RPO: Why You Should Care and What You Should Do€¦ · Over the past decade, Recruitment Process...
Transcript of RPO: Why You Should Care and What You Should Do€¦ · Over the past decade, Recruitment Process...
© 2011 Crain Communications Inc
Workshop
Tuesday | 4:45 pm | Veranda C
Stephen M. Clancy, Director, Contingent WorkforceStrategies and Research, Staffing Industry AnalystsOver the past decade, Recruitment Process Outsourcing (RPO) has typically been the lesser-known sibling of MSP. This has changed recently, with more than 20% of all contingent workforce managers surveyed saying they have an RPO in place and another 20% looking at implementing one in the next several years. Coming out of the recession many companies are looking to increase hiring without increasing recruiting overhead. During this interactive session industry experts will outline the basics of RPO, and discuss the keys to success for the many companies that are taking advantage of this form of human resources outsourcing and winning “the war for talent.”
RPO: Why You Should Care and What You Should Do
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Let’s start by……
I. Who is here….?RPO Clients, RPO Providers, RPO Explorers and RPODeniers
II. Why are you here….?
III. What problems are you trying to solve…..?
IV. Are you committed to SIA RPO Work-shop participation requirements?
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RPO Workshop Agenda
I. What does RPO mean….?
II. Why should you care….?
III. What should you do about it….
IV. Open Q & A Forum….
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What does RPO mean…..?
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BPO/HRO Landscape Lexicon Cloud
VOPTMO BPO
Shared ServicesSTO
BPO Multi-SourcingLPO
MPBPO
Utility
MPHRO
RPO
HR BPO
MSPSupply Chain
Professional Services
Co-Sourcing
VMS
HRMS
HRIS
ERP
ATS
Cloud ComputingSaaS
Six Sigma
Art vs. Science
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Hierarchal HR BPO Order Stack
Facilitating Infrastructure
VMSHRMS HRISERPATS Cloud Computing Social Networking
BPO
HRO, FAO, AMO
VOP TMO BPO TTOLPORPO MSP
Shared Services
Multi-Sourcing, MPHRO, Co-Sourcing
SaaS
BPO Market Segments
HRO Market Segments
Solution Bundles
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What is RPO?
• RPO is a form of Business Process Outsourcing (BPO)
• It represents outsourcing all or part of the recruitment processes by the employer
• Ownership of Talent Acquisition Process Performance/Management is the biggest distinction between RPO and other types of recruitment services/solutions
• Paying for a Result….
BPO
HRO
RPO
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End-to-End/Comprehensive RPOSelective RPOProject RPOAdministrative RPOOut-TaskingRecruiter-On Demand (ROD)University RPO WorkstreamInternal Mobility WorkstreamIntern Program ManagementCo-SourcingMulti-Sourcing
Typically a combination is deployed across talent segments….
Remains a highly
customized
services
outsourcing solution
RPO Solutions Models/Variations
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What Recruitment Processes can be outsourced?
Recruitment marketing/ Advertising strategy
Reference Due Diligence
Candidate screening
Name generation and sourcing
HM & Candidate Satisfaction
Job posting distribution
On boarding
Testing and Selection
Drug screening
Interview Scheduling
Background checking
ATS Design, Implementation &
Mgmt.
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RPO, More than a Direct Hire Service
Typically, 100% dedication of scope and recruiting resource
Typically, sourced candidate pool owned by client
Service Level Accountability and Comprehensive Process Visibility
All activity tracked and processed by recruitment technology
(ATS)
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RPO, More than a Direct Hire Service
Includes process consultation (Enhancement/Transformation) and
re-design
Provider represents the client and employment brand
Scope includes process management/ownership
Significant cost savings potential….
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RPO Pricing Models
Transaction Fee/Pay Per UseSuccess Fee/Pay Per UseManagement FeeCombinationContract MinimumsPay for Performance LevelsContingency FeeFinancing FeesTransition/Implementation Fee
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Process OptimizationComprehensive vs SelectiveEliminating Perm Agency
SpendVariable ExpensePartner’s Economy of scaleShared Services10% to 25% savings
opportunity
RPO Savings Leverage
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RPO
RPO Market Providers….STAFFING COMPANIES PURE-PLAY
HROEXECUTIVE SEARCH
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RPO’s Ultimate Definition…. What problem are you trying to solve?
The types of deals are related to the scope of change, the relationship complexity, and the business value expected from a service delivery relationship.
Efficiency
Enhancement
Transformation
Busi
ness
Val
ue
Source: Multisourcing, Moving Beyond Outsourcing to Achieve Growth and Agility, Cohen & Young, Gartner, Inc 2006
TRANSACTIONAL FOCUS PROCESS FOCUS MORE ART THAN SCIENCE FOCUS
Selective ProcessFull Process
Relationship Complexity
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Why should you care….?
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First, some recent research suggest YOU DO NOT care!
The primary benefit of outsourcing is to reduce operational costs
Companies that outsource are more nimble and better equipped to weather economic downturns
Outsourcing is one of the initial phases of business transformation
“Loss of Control” is an outsourcing initiative killer…..
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2010 Contingent Buyers Survey 18
Yes, 22%
Maybe Over Next 2
Years, 20%
No, 45%
Don't know, 12%
Are You Using RPO?• Currently, 22% of contingent staffing buyers are using RPO, and an additional 20% said they might do so over the next two years.
• The 22% current usage is the highest so far reported by respondents to this annual survey. The proportion of buyers using RPO has increased an average of 1.4 percentage points annually over the period 2007-2010.
