APAC RPO series: What you need to know about the workforce solutions market in China

The next stop on my journey exploring the Recruitment Process Outsourcing (RPO) market in various Asia Pacific (APAC) countries is China.

Home to 1.357 billion people, China's talent pool is vast. The nation has one of the largest talent acquisition landscapes in the world, making it a key player in the APAC RPO market. But what exactly defines the country's use of workforce solutions?

1. China’s emerging economy is driving the APAC RPO landscape
Everest Group research found that emerging APAC economies, such as China, account for the most RPO growth in the region. China is potentially set to move towards global economic supremacy in the near future, meaning its talent acquisition requirements are on the rise. As a result, organizations need a comprehensive workforce solution that is able to consistently generate quality results.

2. Workforce solutions are driven by buyers from the West
Western buyers drive the RPO market in China, meaning multi-country deals are prevalent. Everest Group found that the main users of RPO in the country are either clients based in the West, or Western clients whose headquarters are situated in China. In fact, research from the European Union Chamber of Commerce shows that 47% of Western companies want to expand their operations into the Chinese market.

However, the nation also accounts for 10% of the total single-country RPO market in APAC. This is partly driven by Western firms with headquarters in China, but it's also because the country's population is so diverse that cross-border talent acquisition isn't always required. China has one of the largest domestic talent pools in the world, meaning single-country packages are more than effective.

3. Candidates and businesses prefer a local touch
Another factor shaping the face of the Chinese RPO market is that local insights are preferred by organizations and candidates alike. With so many different tongues spoken in China, businesses need access to a diverse, but localized solution. At Allegis Global Solutions (AGS), our RPO programs combine our global expertise with local know-how, providing organizations with access to a diverse, 'glocal' talent acquisition solution.

4. Millennials account for 28% of China's population

Chinese organizations need a solution that can help them to attract the very best millennial talent, with 385 million members of Generation Y accounting for 28% of the country's total population. Research shows that Chinese millennials spend an average of 27 hours a week online, mainly via their smartphones. In comparison, U.S. millennials spend 21.7 hours a week browsing the web.

Why should Chinese organizations embrace RPO?

• In 2016, we have reduced agency costs by CNY 2 million via direct sourcing 
• Direct hiring of high-level positions by the RPO has saved a significant amount in executive search fees
• We have negotiated with external third party agencies to lower fees from 25% to 20% 
• We have reduced the cost of reference checks for the client