WSI’s Chloe Ryan On The Change Management Failure In RPO Implementations
WSI’s Chloe Ryan On The Change Management Failure In RPO Implementations
RPO sales cycles run upwards of 18 months because these deals require buy-in from the top down,not the transactional "I need 10 temps, sign a contract tomorrow" motion of traditional staffing. The primary failure point: nine times out of 10, clients aren't prepared for the recruiting methodology and process that sits way outside the comfort zone of most hiring managers. After building an RPO practice from zero to over 50 recruiters during her 10-year tenure, Chloe was brought in by WSI six months ago to build TalentSync as deal minimums collapsed from 1,500+ annual hires to 250.
Cost-per-hire pricing at 3-5% of salary replaced the 25% direct hire model, but retention guarantees create friction when hiring managers reject candidates at day 9 of 10-day windows specifically to avoid costs. The 2021-2022 period delivered triple to quadruple EBITDA growth before collapsing at the end of 2022, with many healthcare-focused RPO firms that launched during the boom since gone under. The industry splits 50-50 on whether we're six months from fully AI-driven talent acquisition or if humans will always make the final hiring decision.
Topics discussed:
18-month sales cycles requiring top-down buy-in versus transactional staffing
Change management as primary RPO failure point in 9 out of 10 implementations
Market shift from 1,500+ hire minimums to 250-hire mid-market deals
Hiring manager behavior rejecting candidates at day 9 to avoid guarantee costs
Cost-per-hire at 3-5% of salary versus 25% direct hire fees
Recruiter relationships as what keeps long-standing RPO engagements intact
Triple-to-quadruple EBITDA growth in 2021-2022 followed by end-of-2022 collapse
Healthcare RPO provider failures post-COVID boom
AI liability exposure under client brand operations with state-specific compliance
Industry 50-50 split on six-month timeline to fully automated talent acquisition