Global Rpo Report 2009

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    RecRuitmentpRocessoutsouRcing

    businesspRocessoutsouRcing

    contingentwoRkoRceoutsouRcing

    HumanResouRcesconsulting

    caReeR tRansition& oRganisationaleectiveness

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    Think ouTside.

    global RPo

    RePoRT 2009

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    08 (20)ett t rct rcrtt

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    10 (23)at pr

    g1 (7) Number o employeesg2 (8) Hiring challenges, by regiong3 (9) Conditions slowing hiring, by regiong4 (10) Conditions slowing hiring, by sizeg5 (11) Plan to hire 100+g6 (11) Plan to hire

    g7 (12) Main job categories to be lled,2008 and 2009

    g8 (13) How organisations plan to userecruitment rms

    g9 (14) Number o internal recruitmentsta, by size

    g10 (15) % o recruitment team solelyrecruiting

    g11 (16) Outsourcing part or all o theHR unction, by region

    g12 (18) Provider selection criteria

    g13 (19) Outsourced hiring programexpectations

    g14 (19) Why rms dont outsourceg15 (20) Average cost per hire

    globalRPo RePoRT

    2009

    rh

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    Following on rom the

    outstanding eedback rom the

    2008 survey, it gives us great

    pleasure to introduce the Global

    RPO Report 2009.

    This survey was conducted in the

    nal quarter o 2008, a time o

    great tumult and change across the

    worlds employment markets. As

    we write this preace, each week

    brings dramatic announcements o

    sta redundancies rom a wide range

    o iconic global businesses. Much

    o the world is in recession, and

    business condence shows no signs

    o evening out in the short-term.

    This survey then, represents a

    view o a rapidly shiting trend at

    a unique snapshot in time. Clearlymany organisations 2009 sta

    hiring strategy and needs will be

    dramatically impacted by the current

    environment. Just how dramatically

    remains to be determined.

    C-Ptr sr, Vc-Prt, Ctr excc RPo, koCg

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    Despite the short-term gloom, there

    are some undamentals which this

    research seems to reinorce. The

    awareness o RPO continues to

    grow throughout the world, with a

    pronounced lit in the Europe, Asia &

    Middle East (EMEA) and Asia-Pacic

    regions. And whilst stang volumes

    will be signicantly impacted by the

    crisis, the strategic intent o many

    organisations remains ocused on thelonger-term.

    When the current events pass, as

    they will, the war or skills and talent

    shortages will return in even more

    dramatic orms. HR departments

    which have been downsized in the

    lean times will be overwhelmed

    with the complexities o identiying

    and onboarding the quality and

    quantity o talent they need to uel

    their companys renewed growth.

    The value recruitment process

    outsourcing can play in such an

    environment to enable organisations

    to respond rapidly will be, i anything,

    even more pronounced.

    That is why, even in the current

    climate, there remains a recognition

    and underpinning sense o

    undamental shit towards the

    strategic outsourcing o recruitment

    processes. As we move through

    this downturn, it seems likely that

    the rate o movement towards this

    model will accelerate as companies

    who have weathered the storm

    seek to capitalise on their

    growth opportunities.

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    global RPo RePoRT 2009 | 4

    02 ry

    The Global RPO Report

    2009, now in its second year, was

    carried out by Kelly Outsourcing

    and Consulting Group (KellyOCG)

    and the HROA in September

    and October 2008 to continue to

    explore the views and practices

    related to recruiting and recruitment

    process outsourcing (RPO) among

    global business leaders. Our 614

    respondents were a global set, at

    companies ranging in size rom ewer

    than 1,000 employees to more than

    50,000 and representing a spectrumo industries.

    Last year we noted that the buoyant

    world economy was having a

    negative impact on recruitment, as

    70 percent o respondents reported

    recruitment diculties. The recent

    global economic situation appears

    to be having, expectedly, impact, as

    well, with many ewer respondents

    (54 percent) experiencing recruitment

    diculties. The EMEA region is aring

    worst with 67 percent reporting

    experiencing hiring troubles.

