EVOLVING AND INNOVATIVE Contingent RPO: Using The Power of Your Brand for Significant Savings. Sponsored by:

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1 EVOLVING AND INNOVATIVE Contingent RPO: Using The Power of Your Brand for Significant Savings Speakers: Jonathan Mannall, Global Head of Sales, Solutions & Innovation, Hays Talent Solutions Travis O Rourke, Head of Hays Talent Solutions - Canada, Hays Talent Solutions Sponsored by: Crain Communications Inc. All rights reserved.

2 CONTINGENT RPO USING THE POWER OF YOUR BRAND FOR SIGNIFICANT SAVINGS September 2017 CWS US Summit Dallas

3 Jonathan Mannall Global Head of Sales, Solutions and Innovation 16 years of experience in the outsourced recruitment market designing, deploying and running MSP and RPO programs in four continents. Travis O Rourke Head of Talent Solutions, Canada 15 years of full cycle contingent workforce management experience. Full cycle expertise in attraction, recruitment, engagement, compliance, and off-boarding.

4 HAYS TALENT SOLUTIONS SERVICE OVERVIEW 24 years experience 50+ new programs in FY17 33 countries $3.5billion+ spend under management last year Recruitment Process Outsourcing (RPO) Multi-Sector Capability Direct Sourcing Driven ATS Technologies Complex organizations One model isn't enough Blended Workforce Managed Service Programmes (MSP) Master Vendor and Vendor Neutral Programs VMS Technologies Flexible delivery Consistent single governance Total Workforce Management Statements of Work (SOW) Isolating consultancy spend Driving accountability Identifying and mitigating risk Removing hidden costs Fully outsourced programs Contingent and permanent recruitment are not viewed in isolation HR and Procurement are jointly accountable Hays share in the customer talent strategy seat at the table Risks are shared Workforce efficiencies right place/right price Maximum visibility and control

5 DEFINITION: CONTINGENT RPO Using your brand to attract contingent talent directly to projects and assignments thereby reducing your reliance on staffing suppliers. Benefits: Reduced costs, improved engagement DIRECT SOURCING

6 THE PASSIVE JOB SEEKER A RECRUITMENT DILEMNA 89% of candidates are open to new job opportunities 80% would accept a contract position 13% Actively looking

7 THE PASSIVE JOB SEEKER A RECRUITMENT DILEMNA 89% of candidates are open to new job opportunities 76% direct sourcing programs gives you access to 76% more candidates 13% Actively looking

8 Direct Sourcing can significantly reduce your costs, however you will need to invest in the right People, Technology and Digital Attraction to maximize the benefits on offer.

9 WHAT GOOD LOOKS LIKE REMOVING AGENCY RELIANCE OVER TIME Being selective will allow you to demonstrate success to justify further investment. Retain vendors for niche roles only. 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 66% 40% 17% Agency Agency Agency 27% Direct 50% Direct 33% 33% 33% Payrollee Payrollee Payrollee Yr0 End of Yr1 End of Yr2

10 WHAT GOOD LOOKS LIKE POTENTIAL COST SAVINGS 100% 90% 80% 70% 60% 50% 40% 30% Agency Markup of 25% 500 Contractors $50 /a Hr $11,875,000 in agency markup 20% Dire ct 10% 0% Yr0

11 WHAT GOOD LOOKS LIKE POTENTIAL COST SAVINGS 100% 90% 80% 70% 60% 50% 60% agency spend 25% markups 500 Contractors $50 / Hr $7,125,000 in agency markup 40% 30% 40% Direct Source $2,375,000 in Direct Source 20% 10% 12.5% markup Dire ct Total Savings of $2,375,000 0% Yr1

12 WORKFORCE ENGAGEMENT MODELS ARE CHANGING

13 STRATEGIC WORKFORCE ENGAGEMENT CURRENT STATE Permanent FTC Temporary Contract Staff Aug T&M SOW Services SOW Consulting Capital Projects Talent Acquisition MSP Vendor Tactical Vendors Solutions Vendors Strategic Vendors Headcount = 1 Resource engaged under the direction and control of employees Engaged under contracts of employment or contracts for services Subject to strict governance around background checks Headcount = 0 Resource engaged under the direction and control of service provider Engaged under a Statement of Work, either T&M or outcome based Background checks assumed completed by vendor

14 TOTAL TALENT MANAGEMENT VISION FOR THE FUTURE? Permanent FTC Temporary Contract Staff Aug T&M SOW Services SOW Consulting Capital Projects Typical scope of Total Talent Management Services Typical scope of MSP services including services procurement Strategic/Tactical Procurement Headcount = 1/0 Centralized delivery operating within policy/guideline led risk frameworks. Strategic Workforce Planning led approach to Total Talent Management Scope of non-permanent resourcing extended to include services engagements to avoid inflating and squeezing the balloon

