Workshop
Tuesday | 4:45 pm | Veranda C
Stephen M. Clancy, Director, Contingent Workforce
Strategies and Research,
Staffing Industry Analysts
Over 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
Let’s start by……
I. Who is here….?
RPO Clients, RPO Providers, RPO Explorers and RPO Deniers
II. Why are you here….?
III. What problems are you trying to solve…..?
IV. Are you committed to SIA RPO Work-shop participation requirements?
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….
BPO/HRO Landscape Lexicon Cloud VOP TMO BPO Shared Services STO BPO Multi-Sourcing LPO MPBPO Utility MPHRO RPO HR BPO MSP Supply Chain Professional Services Co-Sourcing VMS HRMS HRIS ERP ATS Cloud Computing SaaS Six Sigma Art vs. Science
Hierarchal HR BPO Order Stack
Facilitating Infrastructure
VMS
HRMS HRIS
ERP ATS Cloud Computing Social Networking
BPO
HRO, FAO, AMO
VOP TMO BPO TTO
LPO
RPO MSP
Shared Services
Multi-Sourcing, MPHRO, Co-Sourcing
SaaS
BPO Market Segments
HRO Market Segments
What is RPO?
•
RPO is a form of Business Process Outsourcing (BPO)•
It represents outsourcing all or part ofthe 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
End-to-End/Comprehensive RPO Selective RPO
Project RPO
Administrative RPO Out-Tasking
Recruiter-On Demand (ROD) University RPO Workstream Internal Mobility Workstream Intern Program Management Co-Sourcing
Multi-Sourcing
Typically a combination is deployed across talent segments….
Remai
ns a hi
ghly custom
ized services outsou
rcing s
olution
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.
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 technologyRPO, 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/ownershipRPO Pricing Models
Transaction Fee/Pay Per Use
Success Fee/Pay Per Use
Management Fee
Combination
Contract Minimums
Pay for Performance Levels
Contingency Fee
Financing Fees
Process Optimization
Comprehensive vs Selective
Eliminating Perm Agency
Spend
Variable Expense
Partner’s Economy of scale
Shared Services
10% to 25% savings
opportunity
RPO
RPO Market Providers….
STAFFING COMPANIES PURE-PLAY
HRO EXECUTIVE SEARCH
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
Business V
alue
TRANSACTIONAL FOCUS PROCESS FOCUS MORE ART THAN SCIENCE FOCUS
Selective Process
Full Process
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 andbetter equipped to weather economic downturns
Outsourcing is one of the initial phases of business transformation2010 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%
Economic Uncertainty driving RPO Growth and
natural high Program Renewal Rates
MSP
RPO 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
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 resourcing Infosys, Wipro
RPO Globilization Partnerships and Acqusitions
9 Reduce Costs
9 Increase speed and capability
9 Improve Hiring Manager/Candidate Satisfaction (Quality)
9 HR focusing on Strategic Talent Management Tasks
9 Access Talent Acquisition “Best Practice” processes/skills
9Replace/upgrade Talent Acquisition technology
9Make Talent Acquisition costs a predictable operating expense….Transition from fixed to variable….
……facilitate Scalability
9Increase competitiveness, prepare/begin to engage in the “War for Talent”
9 Enhance Compliance….both Operational & Legislative
9 Globalization
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 Technologies
Enhanced Talent Acquisition Process Performance, Measurement & Management
Increased Visibility & Control
Enhanced Compliance & Risk Mitigation
Access to Continuous Improvement….
Strategic Direction and Leverage……
Converging Workforce Acquisition
Markets/Solutions?
Contingent Hire Permanent Hire
RPO
MSP
Multiple
Talent Acquisition
Work Streams
Talent Acquisition
Hiring Manager Advisory
Direct Hire
CW Vendor Management
IC Management & Compliance SOW/Outsourcing Engagement Management Intern/Alumni Engagement Management Talent Acquisition Comprehensive Dashboard
NEXT
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Total
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nt Acq
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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……?
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
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. XX II. XXX III. XXXX IV. XXXXX I. XX II. XXX III. XXXX IV. XXXXX I. XX II. XXX III. XXXX IV. XXXXX I. XX II. XXX III. XXXX IV. XXXXX
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
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
Best practices
Considerations when Integrating ATS Technology into an RPO Strategy
9 The Mission for its RPO Engagement Strategy
9 ATS: Buy vs Leverage
9 Define RPO Metrics Protocol
9 Integration: Legacy IT Infrastructure & RPO Supply Chain Technologies
9 “Universal” Report & Analytics Platform
9 Globalization
9 Cloud Recruiting: Web 2.0 Sourcing Networking Strategies
9 Beware of Web Elitism
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!
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
