Posted tagged ‘talent acquisition’

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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Countdown to the 2012 HR Technology Conference

July 10, 2012

Gary Bragar, HRO Research Director, NelsonHall

This year’s HR Technology Conference is just twelve weeks away. It will be held in Chicago from October 8–10. Be sure to check out the agenda, especially the new outsourcing track, which includes the following presentations:

  • Cisco Uses RPO to Hire Up to 15,000 a Year, presented by Mark Hamberlin, VP of HR Global Staffing at Cisco and Rebecca Callahan, President of Randstad Sourceright
  • Ericsson Outsources Global Payroll in Manila, presented by Mark Howes, HR Director of Asia Pacific at Ericsson and Mary Sue Rogers, Global Managing Director of HR Managed Services at Talent2
  • Benefits in a Time of Uncertainty, a panel discussion including Artell Smith from Aon Hewitt, Brian Johnson from Fidelity Investments, Norbert Englert from Mercer, Gail McKee from Towers Watson, and Tom Maddison from Xerox Corporation
  • Whirlpool Leverages RPO to Transform Talent Acquisition, presented by Lynanne Kunkel, VP of HR at Whirlpool North America and Rudy Karsan, CEO of Kenexa.

I’ve attended the conference the last two years and continue to find it an invaluable investment of my time to:

  • Attend presentations
  • View technology exhibits
  • Network with peers.

Presentations: In addition to Outsourcing, session topics include:

  • Strategic View
  • Talent Management
  • Social in the Enterprise
  • Workforce Analytics and Planning
  • HCM and Workforce Management
  • Recruiting
  • Expert Discussions.

Whether your company has outsourced or continues to do everything internally, there are bound to be several sessions that will teach you how to improve HR in your organization and be a better business partner. When I was on the buy-side prior to joining NelsonHall, I would attend such HR conferences to:

  • Learn about the broader industry
  • Think about how our HR outsourcing contract compared to others
  • Get ideas on improvements we could make.

Technology Exhibits: Since technology is changing so rapidly, it is often difficult to keep up with new applications that are available. The conference is a great way to get exposed to a broad-range of recent innovations, e.g., ADP’s Mobile Application, talent management offerings, etc. You can stop by any booth and see a demo; there is no pressure and vendors are excited about their new products and services and are happy to show you.

So here is your chance to make a difference at your organization; you might stumble onto a better, more user-friendly technology for example. Even if you are not the decision-maker, you can always tell your organization about it when you return and request a customized demo. Alternatively, if you are already outsourcing, you might see something that you don’t have and can bring it to your provider’s attention.

Network: The conference provides an opportunity to expand your network with others including HR practitioners, buyers, providers, analysts, etc. I also like to meet individually with companies I do business with and others I want to learn more about. In addition to the daytime events, there are evening socials too. HR deserves to have fun!

As a reader of my blog, you are entitled to a discount. Register for the conference and enter promotion code HRO12 to save $500.

Interested in reading the latest HRO news from NelsonHall? Subscribe to our newsletter by clicking here.

HRO: Mobility is a Link in the Talent Management Value Chain

March 16, 2011

Mobility outsourcing is largely a standalone service from specialty providers. ACS, a Xerox Company offers global mobility as part of its multi-process HRO (MPHRO) suite of services while most MPHRO providers do not.

On one hand, it makes sense to leave mobility services to specialty providers because relocation is dynamic with constant changes requiring depth of knowledge and it rides the leading edge waves of economic tides. According to Worldwide ERC’s 2010 Transfer Volume and Cost Survey, relocation is trending up again after the severe trough in 2009. Although it will take some time to reach pre-recession levels, up is good and mobility is joining recruitment outsourcing as an indicator of recovery. For example, Cartus went from $320m in revenues in 2009 to $405m in 2010 and managed 148k relocations. Even in the downturn, it proceeded with the acquisition of Primacy in 2010 and the combined entity added 140 new clients and expanded services with 300 existing clients.

On the other hand, leaving mobility services solely to specialty providers can leave a weak link in the value chain. The answer for most HRO service providers is to ensure inclusion of a strong mobility vendor in the preferred and integrated supplier ecosystem.

Mobility matters because of the continuing evolution of talent management which includes a growing awareness of the link with mobility. While one would think the link is obvious, it is not always managed as an integrated component of succession planning, talent acquisition, and retention, especially on a global basis. In many HR organizations relocation is under the purview of compensation and benefits and talent management is elsewhere.  Add in multiple vendors and a consultant or two and you have a situation needing a bridge of connectivity.

Who will bridge the gap? Mobility providers have really increased their pace of innovation and made strides in becoming strategic advisors in order to survive the recession. The use of new services like pre-decision relocation assessments increased from 9% to 40% since 2007. In addition to administering the relocation process and paperwork, the relocation specialist may help the client decide on a temporary rotational assignment with the lower cost of temporary living versus a permanent relocation with a home sale in a down market. Or they may advise a transferee on renting versus buying, all based on knowledge of client policies, costs, and local markets. It is this group that is raising their eyes over the fence of talent management and going, hmm.

