September 2013 www.hrotoday.com
Competitive Advantage Partnership is key to Nationwide Building Society’s winning talent strategy. OUR RPO ISSUE:
2013 Baker’s Dozen Leaders Clark on Girl Power How to Hire Gen Y Plus: Mobile Moving Making Referral Programs Work
Contents Cover Story Competitive Advantage An on-site team of specialists guided the alignment of Nationwide’s contingent and permanent workforce, resulting in reduced costs and increased efficiency. By Russ Banham Page 10 RPO
Talent Management
Data Analysis
16 2013 Baker’s Dozen Customer Satisfaction Ratings: RPO We rank the top providers in recruitment process outsourcing based on customer satisfaction surveys. By The Editors
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Quantifying Quality of Hire Putting metrics around your top talent offers some useful insight. By The Editors
58 2013 Baker’s Dozen Ratings RPO: Europe Leaders 60 2013 Baker’s Dozen Ratings RPO: APAC Leaders 2013 Baker’s Dozen Ratings RPO: 74 Healthcare Leaders 2013 Baker’s Dozen Ratings RPO:
Social Media Savvy Today’s technology powers job connections, and can position your company as a great place to work. By Carol Johnson
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38 40 42 44
Emerging Market Leaders
48
78 Debunking Millennial Myths Why your organization should be hiring more Gen Y workers. By John Wilson
50
World Conquest The impacts of the Pinstripe and Ochre House merger. By Elliot Clark
The Benefits Package
Judge and Jury How candidates feel about your hiring process. By Tom Boyle
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Star Struck Think before you poach talent. By Boris Groysberg
Columns
In The Know Why an employee referral program may be the answer to your recruiting problems. By Cari Turley
Contingent Labor
65 Workforce Redefined The benefits, challenges, and best practices of a blended 52 Sophistication, Elevated staffing model. Both sides of the RPO equation By Jennifer Berry have evolved. It’s time to meld expertise and innovation into an effective talent acquisition Relocation strategy. By Jeanne MacDonald 68 Transferee Technology
Growth Opportunity Leverage feedback from exiting employees to find problems—and solve them. By Kerrie Main
New Prescriptions Best practices, innovative thinking, and gamification are elevating workforce wellness initiatives. By Mark Allen
86
The Employment Report A brief history lesson in RPO. By Michael Beygelman
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Technically Speaking Ways to develop strategy around your non-permanent workforce. By Madeline Laurano
Departments 4
CEO’s Corner Women and Distractions
6
Editor’s Note HR’s Got Talent
8 Upside News from the world of work Mobile apps deliver all the essentials—and much more—right in the palm of your hand. By Russ Banham SEPTEMBER 2013
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CEO’s Letter
Women and Distractions We have completed the 2013 HRO Today Magazine RPO Baker’s Dozen Customer Satisfaction survey. The survey, which last year set a record with a 50 percent increase in respondents to more than 900, was sadly smaller this year by about 13. Ours is the biggest, best, and only objective customer-driven survey in HR and RPO, and it continues to provide our editorial team with a wealth of insight into the world of talent management and recruiting management. It also tells us a great deal about the vendor community. Here are two observations: Diversity for Dummies
Company
Operational Leader
Alexander Mann Solutions (AMS)............Rosaleen Blair Randstad Sourceright................................Rebecca Callahan Pinstripe & Ochre House...........................Susan Marks Pontoon.....................................................Mike Beygelman Allegis Talent2...........................................Richard Haviland PeopleScout...............................................Patrick Beharelle Kenexa, an IBM Company.........................Phillip Stewart Advantage xPO..........................................Karen Browne Hudson RPO...............................................Kimberley Hubble Aon Hewitt................................................Kathy Kalstrup Futurestep..................................................Byrne Mulrooney Seven Step RPO.........................................Beth Gilfeather KellyOCG....................................................Pam Berklich These 13 companies probably account as a group for nearly one million hires worldwide or more. Note that 62 percent of the operational leaders or presidents are women. So the world trusts its hiring to many companies run by women. This makes sense to me. My mother was a healthcare professional at a time (1947 graduate) when few women were college graduates outside of nursing. My grandmother marched with Susan B. Anthony. So I get it. Fifty-one percent of the world population is women, 52 percent of college graduates are women, and more than 60 percent of consumer spending is done by women. Here’s the question I don’t understand. If 62 percent of the leading hiring companies in the world are run by women, why are only 15 percent of public-company board seats held by women? It is time to tell the truth. I will confess on behalf of all men everywhere what women already know, but we do not readily admit. Men must be stupid. Transaction Distraction For my friends in RPO management, please understand that attorney’s fees are not the only deal costs when there is a merger or fundraising
