Pinstripe’s RPO Analyst Day: Talent Forward

Posted May 21, 2013 by gbragar
Categories: Analyst Day, Asia Pacific, Customer Satisfaction, Customer Service, EMEA, Employee Engagement, Future Investment, Hiring, Human Capital Management, IT Recruiting, Labor Arbitrage, nelsonhall, Ochre House, outsourcing, Pinstripe, recruiting services, Recruiting Technology, recruitment process outsourcing, rpo contracts, RPO Offerings, RPO providers, rpo research, RPO Summit, Social Media, Staffing, Talent, Talent gaps, Talent Globalization, Talent Management, Talent Shortage, Total Retirement Outsourcing, Workforce administration, Workforce Investment, Workforce Management, Workforce Productivity, workforce retention, Workforce Solutions, Workforce Talent

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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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HRO and Innovation – a Changing Dynamic

Posted May 14, 2013 by Linda M
Categories: Gate Gourmet, Global Targeting, hro, HRO Competition, HRO Confidence Index, HRO contracts, HRO emerging trends, HRO Governance, HRO Growth, HRO Innovation, HRO Platform, HRO Pricing, HRO Proof Points, HRO provider alliances, HRO provider partnerships, HRO providers, hro research, HRO Service Provider, HRO Services, HRO Staffing, HRO Strategy, HRO Vendors, HROA, Kelly Services, market analysis, mid-market HRO, nelsonhall, offshore hro, offshore outsourcing providers, offshore providers, outsourcing, Outsourcing Recruitment, outsourcing research, recruiting services, recruitment process outsourcing, Talent, Talent Management, transformational HRO, Uncategorized, Value of HRO

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Linda Merritt, HRO Research Analyst, NelsonHall

Linda Merritt, HRO Research Analyst, NelsonHall

Last week the Human Resources Outsourcing Association’s (HROA) Publications & Practices Committee held a webinar on collaborative innovation in HRO with industry experts Lisa Johnson, director of recruiting, North America at Gate Gourmet, Rolf Kleiner, senior vice president and chief innovation officer at Kelly Services, Inc. and Dr. Greg McLaughlin, senior vice president of research & development for Global Targeting, Inc.

Understanding Innovation

Innovation has been a conundrum for years for HRO buyers and suppliers. There are many ways to define the word ‘innovation’ and that makes it hard to be sure each party is speaking the same language. All three experts agreed that open discussions between clients and service providers are needed to develop a mutual understanding of what innovation means in the context of the relationship and contract.

Greg walked us through aspects of innovation range from the conceptual “innovation is an experience”, to the practical “innovation begins with a need and ends with an outcome that creates a competitive advantage.”

Lisa looks for HRO suppliers with the spirit of innovation – backed by experience. Rolf looks for employees who “rise above the white noise” to work on special innovation projects that also support talent management.

Innovation and Continuous Improvement

The HROA Buyers Group’s survey on innovation and continuous improvement showed there is a commonality in basic definition and understanding developing across the community of buyers, service providers, and advisors. From the words of HRO community members:

  • Continuous improvement is an enhancement of a product, service or process that already exists:
    • Increased operational efficiency, improved user experience, ongoing, incremental, and step changes
    • Efficiency and effectiveness gains that “keep pace with the market”
  • Innovation is something new and different:
    • Cutting edge, transformational, precedent setting, competitive advantage, disruptive, and dramatic
    • A significant and often transformational change that, once introduced, “you wonder how you ever lived without it.”

The HRO community is in agreement that continuous improvement and innovation should be a collaborative effort between the HRO service provider and the client:

  • 92% of respondents agree that this collaborative effort is what should be happening between service provider and client, but only 59% see that as true now, with 40% of buyers and only 22% of providers agreeing that collaboration is actually happening in the marketplace right now
  • 77% agreed that innovation should be a collaborative effort among the parties, with agreement from 100% of advisors, 60% of HR practitioners, and 83% of providers.

