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RPO_Why_Outsource Brochure

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Samuel Nishizawa
Samuel Nishizawa

The document discusses the benefits of outsourcing recruitment processes through a recruitment process outsourcing (RPO) provider. It outlines key reasons for outsourcing such as gaining access to a larger talent pool, increasing innovation and expertise, and improving supplier and process management. The document also summarizes the benefits an RPO provider like ManpowerGroup Solutions can provide, including standardized global recruitment processes, harnessing new recruitment technologies and tools, and helping to reduce costs.

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Recruitment Process: Why Outsource? Helping our clients win in the changing world of work A ManpowerGroup Solutions Insights Paper
RPO represents a great opportunity for organizations to drive value not only within the HR function, but across the enterprise. A Recruitment process outsourcing (RPO) is a growing practice and defined as a specialized service that allows clients to outsource some or all of the recruitment function. An RPO provider leverages the combination of strategy, technology, resources and vendor management to improve the recruitment process. Operating as the client’s internal recruitment function and strategic partner, the RPO provider will work closely with the client to improve the recruitment efficiencies of quality of hire, speed of delivery and cost containment. The end-to-end recruitment process for many companies encompasses more than just the sourcing and on-boarding of resources. It consists of three key elements designed to build and sustain a robust talent pool. These are workforce planning, talent acquisition and engagement and ongoing talent management. RPO is quickly evolving, from transaction- and cost-based saving agendas to best-in-class talent management models. RPO enables organizations to efficiently meet their escalating enterprise-wide needs for high performance talent, while simultaneously and dramatically improving recruiting efficiencies. These current models are more strategic in their recruitment pursuits, and are driven by demographic change, the increasing value placed on intangible assets, and the realization that models which simply offer cost and process efficiencies do not provide organizations with the fundamental transformational changes that will give them a true competitive advantage. The future of RPO looks strong, despite—or perhaps aided by— the current global recession. Many organizations are open to the possibility that RPO, particularly if focused on strategic business needs, can be a tool to compete during difficult economic times. Why Use RPO? Organizations outsource recruitment and hiring practices for many different reasons. According to a recent Aberdeen Group survey, respondents cited the top business pressures driving their consideration of RPO: lack of available skills in the market, a fast-changing industry, and regulatory requirements. All of these have shaped the needs and triggers for the adoption of RPO. Other key drivers cited by respondents of Aberdeen Group 2009 RPO survey are listed in Figure 1. 2 A ManpowerGroup Solutions Insights Paper 50% 40% 30% 20% 10% 0% 45% 42% 33% 25% Lack of available skills in the market Fast-changing industry Compliance requirements/ employment regulations Economic downturn Source: Aberdeen Group, RPO in 2009
Recruitment Process: Why Outsource? Helping our clients win in the changing world of work 3 Key Benefits of RPO Any evaluation of whether to outsource must begin with a clear understanding of the intended benefits and how the features of an RPO will generate the benefit. This is important to ensure the benefits can be monitored and managed. Our experience and research has identified the key features and benefits. Access To A Wider Labor Market As highlighted above, one of the key drivers for outsourcing the recruitment process is to improve access to talent. An RPO provider should be able to demonstrate the ability to attract a larger pool of quality candidates for an organization over their internal recruitment team. RPO providers such as ManpowerGroup Solutions, typically have a comprehensive range of attraction channels which reach a wide pool of talent. This is due to the frequency they undertake talent acquisition for multiple clients and build comprehensive databases of active and passive candidates. To maximize the overall value of outsourcing, the cause and effect logic must constantly be applied. A good RPO provider should offer some or all of the above desired features. Desired Feature Access to a wider labor market Increase innovation and expertise Link recruitment to broader talent management Improved supplier and process management Harness new systems and tools Increase global standardization Wider Benefits Focus on core business Increased customer service and revenue Improved brand image Reduce total cost Enable continuous improvement Immediate Benefits Improved time to fill Improved quality of hire Improved hiring manager efficiency and skill Increased internal mobility Reduced turnover Increase in supplier compliance and reduction in supplier cost Improved visibility and reporting According to Bersin & Associates’ TalentWatch Report (fall 2008), organizations report severe or major talent shortages in the areas of: • Line managers (43%) • Executive positions (34%) • Engineering and technical professionals (42%, with 14% stating their shortages are urgent). Source: Human Capital Institute, State of Talent Management Post-Recovery, November 2009