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effort. Four companies went through transactional activities last year, , with three suffering somewhat in the rankings. First, congratulations to Rudy Karsan and the team at Kenexa for the very successful sale to IBM. If you look at Kenexa’s scores last year, a number of what we call leading indicators in trust and relationship were moving up. After six years of doing this survey, we know that companies with the kind of numbers they showed in 2012 hold very steady or move up well. Kenexa finished last year at number two. However, after a year of comprehensive integration, they slip in relative position to number six. I still believe they deserve congratulations for managing to do this while adding a number of very large new clients. WilsonHCG fell from the lower quartile of the Enterprise List to the top of the Emerging Market Leaders List. This is partly due to increased competition. WilsonHCG competes with any of the companies on either list. The only thing that changed was they went through a significant fundraising event that will raise enough capital to transform the company. Peoplescout fell six spots after spending a year looking at its strategic options and not being able to find the right deal to make a move. Without a deal to show for it, the diversion of the attention of their leadership left customers less enthused about their provider than they were last year, when Peoplescout ranked number one. And, finally, Sue Marks merged Pinstripe with Ochre House. But Pinstripe moved up well this year to number three. Part of the deal preserved much of the successful Ochre House team, including the very talented CEO Chris Herrmannsen. In this case, they executed the deal by taking their time and having a deliberately measured pace toward integration. And it worked. They move from number seven to number three. Now more analysis will be done to study this hypothesis, but it is clear that in an industry that is driven by leadership personalities and major client relationships often involving the CEO, the distraction of the top of the house has an impact. We do not believe this impact is long term, though. Randstad Sourceright dropped last year to number five and rebounded this year. Their biggest problems in 2012 were in their European sample and this year the globalized entity has scored very well. Clearly, the addition of the Randstad market penetration and the very strong RPO expertise emanating from the legacy U.S. Sourceright team has renewed them as a powerhouse. And rumors persist that everyone wants to buy, has already bought, or is about to buy Alexander Mann Solutions, but at number one, I can tell for a fact: They just “ain’t” selling.
Elliot H. Clark, CEO
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Editor’s Note
CEO: Elliot H. Clark Elliot.Clark@SharedXpertise.com Executive Editor: Debbie Bolla Debbie.Bolla@SharedXpertise.com
HR’s Got Talent
Managing Publisher: Gale Tedeschi Gale.Tedeschi@SharedXpertise.com
The word talent has been getting tossed around a lot lately. Some of my favorite catchphrases include the war for talent (oldie but goodie), state of talent, talent mobility, talent pooling, talent analytics, and the talent gap. But, wait—there’s more! The absurdity aside, it couldn’t be more true: attracting, managing, retaining, and engaging top performers is critical. An organization is only as good as its best talent.
Vice President of Research: Elizabeth Boudrie Elizabeth Boudrie@SharedXpertise.com Vice President of Marketing: Bill MacRae Bill.MacRae@SharedXpertise.com
So it’s no surprise that we explore this incredibly crucial HR function throughout our annual RPO issue. The root of recruitment process outsourcing is to usher organizations with their talent needs—sourcing and placing best-fit candidates with the benefits of cost reduction and scalability to boot. Add onboarding, brand management, social media strategies, analytics, talent pipelining, and you have RPO today. Our columnist and industry veteran Michael Beygelman delivers a brief history lesson—with a slice of humor—in his piece Hope, Hype, and Reality on pg 86.