I am not predicting that a mobility provider is going to leap into full scale talent management tomorrow. I do see a new player in the mix for client mind and wallet share. If you are a HRO vendor with talent management as a major offering, think about more than just which technology to use. Do not let mobility be a missing link in your HR value chain.

Linda Merritt, Research Director, HRO, 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

Back to School Time for Recruiters

August 27, 2009

As you begin packing up your kid’s bag lunches for another school year, you may want to stock up your pantry to pack others (perhaps skipping the peanut butter and jelly) for your in-house or outsourced recruiting staff. Why? Talent acquisition remains the top issue faced by today’s HR organizations, despite the recession. And the advent of advanced recruiting technologies and explosion of social media sites such as LinkedIn and Facebook demands recruiters be trained on how to best leverage these new opportunities for both active and passive recruiting or get lost in the old school dust.

Some recruiting process outsourcing (RPO) providers have already stepped up to the plate in this new recruiter training arena. For example:

•  AIRS, a The RightThing company, recently launched an online Social Sourcing Certification Class. Designed for both in-house and third-party recruiters, the class focuses on techniques to assist recruiters in sourcing passive candidates, helps participants better understand how they strategically benefit recruitment strategy and covers how social media can be leveraged to build a strong employment brand. After the class, attendees have the opportunity to earn their Certified Social Sourcing Certification through a certification exam.

•  And KellyOCG partners with industry leaders to coach and certify its recruiters in leading edge sourcing techniques, and its recruiters utilize its proprietary sourcing technology to enhance their ability to quickly connect with both active and passive candidates.

The importance of training extends beyond how to recruit using social media and advanced technologies into using metrics to prove the value and ROI of the staffing function, whether in-house or outsourced, to the business. And despite acknowledging the importance of doing so, few organizations know how to measure and consistently use the data to demonstrate improved business performance. An example of an RPO provider offering such training is The Workplace Group, which, during the past month delivered two webinars and two in-person training classes at its corporate headquarters on how to implement and use metrics to demonstrate ROI. The company also offers on-site classes at client locations.

And in an example of moving beyond a common, though important, recruitment metric of time-to-hire, Aon Consulting was able to improve the timeliness and selection process of sales professionals for a computer systems company, leading to higher close rates, equating to $120 million additional sales per quarter for the client’s company.

As the HR community, and the business community in general, views talent acquisition as a primary corporate critical success factor, the importance of upping recruiter’s skills to utilize new techniques and platforms, and how to measure their output, should not be underestimated. And while cost and lack of time are frequently cited as inhibitors to training programs, the expense involved is comparatively low and with hiring volumes down, now is a perfect time to invest in recruiting staff members.

Forward-thinking organizations are investing today in their recruiters in preparation for the hiring uptick that’s expected in 2010. Our advice? Start arming your recruiting staff now to leverage new school recruiting techniques, platforms and mediums. It’s a highly worthwhile competitive investment.

Gary Bragar, Lead HRO Analyst, NelsonHall

RPO – A Surfboard for the Next Hiring Wave

August 4, 2009

Today’s corporations are facing a good news/bad news scenario. On the upside, the devastating economic rip currents of the past year and a half appear to be retreating a bit, which is driving employers to plan for at least minimal hiring growth. On the downside, many in-house recruiting departments have been nearly annihilated by the tsunami-force recession, leaving them unprepared to handle the anticipated hiring upturn, albeit likely selective, slow and sporadic.

With this gap in talent acquisition resources, rebuilding lost internal resources or excessive use of head hunters will not be timely or cost effective. But I believe RPO can help companies avoid getting stuck in the hiring undertow:

•  RPO providers can scale up quickly to meet demand and scale down when hiring softens

•  While our May 2009 RPO market analysis predicts only a 3.5 percent growth rate in 2009, we forecast an uptick to 12 percent from 2010 through 2013 due to increases in the health of the economy

•  As presented in my July 1 blog, RPO can reduce recruiting/hiring costs by 24 percent on average, and time-to-hire by an average of 43 percent

•  There are hundreds, even thousands, of candidates today for every single open position, and skimmed internal recruiting departments likely don’t have the resources or technology to vet and respond to every applicant in a timely manner. Vetting is self-obvious, and as noted in my June 24 blog, responding to all applicants is a critical component of solid employment branding

Some HRO vendors are carefully positioning themselves to be ready for the next wave, wherever the surf rises. And my conversations with RPO providers, supported by our recently published Outsourcing Confidence Index, show an increase in RPO provider pipelines for new prospective clients.

On Thursday August 6 at 12 noon eastern time, I’ll be presenting my recent RPO market analysis findings, honing in on the key question, “Is now the time for RPO?”  Afterward, Rebecca Callahan, Senior Vice President of Spherion’s RPO division, SourceRight Solutions, Frank Casale, CEO of the Outsourcing Institute and I will engage in a panel discussion to address this top-of-mind topic for buy- and sell-side HR executives. To register for this free webinar, please go to:

https://www2.gotomeeting.com/register/

Gary Bragar, Lead HRO Analyst, NelsonHall