4 A ManpowerGroup Solutions Insights Paper Increase Innovation and Expertise Organizations looking to outsource their recruitment function often look for a provider to help them enhance their employment brand and value proposition as well as offer innovative talent acquisition and mobility strategies. • The demographics of the general workforce are complex and a major impact to hiring top talent. There are currently four distinct generations working together making up a workforce that have a wide range of ideas and motivations. In addition, workforce demographics are constantly changing which can significantly impact talent acquisition and management success. • Many organizations look to their RPO providers to assist them in navigating this confusing and ever changing landscape by utilizing their market insight and strategic recommendations to help them stay ahead of the curve. Link Recruitment To Broader Talent Management Many organizations are realizing the importance of linking these two functions together to deliver a number of benefits. One of the key impacts of this initiative is the improvement on internal mobility. This in turn generates a range of benefits including increased employee engagement, reduced turnover, reduced hiring costs and increased productivity. Improved Supplier Management and Process Management Another significant benefit organizations look to achieve by outsourcing recruitment process is the efficiencies and cost savings gained from the transfer of supplier management. • RPO providers can also look to enhance the outcomes by assisting organizations in achieving the optimal recruitment supplier structure for their business. • Best in class RPO providers should be able to provide best practice consultancy and support in supplier rationalization if required. • RPO providers should also be able to assist organizations to identify recruitment process pain points and recommend improvement initiatives. Outcomes from improved process management can be measured against service level agreements such as time to fill, quality of hire and candidate satisfaction.Harness New Systems and Tools Good RPO providers should be able to demonstrate experience and outcomes from assisting organizations in these areas. These could include increasing sourcing channels, enhancing and managing microsites, and increasing internal mobility. RPO providers such as ManpowerGroup Solutions take a holistic approach to recruitment and talent management, providing best practice initiatives and consultancy to improve internal mobility. These could include working with HR to hold career management workshops and developing an informative mobility portal.
Recruitment Process: Why Outsource? Helping our clients win in the changing world of work 5 Harness New Systems and Tools Some organizations choose to utilize recruitment systems and tools in a separate relationship to their RPO provider. Many however, look to leverage their provider’s ability to supply these. There are many advantages of doing this from a better alignment between the RPO delivery commitment and system function through to reduction of system costs (i.e. an RPO provider may agree to absorb some or all of these). Some RPO providers have developed their own in-house products or have partnered with a system provider. Most however will provide their clients the flexibility of working with alternatives if required. Increase Global Standardization Many multi-national organizations are now looking to get greater efficiencies and cost optimization through adopting a global workforce and supply strategy. Engaging with a global RPO provider can provide a wide range of benefits including consistency and best practice across countries, visibility and reporting at all level and assistance with moving work or people across borders. Working with one global RPO provider can also help insure that multinational organizations remain Sarbanes Oxley compliant. Cost Benefits Summary Whilst cost is not the primary factor driving many organizations to outsource, it is certainly an important consideration especially in this economic climate. Industry data suggests that savings of 15-25% per hire are achieved from successful RPO adoption. The results vary due to initial scope for improvement, success of the implementation and the methodology and timeframe calculating savings. a 70%reduction in costs can be implementingachieved by A global labor strategy. - Mckinsey Our experience and analysis of the benefits derived from RPO provides the following insights into the key cost savings a best-in-class RPO model will provide: Direct Cost Savings Reduced salary rates from improved market comparison and a more rigorous exception approval process Reduced salary rates from enhanced non-salary employee value propositions Reduced recruitment volume from increase retention and candidate fit Reduced volume via agencies due to increased internal mobility and pre identified candidates Reduced agency fee per hire by reducing agency effort in the process Indirect Cost Savings Reduced HR, procurement and hiring manager interaction with agencies Reduced HR, procurement and hiring manager involvement in end-to-end administration tasks Efficiency gains from process improvement enhanced reporting and control Productivity gains from a higher quality of candidate attracted and reduced time to fill Productivity gains from better candidate fit and reduced retention