Editorial Consultant: Dirk Olin Dirk.Olin@SharedXpertise.com
On our cover appears an HR director who has talent top of mind. Robert Aldrich of Nationwide Building Society in Swindon, England, sought a Competitive Advantage (page 10) to win sought-after contingent workers with high-level and specialized skill sets common to the financial services industry. The diverse dynamics of Aldrich’s workforce—80 percent full-time employees and 20 percent temporary workers— added to the mix. Enter Advantage xPO. The workforce solutions provider leveraged its customer-centric hybrid approach (a blend of on-site, customer-facing services supplemented by offsite support when needed) to increase Aldrich’s quality of internal hires while saving 22 percent in the first year (2009). As we—and many others see it—considering and managing your entire workforce demographic—both permanent and non-permanent employees—as one entity is the wave of the future. In fact, recent Aberdeen research supports this with nearly 50 percent of best-in-class organizations reporting a blended workforce as a top priority for 2013 (see Contingently Changing page 87).
Webmaster: Michael Fernandez webmaster@SharedXpertise.com
Another talent priority inching to the top of the list is managing members of Gen Y, also known as millennials. Studies crop up daily—PwC’s NextGen Study had some thought-provoking findings—and there’s even a conference, MCON2013, that provides organizations with strategies to engage the Millennial generation. I kid you not. This younger generation of workers has been oft criticized for bringing their own set of challenges to the workplace. Boy, do they get a bad rap! In fact, I found myself getting my back up when one website reported that I fell into this category. Gasp. No way—I am completely under the cut-off, right? Luckily, most sources argue Gen Y members were born between the early 1980s and 2000s. Phew! Gen X and proud. But CEO John Wilson is looking to challenge—and change—all this with his piece on Debunking Millennial Myths (page 48). He writes, “Millennials’ willingness to be accessible is especially important in recruitment, with candidates and clients calling at all hours. These tech-savvy, networking gurus, which could be called the ‘mobile generation,’ are always plugged in. Millennials are so flexible, they want employers to give them the same courtesy.” Maybe he’ll change your mind too with his influential prose and strategies to attract and retain this next generation of workers. You know there’s a catchphrase hiding in there, waiting to be the next buzzword. Dare I say: Gen Y Not? Debbie Bolla Executive Editor
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Reporter-Researcher: Mitchell Joseph Mitchell.Joseph@SharedXpertise.com Reporter-Researcher: Maria Cristina Feliciano Maria.Feliciano@SharedXpertise.com
Subscription services: For subscriptions, renewals, changes, and back issues, e-mail subscriptions@SharedXpertise.com.
About HRO Today magazine HRO Today Magazine [ISSN #1541-3551] is published [10x] by SharedXpertise, LLC © 2013. All Rights reserved. URL: www.HROToday.com. Editorial correspondence and press releases: Debbie Bolla, Executive Editor, SharedXpertise, 123 S. Broad Street, Suite 1930, Philadelphia, PA 19109 or editorial@ SharedXpertise.com. All letters should include the writer’s e-mail address and/or phone number. Business and advertising correspondence: SharedXpertise, 123 S. Broad Street, Suite 1930, Philadelphia, PA 19109, 215-606-9520. Subscriber services: SharedXpertise, 123 S. Broad Street, Suite 1930, Philadelphia, PA 19109, 215-606-9520, Fax: 276-800-2701 or e-mail subscriptions@SharedXpertise.com. Reprints: contact Foster Printing Service, 866-879-9144 or sales@fosterprinting.com. Postmaster: send address changes to SharedXpertise, 123 S. Broad Street, Suite 1930, Philadelphia, PA 19109. Fax: 276-8002701. Canada post: Publications Mail Agreement #40612608. Canada Returns to be sent to Bleuchip International, P.O. Box 25542, London, ON N6C 6B2. This magazine cover is printed on 80# Influence Recycled gloss and the inside pages on 50# Influence Recycled gloss, both with 10% post-consumer recycled content.
