Posted tagged ‘SourceRight Solutions’

Early Q2 Earnings Reports Indicate Very Solid Year-Over-Year Results in Staffing and RPO

July 29, 2010

With the 2Q10 earnings reporting season underway, all to-date announcements point to a good quarter for HRO, particularly in staffing and RPO. For example:

This morning, SFN Group (formerly Spherion) announced a company-wide revenue increase of 25.6 percent in the second quarter of 2010, as compared to the same quarter a year ago. And revenues for its outsourcing business, SourceRight Solutions – which provides RPO, managed service programs and professional continent services – were up 100 percent year-over-year, with its RPO services revenue up 80 percent year-over-year.

Additionally, on July 21 Manpower reported revenue growth of 20.9 percent year-over-year for 2Q10, and SeatonCorp on July 15 announced revenues for its RPO business increased 53 percent in the first half of 2010.

While we still need to hear from the likes of Kelly Services, Adecco, Kenexa and others, results are positive thus far, and I believe they will continue. Even though unemployment is likely to remain high throughout the year, as indicated by NelsonHall’s quarterly Outsourcing Confidence Index, demand remains strong for RPO as companies look to outsource their recruitment functions for improved quality of hire, scalability and lower cost. And even with the bad unemployment numbers, there will always be pockets of hiring not only to backfill attrition, but also in high growth industries where new jobs are needed and in companies that downsized to the bone during the recession.

Further reason for optimism: the headline of a July 19 Workforce Management article read, “Workforce Staffing Could Hit Pre-Recession Levels in Two Years at Many Large U.S. Firms.” (You can read the article by registering for free at: www.workforce.com.) The article, per results of a recently-completed Accenture survey, stated that just over half of large, recently downsized U.S. companies plan to boost staffing and reach pre-recession levels by 2012. The survey also found that only 13 percent of executives plan to reduce their employee base over the next 12 months, and that the percentage of U.S. companies focused primarily on investment in growth-oriented activities, such as hiring, will rise from 24 percent today to 37 percent within the next 12 months.

Yet, the article also stated the planned growth won’t come easily, quoting David Smith, the survey’s managing director, who said, “A lack of relevant skills may present a hurdle for companies as they position themselves for growth. Companies need to rethink how they equip employees with the skills required to be competitive today.” Hmmmm….could this signal a resurgence of outsourced learning? If I were a betting man, I’d say the odds were there.

Gary Bragar, Senior HR Outsourcing Analyst, NelsonHall

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

Hays and SourceRight Solutions: A Different and “Right Time” Global Recruitment Alliance

March 18, 2010

On March 16, 2010, Hays plc and SourceRight Solutions announced a strategic alliance to offer global talent acquisition solutions. The two vendors will provide customized recruiting services to clients around the world, including in the U.S., Canada, Europe, Middle East and Asia. Over the past couple of years other partnerships have been formed to offer global recruiting solutions including: Pinstripe and OchreHouse, The RightThing and Alexander Mann Solutions, and KellyOCG and IBM. So what makes the Hays/SourceRight alliance different from the rest of these partnerships?

This alliance is similar in that recruiters can be provided in-country, but Hays and SourceRight Solutions are also offering solutions that will encompass:

•  Recruitment process outsourcing (RPO)

•  Managed service programs

•  Professional contingent workforce services

Hays and SourceRight will tailor recruitment solutions that can include any combination of the above, including by industry and geography, and which can be delivered by dedicated account teams with 4,500 recruiters around the world.

Further, this more highly customized and comprehensive recruitment services alliance may be coming to market at just the right time; during the recession, permanent recruiting has been largely on hold and many buy-side organizations have been utilizing temporary hires and contingent workforces due to uncertainty of their business outlook. Tailored, multiple option recruiting solutions should open many doors between Hays/SourceRight and buyers looking for a combination of permanent placement and temporary staffing assistance from the equivalent of one provider across geographies. 

I continue to believe – as I wrote in my 2007 and 2009 global RPO market analysis reports – that global presence and the ability to partner to provide global recruiting services are critical success factors for providers in the talent acquisition space. While the global recession, which resulted in staff reductions and temporary hiring freezes, has somewhat impeded the uptake, I strongly believe the time is right for a buy-side adoption increase, especially for highly tailored, comprehensive recruitment solutions.

Gary Bragar, Lead HRO Analyst, NelsonHall