 The Innovation Gaps

Significant gaps – and therefore opportunities – remain:

  • 75% of respondents said that continuous improvement is in the HRO contract
  • Only 42% agreed that innovation is included in the HRO contract.

In the next blog I will be getting practical about innovation in HRO.

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Benefits Outsourcing is Blooming

Posted May 9, 2013 by Linda M
Categories: ADP, Aon Hewitt, BAO, benefits administration, Benefits Administration Buyers, Benefits administration growth, benefits administration outsourcing, Benefits Package, Ceridian, Customer Service, Decision Support Tools, Employee Administration, Employee Assistance Programs, Employee Benefit, Employee Health Care, Equiniti, Fidelity Investments, health and welfare administration, healthcare, hr outsourcing, hr outsourcing research, HR Systems, hr tools, hro, HRO Activity, HRO dashboards, HRO emerging trends, HRO providers, hro research, HRO Services, HRO Strategy, HRO Vendors, Lifestyle Benefits, Mass Mutual, Merrill Lynch, nelsonhall, offshore hro, outsourcing, outsourcing research, Workforce administration, Workforce Investment, Workforce Productivity, workforce retention, Workforce Software, Workforce Solutions

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Linda Merritt, HRO Research Analyst, NelsonHall

Linda Merritt, HRO Research Analyst, NelsonHall

Benefits administration is producing a bountiful crop of new and expanding services. Recent contract award announcements included ADP, Aon Hewitt, Ceridian, Equiniti, Fidelity, Mass Mutual and Merrill Lynch. A wide range of industry segments were represented: banking; food; education; non-profits; hi-tech; pharmaceuticals; and travel. This week, I have taken a look at some of the newer benefit outsourcing “crops” that are starting to grow nicely.

Managed Retirement Accounts

Fidelity’s relatively new managed retirement account offering – Fidelity Portfolio Advisory Service at Work – was designed to address the low rate of adequate preparation for retirement by many employees by combining Fidelity Investments plan sponsor customized portfolio active management services with auto enrollment and available advisory services to help bridge the gap in achieving retirement goals from a defined contribution plan. The service grew in both participants and assets by 50% in 2012. Already in 2013, another 135 new clients have been added, bringing the total to more than 1,800 plan sponsors.

  • Fidelity awarded a contract for Portfolio Advisory Service at Work by ADM.

Health and Wellness

ADP’s Vitality wellness solution supports employers with between 50 and 1,000 employees manage rising healthcare costs and also reduce employee absenteeism. Vitality’s incentive-based program includes an interactive wellness portal, health risk assessments, biometric screenings and personalized wellness plans with recommended goals and activities. It integrates with social networking sites, mobile applications and fitness technologies; and when employees achieve planned goals, they earn points towards lowering their health plan contributions. The service is also integrated with ADP’s payroll services.

  • ADP awarded a contract by Jackson Companies for ADP Vitality services.

Benefits Bouquet Bundles

HRO buyers want multiple related services from one vendor under one contract; and health and wellness lends itself to packaging separate services into bundles. Ceridian’s LifeWorks.com combines EAP, work-life, and wellness services into one program with its own portal and mobile access. Also available is Health Coaching – a program for high-risk employees that provides access to comprehensive health assessments and personalized guidance programs – and Client Value Dashboard – included for employers to monitor reports usage data and ROI information.

  • Ball State University chooses Ceridian’s LifeWorks.com

Private Employer Exchanges

Mercer’s Marketplace allows employers to improve management of their benefits spending and administrative responsibilities for active employees. Employers determine how much to contribute toward the cost of their benefits program and can select from a range of insured and self-funded products and providers. The platform includes full benefits outsourcing and provides employees with call center and online decision support.

  • Mercer recently announced names of 10 of its 20 national, regional and state carriers that have joined Mercer Marketplace for providing core medical and voluntary benefits.

A good garden has a variety of plants. Some base crops are evergreen like benefits enrollment and management services, while others are changed out to meet growing market demand. Benefits HRO: how does your garden grow? Very well thank you.