6 A ManpowerGroup Solutions Insights Paper ManpowerGroup Solutions’ RPO Capability ManpowerGroup Solutions is a thought leader and industry pacesetter in the global RPO arena. In 1997, we launched Asia Pacific’s first RPO program. Today, we deliver RPO in over 20 countries and are rapidly expanding our global reach through our network of offices across 82 countries. ManpowerGroup Solutions designs RPO programs to balance our clients internal and external talent resource supply chains to maximize momentum. We use this momentum to drive cost effectiveness and skills optimization. ManpowerGroup Solutions can integrate seamlessly into your HR organization to deliver an end-to-end solution. Screening: In addition to behavioral interviewing, we use skill, ability and personality assessments to gain deeper insight into candidates’ capabilities. This results in smart, accurate hiring decisions and reduced turnover. Candidate Sourcing: Innovative matrix approach used to reach active and passive candidates. Our flexible methodology encompasses sourcing methods including grass roots, direct sourcing, media, associations, career fairs and more. Recruitment Strategy: All hiring needs analyzed by business, position and geography. Data and knowledge about the clients company is combined with our best practice and experience to identity the most effective delivery model. Process Design: Thorough review of client’s current end -to- end recruitment process and solution tailored. Change management is an essential component of program design and rollout. Hiring: Interview scheduling, debriefing, communications with candidates and managers, negotiations and offers are all managed and tracked through online processes. All are managed to meet or exceed metrics for faster, less expensive hiring. On-Boarding: Our on-boarding program ensures new employees assimilate easier and reach productivity faster. Our intention is to provide the most positive conclusion to the new hire experience. Technology Alignment: We can either integrate with a client’s applicant tracking system (ATS) or recommend & manage the best technology for the client’s business. We are also aligned with leading ATS providers for fast and efficient implementation. Metrics & Reporting: Our programs are designed to enable quick and efficient visibility into performance. Daily monitoring, weekly reports and standard meetings are all part of tracking service level agreements and driving continuous improvement.
Recruitment Process: Why Outsource? Helping our clients win in the changing world of work 7 Alternatively, we can provide customized solutions. For example: • Contract recruiters for a limited term or a last minute project • Project RPO to address large volume and short term hiring needs • Extreme on-boarding programs that engage employees during their first year on the job • University hiring and graduate programs to capture top talent • Interview training that drives consistency and best practice amongst hiring managers • Employment branding, advertising development and media placement that differentiate you from your competition to attract top talent. Why ManpowerGroup Solutions • RPO clients choose ManpowerGroup Solutions for: • Experience and proven success • Our willingness to take on business risk, and to make a KPI improvement commitment • Our expertise in driving cost savings and commitment to achieving agreed targets • Our global footprint, including the emerging labor markets of Asia, South America and the Middle East • Our financial stability • Our employment branding experience and ability to maintain and improve employee retention targets • The ability to use all major recruitment software packages • Our labor markets insights from our extensive research and databases • ManpowerGroup’s Training and Development Center offering over 2,000 online courses • Our extensive array of related HR services through Right Management
About ManpowerGroup ManpowerGroup (NY SE: MAN), the world leader in innovative workforce solutions, creates and delivers high-impact solutions that enable our clients to achieve their business goals and enhance their competitiveness. With over 60 years of experience, our $22 billion company creates unique time to value through a comprehensive suite of innovative solutions that help clients win in the Human Age. These solutions cover an entire range of talent-driven needs from recruitment and assessment, training and development, and career management, to outsourcing and workforce consulting. ManpowerGroup maintains the world’s largest and industry-leading network of nearly 3,900 offices in over 80 countries and territories, generating a dynamic mix of an unmatched global footprint with valuable insight and local expertise to meet the needs of its 400,000 clients per year, across all industry sectors, small and medium-sized enterprises, local, multinational and global companies. The ManpowerGroup suite of solutions is offered through ManpowerGroup Solutions, Experis,™ Manpower® and Right Management.® Learn more about how ManpowerGroup can help you win in the Human Age at: manpowergroup.com About ManpowerGroup Solutions ManpowerGroup Solutions provides clients with outsourcing services related to human resources functions, primarily in the areas of large-scale recruiting and workforce-intensive initiatives that are outcome-based, thereby sharing in the risk and reward with our clients. Our solutions include Borderless Talent Solutions, Managed Service Provider, Recruitment Process Outsourcing, Strategic Workforce Consulting and Talent Based Outsourcing. manpowergroupsolutions.com