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Upside
NEWS FROM THE WORLD OF WORK
Surveys Say Underperforming Management Systems Despite an understanding that talent is a source of competitive advantage, establishing effective performance management programs remains a challenge for most organizations. According to Mercer’s 2013 Global Performance Management Survey, just 3 percent of organizations worldwide report their overall performance management system provides exceptional value. The survey includes responses from performance management leaders at more than 1,050 organizations from 53 countries.
More options for coverage. Starting in 2014, all Americans will be required to have healthcare coverage or risk paying a penalty. Some employees may wish to purchase individual coverage through the new state and federal marketplaces. A higher probability of being in a consumer-driven health plan. Consumerdriven health plans (CDHPs) continue to rise in popularity and have surpassed HMOs as the second most offered plans by employers. In fact, a growing number of employers are offering CDHPs as the only plan option—44 percent are considering it in the next three to five years.
In addition to some commonalities in performance management programs, such as setting employee goals, conducting formal year-end review discussions, and using performance ratings, Mercer’s statistical analysis identified key drivers of successful performance management. They include manager skills, executive commitment, calibration, and technology. Topping the list is the skills of managers, specifically how well they set employee goals, provide feedback, evaluate performance, and link performance to critical talent management decisions such as compensation, development, and careers. According to Mercer’s survey, roughly one in three organizations around the world say improving managers’ ability to have candid dialogue with employees has the greatest impact on overall company performance.
More incentive opportunities for exhibiting healthy behaviors. Workers can also expect to see an increasing number of employers providing an incentive related to completion of programs such as HRQs and biometric screenings. Eighty-three percent of employers have such an incentive in place now.
Alongside the contribution of managers, organizations with higher levels of executive commitment are more likely to have effective performance management programs. One-on-one performance discussions, formal performance planning, and team accountability are some of the more common practices executives are implementing to direct their teams and achieve desired business results.
New eligibility rules. Employers may be making changes to rules that determine which employees are eligible for health coverage, particularly as they evaluate requirements of the “employer mandate” provision of PPACA (which was delayed until 2015). In addition, the recent Supreme Court decision that resulted in federal recognition of same-sex marriages may mean more dependents will now be eligible for benefits coverage.
Healthcare Aware
Feeling Bottlenecked
Workers who plan to automatically default into the same health plan in which they were enrolled the previous year would be wise to rethink that strategy for the 2014 annual enrollment season, according to new research from Aon Hewitt. Employees can expect to see a number of changes to their health benefits driven by rising health costs and the Patient Protection and Affordable Care Act (PPACA). Employees should do their homework this year to understand the impact of these changes, and make informed benefits elections for them and their families.
What causes company bottlenecks? Bonitasoft’s recent survey of 190 business people identified the principal causes of bottlenecks in their organizations, the biggest impacts those bottlenecks create, and the moves their organizations are making to solve the problems.
Some of the most notable changes employees may see include: Cost increase. Aon Hewitt’s research shows that most employers plan to subsidize employees’ health coverage at the same percentage rate as last year. However, the amount of money employees will need to contribute out of their paychecks is continuing to climb.
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Programs that promote health awareness and education. Employees can expect to see more employers offering programs that encourage them to take a more active role in managing their health. For example, 75 percent of employers offer health risk questionnaires and 71 percent offer biometric screenings such as blood pressure and cholesterol.
Confusing processes (45 percent) and understaffed IT departments (43 percent) were chosen as the main causes for work slowdowns, followed by too many processes, colleagues not meeting deadlines, technology that is too rigid and not enough processes. Asked how bottlenecks negatively impact organizations, 59 percent of the respondents said bottlenecks damage employees’ morale, 53 percent said they lead to missed deadlines, 42 percent said they make customers angry, and 36 percent answered loss of revenue. Overall, 67 percent of respondents said they believe that technology can solve their organizations’ bottlenecks.
