Archive for the ‘Labor Arbitrage’ category

Pinstripe’s RPO Analyst Day: Talent Forward

May 21, 2013
Gary Bragar, HRO Research Director, NelsonHall

Gary Bragar, HRO Research Director, NelsonHall

I attended Pinstripe’s analyst day on May 15, 2013. It was combined with its Client Talent Forward Summit, with the theme “Commitment to Innovation”. Highlights of the day included:

Client Panel

Pinstripe discussed 10 recent innovations, of which a panel of four Pinstripe clients then discussed a few Pinstripe innovations that have benefitted their business, including:

  • Email campaigning: A proactive approach to creating candidate pools with active and passive candidates. This enables messaging a high number of candidates with relevant information – such as familiarizing candidates with potential hiring company announcements; e.g. “Did you happen to know we were named one of the best places to work 4 years in a row” or “We were rated as the safest operating room to work in St. Louis”. Email Campaigning has resulted in a two-to-three times increase in passive candidate responses
  • Video interviewing: Both live and prerecorded interviews of candidate presentations. Managers feel more informed of when to take candidates to the next step. Team interviewing is also conducted
  • Employment branding and social recruiting: All about making a connection with the candidate to “get them in the door”. Includes training and education on how to properly use social media to send out positive messages.

Client Tour

We toured the Brookfield facility where ~60% of employees work. The tour included:

  • Understanding how employees are recognized
  • How virtual employees are connected and communicated with as though they were onsite in Brookfield
  • Demos of some of the innovations, including email campaigns to build talent pipelines
  • A visit to the Impression Center.

The Impression Center, which receives 250k calls per year, is staffed by customer service experts who are imperative to potential candidates’ first impression of the company. Applicants and candidates can call the center with questions throughout the job offer, and live chat is also offered. First call resolution is 96% with 97% customer satisfaction. Over 63k interviews have been scheduled by the Impression Center. Candidates may still contact the recruiter if needed; however, by using the Impression Center there has been a 97% reduction of calls to recruiters, allowing them to focus on their primary concern – recruiting.

Pinstripe Analyst Briefing

Pinstripe has grown from ~450 employees and ~73,000 hires in 2011 to ~575 employees today and nearly 100,000 hires in 2012. Most recruitment contracts at Pinstripe are end-to-end, full service RPO as opposed to projects. Several of the more recent contracts have been second- and third-generation RPO clients. Pinstripe’s partnership with Ochre House, formed in 2009 to deliver RPO in EMEA and Asia-Pacific, has been awarded several contracts to fill multi-regional hiring needs. Both companies attribute their success to sharing similar values. Honeywell is an example of a second-generation client now expanding beyond North America to Europe that Ochre House will serve. Combined with Ochre House, RPO is provided to ~85 clients in 45 countries in 23 languages.

Summary

One of the key messages taken from this summit is that Pinstripe is keenly focused on the candidate experience and a positive work environment for its employees to excel at satisfying client needs. It is therefore of no surprise that Pinstripe recruiters have an average of >9 years’ experience.

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ManpowerGroup Latin America Analyst Event

May 22, 2012

ManpowerGroup Solutions held its first analyst event outside of the U.S. in Mexico City to focus on the fast-growing Latin America market which includes Mexico and Central America (MeCA), and South America. I must first say the hospitality extended to us by both the Latin America and U.S. ManpowerGroup teams present was the warmest I could have imagined.

The agenda included:

  • Introduction to ManpowerGroup MeCA
  • Talentism is the new capitalism: ManpowerGroup insights from the World Economic Forum
  • The economic landscape in Mexico and Latin America
  • ManpowerGroup priorities, progress, and perspectives
  • The RPO and MSP market in MeCA
  • Visit to ManpowerGroup client and ManpowerGroup office (particularly helpful to understand how jobs are advertised in Mexico)
  • Labor and workforce demographics in South America
  • ManpowerGroup brand, messaging, and target markets
  • The global RPO COE
  • Analyst perspectives on topics including: client readiness for global talent planning, client satisfaction, and ManpowerGroup strategies

With such an informative agenda, I’d be writing a small book if I tried to cover all the content, so I’ll focus on the client visit to KidZania. KidZania is a global organization with franchises in Mexico. It is opening its third office there by June, which we were able to visit. KidZania is focused on creating a live learning experience for kids that allows them to role-play adult activities including working different jobs, spending money, and even learning how to drive a miniature car after acquiring a permit. The facility is Disney-like, but better because adults are not allowed inside. ManpowerGroup also has its first job agency within KidZania, so kids can assess their skills and search for jobs available on computers.

ManpowerGroup Solutions began providing RPO services to KidZania in 2010 after the client was searching for an agile vendor that could provide a flexible workforce solution with a focus on talent. The client stated the following three primary objectives of which ManpowerGroup has exceeded its expectations:

  • Find the right candidates fast
  • Reduce time / cost of recruitment, including quickly scaling up and down to meet hiring needs
  • Create the right culture among kids, parents, and collaborators.

I’ll revisit the Latin America market in a future blog, but for now I will say that although Mexico had one of its biggest recessions in 2008 – 2009, it has made a quick recovery, and is expected to create ~1.2m jobs this year. Mexico is about more than just outsourcing for labor arbitrage; it is about outsourcing for job skills where more than 100,000 engineers and technicians graduate every year from science and technology programs. Just last month, for example, Volkswagen’s Audi luxury-car unit announced that it will open its first North American factory in Mexico.

ManpowerGroup has more than 2,000 clients in MeCA and is present in 10 countries in South America. RPO is provided to both Mexican headquartered clients and U.S. MNCs with hiring needs in Mexico.

Gary Bragar, HRO Research Director, NelsonHall

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