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RPO_Why_Outsource Brochure

  • 1. Recruitment Process: Why Outsource? Helping our clients win in the changing world of work A ManpowerGroup Solutions Insights Paper
  • 2. RPO represents a great opportunity for organizations to drive value not only within the HR function, but across the enterprise. A Recruitment process outsourcing (RPO) is a growing practice and defined as a specialized service that allows clients to outsource some or all of the recruitment function. An RPO provider leverages the combination of strategy, technology, resources and vendor management to improve the recruitment process. Operating as the client’s internal recruitment function and strategic partner, the RPO provider will work closely with the client to improve the recruitment efficiencies of quality of hire, speed of delivery and cost containment. The end-to-end recruitment process for many companies encompasses more than just the sourcing and on-boarding of resources. It consists of three key elements designed to build and sustain a robust talent pool. These are workforce planning, talent acquisition and engagement and ongoing talent management. RPO is quickly evolving, from transaction- and cost-based saving agendas to best-in-class talent management models. RPO enables organizations to efficiently meet their escalating enterprise-wide needs for high performance talent, while simultaneously and dramatically improving recruiting efficiencies. These current models are more strategic in their recruitment pursuits, and are driven by demographic change, the increasing value placed on intangible assets, and the realization that models which simply offer cost and process efficiencies do not provide organizations with the fundamental transformational changes that will give them a true competitive advantage. The future of RPO looks strong, despite—or perhaps aided by— the current global recession. Many organizations are open to the possibility that RPO, particularly if focused on strategic business needs, can be a tool to compete during difficult economic times. Why Use RPO? Organizations outsource recruitment and hiring practices for many different reasons. According to a recent Aberdeen Group survey, respondents cited the top business pressures driving their consideration of RPO: lack of available skills in the market, a fast-changing industry, and regulatory requirements. All of these have shaped the needs and triggers for the adoption of RPO. Other key drivers cited by respondents of Aberdeen Group 2009 RPO survey are listed in Figure 1. 2 A ManpowerGroup Solutions Insights Paper 50% 40% 30% 20% 10% 0% 45% 42% 33% 25% Lack of available skills in the market Fast-changing industry Compliance requirements/ employment regulations Economic downturn Source: Aberdeen Group, RPO in 2009
  • 3. Recruitment Process: Why Outsource? Helping our clients win in the changing world of work 3 Key Benefits of RPO Any evaluation of whether to outsource must begin with a clear understanding of the intended benefits and how the features of an RPO will generate the benefit. This is important to ensure the benefits can be monitored and managed. Our experience and research has identified the key features and benefits. Access To A Wider Labor Market As highlighted above, one of the key drivers for outsourcing the recruitment process is to improve access to talent. An RPO provider should be able to demonstrate the ability to attract a larger pool of quality candidates for an organization over their internal recruitment team. RPO providers such as ManpowerGroup Solutions, typically have a comprehensive range of attraction channels which reach a wide pool of talent. This is due to the frequency they undertake talent acquisition for multiple clients and build comprehensive databases of active and passive candidates. To maximize the overall value of outsourcing, the cause and effect logic must constantly be applied. A good RPO provider should offer some or all of the above desired features. Desired Feature Access to a wider labor market Increase innovation and expertise Link recruitment to broader talent management Improved supplier and process management Harness new systems and tools Increase global standardization Wider Benefits Focus on core business Increased customer service and revenue Improved brand image Reduce total cost Enable continuous improvement Immediate Benefits Improved time to fill Improved quality of hire Improved hiring manager efficiency and skill Increased internal mobility Reduced turnover Increase in supplier compliance and reduction in supplier cost Improved visibility and reporting According to Bersin & Associates’ TalentWatch Report (fall 2008), organizations report severe or major talent shortages in the areas of: • Line managers (43%) • Executive positions (34%) • Engineering and technical professionals (42%, with 14% stating their shortages are urgent). Source: Human Capital Institute, State of Talent Management Post-Recovery, November 2009