15 DIRECT SOURCING THE WAY FORWARD

16 Hays Commercial in Confidence CASE STUDY

17 CASE STUDY COMPUTACENTER IT SERVICES MSP VOLUME IT SUPPLY VIA A DIRECT SOURCING MODEL On/Offsite delivery model in place since 2009 IT engineers, project management, consultancy, technical specialists, business operations and sales support Locations include UK nationwide and Ireland Projects include Creation of First Line Analyst talent pools; engineer scheduling; technical skills testing; contract vacancy microsite; talent pool creation & management; development of a scheduling database; vetting services; security cleared PSL; onboarding portal Worker profile Worker population c1100 Approximately a third of the population earn 150 per day or above 35 On/Offsite Hays partners 7,500 Contractor placements per year 99% Direct fill rate via shared service model Hays Commercial in Confidence

18 APPLYING THE TALENT ACQUISITION LEARNS Talent Acquisition Planning & Strategy Position & Profiles Employer Branding Governance Candidate Relationship Management Candidate Audiences Recruitment Planning Attracting Selecting Recruiting Retaining Departing TRG: 84% Tools & Technology Sourcing Selecting Hiring & Onboarding Metrics & Analytics Compliance Outsourcing Recruiting culture

19 FIVE STEPS TO DIRECT SOURCING SUCCESS

20 STEP 1: IDENTIFY THE OPPORTUNITY WHICH ROLES SUIT THE DIRECT SOURCING APPROACH

21 Most suited to Vendor Hire Most suited to Direct Hire Impact of hires High impact/unique roles Who Management Where emerging markets/multi site Attraction specialist vendors Lower impact/unique roles Who Secretary Where Disparate/multiple locations Attraction Local vendor network High impact/repeat roles Who Sales, Engineers, R&D Where Single/limited site(s) Attraction Networking and direct approach Lower impact/repeat roles Who Representatives/Agents and Admin Where Single/limited site(s) Attraction Integrated marketing campaign Frequency of hire type

22 STEP 2: ASSIGN THE SOURCING TEAM EXPERT, AGILE, FLEXIBLE & SCALABLE

23 CASE STUDY PARTNER MANAGEMENT STRUCTURE MSP PROVIDING DIRECT SOURCING Procurement Complex SOW Solution Partner/Engagements CW Program Office MSP Externals Onboarding Business Staffing Partners Standard P.O. Policy Activity Sow Solutions Providers (Consulting Firms & ICs) Direct Sourcing/Payroll Rogue Spend Activity SOW Solution Providers (Consulting Firms & ICs) Universal Management-Enabling Technology Platform Cross-Functional Partnerships Hays Commercial in Confidence

24 STEP 3: IMPLEMENT THE TECHNOLOGY CRM, FMS, COMPLIANCE

25 DIRECT SOURCING: TECHNOLOGY ENABLERS ENGAGING NEW FORMS OF TALENT REQUIRES DIFFERENT KIT Freelancer marketplaces Compliance services Vendor management Statement of work/services Attraction Pre-employment Screening Onboarding portal VMS functionality Talent pools, competitive bids, agile assignment Worker Classification Services Performance Management Dashboards Contracting options Temp, Contractor, Agency, T&M, Rate Cards, SOW contracts

26 STEP 4: SET-UP BRANDED ATTRACTION BRANDED MICROSITES & JOB POSTINGS

27 LEVERAGING YOUR BRAND TO ATTRACT PROJECT WORKERS SELL WHO YOU ARE AND WHAT YOU OFFER

28 STEP 5: AWARENESS ENGAGEMENT ACQUISITION REPEAT, REPEAT, REPEAT

29 AWARENESS, ENGAGEMENT & ACQUISITION PATH TO DIRECT SOURCING SUCCESS AWARENESS OBJECTIVES Increases the breadth of potential candidates aware of the brand COMMUNICATION One way EXAMPLES On line banners, ambient and print media advertising ENGAGEMENT OBJECTIVES Increases the depth of relationships with potential candidates COMMUNICATION Two way EXAMPLES CRM talent communities/social media engagement ACQUISITION OBJECTIVES Onboard those hires COMMUNICATION Two way

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31 Two Easy Ways to Give Feedback Rate sessions on the Conference Community (all sessions) Fill out the Evaluation Card on your chair (concurrent sessions) Crain Communications Inc. All rights reserved.

32 Coming Up Concurrent Sessions 2:30 PM Next Generation Talent Management: How Online Platforms Will Power the Future of Work Dallas A Direct Sourcing from Every Angle: A 360 Degree View of How Companies Leverage Their Brand in Talent Acquisition Dallas B The View from the Other Side: 2017 Staffing Provider and Contingent Worker Surveys Trinity 2 3 Ideas in Action: Addressing the Changing World of Work Fair Park 1 Crain Communications Inc. All rights reserved.