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HRO SaaS for the Small Business Employer

Posted May 3, 2013 by Linda M
Categories: HR, HR Administration, HR BPaaS, HR BPO, hr outsourcing, hr outsourcing research, HR SaaS, HR shared Services, HR Systems, HR Technology, hr tools, HRO Growth, HRO providers, hro research, HRO Service Provider, HRO Services, Moorepay, MoorepayHR, Multi-Country Payroll, Multi-Process HR Outsourcing, offshore outsourcing providers, offshore providers, outsourcing, outsourcing research, payroll outsourcing, SaaS

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Linda Merritt, HRO Research Analyst, NelsonHall

Linda Merritt, HRO Research Analyst, NelsonHall

SaaS systems for HR administration and payroll have opened up the small business market to the benefits of web-based HR systems with self-service and easier implementations. The rapid uptake by clients is testimony that a ‘sweet spot’ has been reached in cost, ease and value.

MoorepayHR

I followed up with Anne Fitzpatrick, Moorepay managing director, for an update on how MoorepayHR, a cloud-based SaaS payroll and HR administration platform with BPO services, is doing one year after its launch in the U.K. small business market.

Moorepay, a NorthgateArinso (NGA) subsidiary, is already “large” in the U.K. small business market with >10,000 clients. However, past success does not guarantee future success. The company saw the need for an integrated HR and payroll platform and wanted to achieve this in its own way by combining new technology with its existing BPO managed payroll and HR services, including on-hand subject-matter experts for guidance on employee issues, into a business process as a service (BPaaS) service.

At first there was some concern if the market was ready for a SaaS multitenant cloud service. Moorepay quickly found that buyers understand the cloud based on their own experiences as consumers and were actually eager for the new service. By the end of April, MoorepayHR had signed its 1,000th customer, and this week the entire company is holding a company-wide celebration!

The client base is 80% new and 20% from existing clients.57% of clients add on payroll, and even more select one or more of the BPO options, led by compliance support for employment law and health and safety advisory.

Moorepay will be adding more offerings to the system, including a newly-released ‘lite’ version. Next for the company is the rolling-out of an advanced version that adds functionality for recruiting, performance management and learning. Targeted at businesses with up to 500 employees, MoorepayHR will be expanded to up to 1,000 employees in the near future.

RUN Powered by ADP

ADP first introduced its RUN system nationally in the U.S. in 2010 for the very small market (1-49 employees). More HR features and payroll functionality have been added to the SaaS cloud-based mobile platform on a regular basis. In addition to ease-of-use, RUN offers a 24×7 help desk with certified HR professionals and an online HR library. RUN added its 200,000th customer in April 2013.

Two Vendors, One Success Story

Both Moorepay and ADP understands that clients of any size have similar needs. As Anish Rajparia, president of ADP’s small business services division, commented: “Small business owners demand flexible tools and resources tailored for them to help manage the risks associated with running their business.”

There are already a variety of options in the market for the small business owner and I am sure we will see many more. One size never fits all, and I am pleased to see that this class of buyer now has HRO choice.

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Targeting Payroll BPO, Part II

Posted April 26, 2013 by Linda M
Categories: Business Process Outsourcing, HR BPO, HR Consulting, hr outsourcing, hr outsourcing research, hro, hro research, market analysis, Multi-Country Payroll, nelsonhall, payroll buyers, payroll outsourcing, payroll trends, Targeting Payroll BPO, Targeting Payroll BPO market analysis

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Linda Merritt, HRO Research Analyst, NelsonHall

Linda Merritt, HRO Research Analyst, NelsonHall

There is so much in my colleague Gary Bragar’s NelsonHall Targeting Payroll BPO market analysis that I will cover a few more items this week. The payroll market is divided into three parts: payroll software services; service bureau payroll (also called managed payroll, where the vendor manages payroll production and the client manages data input and employee help desk services); and payroll business process outsourcing (where the end-to-end payroll process is outsourced, including tier 1 and tier 2 employee help desk support).