    A shortage o skilled sta is the key

    recruiting challenge or many (82

    percent), signicantly outstripping the

    next closest challenge, uncompetitive

    salary (35 percent). Challenges that

    slow the hiring process are much

    less clear. Whilst more than hal o

    respondents point to quality o hire,

    the next most commonly cited brake

    on the hiring process are broadly

    spread: time to hire (37 percent),

    cost to hire (28 percent), and hiring

    manager satisaction (27 percent).

    In comparing results rom the 2008

    and 2009 studies, hiring is expected

    to all o in the coming year; those

    anticipating hiring 100+ permanent

    employees have allen rom 43

    percent to 36 percent. However,

    2009 still looks to be an active hiring

    year, with a similar percentage o

    organisations expecting to engage in

    recruiting/hiring.

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    02 The majority o respondents 66 percent are currently using

    recruitment rms, down rom 2008s

    78 percent. EMEA organisations,

    at 78 percent, are much more

    likely than their American and Asia

    Pacic counterparts to make use o

    recruitment rms, as are the largest

    employers those with 50,000+

    employees 85 percent o which are

    using recruitment rms.

    By ar the most common use o

    recruitment rms is or sourcing,

    screening and testing, with over 90

    percent o these respondents making

    use o those services. Hal o these

    respondents are using these rms

    or reerence checking. Two thirds o

    those using recruitment rms ll less

    than a quarter o their job vacancies

    that way. EMEA organisations,

    however, make the greatest use o

    these rms; 42 percent say they use

    them to ll between a quarter and

    hal o vacancies.

    Less than hal o respondents (43

    percent) say they are outsourcing part

    or all o their HR unction. Among

    those who are outsourcing HR

    unctions, recruitment and payroll are

    most common, at 65 percent and 54

    percent respectively.

    Familiarity with RPO appears to be

    on the rise; 62 percent say they are

    amiliar or very amiliar with RPO

    versus 56 percent last year.

    Just under a quarter o respondents

    say they are outsourcing all or part

    o their recruitment process. This

    experience is most common in

    EMEA (35 percent), ollowed by

    the Americas (23 percent) and the

    Asia Pacic region (17 percent).

    RPO is also much more common in

    companies with 50,000+ employees,

    40 percent o which report engaging

    in RPO.

    The three main priorities o RPO

    are reducing time to hire, lowering

    cost o recruitment, and integrating

    multiple sourcing channels.

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    FamiliaRiTy wiTh RPoaPPeaRs To be on The Rise;

    62 PeRCenT say They aReFamiliaR oR VeRy FamiliaRwiTh RPo VeRsus 56 PeRCenTlasT yeaR.

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    03 rf rd

    The survey was undertaken

    by Kelly Outsourcing and Consulting

    Group (KellyOCG) and the HROA

    in September and October 2008

    to continue our exploration commenced the previous year - o

    the attitudes and practices o global

    organisations relating to recruitment

    generally and recruitment process

    outsourcing (RPO) specically.

    The respondent pool is truly global,

    with 41 percent located in the

    Americas, 37 percent in the Asia

    Pacic region and the remaining

    22 percent in EMEA. Respondents

    generally have a national role within

    their organisations 70 percent say

    their role is mostly national, whilst

    30 percent say their role is mostly

    multinational. Not surprisingly,

    nr p

    46%

    12%

    34%

    8%

    1

    Just under hal o the respondents (46

    percent) represent organisations with

    ewer than 1,000 employees, and

    about a third work in organisations

    o 1,000 to 10,000 employees. The

    remaining 20 percent work in the very

    largest organisations those with

    more than 10,000 employees.

    The results represent views rom

    a broad spectrum o industries,

    including Proessional Services,

    Manuacturing, IT&T, Banking &

    Finance, Health, Retail/Wholesale,

    Government

    Education, Bureau/Outsourcer,Transport, Construction, Utilities,

    Insurance, FMCG / Consumer

    Products, Hospitality, Non - Prot /

    Religious Organisations.

    European respondents are more

    likely to have multinational roles

    than their American or Asia Pacic

    counterparts; hal all the European

    respondents report having a

    multinational role, as compared to

    29 percent o American respondents

    and 20 percent o Asia Pacic

    respondents.

