location. That means the GDPR impacts organizations across the globe, and the penalties can reach up to 4 percent of the global revenue of the parent company or 20 million euros, whichever is higher. Enforcement begins on May 25, 2018.


The regulation requires privacy by design, which means that a data system needs to include data protection from the start, rather than as an addition. Organizations must only hold and process the data that is absolutely necessary, and limit access to that data to those who need to process it.


The GDPR also requires consent and provides the people whose data is collected with the right to confirmation as to whether or not their personal information is being processed, where it is being processed and for what purpose. If the person requests, the organization also needs to provide a copy of the personal data, free of charge, in an electronic format. The person has the right to give that data to another organization.


Additionally, the GDPR includes the right to be forgotten, also known as data erasure, which entitles the person whose data was collected to have the organization erase the data, cease any dissemination of the data and potentially halt a third party’s processing of that data.


The regulation requires organizations to notify the people whose data they collect within 72 hours of first becoming aware of a data break that is likely to “result in a risk for the rights and freedoms of individuals.”


Organizations that collect data previously had to notify local data protection advisors about their data processing activities. Under the GDPR, data collecting organizations will not be required to submit those notifications or registrations, but they will need to meet internal recordkeeping requirements, and some organizations will need to appoint data protection officers.



Compliance Corner is a feature on the PeopleScout blog. At least once a month, we’ll be featuring a compliance issue that’s in the news or on our minds. Understanding the patchwork of labor laws across the world is complicated, but it’s part of what we do best. If you have questions on the compliance issue discussed in this post, please reach out to your PeopleScout account team or contact us at marketing@peoplescout.com.