Survey Shows Large Increase In Outsourcing The Recruitment Function

ST. PETERSBURG, FL (April 5, 2007) – According to a recent survey conducted by the Institute for Corporate Productivity (i4cp – formerly HRI), more than a third (34.4%) of companies surveyed have outsourced portions of their recruiting function, compared with 15.4% in 2005. The positions leading the way in third-party sourcing are executives ( 56.5%) and experienced professionals (43.5%). The least-outsourced function is supervisors, at 14.5%.

While outsourcing has doubled, the survey found – surprisingly – that the total number of staff devoted to recruitment after outsourcing did not decrease. In fact, in most cases it increased. “This actually makes a lot of sense,” said Jay Jamrog, Senior Vice President, Research at i4cp. “We’ve all heard about the ‘war for talent’ and seen the demographic projections. As talent becomes a scarce commodity, companies are naturally applying more resources, both internal and external, to solve the problem.”

When it comes to rating the outsourcing recruiting vendors, DDI received the highest marks. Survey respondents were asked to rate vendors on a 1-5 scale, with 5 being “most satisfied.” DDI garnered an average rank of 4.00, with Ceridian (3.86) ranking second.

The survey also found that most companies today identify which recruiting measurements are most valuable and regularly report on them. However, the majority do not bother to benchmark their recruiting metrics vs. those of similar companies, their vertical industry or globally. When measurement is conducted, the study found that 75.5% of responding companies feel that measuring total job openings is most valuable, and more than 71% report on their metrics either monthly or quarterly. Almost 66% utilize their measurements for planning and budgeting purposes.

“It’s surprising to see that while so many organizations are able to identify and report on key metrics, they fail to benchmark them against other organizations in their industries,” added Jamrog. “Tracking historical data and benchmarking the efficiency and effectiveness of the function is critical when it comes to identifying and fixing the problem areas within your recruiting process. And, measurement of the recruiting process is becoming even more critical, given the tight labor market today and the looming skill crisis.”

The Recruiting Function Practitioner Consensus Survey was conducted by i4cp, in conjunction with HR.com, in March 2007. A total of 188 organizations responded.

For more information about this study, or to receive a full copy of the results, please contact Greg Pernula at pernula@i4cp.com or via phone at (727) 345-2226.

About i4cp, inc.

Building on the 35-year history of its predecessor, the Institute for Corporate Productivity (i4cp, inc.) improves corporate productivity through a combination of research, community, tools and technology focused on the management of human capital. With more than 100 leading organizations as members, including many of the best-known companies in the world, i4cp draws upon one of the industry’s largest and most experienced research teams and executives-in-residence to produce more than 10,000 pages annually of rapid, reliable and respected research and analysis surrounding all facets of the management of people in organizations. Additionally, i4cp identifies and analyzes the upcoming major issues and future trends that are expected to influence workforce productivity and provides member clients with tools and technology to execute leading-edge strategies and “next practices” on these issues and trends. i4cp is a for-profit company with offices in St. Petersburg, FL.