Payroll BPO market share is growing

Payroll BPO is what NelsonHall follows most of all, and it is a growing part of the overall payroll market. Even as SaaS payroll products become more ubiquitous, many clients will still want support for the whole process. We can see some of the reasons why in the changing pattern of client requirements. As I covered in the first Targeting Payroll blog, cost remains the number one priority. However, other needs have increased in importance over time:

  • Standardization of centralization of processes and technology: Instead of defending customization, now buyers are demanding standardization to increase efficiency and reduce costs from maintaining disparate systems
  • Compliance/risk management: Compliance with ever-more complex and changing regulations and work rules needs the time and attention of fulltime experts. For example, in Europe the complexity of regulations combined with employee populations spread over multiple countries adds to the challenges of compliance
  • Better employee experience: Users want access that is easier and simpler, including 24×7 access to data, self-service, and mobile. Payroll self-service is widely available and has become table stakes. The vendors that deliver the most useful mobile applications, the fastest and with the greatest security, will create valuable market differentiation.
  • Payroll subject matter expertise: Clients expect improved quality of payroll with augmented accuracy, which can lower overpayment and off-cycle payroll runs.

Payroll Cost #1 with a new spin

While cost remains the number-one client requirement, there is a new aspect and it is the same one NelsonHall is seeing in other HRO areas; balancing cost with value. Value for price is especially understood by second- and third-generation buyers who indicate their willingness to change vendors to get it!

Payroll Analytics

It has been my view for some time that the focus on improved payroll processes and systems is driven by more than the need to pay employees timely and accurately. It is also driven by the need to manage the total cost of labor with real-time access to data and analytics for decision-making that leads to improved business performance. Payroll is increasingly being seen as a valuable management strategic tool, and clients will be looking to payroll BPO providers to help them access and develop workforce analytics expertise.

It great to see how dynamic the payroll outsourcing industry has become!

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Targeting Payroll BPO, Part I

Posted April 18, 2013 by Linda M
Categories: Business Process Outsourcing, HR BPO, hr outsourcing, hr outsourcing research, hro, hro research, market analysis, Multi-Country Payroll, nelsonhall, payroll buyers, payroll outsourcing, payroll trends, Targeting Payroll BPO, Targeting Payroll BPO market analysis

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Linda Merritt, HRO Research Analyst, NelsonHall

Linda Merritt, HRO Research Analyst, NelsonHall

The NelsonHall Targeting Payroll BPO report has recently been released by my colleague, Gary Bragar. Payroll is such a well-accepted mainstay of HR outsourcing that it’s nice to see it still showing steady growth year after year.

Gary regularly produces the payroll market analysis, and profiles leading vendors in this space. Over time you can see how what seems like a basic service has grown, evolved and increased in strategic importance. What has not changed is that buyers are looking for savings by outsourcing payroll. The good news is that payroll BPO delivers: first-time payroll outsourcing can save from 15% to +40% depending on the degree of complexity and variables (like the number of locations, with everything from a single location to more than 100 countries).

The full report includes more on what buyers want from payroll outsourcing and what’s key in vendor selection; including where data needs vary between the mid-market and large market. Here are a few highlights of the report:

Why Outsource Payroll?

Cost saving remains the number-one reason to outsource payroll, and several nuances have been added including:

  • Clients want a more variable cost structure and less fixed costs
  • Savings now often include not having to refresh client technology (cost avoidance)
  • Simplifying payroll after a series of M&As or restructurings reduces cost
  • Reduction in payroll losses from ineligible and overpayments.

Centralization and standardization of process and technology has increased in importance, similar to what has been seen in other HRO areas. Where clients used to want customization, many are now seeing the benefits of standardization to improve efficiency, reduce cost, and to increase timely access to accurate payroll data across the enterprise.

With constantly-changing regulations and taxation across multiple jurisdictions, accuracy, compliance and risk management remain core payroll benefits.