    Most respondents (61 percent) are

    responsible or only one country,

    and just under a third (28 percent)

    are responsible or 2 to 10 countries.

    Only 11 percent are responsible or

    11 or more countries. For the most

    part respondents have responsibility

    or recruiting within their own regions,

    with only 18 percent o respondents

    overall saying they have global

    recruiting responsibilities. EMEA

    respondents are the most likely to

    have global recruiting responsibility

    (26 percent), ollowed closely by

    American respondents (22 percent)

    and then Asia Pac respondents (9

    percent).

    Less than 1,000

    1,000 to 10,000

    10,000 to 50,000

    More than 50,000

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    04 h rrh

    Just over hal o all

    respondents (54 percent) say they

    are experiencing diculties in

    recruiting sta. This number is down

    airly signicantly rom last years 69

    percent who indicated they were

    having diculties in hiring.

    At the same time, the data point

    out potential regional dierences in

    recruiting challenges. Less than hal

    o respondents in the Americas (43

    percent) say they are experiencing

    diculties in recruiting sta, whilst

    60 percent o Asia Pacic and 67

    percent o EMEA respondents

    indicate recruiting challenges.

    A shortage o skilled sta is by ar

    the most signicant reason cited or

    recruiting diculties, beating out the

    next closest challenge (uncompetitive

    salary) by more than two times. Whilst

    respondents in all regions agreed

    that the skilled sta shortage was

    a signicant challenge, American

    respondents ranked uncompetitive

    salary the lowest o all challenges

    (with 19 percent selecting it), below

    location and the current recruitment

    process.

    hr c, r2

    Americas

    APAC

    EMEA

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    Shortage of skilled staff

    Salary uncompetitive

    Location

    Current recruitment processes

    0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

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    04

    Respondents cite a variety o

    challenges that are slowing the hiring

    process, the most common o which,

    quality o hires, at 54 percent is the

    only one selected by more than hal

    o all respondents. Following that,

    challenges include, time to hire (37

    percent), cost to hire (28 percent),

    hiring manager satisaction (27

    percent), perormance monitoring

    (21 percent), quality o recruiters (18

    percent).

    Whilst there is general agreement

    among respondents rom dierent

    regions as to the main inhibitors

    to hiring, quality o hires is a more

    signicant problem in the Asia Pacic

    region than it is in the Americas

    or EMEA, time to hire is a more

    signicant problem among EMEA

    respondents, and poor processes is

    more signicant among American

    respondents than it is or respondents

    in other regions.

    Ct r, r3

    Americas

    APAC

    EMEA

    Quality of hires

    Time to hire

    Hiring manager satisfaction

    Cost to hire

    Quality of recruiters

    Performance monitoring

    Poor processes

    Technology effectiveness

    0% 10% 20% 30% 40% 50% 60%

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    05 hr

    The impact o the current

    global economic situation can be

    seen in the anticipated number o

    hires in 2009 versus the prior year.

    In 2008, 43 percent o respondents

    anticipated hiring more than 100

    permanent employees; in 2009,

    that number dropped to 36

    percent. Likewise, the percentage

    o respondents who say they plan to

    hire more than 100 temporary and

    graduate employees also dropped

    rom the 2008 to the 2008 survey,

    rom 33 percent to 20 percent and 18

    percent to 13 percent respectively.

    However, whilst the number o

    anticipated hires appears to be

    declining, respondents anticipate

    an active hiring year, with those

    expecting to make some number

    o permanent and graduate hires

    increasing over the prior year.

    Unlike last year, and again not

    surprising given the economic

    challenges o the past year, the

    anticipated hiring ocus or 2009 is

    in replacing existing positions, rather

    than lling new ones.

    Nearly hal (48 percent) o

    organisations are recruiting or ve or

    ewer locations; EMEA rms are most

    oten (84 percent) recruiting or one

    to 10 locations, whilst both American

    and Asia Pacic rms are more

    broadly spread rom one to 20-plus

    locations.

