rpo: why you should care and what you should do€¦ · best practices design the rpo solution...

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

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?

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….

What does RPO mean…..?

BPO/HRO Landscape Lexicon Cloud

VOPTMO BPO

Shared ServicesSTO

BPO Multi-SourcingLPO

Utility

HR BPO

MSPSupply Chain

Professional Services

Co-Sourcing

Cloud ComputingSaaS

Six Sigma

Art vs. Science

Hierarchal HR BPO Order Stack

Facilitating Infrastructure

VMSHRMS HRISERPATS Cloud Computing Social Networking

HRO, FAO, AMO

VOP TMO BPO TTOLPORPO MSP

Shared Services

Multi-Sourcing, MPHRO, Co-Sourcing

BPO Market Segments

HRO Market Segments

Solution Bundles

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….

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

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 &

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

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….

RPO Pricing Models

Transaction Fee/Pay Per UseSuccess Fee/Pay Per UseManagement FeeCombinationContract MinimumsPay for Performance LevelsContingency FeeFinancing FeesTransition/Implementation Fee

Process OptimizationComprehensive vs SelectiveEliminating Perm Agency

SpendVariable ExpensePartner’s Economy of scaleShared Services10% to 25% savings

opportunity

RPO Savings Leverage

RPO Market Providers….STAFFING COMPANIES PURE-PLAY

HROEXECUTIVE 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

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

Why should you care….?

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…..

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

22% 23%

2007 2008 2009 2010 2012(P)

Percent of Buyers Using RPO

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

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

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

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

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

Strategic Direction and Leverage……Converging Workforce Acquisition Markets/Solutions?

Contingent Hire Permanent Hire

RPOMSP

Multiple Talent Acquisition Work StreamsTa

yDirect Hire

CW Vendor Management

IC Management & Compliance

SOW/Outsourcing Engagement Management

Intern/Alumni Engagement Management

NEXT Marketplace Innovation?

Total Talent Acquisition

Outsourcing NEXT Marketplace Innovation?

Total Talent Acquisition

Outsourcing

What you should do about it….

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……?

RPO Best Practices

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. XXII. XXXIII. XXXXIV. 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 expertise of your RPO partner(s)….Don’t be a passive client!

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 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

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 BPO solutions you engaged will competitively evolve

rpo: why you should care and what you should do€¦ · best practices design the rpo solution...

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