Multi-Country Payroll

For MNCs, multi-country payroll remains a sought-after capability. MNCs want one vendor, one contract, and one payroll platform. Also wanted is visibility to aggregated costs and data reporting, in addition to the flexibility and scalability to add or change geographies.

Payroll BPO vendors have responded to the blended needs of clients for cost savings and global coverage by:

  • Increasing nearshore and offshore service centers
  • Partnering for coverage in some countries
  • Offering multiple technology platforms from SaaS to ERPs.

Pricing Pressure

Given the focus on cost reduction, pricing pressure should be no surprise. This is a market with many mature and capable suppliers, which in itself adds competitive pricing pressure and the need for differentiation to focus on value as well as cost.

As an indicator of payroll service provider capabilities to compete, I earlier mentioned the steady year-over-year revenue growth. That growth has been achieved at the same time as the average price per-payslip has fallen significantly over the last three years!

There is so much more in the Targeting Payroll BPO market analysis, look for more highlights in a future blog.

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HRO Déjà Vu

Posted April 11, 2013 by Linda M
Categories: HR outsourcing confidence index, hr outsourcing research, nelsonhall

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Linda Merritt, HRO Research Analyst, NelsonHall

Linda Merritt, HRO Research Analyst, NelsonHall

Each quarter, we publish the NelsonHall HR Outsourcing Confidence Index (HROCI) for our clients and the participating service providers. I like to share some of the highlights in my blog, but it can be hard to make fresh insights during times when the results are stable from quarter to quarter. When the confidence ratings are generally strong, as they are, then stability is pretty good news for HRO service providers.

Overall Confidence Remains Stable

The most recent HROCI shows a vendor confidence level of 157 for Q1 2013, where 100 represents unchanged confidence and higher scores indicate increased confidence. That is in line with the 156 from Q4 2012 and a bit up from the 153 one year ago. Confidence dipped mid-2012 with Q2 at 138 and Q3 at 140, which was not too surprising given the political and economic uncertainty we saw last year:

  • While the overall confidence score at 157 remains stable, those suppliers reporting slightly more or much more confidence increased 13% quarter over quarter
  • Increased confidence is reflective of solid pipelines of potential new sales and expectations for growth.

Growth Expectations Vary

Service lines: HR business process outsourcing service lines do not grow at the same rate. Some services like RPO and payroll remain steady performers, followed closely by benefits administration. The pipeline for benefits administration is looking especially strong. Expectations for multi-process HRO and learning remain about the same, which indicates continued slow growth.

Geography: Location matters in HRO and the patterns of growth also vary by region. The economic recovery is uneven in pace, readiness for HRO is uneven, and multi-country deals are a smaller part of the mix than in the recent past.

Overall, vendor confidence by geography has weakened with many regions showing some decline in confidence. North America, Asia Pacific, and Latin America show the strongest numbers, but there can be significant variation country by country. As we have seen for some time, growth expectations for Europe and the Middle East remain dampened.

Industry: High-tech and retail look to be the optimistic growth industries with most sectors remaining within prior modest expectations for growth. Expectations remain low for federal government and defense.

Mostly Steady and Stable Ahead

It is good to see the balancing of demand for cost savings and process standardization continuing. Client pricing expectations may still be unrealistic as there are always those who want a quick 50% off along with some freebies thrown in at the same time.

One area to watch is the growing client interest in and adoption of platform-based services. Some buyers are specifying SaaS and cloud-based services in proposals. We need to help educate buyers on leaving some room for discovering the best solution fit for each client situation.

To end on a positive note, 79% of HRO suppliers believe that a net up-turn in decision-making is taking place. Let’s get out there and get those deals signed!

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What to Consider When Considering HR SaaS

Posted April 3, 2013 by Linda M
Categories: HR SaaS

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Linda Merritt, HRO Research Analyst, NelsonHall

Linda Merritt, HRO Research Analyst, NelsonHall

Based on the HR Outsourcing Association’s (HROA) SaaS webinars and my discussion with Ceridian’s senior vice president Howard Tarnoff, who has been instrumental in the successful launch of Ceridian’s Dayforce HCM, here are a few key elements to consider when considering SaaS.

