How Working with an Offshore RPO Boosts Staffing Revenue and Profits
Prepare for even more competition in the staffing industry. Staffing Industry Analysts predicts the staffing market will reach $146.6 billion in 2017, and firms that maintain speed, quality, and cost management will achieve a greater share of the revenue and profits. Increased competition is encouraging more companies to turn to an offshore RPO partner as a cost-effective way of enhancing their delivery. Our research finds that clients save 31% on their cost per hire while also increasing placements per onshore recruiter by 60% on average – and that’s just the beginning of their ROI.
What a Good Offshore Recruiting Partner Provides in Performance and ROI
Data gathered from across 28 of our programs highlight the achievable ROI when an offshore program is set up right. Our assessment, based on the three pillars of a productive offshore recruiting program, rates an offshore program as passing or failing. Here are just a few of the results that good programs achieve:
- Onshore Sat Ratings – How satisfied are onshore teams with their offshore recruiters? We send out surveys quarterly to ascertain the answer and have identified a substantial gap between failing and well set up programs. On average, poorly set up programs only achieve a 6.4 satisfaction score while a well set up program regularly achieves a score of 9 or 10.
- Placements per Recruiter – An effective offshore program should be measured by its ability to increase placements per recruiters. Poorly set up accounts saw an average 46% increase, while well set up accounts reached over 69%, which is a difference of at least 23% per recruiter on average.
- Gross Margin Multiple – The gross margin across multiple placements needs to be measured against the cost of the offshore team. Accounts that were not built on the right foundation only achieved a gross margin multiple 2.0 times higher than onshore recruiters could achieve alone. Well set up programs were able to achieve as much as 6.9 times higher.
What Qualities Are Best in an Offshore RPO Partnership?
How does an offshore program go about generating superior revenue and profitability on a regular basis? They need to partner with an offshore recruiting company that builds their programs upon three essential pillars: building a strong offshore team, assigning appropriate work assignments for offshore recruiters, and encouraging onshore engagement with offshore personnel.
Learn the details about the three pillars that enable offshore recruiting partnerships to deliver a higher ROI.