    P t r6

    Permanent

    Temporary

    Graduate

    0% 20% 40% 60% 80% 100%

    2008

    2009

    P t r 100+5

    Permanent

    Temporary

    Graduate

    0% 10% 20% 30% 40% 50%

    2008

    2009

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    05 As we ound last year, when askedabout the job categories they will ll

    in the next year, the top categories

    are business operations support

    and mid-level executives, both at 74

    percent o all respondents, although

    in general slightly lower numbers

    than the prior year.

    The majority o respondents (66

    percent) use recruiting rms to aid

    in their hiring eorts, although this

    number is down slightly rom last

    years 71 percent. Organisations

    in EMEA are more likely than their

    counterparts in the Americas or

    the Asia Pacic region to call on

    recruiting rms to aid them 78

    percent o EMEA respondents versus

    67 percent o American and 59

    percent o Asia Pacic respondents.

    Larger rms, too, are more likely

    to seek the assistance o recruiting

    companies than are their smaller

    counterparts; just over hal o the

    smallest rms (ewer than 1,000

    employees) use recruiting rms, while

    85 percent o the largest (more than

    50,000 employees) do.

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    m j ctr t f, 2008 20097

    2008

    2009

    Senior Exec

    Mid-level

    Business Ops Support

    Administrative

    Contact Centre

    Trades

    Other

    0% 20% 40% 60% 80%

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    05

    O those organisations that use

    recruiting rms, 90 percent use them

    or sourcing, screening and testing,

    and hal use them or reerence

    checking.

    Two thirds o the companies that

    use recruiting rms say they ll 25

    percent or ewer vacancies through

    third-party providers. Just as EMEA

    organisations are more likely to make

    use o recruiting rms, they rely on

    them to ll more positions as well;

    the highest percentage o EMEA

    respondents (42 percent) say they

    ll between a quarter and a hal o

    all vacancies through third-party

    providers.

    Most organisations 83 percent

    will use cross border recruitment

    to ll up to 25% o their vacancies.

    Only 7 percent will use this method

    to ll more than 50 percent o their

    vacancies.

    h rt p t rcrtt fr8

    Sourcing, screening, testing

    Reference checking

    Applicant and recruitment performance tracking

    Vendor management

    On-boarding

    0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

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    Our 2009 survey ound

    that slightly ewer than hal o

    the respondents (49%) have

    decentralised recruitment processes,

    and another 43% are centralised,

    whilst 4% are outsourced. (The

    remainder use a broader hybrid o

    arrangements.) American and EMEA

    organisations ollow similar patterns

    with more reporting decentralised

    recruitment. Asia Pacic rms are

    most likely to have centralised

    recruitment unctions (56 percent)

    and least likely to outsource

    (1 percent).

    Most recruitment departments

    (61 percent) in our survey are

    operating with ve or ewer internal

    recruitment sta. Its no surprise

    that internal recruitment size grows

    as organisation size grows; nearly

    three quarters (73 percent) o rms

    o 50,000+ employees are have 20+

    recruitment sta.

    Similarly, decentralised organisations

    generally have larger recruitment

    sta sizes, but that dierence is likely

    owing to the act that larger rms are

    more likely to be decentralised.

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    nr tr rcrtt t, z9

    1 to 5

    6 to 10

    11 to 20

    More than 20

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    1,000 to 10,000

    10,000 to 50,000

    More than 50,000

    0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

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    06

    Respondents indicate that they use

    a wide range o technologies to

    source and track candidates. The

    most popular are online applications

    and assessment (73%) and applicant

    tracking (66%) programs, both o

    which are used more than twice as

    oten as the next most common

    technologies.

    Not only are many recruiting

    unctions limited in size, but ew

    HR/recruitment sta are dedicating

    signicant time to recruitment

    unctions. The highest percentage

    o respondents 37 percent say

    less than 10 percent o their internal

    HR/recruitment team perorm

    recruitment duties only. On the

    opposite end o the scale, 20 percent

    o respondents say they have HR/

    recruitment sta that are dedicated to

    recruitment duties 75 to 100 percent

    o their time. This is oten the case

    with larger organisations, 36 percent

    (the highest total percentage among

    rms o 50,000+ employees) o

    whom say 76 to 100 percent o their

    internal HR/recruitment team perorm

    recruitment duties only.