Determine Business Needs

Determine what business, operational, and organizational needs are driving change and if each decision-factor is equal or if there is a rank order as needs often conflict. For example, the need for control and customization will come at a higher cost and takes more time and effort than the configuration and standardization that comes with SaaS.

Sometimes that process is not completed before bringing in potential vendors. Howard has sat in discovery process meetings where the buyer team is having this discussion amongst themselves as much as with the vendor. Maybe that’s a bit late, but better late than never.

Consider Trade-Offs

Consider what trade-offs will be needed to deliver the best solution. HR SaaS can meet many needs and deliver many benefits, but it is a fundamentally different choice than a traditional ERP or other licensed or subscription software products.

Configuration and standardization:  acceptance and understanding of configuration and standardization is growing, as is awareness of the on-going cost of customizing into a corner, according to Howard. Still, it is vital to determine the limits of what can be accommodated as configuration is not infinite.

If compliance is a key factor, then the pain of standardizing policies and processes to fit within a system where the vendor keeps up with the constant changes to complex governmental regulations may be a risk management plus.

IT collaboration: the role of IT changes and becomes more collaborative with SaaS.  The HROA SaaS series reminds us there will still be a role for IT to play, so bring them in early in the process to address:

  • The impact on enterprise technology roadmap
  • Changes to IT workload and budget
  • Integration into the larger architecture (e.g., maintenance of interfaces, implication to other vendors connected to the system)
  • Vendor-driven upgrades on the IT team (e.g., understand the role, workload, and timing).

Customer collaboration: with real SaaS you will be one of multiple clients using a web-based system riding a single code base and that changes the nature of the client-vendor relationship and opens the need and opportunity to collaborate with other customers. You may have more input into the development of system enhancements, but you will be one among others.

Worried about future-proofing your services? Howard says change is coming fast and furiously. SaaS, with a great vendor partner and an active team of client users, can support affordable innovation.

Quickly, the question is becoming not if, but when and where to use HR SaaS.

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RPO Generation 2.0 is Ready to Go

Posted March 28, 2013 by Linda M
Categories: recruitment process outsourcing, rpo, RPO 2.0

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Linda Merritt, HRO Research Analyst, NelsonHall

Linda Merritt, HRO Research Analyst, NelsonHall

Recruitment Process Outsourcing (RPO) is one of the younger HRO service lines and it is both growing and maturing quickly. The March issue of HRO Today recognizes the emergence of RPO 2.0.  NelsonHall’s RPO specialist, Gary Bragar, would certainly agree. Gary’s October 2012 Targeting Recruitment Process Outsourcing market analysis highlighted many of the same developments in this rapidly growing HRO segment.

What is New in RPO 2.0?

The rapid growth and incorporation of social media for recruiting is a big part RPO 2.0, one that keeps pushing RPO to the leading edge of innovation in the HRO space.

RPO services are rapidly moving up the value chain, and changing client expectations is the key. While reducing the cost of service provision is always on the table, it is no longer the number one issue. Flexibility and scalability will always remain important as well, given how quickly hiring needs can change.

Today’s RPO 2.0 clients are looking for more value:

  • Improved quality of hires
  • The latest tools and technologies for social and mobile
  • Expertise in accessing talent pools and passive hires
  • Greater focus on candidate experience
  • Analytics and insights, in addition to metrics and reports
  • Improved retention
  • Access to advanced services including employment branding, talent management, talent engagement, and integration with workforce planning.

Clients Simply No Longer Want To Do It

In the last few years, many buyers reduced internal recruiting staff in line with the reduced volume of hires, and they do not want to rebuild and reinvest in the rapidly evolving technologies and advanced skill sets it takes to succeed in today’s competitive, social, mobile, and global recruitment process market.

Buyer Choice is Broad

For every large staffing company that does RPO including Adecco, Kelly, Manpower, and Randstad, there are smaller vendors that specialize in RPO such as Ochre House and Pinstripe.   Most leading RPO vendors of all sizes can offer services in most of the regions of the world as they have partnered and made acquisitions to make their footprints global.