• An analysis of survey responses with respect to this question suggests that RPO will continue to become more popular; our estimate is that as much as 23% of buyers of contingent labor will be using significant amounts of RPO by 2012.
Twenty-two percent of buyers use RPO, use gradually trending up
14%
21%
17%
22% 23%
2007 2008 2009 2010 2012(P)
Percent of Buyers Using RPO
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Economic Uncertainty driving RPO Growth and natural high Program Renewal Rates
MSPRPO fastest growing HRO Workstream
RPO Growth slowing with slow down in general hiring trends
Deal growth still healthy
More “Select/Project RPO” versus “End-to-End RPO” engagements
More monthly management fees included in deals
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Global RPO
The Global mobility of workers and work continues
Today’s business growth is being capture in emerging markets across the globe with local talent....beyond traditional labor arbitradge
Off shore talent acqusition resourcingInfosys, Wipro
RPO Globilization Partnerships and Acqusitions
Universal Governing ATS w/ Multisourcing Providers
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Reduce Costs
Increase speed and capability
Improve Hiring Manager/Candidate Satisfaction (Quality)
HR focusing on Strategic Talent Management Tasks
Access Talent Acquisition “Best Practice” processes/skills
Key Reasons Customer’s Engage RPO
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Replace/upgrade Talent Acquisition technology
Make Talent Acquisition costs a predictable operating expense….Transition from fixed to variable….
……facilitate Scalability
Increase competitiveness, prepare/begin to engage in the “War for Talent”
Enhance Compliance….both Operational & Legislative
Globalization
Key Reasons Customer’s Engage RPO
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Summary of Core benefits
Reductions in Cost…..Transition from Fixed to Variable Expense
Increased Scalability/Agility/Responsiveness/Speed
Access to New Talent Acquisition Process Expertise
Access to New Talent Acquisition Process TechnologiesEnhanced Talent Acquisition Process Performance,
Measurement & Management
Increased Visibility & Control
Enhanced Compliance & Risk Mitigation
Access to Continuous Improvement….
….Ultimately Enhanced TA Competitive Capability
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Strategic Direction and Leverage……Converging Workforce Acquisition Markets/Solutions?
Contingent Hire Permanent Hire
RPOMSP
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Multiple Talent Acquisition Work StreamsTa
lent
Acq
uisi
tion
Hir
ing
Man
ager
Adv
isor
yDirect Hire
CW Vendor Management
IC Management & Compliance
SOW/Outsourcing Engagement Management
Intern/Alumni Engagement Management
Tale
nt A
cqui
sitio
n
Com
preh
ensi
ve D
ashb
oard
NEXT Marketplace Innovation?
Total Talent Acquisition
Outsourcing NEXT Marketplace Innovation?
Total Talent Acquisition
Outsourcing
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What you should do about it….
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Workshop questions…..
I. Where do I start….?
II. How do I build a business case…..?
III. Should I “Go Big RPO” or go conservative/selective/project rpo…..?
IV. What will be the major challenges…..?
V. What initial successes can I rely on……?
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RPO Best Practices
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Best practices
Build a Talent Acquisition “Supply Chain” Strategy/Roadmap w/ multiple work-streams that consider Efficiency, Enhancement and Transformative Strategies….Three to Five Year Timeframe
Align Engagements to both Strategic and Tactical Business Objectives….Cost Reduction-PLUS….Although 10% to 20% cost reduction is a minimum in any new RPO engagement
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Talent Acquisition Capability Roadmap
Today Six Months One Year Two Years
Phase 1
SCALE / DELIVER
Phase 2
IMPROVE / OPERATE
Phase 3
TRANSFORM
Phase 4
OPTIMIZE/CONTROL
I. XXII. XXXIII. XXXXIV. XXXXX
I. XXII. XXXIII. XXXXIV. XXXXX
I. XXII. XXXIII. XXXXIV. XXXXX
I. XXII. XXXIII. XXXXIV. XXXXX
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Best practices
Build detailed “State of the State” review & business case of your Talent Acquisition Supply Chain
Acquire Very Senior Executive Sponsor to drive internal political change and support of the HRO/BPO strategy
Plan to “Continuously Improve” your engagement solution starting at Go Live! Leverage an ongoing ROI from the expertise of your RPO partner(s)….Don’t be a passive client!
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Best practices
Design the RPO solution beyond your organization's “dependencies” where possible so that business and solutions objectives are not compromised and “Talent Acquisition Capability/Competitiveness” is not limited
Don’t let your ATS drive your process solution design
Go Six Sigma!
An RPO Solution can incorporate multiple work streams, technologies and providers
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Best practicesConsiderations when Integrating ATS Technology into an RPO
Strategy
The Mission for its RPO Engagement StrategyATS: Buy vs LeverageDefine RPO Metrics ProtocolIntegration: Legacy IT Infrastructure & RPO Supply Chain Technologies“Universal” Report & Analytics PlatformGlobalizationCloud Recruiting: Web 2.0 Sourcing Networking StrategiesBeware of Web ElitismChange Management: The Vital Consideration
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Best practices
Demand cultural delivery team fit
Remember to invest in on-going, change management or be prepared to pay the downside consequences
SLAs should support what is important to your organization and therefore the RPO engagement should focus on those priorities. They don’t “drive” performance … they “focus”performance … a common misunderstanding!
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Best practices
Build an Integrated Partnership with BPO Provider(s) at multiple levels in the your organization (where appropriate, proportionate and supportive)
Promote your BPO Partners business growth, so BPO solutions you engaged will competitively evolve
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