    % rcrtt t rcrt10

    Less than 10%

    10% to 25%

    26% to 50%

    51% to 75%

    76% to 100%

    0% 10% 20% 30% 40%

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    07 h d r

    Our survey asked

    respondents about their use o

    any outsourcing within their HR.

    According to their responses, less

    than hal (43 percent) are outsourcingpart or all o their HR unction.

    These numbers vary signicantly

    by region, with EMEA rms (at 63

    percent) considerably more likely

    than American (46 percent) and Asia

    Pacic (27 percent) organisations to

    be outsourcing HR unctions.

    The most commonly outsourced

    HR processes among respondents

    who do outsource are recruitment

    (65 percent o those outsourcing HR

    unctions) and payroll (54 percent

    o those outsourcing HR unctions).

    These two HR unctions are more

    than twice as likely to be outsourced

    as are any other.

    Familiarity with recruitment

    outsourcing in particularly appears

    to be on the rise. Whilst last year

    56 percent o respondents were

    amiliar or very amiliar with RPO,

    this year that number has climbed

    to 62 percent. Still 9 percent (aboutthe same as last year) are not at all

    amiliar with RPO; the remaining 29

    percent are somewhat amiliar with

    it. Familiarity is somewhat higher in

    EMEA (69 percent) and the Americas

    (66 percent) than in the Asia Pacic

    region (53 percent).

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    APAC

    EMEA

    AMERICAS

    0% 10% 20% 30% 40% 50% 60% 70%

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    07 The largest rms (more than 50,000employees) are more likely to be

    amiliar or very amiliar (53 percent)

    with RPO than are smaller rms,

    which range rom 32 percent to 38percent.

    Among all respondents, 24 percent

    say they are outsourcing some part

    o the recruitment/hiring process.

    Those numbers vary signicantly by

    region, with 35 percent in EMEA

    saying theyre involved in RPO, while

    23 percent o American respondents

    and 17 percent o Asia Pacic

    respondents say they are involved in

    outsourcing recruitment or hiring.

    With 40 percent saying they are

    engaged in recruitment/hiring

    outsourcing, the largest organisations

    are about twice as likely as smaller

    ones to be outsourcing in that area.

    About a third o those who are

    outsourcing recruitment/hiring

    processes are doing so as part o a

    larger HR outsourcing contract.

    A little over a third (36 percent) o

    those who are engaged in RPO areoutsourcing company wide. Other

    than that, their organisations are

    using RPO in a wide variety o ways,

    with just over a quarter saying they

    are using RPO in the ollowing job

    types: administrative, contingent,

    temporary, business units, and

    proessional. Firms are least likely to

    be using RPO to recruit graduates.

    When asked about uture plans,

    across all respondents, 48 percent

    say they would consider outsourcingrecruitment processes. O those not

    currently outsourcing any part o

    their recruitment process, 41 percent

    say they would consider it; those

    numbers do not vary signicantly

    by region. However, the larger the

    organisation, the more likely they are

    to consider RPO, with 35 percent o

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    07 the smallest rms and 47 percent othe largest rms saying they would

    consider it.

    Interestingly, o those who say theyare currently outsourcing recruiting,

    nearly a third (31 percent) say they

    would not consider outsourcing

    recruitment in the uture. The vast

    majority o the largest companies

    that are currently outsourcing would

    consider it in the uture (90 percent),

    but that number drops to two-thirdso all companies smaller than

    50,000 employees.

    The recruitment processes

    organisations would consider

    outsourcing in the uture are not

    signicantly dierent than those that

    are currently outsourced, with theexception that twice as many would

    consider outsourcing recruiting or

    the business unit than currently do

    Prvr ct crtr12

    (26 percent considering versus

    13 percent currently outsourcing).

    As we ound last year, recruiter quality

    (77 percent), industry knowledge(63 percent) and cost (53 percent)

    were the top three criteria or

    selecting an RPO partner.

