RECRUITMENT INTERNATIONAL THE RPO Conference Alan Whitford Operations Director Direct Employers Association Website: 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 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 Search for solutions Agencies seek to add value – new services, process management, outsourcing Use of preferred suppliers, master vendor and vendor neutral models impacts agency margins Agencies seek more efficient models - use of technology, online recruitment Search for solutions Source: Cordoba Consulting

What To Outsource? Transactional is easy to choose  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 MSP MAS PSL BPO HRO RPO RTO EPO HCM WMS RCM ATS CMS Managed Service Provider Managed Agency Service Preferred Supplier List Business Process Outsourcing Human Resources Outsourcing Recruitment Process Outsourcing Recruitment Transaction Outsourcing Employment Process Outsourcing Human Capital Management Workforce Management Solutions Recruitment Management Systems Applicant Tracking Systems Candidate Management Systems

Abtech Partnership 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

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? 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 IT’S THE MONEY

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  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  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  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?

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