Organizational changes are taking place at some RPO and MSP providers. In separate announcements over the last two weeks, both PeopleScout and Pontoon announced updated structures for their recruitment process outsourcing and managed service provider operations.
These examples of realignment of MSP and RPO come as the percentage of North American staffing buyers using RPO is increasing. Looking at a three-year average of use, 36% of buyers were using RPO in 2016, up from 17% in 2009, according to Staffing Industry Analysts’ Workforce Solutions Buyers Survey.
Improving efficiency ranked as the top reason buyers implemented RPO, according to a 2016 survey by Staffing Industry Analysts, with 67% of buyers cited citing it. Reducing costs came in second, cited by 56% of buyers, and making hiring more scalable ranked as third with 53% of buyers citing that as a reason.
RPO provider PeopleScout, a division of TrueBlue Inc., announced last week MSP services provided by sister company Staff Management | SMX have been moved under its umbrella. Staff Management’s MSP team has now entirely transitioned to PeopleScout.
PeopleScout President Taryn Owen said in a statement that many of the firm’s clients had requested the firm bring RPO and MSP together. And the company said integrating the two will help in decision-making, drive worker quality and reduce costs.
“Through a single organization that supports both permanent and contingent workforce solutions, vendors can better align the programs to wider talent goals such as, identifying new cost improvement opportunities, better addressing unfilled vacancies, helping increase conversions, leveraging employment brand and direct sourcing or improving hiring manager and candidate experience,” said Elizabeth Rennie, global workforce solutions research director at Staffing Industry Analysts. “These are just some of the benefits that are being realized through offering integrated solutions.”
Separately, Pontoon, a division of Adecco, announced late last month it was realigning its global operations and that Mike Drolet was taking on the new role of COO for Pontoon, where he will work to bring together all operational aspects of MSP and RPO under a unified global team.
The company also announced Lydia Wilson would serve as executive VP of program management with ownership of all MSP and RPO program management for the Americas, and Karin Selfors-Thomann will lead sales and business development for the Americas.