Archive for the ‘Ochre House’ category

Highlights and Trends in the HRO Market for H1 2013: Part 1

August 7, 2013
Amy L. Gurchensky, HRO Research Analyst, NelsonHall

Amy L. Gurchensky, HRO Research Analyst, NelsonHall

It’s hard to believe that H1 2013 is complete, which makes it an ideal time to recap highlights and trends from the HRO world this year.

Overall Activity

There was a healthy number of new contracts awarded across all HRO service lines in H1 2013. In addition, renewals and contract extensions signed were consistent with H1 2012. There was, however, an increase in activity with organizations changing their existing service provider, particularly within benefits administration and RPO.

For the last few years, attention has been on the mid-market (500-10k employees), among other things, as an area for growth within HRO. Quarter-over-quarter, mid-market activity has made strides relative to the large market. In fact, in H1 2013, the majority of activity reported was from the mid-market.

Beyond HRO, the number of HR software contracts signed globally was up substantially compared to H1 2012. For example, in the U.S., ADP was awarded a contract for its Vantage HCM platform, including HR, payroll, benefits and onboarding modules, by The Paradies Shops covering 4k employees. In the U.K., Ceridian gained traction with its automatic enrollment module with Asda for 175k employees and WH Smith for 16k employees.

Payroll

Despite being a mature service line, payroll outsourcing does not disappoint. The biggest news reported in H1 2013 would have to be ADP’s acquisition of Payroll S.A., which will expand its LATAM payroll capabilities to Chile, Argentina and Peru. ADP already had in-country services in Brazil, and had capabilities through GlobalView and Streamline to serve multinationals in other LATAM countries.

Other news within payroll includes Acrede opening an office in Singapore to expand its global payroll reach into Asia-Pacific. Growth opportunities in the region include Japan and South Asia-Pacific.

RPO

The RPO market continues to be a hot one to watch. Contracts were awarded in various countries, including the U.S., U.K. and China, and ~20% of contract activity in H1 2013 was from multi-country deals.

The level of M&A activity was consistent with H1 2012, but the level of RPO partnerships has dwindled. Nevertheless, RPO vendors were busy expanding service offerings and delivery capabilities, and launching new websites. Some examples include:

  • Randstad Sourceright launching an RPO integrated assessment program
  • Manpower U.S. launching a multi-channel delivery model
  • Ochre House launching a COE to drive innovation
  • Randstad Sourceright opening a shared services center in Budapest
  • Hays launching a new mobile website
  • AMN Healthcare launching a redesigned website.

Although technically within H2, it is timely to mention the Pinstripe and Ochre House merger.

Learning

After a rather long lull, the learning BPO market has shown many signs of improvement. New contracts include Raytheon and GM Korea for content development and training administration services, and delivery of sales and non-technical training.

GP continued its acquisition frenzy focused on strengthening and expanding its geographic footprint with Prospero Learning Solutions (Canada) and Lorien Engineering Solutions (U.K. and Poland). Not to mention Capita’s acquisition of KnowledgePool.

Stay tuned next week for more highlights and trends from H1 2013 that are specific to benefits administration and MPHRO. I’ll also share some insights on what to expect in H2 2013 based on NelsonHall’s recent HRO Confidence Index survey.

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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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HR Tech Another Success: Part I

October 16, 2012

Gary Bragar, HRO Research Director, NelsonHall

HR Tech was again a very worthwhile investment of my time. Here are some highlights of the new Outsourcing Track presentations I attended:

  • Cisco Uses RPO to Help Hire Up to 15,000 a Year:Using a hybrid co-ownership model, the Randstad Sourceright recruitment team works alongside the Cisco recruitment team to provide services including sourcing, recruiting, and onboarding. Services provided are primarily in the Americas, but may expand into EMEA and possibly Asia where Randstad Sourceright has a presence. Using the hybrid model, Cisco has been able to cut its $120m talent acquisition spend in half.
    • Mark Hamberlin, VP HR Global Staffing, Cisco
    • Rebecca Callahan, President RPO, Randstad Sourceright
  • Ericsson Outsources Global Payroll in Manila:Ericsson issued a RFI to 25 vendors, then created a short-list of 5, and ultimately selected Talent2. Managed payroll services provided by Talent2 for Ericsson in Southeast Asia and Oceania include 4,500 employees in 12 countries, which prior to outsourcing had 12 different payroll processes. Manila is the shared service center. Major benefits obtained by Ericsson thus far include: reduced risk management, minimized complexity of dealing with local tax laws, and ease of expanding into new countries.
    • Mark Howes, HR Director Asia Pacific, Ericsson
    • Mary Sue Rogers, Global Managing Director, HR Managed Services, Talent2
  • Whirlpool Leverages RPO to Transform Talent Acquisition:Pre-RPO recruitment was decentralized and lacked consistency and methodology in its sourcing approach. Business partners were also spending a lot of time doing transactional work including screening and reviewing resumes. Kenexa’s RPO services include: sourcing, screening, administration, candidate management, creation of employment value proposition, and management of the candidate experience primarily in North America with some testing in Europe. KPI’s include: time to fill, quality of the candidate slate, diversity slate, and end-user satisfaction.
    • Lynanne Kunkel, VP of HR, Whirlpool North America
    • Rudy Karsan, CEO, Kenexa

Here are highlights from my RPO meetings:

  • Pinstripe and Ochre House: Pinstripe has won 12 new RPO contracts YTD and its partner Ochre House continues to win new contracts in EMEA including North Africa and the Middle East as a result of its acquisitions of TAAHEED and Carmichael Fisher in early 2012.
  • ManpowerGroup Solutions: New contract wins YTD include 40+ RPO deals globally in 20 countries. It has also expanded existing clients into new geographies including a U.S.-headquartered firm that expanded into China and Southeast Asia and a Spanish-headquartered firm that expanded throughout Europe and Latin America.
  • Randstad Sourceright: Currently with ~100 RPO clients, it won 18 new contracts YTD. Four of its new wins are global deals as a result of the merger of Randstad and SFN Group, which was completed in September 2011. Its fastest growth has been in the mid-market.
  • The RightThing, an ADP Company: Total RPO client count is at 80+. YTD wins include several enterprise and mid-market clients with ~50% as new clients and ~50% as existing ADP clients that added RPO services.
  • WilsonHCG: Primarily serving large and mid-size clients, WilsonHCG also has small clients with <500 employees. The company has a 94% satisfaction rating with candidates and hiring managers across clients.

Stay tuned for my next blog where I will discuss additional meetings I had with Patersons, IBM, Hogan Assessments, SHL Assessments, Secova, ADP, Equifax Workforce Solutions, HireVue, and JobVite.

In the meantime, NelsonHall just published its fourth global RPO market analysis.

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