Posted tagged ‘Right Management’

An RPO and MSP Combo: The Best of Both Worlds

April 16, 2010

As I read through HRO Today magazine’s recently published Baker’s Dozen Top Managed Service Program (MSP) providers, it struck me positively to see many companies such as Manpower Business Solutions, Hays, Allegis Group Services, SourceRight Solutions and Adecco on the list. That’s because those providers are also recruitment process outsourcing (RPO) providers.

In different mixes and offerings, the MSP solutions include contingent workforce management, program and vendor management, temporary staffing, employee process management and other services.

There are two primary reasons why provision of both RPO and MSP solutions from the same vendor is valuable to the marketplace.

Flexible Staffing Solutions from a Single Vendor

As NelsonHall and many others have written about quite a bit lately, permanent recruiting has largely been on hold due to the recession, replaced with utilization of temporary hires and contingent workforces. As we’ve also written about numerous times, HRO buyers are increasingly opting for service delivery consolidated under the aegis of a single provider. Thus, the ability to tailor multiple recruiting solutions to meet client’s evolving needs results in a win-win for both providers and buyers.

Employee Attrition

Per a Manpower study released earlier this week, 80 percent of 2,000 North American hiring managers surveyed believe less than five percent of their employees will voluntarily leave the company in 2010. But a survey from Manpower subsidiary Right Management revealed 60 percent of employees intend to pursue new jobs if there is improvement in the economy this year. This huge delta aside for a moment…while it’s not feasible that more than half of employees will leave their current jobs, what if it is more than the five percent employers expect? A contingent workforce must be leveraged simply to keep the business running.   

The bottom line is that vendors and buyers both gain value from a workforce solution that meets clients’ dynamically changing needs, whether it be for temporary or contingent employees through an MSP offering or permanent employees via RPO. Buy-side HR executives, are you ready to meet your company’s current and future workforce needs?

Gary Bragar, Lead HRO Analyst, NelsonHall

Up in the Air with Outplacement Outsourcing

February 2, 2010

The Oscar nominated movie “Up in the Air”, with George Clooney as a high-end outplacement counselor, is a movie worth seeing. I certainly saw the cultural relevance in these days of extensive downsizing, but as a movie it left me, well, a bit up in the air.

Outplacement is a $4 billion market, and participant services typically include an assigned counselor, resume critiques, a variety of courses and workshops, self-assessment tools, access to job search resources and some level of one-on-one coaching. Actual job search assistance is usually not provided in basic packages. In major cities outplacement firms may still offer office space for classes, in-person coaching and even workspace and clerical assistance. Onsite services are also available for added fees. Although some companies do bring in outsiders – as is key to the movie – in my experience most companies have their own managers notify impacted employees and then route them to outplacement services.

I helped manage outplacement services when I was with AT&T and our in-house program transitioned to an outsourced service. We originally had several locations that included workspaces with phones and computers for job-seekers, classrooms, a resource library, onsite counselors, and group sessions for networking and peer support. And there was a time, not so long ago, when that level of support was needed. Now most people have Internet access and the amount of free online job search resources is astounding. In a Net savvy world, outsourcing needs to evolve to keep pace with changing needs.

Outplacements services have been migrating to the Web to reduce costs and allow more employers to continue to offer three to six months of support services for employees leaving under severance programs. A June 2009 study by the Institute for Corporate Productivity and the American Management Association showed that employers spent an average of $5,000 per participant, with a range from $7,518 for executives to $1,472 for hourly employees.

With unemployment still around 10 percent, there will be continued strong demand for effective and affordable outplacement services. And indeed outsourcing revenues have increased, with Right Management, a unit of Manpower Inc., up by 36 percent and Lee Hecht Harrison had up to a 57 percent increase in a recent quarter. Jumping in, ACS has just added an offering called ACS Transition Services – Powered by RiseSmart, to provide outplacement services.

The question is whether today’s outplacement services leave participants up in the air. Some participants complain about simplistic canned workshops, obvious advice and services that have not kept pace with the times. Others question whether the services are really more for assuaging employer guilt and avoiding lawsuits than for increasing and speeding placements for laid-off employees.  While there may well be room to improve, I personally saw how helpful outplacement services can be on an individual basis in terms of providing focus, structure and support during an uncertain time. We had many success stories at AT&T, both in seeing people refocus and find their way forward, and with those who found new jobs.

Realistically, no outplacement service can guarantee participants will quickly find a position equivalent to the one just lost, but there should be data that shows the services are effective and valued by participants to be worth any price point.

HRO providers that offer employers a cost effective outplacement service with high user satisfaction and evidence of job placement effectiveness will continue to find high demand and growth opportunities – and they won’t leave participants up in the air.

Linda Merritt, Research Director, HRO, NelsonHall