  • 4. 4 A ManpowerGroup Solutions Insights Paper Increase Innovation and Expertise Organizations looking to outsource their recruitment function often look for a provider to help them enhance their employment brand and value proposition as well as offer innovative talent acquisition and mobility strategies. • The demographics of the general workforce are complex and a major impact to hiring top talent. There are currently four distinct generations working together making up a workforce that have a wide range of ideas and motivations. In addition, workforce demographics are constantly changing which can significantly impact talent acquisition and management success. • Many organizations look to their RPO providers to assist them in navigating this confusing and ever changing landscape by utilizing their market insight and strategic recommendations to help them stay ahead of the curve. Link Recruitment To Broader Talent Management Many organizations are realizing the importance of linking these two functions together to deliver a number of benefits. One of the key impacts of this initiative is the improvement on internal mobility. This in turn generates a range of benefits including increased employee engagement, reduced turnover, reduced hiring costs and increased productivity. Improved Supplier Management and Process Management Another significant benefit organizations look to achieve by outsourcing recruitment process is the efficiencies and cost savings gained from the transfer of supplier management. • RPO providers can also look to enhance the outcomes by assisting organizations in achieving the optimal recruitment supplier structure for their business. • Best in class RPO providers should be able to provide best practice consultancy and support in supplier rationalization if required. • RPO providers should also be able to assist organizations to identify recruitment process pain points and recommend improvement initiatives. Outcomes from improved process management can be measured against service level agreements such as time to fill, quality of hire and candidate satisfaction.Harness New Systems and Tools Good RPO providers should be able to demonstrate experience and outcomes from assisting organizations in these areas. These could include increasing sourcing channels, enhancing and managing microsites, and increasing internal mobility. RPO providers such as ManpowerGroup Solutions take a holistic approach to recruitment and talent management, providing best practice initiatives and consultancy to improve internal mobility. These could include working with HR to hold career management workshops and developing an informative mobility portal.
  • 5. Recruitment Process: Why Outsource? Helping our clients win in the changing world of work 5 Harness New Systems and Tools Some organizations choose to utilize recruitment systems and tools in a separate relationship to their RPO provider. Many however, look to leverage their provider’s ability to supply these. There are many advantages of doing this from a better alignment between the RPO delivery commitment and system function through to reduction of system costs (i.e. an RPO provider may agree to absorb some or all of these). Some RPO providers have developed their own in-house products or have partnered with a system provider. Most however will provide their clients the flexibility of working with alternatives if required. Increase Global Standardization Many multi-national organizations are now looking to get greater efficiencies and cost optimization through adopting a global workforce and supply strategy. Engaging with a global RPO provider can provide a wide range of benefits including consistency and best practice across countries, visibility and reporting at all level and assistance with moving work or people across borders. Working with one global RPO provider can also help insure that multinational organizations remain Sarbanes Oxley compliant. Cost Benefits Summary Whilst cost is not the primary factor driving many organizations to outsource, it is certainly an important consideration especially in this economic climate. Industry data suggests that savings of 15-25% per hire are achieved from successful RPO adoption. The results vary due to initial scope for improvement, success of the implementation and the methodology and timeframe calculating savings. a 70%reduction in costs can be implementingachieved by A global labor strategy. - Mckinsey Our experience and analysis of the benefits derived from RPO provides the following insights into the key cost savings a best-in-class RPO model will provide: Direct Cost Savings Reduced salary rates from improved market comparison and a more rigorous exception approval process Reduced salary rates from enhanced non-salary employee value propositions Reduced recruitment volume from increase retention and candidate fit Reduced volume via agencies due to increased internal mobility and pre identified candidates Reduced agency fee per hire by reducing agency effort in the process Indirect Cost Savings Reduced HR, procurement and hiring manager interaction with agencies Reduced HR, procurement and hiring manager involvement in end-to-end administration tasks Efficiency gains from process improvement enhanced reporting and control Productivity gains from a higher quality of candidate attracted and reduced time to fill Productivity gains from better candidate fit and reduced retention
