Transcript DEA Introduction

RECRUITMENT INTERNATIONAL
THE RPO Conference
Alan Whitford
Operations Director
Direct Employers Association
+44 7971 864620
[email protected]
Website: www.directemployers.eu
Copyright Direct Employers Association 2013
CHALLENGES AND OPPORTUNITIES
ACHIEVING SUCCESS WITH
YOUR RPO PARTNER
Why Me?
 Over 25 years experience in recruitment and in the start-up and expansion of
high technology businesses in Europe
 Provide strategic and practical insights to the automation and web-enablement
of Human Resource and Recruitment Process activities throughout Europe
 Clients include Times 500 companies and software and services vendors in the
Human Resources and e-commerce arenas
 Founder of RCEURO, web portal for the European recruitment industry
 Published in a number of on-line and off-line media covering technical and
strategic issues around HR, technology, social media and business
 Lead training programmes on the use of social media and networking tools
 Founding board member of HR-XML Consortium European Chapter
 Chair of the highly successful Social Recruitment Conference series
 Operations Director of the Direct Employers Association Europe
Outsource – To Be Or Not To Be?
Hiring managers under
pressure on talent, skills
shortages
Pressure on HR and
Procurement drives interest
in new solutions
Search
for
solutions
Use of online
technologies for
direct recruitment
Pressure on suppliers to
change cost/value
equation
Search for more
efficient processes e.g.
Shared Services, RPO
Use of preferred suppliers,
master vendor and vendor
neutral models impacts
agency margins
Agencies seek more
efficient models - use of
technology, online
recruitment
Agencies seek to add
value – new services,
process management,
outsourcing
Source: Cordoba Consulting
What To Outsource?
 Transactional is easy to choose
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All Admin
Job posting
CV sifting
Interview scheduling
CRB and other reference checks
Contracts
 Business critical is trickier
 Employment brand
 Onboarding
Alphabet Soup – The TLA Overload
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MSP
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Managed Service Provider
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MAS
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Managed Agency Service
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PSL
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Preferred Supplier List
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BPO
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Business Process Outsourcing
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HRO
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Human Resources Outsourcing
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RPO
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Recruitment Process Outsourcing
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RTO
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Recruitment Transaction Outsourcing
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EPO
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Employment Process Outsourcing
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HCM
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Human Capital Management
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WMS
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Workforce Management Solutions
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RCM
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Recruitment Management Systems
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ATS
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Applicant Tracking Systems
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CMS
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Candidate Management Systems
Definitions
 MAS - deliver standardised simplified procurement and
management process for temporary and permanent candidates
and activity
 EPO - extends efficiencies of MSP, adds long term shareholder
value via more sophisticated collaborative approach which
goes beyond simple cost cutting exercise
 HRO - Integration and alignment of the business processes of
human capital with the organisation’s strategy, vision and
values to increase shareholder value
 RPO - outsourcing all the transactional process driven
initiatives that go into recruiting talent for any given
organisation
Abtech Partnership
Benefits of RPO
 Liberate value of HR
 Increase responsiveness
 HR freed up to be more strategic
 Operational Value
 Management reports
 Time savings - HR, Line and Finance
 Improve quality of labour
 Lower admin overhead
 Flexible and scalable
 Create world class recruitment function
 Cost efficiencies
 Speed up recruitment process
 Employ the best talent
Abtech Partnership
Benefits of RPO (2)
 Access to world-class HR expertise and knowledge
 HR focus on high value strategy and projects
 Greater reliability and predictability of costs
 Shared risk
 Conversion of high fixed costs to variable costs
 Improved management info and accountability
 Greater focus on customer satisfaction
 Easy access to cutting edge process and technology
 Enhanced organisational agility
 Reduced capital expenditure
 Integration of HR services and data
 Accelerate re-engineering benefits
Benefits of RPO (3)
 Cost
 Free management time
 Competitive advantage
 Get the best people
 Better Service
 Flexibility
 Benchmarking costs against best of class
Abtech Partnership
What Is The RPO Selling?
 Efficient and cost effective acquisition of “Talent”
 Requires no capital investment
 Drives process improvements
 Real-time reporting data
 Alignment of workforce to hiring practices
Abtech Partnership
Why Does The Employer Buy RPO?
 Reduce and control costs
 Lack expertise to implement direct sourcing models
 Regain control over employment brand
 Don’t have to enter the hire/fire cycle for recruiters
 RPO provider delivers niche expertise
Why Do They Really Do It?
IT’S THE MONEY
 PSL for major insurance company
 Reduce average margins by 23%
 Reduce number of agencies by 60% in 12 months
 Reduce direct costs by 25%
 Multiple savings at one client
 Reduce agency margins by 20% - £1 million
 Absorbed in-house recruit team - £1 million
 New systems/processes - £750k
 Secure wage reductions of 12% - £1.2 million
 With RPO, companies can save 40% on recruitment costs in the first
year alone
Abtech Partnership
Assessing The RPO Provider
RPO Relationship
What To Look For
 Provider area of expertise
 Client references
 Culture of the RPO and its company values
 Fully engaged MD and delivery team – before the sale
 Agreed measures of success
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Short list to Interview ratios
Interview to hire ratios
Candidate and hiring manager satisfaction surveys
Diversity
Genuine Partnership
 Shared risk and reward
 Common goals and values
 Company growth, profit and
success
 Passion and culture
alignment
 Hiring manager productivity
increased
 The RPO makes a
reasonable profit
When It Works
 Fully integrated within the
client
 Recruiters are part of the
team
 Shared Responsibilities
 Mimics the complete client
experience
 An extension of the internal
HR department
RPO - Assessing Your Prospects
Poor Client Prospect
 Client organisation displays these characteristics
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Risk averse
Hiring managers do not follow procedures
Limited knowledge of its true recruitment costs
No knowledge of cost drivers
Lousy employment brand
Below market comps and bens
Good Prospect – Or Not?
 The client organisation has these characteristics
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An efficient process
Broad compliance with procedures by hiring managers
Effective cost controls in place
Implemented technology effectively for all users
Strong and sustainable Employment Brand
Matches or exceeds market for comps and bens
Best Prospect
 The organisation has
 Reasonably well engineered recruitment process
 HR and hiring managers recognise importance of
recruitment
 And that it is not an internal competency
 Has now (or is willing to develop) an objective and carefully
measured cost baseline
 Business rules matter and procedures are followed
 Strong Employment Brand – or willing to build one
 Matches or exceeds market for comps and bens
What To Do Together
 Set the right goals
 Agree the metrics
 Regularly review
 Accept responsibility for mistakes as well as successes
 Leave the contracts to the Lawyers – Last
Questions?
Contact Details
Alan Whitford
[email protected]
Tel: +44 (0)845 519 3322
Mob: +44 (0)7971 864620
LinkedIn Group
Twitter: @DEAEurope