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“Our analytics tools show that #TChat’s signal strength is phenomenal.” —-Robert Moore, Co-Founder, Internet Media Labs
Cover Story
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Cover Story
Competitive Advantage An on-site team of specialists guided the alignment of Nationwide’s contingent and permanent workforce, resulting in reduced costs and increased efficiency. By Russ Banham
Following the crisis of 2008, many financial organizations confronted a dire reality—a substantial dearth of specific skill sets to execute complex and rapidly developing regulatory demands. A fluctuating market that percolated the previous six years now boiled over, as HR departments ransacked the globe for the needed proficiencies. Recruiting this talent became a strategic imperative for many enterprises, given the competition for skills in short supply and the growing global demand. This was the case whether the human capital was deployed on a fulltime or contingent basis. Few companies would disagree that having the right people in the right jobs is the most vital business asset—by far. Nationwide Building Society in Swindon, England, the world’s largest building society, the second-largest savings provider and a top-three provider of mortgages in the U.K., would concur with this assessment. Eighty percent of Nationwide’s workforce is permanent full-time staff. The remainder is comprised of the high-level skill sets that many other financial services organizations were competing for—IT project managers, software developers, and engineers, not to mention temporary workers. “We often need to bring in expertise for system upgrades, and we need these skills on a flexible basis,” explains Robert Aldrich, Nationwide HR director. “In the past, we’d be deluged by outside recruiters sending us resumes for people who would come here for a week to a couple years. For example, if we launched a big campaign involving attractive savings rates, we might need to build a customer support staff for three months.”
WHY ENGAGEMENT MATTERS Engaged employees positively affect corporate performance outcomes, according to a recent meta-analysis of 1.4 million employees by Gallup, a global research organization and consultancy. The firm’s 2013 study indicates that engaged employees result in the following organizational benefits: •
37 percent lower absenteeism
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25 percent lower turnover (in high-turnover organizations)
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65 percent lower turnover (in low-turnover organizations)
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28 percent less shrinkage
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48 percent fewer safety incidents
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41 percent fewer patient safety incidents
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41 percent fewer quality incidents (defects)
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10 percent higher customer metrics
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21 percent higher productivity
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22 percent higher profitability
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Cover Story
Since partnering with Advantage xPO in February 2009, the workforce solutions engagement has delivered on its promise, cutting recruitment costs, increasing the quality of internal hires, and producing a 22 percent cost savings in the first year. Both parties are now pursuing an extension for another five years. The problem was managing the more than 100 recruitment providers that submitted resumes for consideration each time a need for contingent labor arose. Since this employment ranged from highly skilled project managers to less skilled, clerical positions, the pay rates ran the gamut. Then, an encounter between Aldrich and Karen Browne, president of workforce solutions provider Advantage xPO, charted a way out of the morass. “I met Karen, we talked, and I soon realized that her firm could handle all those different providers for us,” Aldrich says. “But, what sealed the deal was the unique way in which they would do this work.” The singular value proposition of Advantage xPO is to put its people inside the four walls of its clients. To the outside eye, they would appear to be actual employees of the companies they service. “Karen told me they would work right here in Swindon as part of our (recruitment) team, get to know the culture and special needs of our organization, and provide a much higher level of efficiency and cost-effectiveness,” says Aldrich. “Right from the outset, she said they would consolidate our spend on contingent workers and centralize