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    Recruiter quality

    Industry knowledge

    Cost

    Years of RPO experience

    Technology

    Global Reach

    International

    0% 10% 20% 30% 40% 50% 60% 70% 80%

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    07 The majority o organisations(86 percent) would expect a partner

    to speed hire times i they outsourced

    their hiring programs, ollowed next

    by lowering the cost o recruitment

    (69 percent). Program expectations

    all o ater that, with less than hal

    (46 percent) expecting partners to

    integrate multiple sourcing channels,

    just over a quarter (29 percent)

    looking to the vendor to manage

    or limit the number o third-party

    providers, and less than a quarter

    (21 percent) seeking to gain access to

    technology.

    Among those who would not

    consider outsourcing recruitment,

    nearly three-quarters (74 percent)

    say outsourcing is unnecessary

    because they are condent in their

    own capabilities. The next most

    commonly reported reasons rms

    do not outsource recruitment are

    because outsourcing is viewed as

    too expensive (41 percent) and or

    internal cultural issues (35 percent).

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    w fr t trc14

    Not necessary as we do a good job ourselves

    Outsourcing is too expensive

    Internal cultural issues

    Unable to measure the financial benefits

    Lack of internal expertise

    Knowledge of outsourcing

    Unable to identify a good potential outsourcing partner

    0% 10% 20% 30% 40% 50% 60% 70% 80%

    Faster time to hire

    Lower cost of recruitment

    Integrate multiple sourcing channels

    Manage or limit number of third party providers

    Gain access to technology

    0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

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    08 h

    rr

    Across all respondents, the

    average cost per hire is between

    1,801 Euros and 2,500 Euros

    (US$2,501 and US$3,500). However,

    the largest number o respondents,

    just under a quarter, indicated that

    average cost o recruitment is 500

    Euros to 1,000 Euros (US$700 to

    US$1,400).

    avr ct pr r15

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    500 to 1,000

    1,001 to 1,800

    1,801 to 2,500

    2,501 to 3,500

    3,501 to 5,000

    5,001 to 10,000

    More than 10,000

    0% 5% 10% 15% 20% 25%

    Euros

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    The ThRee mainPRioRiTies oF RPo aReReduCing Time To

    hiRe, loweRing CosToF ReCRuiTmenT, andinTegRaTing mulTiPlesouRCing Channels.

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    09 rd ry

    rd

    Argentina

    Australia

    Austria

    Belgium

    Brasil

    Bulgaria

    Canada

    Chile

    China

    Czech Republic

    Cuba

    Denmark

    Egypt

    France

    Germany

    Greece

    Guatemala

    Hong Kong

    Hungary

    India

    Indonesia

    Iraq

    Ireland

    Israel

    Italy

    Japan

    Luxembourg

    Macedonia

    Malaysia

    Mexico

    Morocco

    Netherlands

    New Zealand

    Nigeria

    Norway

    Philippines

    Poland

    Qatar

    Romania

    Russia

    Saudi Arabia

    Singapore

    Slovakia

    South Arica

    South Korea

    Spain

    Switzerland

    Taiwan

    Turkey

    United Arab Emirates

    United Kingdom

    United States

    Venezuela

    Vietnam

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    10 about thesponsors

    Ky oCg RPo Prcic

    KellyOCGs RPO Practice has been

    an industry leader in Recruitment

    Process Outsourcing (RPO) since

    1995. Building a global ootprint

    with the combination o the HRfrst

    and Access AG business units,

    KellyOCGs RPO Practice provides

    businesses around the world with

    strategies to optimise recruiting

    efciency, while attracting the highest

    calibre o talent to organisations.

    HRoa

    The HROA is the defnitive

    independent organization or all

    those who purchase, provide, or

    participate in HR transormation

    and outsourcing. Our membership

    encompasses over 7,500 HR

    executives, including the largest

    50 buyers, the top 30 providers,

    the leading sourcing advisors and

    attorneys, and the best thought

    leaders in HR Transormation. The

    HROA brings its diverse membership

    together to set standards andpractices, provide peer networking,

    and maintain a robust curriculum.

    kyc.cm hr.r

    01 Prc

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    09 Rspndns

    cunry rsidnc

    10 auspnsrs

    http://www.kellyocg.com/http://www.hroa.org/http://prevpage/http://www.kellyocg.com/http://www.hroa.org/http://prevpage/
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    eXiT

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