Talent & Market Insights


Top RPO Trends in 2024

June 28, 2024

The right spread of skills and competencies in your business is critical to achieving organizational benchmarks. Recruitment process outsourcing (RPO) is a total talent solution designed to optimize your talent function and attract the right minds to your team. RPO experts analyze where a business is currently at and where they desire to be, and then chart a direct course to get there with the right people steering the ship. 

In 2022, the RPO industry was valued at $7.33B and projected to grow 16.1% by 2030. North America is expected to see growth of around 15% by 2027, while Asia Pacific expansion sits slightly higher at 17% during the same period.

The two primary catalysts driving these changes are a sweeping induction of Artificial Intelligence (AI) and Machine Learning (ML) in business operations and a growing attrition rate across several industries. As we learned during and post-pandemic, companies need cost-effective hiring solutions while reducing operational overheads. This is where RPO enters the picture. 

Here, we’re going to unpack the top RPO trends emerging in 2024, and what shifts they indicate in the recruitment landscape. 

1. Recruiters Are Integrating Artificial Intelligence

Technology has assisted with sourcing candidates and screening resumes for some years. While AI Is not entirely new to the sphere of RPO or recruitment in general, its capabilities have surged in recent years and it’s playing an increasingly key role. 

Any recruiter understands the labor-intensive, time-consuming nature of repetitive hiring tasks. AI can knock a number of these off the list, freeing up recruitment managers’ time for more meaningful work, such as building candidate relationships. Generative AI can scan thousands of resumes across multiple platforms, screen or rediscover applicants, and self-schedule appointments in a fraction of the traditional timeline.

Simplifying strategic workforce planning is easier than ever, with AI reducing human bias and automating diversity hires. Applicants can engage with chatbots, enhancing the candidate experience and employer brand. What’s more, according to a Deloitte study from the second quarter of 2024, 45% of organizations plan to reinvest Gen AI savings into innovation. AI is making an inconceivable impact, and it’s here to stay. 

2. Data-Driven Decisions Will Help Lead the Way

With increasing access to data analytics and insights, recruitment decision-making will be increasingly data-driven in 2024. RPO experts can leverage big data to gain insight into future forecasting and talent sourcing leading to more effective hires than the traditional intuitive, impression-based approach. 

Recruitment process outsourcing trends signify that recruiters lean more on modern tech capabilities to provide actionable solutions from historical data analysis. Overall, this will result in more accurate and proficient hires. 

3. The Talent Shortage Continues

With a number of automated technologies integrated into the workplace, companies are focused on maintaining headcount as opposed to reducing it. Employees provide critical skilled and complementary support for tasks performed by automation. 

Finding the right candidate just in time amidst a labor shortage is stinging business development and hindering a competitive advantage in the market. As such, companies increasingly turn to an RPO provider to expand their sourcing strategies and talent pools to find qualified candidates at short notice. 

4. Candidate-Centric Recruiting Is a Must

In the past, recruitment was primarily balanced as a measure of candidate performance, incentivizing a company to hire based on skills and competencies. In 2024, businesses must lift their employer branding game to attract top talent. 

The concept of an employer brand is far-reaching, encompassing all aspects of the candidate experience as they step through the recruitment process. The accuracy and allure of your job descriptions matter. The hiring process must be rapid and supportive. Businesses must advertise on the right platform to attract the right talent. In fact, social media platforms are frequently engaged to deliver more creative talent acquisition. 

Advanced tech such as AI and automation is forecast to strengthen candidate-centric recruiting. Leveraging these tools, an RPO service offers an accelerated application screening with fast, actionable feedback. With faster timelines and enhanced accuracy elevating the candidate experience, businesses should see peaks in organic prospect attraction over time. 

5. DEI Initiatives Are Driving Necessary Changes

Diversity, equity, and inclusion (DEI) initiatives are among the major trends to keep an eye on for 2024 recruitment process outsourcing. Not only are inclusive hiring practices gaining traction, but they’re a regulatory requirement in many areas now. 

Employers need to ensure compliance with legal and regulatory frameworks as they expand talent pools for people competing for jobs and promotions. Alongside compliance, providing opportunities feeds into a positive employer brand. 

With extensive diversity hire practices and AI tools, RPO specialists will continue supporting businesses to substantially reduce — if not entirely eliminate — bias in the recruitment process to develop healthy, inclusive workplaces. 

6. Hybrid And Blended Workforces Are Increasingly Normal

During the global pandemic, businesses pivoted their recruitment practices to comply with social distancing requirements. This period catalyzed advanced recruiting practices, digital hiring assets, as well as workplace flexibility. In 2024, we will continue to see hybrid and blended workforce models.

RPO trends highlight that diversification of workforce structures and demands will require RPO providers to develop customized solutions to accommodate. Virtual hiring and employee oversight strategies are expected to advance.

7. Flexible Work Schedules and Asynchronous Communications

Flexible work schedules offer a huge opportunity in the RPO market, particularly in light of the ongoing talent shortage. Adaptability allows employees to work during their most productive hours, improving job satisfaction and retention. It also provides perks to candidates, increasing prospect attraction to open positions. 

Asynchronous communication — which doesn’t require real-time responses — opens the door to potential global hires, expanding the talent pool for PRO providers. This facilitates RPO services to access scalable solutions that accommodate employer needs by leveraging global talent acquisition regardless of location. 

Combined, flexible schedules and communication requirements support inclusive hiring practices, allowing individuals with personal commitments to continue contributing in the workplace. 

8. Companies Are Expanding Their Global Recruitment Footprint

Considering diverse workforce structures, DEI requirements, and business flexibility, the global recruitment process outsourcing expansion is on the horizon. The RPO industry will tap into diverse talent pools across the globe, transcending borders, and local talent shortages to attain remote new hires.

Off-shore, cross-border virtual recruitment is something we will see more of this year. RPO firms with global competencies and experience are likely to gain an edge amidst this trend. 

Why Use RPO in 2024? 

RPO services offer scalable solutions to meet even the most demanding business hiring needs. Managing large hiring projects and ongoing recruitment efforts, RPO firms offer a flexible advantage by significantly reducing the temporal and financial investment in talent sourcing. 

By leveraging the expertise of recruitment professionals and advanced recruitment technologies, businesses can access streamlined, innovative solutions leading to more efficient hires and long-term development. 

Envision RPO is a leading talent-sourcing provider with experts who can integrate into your company and devise a strategy from the inside out, leading to enhanced productivity and development. If you want to learn more about our talent acquisition solutions, get in touch today.