  • 6. 6 A ManpowerGroup Solutions Insights Paper ManpowerGroup Solutions’ RPO Capability ManpowerGroup Solutions is a thought leader and industry pacesetter in the global RPO arena. In 1997, we launched Asia Pacific’s first RPO program. Today, we deliver RPO in over 20 countries and are rapidly expanding our global reach through our network of offices across 82 countries. ManpowerGroup Solutions designs RPO programs to balance our clients internal and external talent resource supply chains to maximize momentum. We use this momentum to drive cost effectiveness and skills optimization. ManpowerGroup Solutions can integrate seamlessly into your HR organization to deliver an end-to-end solution. Screening: In addition to behavioral interviewing, we use skill, ability and personality assessments to gain deeper insight into candidates’ capabilities. This results in smart, accurate hiring decisions and reduced turnover. Candidate Sourcing: Innovative matrix approach used to reach active and passive candidates. Our flexible methodology encompasses sourcing methods including grass roots, direct sourcing, media, associations, career fairs and more. Recruitment Strategy: All hiring needs analyzed by business, position and geography. Data and knowledge about the clients company is combined with our best practice and experience to identity the most effective delivery model. Process Design: Thorough review of client’s current end -to- end recruitment process and solution tailored. Change management is an essential component of program design and rollout. Hiring: Interview scheduling, debriefing, communications with candidates and managers, negotiations and offers are all managed and tracked through online processes. All are managed to meet or exceed metrics for faster, less expensive hiring. On-Boarding: Our on-boarding program ensures new employees assimilate easier and reach productivity faster. Our intention is to provide the most positive conclusion to the new hire experience. Technology Alignment: We can either integrate with a client’s applicant tracking system (ATS) or recommend & manage the best technology for the client’s business. We are also aligned with leading ATS providers for fast and efficient implementation. Metrics & Reporting: Our programs are designed to enable quick and efficient visibility into performance. Daily monitoring, weekly reports and standard meetings are all part of tracking service level agreements and driving continuous improvement.
  • 7. Recruitment Process: Why Outsource? Helping our clients win in the changing world of work 7 Alternatively, we can provide customized solutions. For example: • Contract recruiters for a limited term or a last minute project • Project RPO to address large volume and short term hiring needs • Extreme on-boarding programs that engage employees during their first year on the job • University hiring and graduate programs to capture top talent • Interview training that drives consistency and best practice amongst hiring managers • Employment branding, advertising development and media placement that differentiate you from your competition to attract top talent. Why ManpowerGroup Solutions • RPO clients choose ManpowerGroup Solutions for: • Experience and proven success • Our willingness to take on business risk, and to make a KPI improvement commitment • Our expertise in driving cost savings and commitment to achieving agreed targets • Our global footprint, including the emerging labor markets of Asia, South America and the Middle East • Our financial stability • Our employment branding experience and ability to maintain and improve employee retention targets • The ability to use all major recruitment software packages • Our labor markets insights from our extensive research and databases • ManpowerGroup’s Training and Development Center offering over 2,000 online courses • Our extensive array of related HR services through Right Management
  • 8. About ManpowerGroup ManpowerGroup (NY SE: MAN), the world leader in innovative workforce solutions, creates and delivers high-impact solutions that enable our clients to achieve their business goals and enhance their competitiveness. With over 60 years of experience, our $22 billion company creates unique time to value through a comprehensive suite of innovative solutions that help clients win in the Human Age. These solutions cover an entire range of talent-driven needs from recruitment and assessment, training and development, and career management, to outsourcing and workforce consulting. ManpowerGroup maintains the world’s largest and industry-leading network of nearly 3,900 offices in over 80 countries and territories, generating a dynamic mix of an unmatched global footprint with valuable insight and local expertise to meet the needs of its 400,000 clients per year, across all industry sectors, small and medium-sized enterprises, local, multinational and global companies. The ManpowerGroup suite of solutions is offered through ManpowerGroup Solutions, Experis,â„¢ Manpower® and Right Management.® Learn more about how ManpowerGroup can help you win in the Human Age at: manpowergroup.com About ManpowerGroup Solutions ManpowerGroup Solutions provides clients with outsourcing services related to human resources functions, primarily in the areas of large-scale recruiting and workforce-intensive initiatives that are outcome-based, thereby sharing in the risk and reward with our clients. Our solutions include Borderless Talent Solutions, Managed Service Provider, Recruitment Process Outsourcing, Strategic Workforce Consulting and Talent Based Outsourcing. manpowergroupsolutions.com