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the supplier relationships, driving down the cost of recruitment while improving service levels and innovation,” he adds. “I was sold.” Although Nationwide subsequently went through the usual process of sending RFPs to providers, Advantage xPO had an advantage from the start—its on-the-ground managed services. As Browne puts it, “To be successful as a solutions provider, you have to absolutely position yourself as a seamless extension of the customer. We’ve taken this to mean literally operating within their HR structure. Our people perform work as Nationwide, not Advantage xPO—we are a true extension of their internal team.” Bodies in Motion The five-year partnership between the organizations is financially substantial, the parties contend, with industry scuttlebutt estimating significant cost savings for Nationwide. “It’s a pretty sizable deal for us,” Aldrich acknowledges. “And we’re a pretty sizable building society.” Founded in 1846 as the Provident Union Building Society, the firm has grown through more than 100 mergers into the world’s largest building society as well as a major provider of credit cards, and tallies a membership of 15 million people or one in four U.K. households. It is owned and run for the benefit of these members, much like a mutual insurance company in the United States. From an administrative standpoint, Nationwide is equally outsized, with more than 18,000 permanent and contingent workers serving its huge customer base, one fifth of them constantly in flux. Since partnering with Advantage xPO in February 2009, the workforce solutions engagement has delivered on its promise, cutting recruitment costs, increasing the quality of internal hires, and producing a 22 percent cost savings in the first year. Both parties are now pursuing an extension for another five years. The key to the partnership, Aldrich maintains, is having Advantage xPO support staff right outside his office door. “They understand and share our values, which ensures that we sell the organization in a consistently positive way [to job candidates],” he explains. “What marks this out is the closeness of the relationship. I’ve got 15 people from their team within a shout, in addition to 350 of my HR colleagues—all right here. They’ve all gotten to know each
Cover Story
other extremely well, which makes this seamless from a business-client perspective.” With more than 75 percent of the original team still in place, Advantage xPO has developed an integral business partnership with Nationwide. “Whether it be a professional contractor to design a new banking platform or an hourly temp to handle the administrative needs of a new customer, our tenured team understands what they are looking for,” remarks Chris Evans, head of strategic accounts for Advantage xPO. “We’re finding the right talent to keep pace with the emerging compliance and regulatory pressures of the business by being on the ground and anticipating where the industry is moving.” This profound collaboration yields superior recruitment processes. Says Aldrich, “I have the confidence that we will have the best program managers, people with absolutely the right skills who share our culture, when I need them.” This ability to have the right people in the right positions at a specific time when they are needed is a powerful competitive differentiator. As Aldrich attests, there is intense rivalry for the specific skill sets Nationwide seeks, a competitive battle that continues to heat up. According to the Chartered Institute of Personnel and Development, the proportion of employers reporting a “war for talent” increased sharply from 20 percent in 2009 to 62 percent in 2013. Six in 10 companies report difficulties filling key employment vacancies, at present. Obviously, companies can’t grow and prosper if they cannot attract the right skill sets. When they have these proficiencies, the financial benefits are substantial. A study by the Academy of Management Journal indicates that the top 15 percent of companies with superior recruitment and talent management practices achieve considerably higher sales per employee, market value per employee, and profits per employee. This may explain why company CFOs have ranked the “ability to attract and retain qualified workers” as one of their five major concerns over the past two years, according to a survey by Duke University and CFO Magazine. Certainly, no organization can afford the time to wait for capable candidates to fill vacant slots, even on a contingent basis. If a company hesitates, its competitors will sneak in and take the best. Small wonder why Nationwide puts such a premium on the consistent
“They understand and share our values, which ensures that we sell the organization in a consistently positive way. I’ve got 15 people from their team within a shout, in addition to 350 of my HR colleagues. They’ve gotten to know each other extremely well, which makes this seamless from a business-client perspective.” —Robert Aldrich, Nationwide SEPTEMBER 2013
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Cover Story
The partnership has paid off for Nationwide with a decrease in the overall cost of talent acquisition. This can be attributed to the fact that Advantage xPO has whittled down the number of outside recruiters. “Fewer recruiters provide better people,” Aldrich says. marketing of its employment brand and culture. “With more than 100 (recruitment) providers, we needed a way for all of them to see us as we are, in order to tell the story of who we are,” Aldrich says. “Advantage xPO ensures that they do just that.” Long-Term Flexibility One way the partnership is working proactively is their collaborative approach to workforce planning. “I cannot know in advance exactly what skills we might need on a contingent basis two years down the road,” Aldrich says. “Even if I did know, the requirements could suddenly change. This insists upon a high degree of analytical insight and flexibility. Advantage xPO is extremely customer centric in terms of being flexible.” Browne agrees. “Overwhelmingly, we are partnered with large organizations that have little influence over their monthly talent forecast. True excellence is our ability to meet the scalable needs of these growing organizations.” Achieving this goal requires a real-time, in-step approach to on-site strategic account management. “We are highly customer centric,” Browne says. “Our hybrid approach calls for on-site, customer-facing value added services that are supplemented by offsite support when the solution requires this.” She adds, “What we don’t have is 300 recruiters sitting in a centralized hub outside a client’s locale thinking they know what needs to happen for that company. This is why we have been successful in helping clients recruit higher-
