Recruiting Fly

The concept of recruitment outsourcing is starting to grow throughout Asia.

While recruitment process outsourcing, or RPO, has been growing rapidly among multinational corporations across the United States and Europe, the idea of company’s being able to outsource their recruiting efforts is something that’s just catching on in Asia.

Traditionally, companies in Asia manage their own recruiting needs, and those that cannot hire executive search firms on a temporary basis. However, the economic downturn, which has reached global proportions, is forcing more companies to do more with less.

“In most organizations when the markets are not in good shape, recruitment staff are the first to be cut,” James Morrison, managing director of HR for Credit Suisse, told The China Post. “And so you have to let a lot of people go, and by the time demand turns around and you’re hiring people, you’re in a very active market and it’s hard to attract the best candidates.”

Asian companies have managed to avoid such situations simply by hiring an RPO provider. For instance, Credit Susise hired British-based Alexander Mann Solutions, which helped the company cut its workforce by 30 percent.

After that, AMS was able to redeploy its staff members dedicated to Credit Suisse to other clients, but when the economy picked up both Credit Suisse and the AMS employees dedicated to the company were able to easily expand.

“When demand goes up, our team gets bigger,” Jo-Ann Feely, client relationship director for AMS, said. “When demand goes down, our team gets smaller. If Jim had to manage a team, he would constantly have to hire people and then make them redundant, and absorb that cost.”

Aside from the incentives of increased efficiency, RPO services also typically result in decreased costs for the company, because they can use the RPO provider’s services instead of having to make long-term investments.

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Tags: Recruitment outsourcing

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