Not long ago, major multi-process HRO (MPHRO) providers either did not provide end-to-end RPO or saw it taken out of contracts. Now, more MPHRO providers have full RPO services strong enough to be offered as standalone services including ADP, Aon Hewitt, Infosys, and IBM.

With RPO 2.0 You Can Have It All

While having it all may still be a bit aspirational for most of us, we are finding evidence that successful client / provider RPO partnerships can improve process efficiencies (e.g., reduce time to hire 20% to 50%), reduce the total cost of hire (often 20% to 30% or more), along with increasing hiring manager and candidate satisfaction.

Imagine what we can achieve with RPO 2.0!

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ADP Meeting of the Minds 2013 – Another Success

Posted March 22, 2013 by gbragar
Categories: ADP, Meeting of the Minds, MOTM, rpo, Steve Wynn

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Gary Bragar, HRO Research Director, NelsonHall

Gary Bragar, HRO Research Director, NelsonHall

My second ADP Meeting of the Minds (MOTM) client event once again exceeded expectations. There were 170 sessions with tracks including HR BPO, talent management, benefits, payroll, time & labor management, and personal & professional development. The following highlights the opening session and one of the general sessions I attended.

Opening Keynote by Steve Wynn

It’s no surprise that Steve Wynn’s hotel has won awards as the best place to work. At Wynn, a great customer experience is achieved by interaction with your people (i.e., employees) as only they can make others happy. To achieve human aspiration and to best serve customers, self-esteem is most important. If you can enhance self-esteem, then a single employee interaction with one guest can change the history of the enterprise. Steve views the most important person in an organization as the next person you (i.e., a guest) encounters.

According to Steve, to achieve self-esteem you need to be recognized by your boss. One form of recognition is pre-shift meetings where the supervisor asks if there are any good stories of guest interactions. That employee then gets his / her picture taken, which gets hung on the walls including in the employee cafeteria, which then motivates other employees to provide an exceptional customer experience!  Several examples of how employees have gone above and beyond the call of duty to exceed guest expectations were also provided.

RPO

Terry Terhark, president of The RightThing and Neil Efron, account manager, presented with client Tom Osmond, managing director of talent at Goldman Sachs; Neil sits onsite with Goldman in NY. Terry began with an overview of what RPO is and then Tom spoke of their journey together. Goldman has $34.2bn in revenues with 34,200 employees. At the end of 2011, Goldman signed a contract with The RightThing that commenced in March 2012. In 2012, Goldman did 7,200 hires (2,500 experienced hires, 2,000 college hires, remainder were interns).

Key drivers that led to outsourcing included:

  • Leverage a scalable infrastructure to better support highly variable recruiting volumes
  • Engage with a single provider for global delivery
  • Reduce costs associated with onsite staff
  • Partner with an experienced provider knowledgeable of best practices
  • Incorporate advanced recruiting and sourcing technology, e.g. in 2010 job boards and mobile recruiting were not used.

The contract began with support for North America experienced hires via the NY office. Support is provided both onsite in NY and centralized from The RightThing service center in Findlay, Ohio. Today, The RightThing also provides support to the London office including scheduling of interviews.

Initial services included interview scheduling, coordination of travel, and job offer management. ADP resources are also leveraged for Green Card processing. In October 2012, a sourcing solution was designed for recruitment of niche specialist positions, e.g. how to hire investment bankers, which was expanded in 2013.

From the client perspective, ADP has enabled a more flexible and efficient recruiting model with lower cost including reduced administration and time dealing with issues.

Emerging is the ability to expand globally including sourcing for EMEA and then into APAC. Further recruiting cost reduction is to be obtained by moving from ~50% offsite/onsite to 60% offsite resources in Findlay.

Summary

If you are an ADP client and have the opportunity to attend MOTM, I highly recommend it for your personal and professional development and you will have fun!

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