5 New Ways RPO Providers Are Differentiating Themselves

According to new research from LinkedIn, the world’s largest professional network, nearly three in five people worldwide are set to look for jobs in 2025. Even if your organization is not on an expected growth path, your talent acquisition engine will need to be running effectively.  

Talent acquisition organizations have been increasingly turning to recruitment process outsourcers (RPOs) to either augment or drive their talent acquisition efforts. RPO providers are responding to these challenges with investments in new operating models, new capabilities, new technology and new commercial models.

Factors such as footprint and geographic coverage, language capability, depth of experience, hiring volumes and ability to scale all remain critical. But leading RPO providers are differentiating themselves in new ways. Here are five:

1. Personalized approach to hiring: Some of the leading RPO providers are building their model around a segmentation strategy, typically using a persona-based approach that is geared to a specific experience the organization is trying to create for candidates, e.g., segmenting by standard roles, hard to fill roles, agency hires, internals, or other hire type. Some RPO providers may segment the roles based on criticality or business impact. This redesign of the operating model and approach to segmentation can bring a sharper focus to an organization’s top priorities.
2. Depth of sourcing and attraction: An RPO’s capabilities in branding, sourcing and attraction can be an important differentiator. For example, the ability to have a ready pipeline of talent and pool of pre-assessed candidates can shorten the time to hire. For challenging roles, ready access to a channel with expert level headhunting capabilities (including the ability to leverage an executive search arm) is another way some RPO providers are adding unique value.
3. Focus-on-people programs: In many ways, this strategy may be more of a “back to basics,” but we are seeing enhanced approaches to managing people. The extent to which an RPO provider is attracting and building high-quality talent, continually upskilling their teams, becoming the destination for the best recruiters and incenting the top talent into your account makes all the difference. There are a few RPO providers doing this very well.
4. Use of AI: Investments in AI are adding value in several important ways: 1) sourcing/screening/ matching candidates, 2) engaging candidates and answering candidate inquiries, 3) performing operational activities like triggering next steps, sending “nudges” or performing other transactions, and 4) arming recruiters with better data and insights to drive action or more effectively consult with hiring managers. AI geared for hiring managers is the next likely evolution we can expect to see in the industry.
5. Commitment to hiring outcomes: Organizations are typically seeking reductions in time-to-hire and cost-per-hire, as well as enhanced quality of hire. Putting more fees at risk based on successful hires, tying results to business or revenue impact and committing to improvements in cycle time and cost reductions should be built into any strategic RPO partnership.

RPO providers that prioritize personalized approaches, deliver deep sourcing capability, attract the right talent, leverage advanced technologies and commit to delivering measurable results set themselves apart in today’s competitive market. ISG helps organizations build strategies for talent acquisition and retention, including choosing the right RPO partner. Contact us to find out how we can help you build an edge in attracting top talent.