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Cover Story
end IT and engineering roles; the candidates that are in short supply and high demand.” In fact, research shows that 100 percent of Advantage xPO’s clients report that the firm’s approach and execution is improving their talent acquisition operation. The partnership has paid off for Nationwide, Aldrich contends. The overall cost of talent acquisition is down because Advantage xPO has whittled down the number of outside recruiters. “Fewer recruiters provide better people,” he says. He cites several other positive metrics, including: • 83 percent of employees believe that Nationwide delivers great service to its customers, compared to 71 percent in the financial services industry. • 93 percent of employees understand the relationship between their job and Nationwide’s overall goals (financial services industry average is 80 percent). • 71 percent recommend Nationwide to family and friends as a place to work (financial services industry average is 66 percent). • Employee engagement and enablement scores, as well as employee retention rates, are among the highest in U.K. financial services. Engaged employees are vital to Nationwide’s success, the HR director asserts. “When recruiters bring in people that don’t fit our culture, we incur a cost to rehire,” Aldrich explains. “In addition, this can be very disruptive to the business, affecting customer satisfaction, as well as other employees’ peace of mind. Disengaged employees take a toll on all companies, no matter how superior their products or services are.” Engaged employees hired on a contingent basis can also serve as a pipeline of potential candidates for longer-term jobs. “We’re putting more and more interns, for example, into permanent positions,” Aldrich says. “This is because they were the right people from the start.” Certainly, having right people in the right jobs is the best way of turning human capital into financial capital. Having them there when needed most is the icing on the cake.
Russ Banham can be reached at www.russbanham.com
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2013 Baker’s Dozen: RPO
2013 Baker’s Dozen Customer Satisfaction Ratings: Recruitment Process Outsourcing By The Editors
HRO Today’s Baker’s Dozen rankings are based solely on feedback from buyers of the rated services; the ratings are not based on the opinion of the HRO Today staff. We collect feedback annually through an online survey, which we distribute both directly to buyers through our own mailing lists and indirectly by sending service providers the link to send to their clients. Once collected, response data are loaded into the HRO Today database for analysis to score each provider that has a statistically significant sample. For this survey, we required 13 responses from 10 companies, and we received feedback from more than 900 customers. In order to determine an overall ranking, we analyze results across three subcategories: service breadth, deal sizes, and quality. Using a predetermined algorithm that weighs questions and categories based on importance, we calculate scores in all three subcategories as well as an overall score. The rankings are based on those scores. The numbers presented in the tables represent those calculated scores; we include them to demonstrate the relative differences among the ranked service providers. While we do not claim that our methodology is the only viable ratings program available, we do vouch for its statistical validity. We hope this ranking provides you some insight into your next RFP process.
1. Alexander Mann Solutions (AMS) Website: www.alexandermannsolutions.com Alexander Mann Solutions is the world’s leading provider of talent acquisition and management services. We integrate our outsourcing capability and consulting expertise to enable organizations to attract, engage, and retain top talent. Every day Alexander Mann Solutions and our clients, from a wide range of industries, partner to deliver creative talent acquisition and integrated talent management solutions in over 75 countries. Alexander Mann Solutions delivers business outcomes through a blend of consulting and outsourcing services, including solutions across the full talent lifecycle; from strategic workforce planning and employer branding, to assessment and selection and onboarding and engagement; from school leavers and graduates, middle managers and executives, to board members and C-suite appointments across both permanent and contingent labor. All solutions are bespoke to meet our clients’ individual needs and objectives. New, more strategically aligned ways of introducing and measuring RPO success are possible today. Our metrics can now align RPO more closely to the wider business objectives such as improving employee satisfaction and attractiveness of the employer brand, reducing attrition, and improving time-to-productivity. Key clients: Atos, Aviva, BAE Systems, Baker Hughes, Barclays, BNP Paribas, Bristol Myers Squibb, Citi, Cobham, Covidien, Credit Suisse, Deloitte, Deutsche Bank, Emulex, Freshfields, GE Capital, Henkel, HSBC, Ingeus, Inpex, Intel, Microsoft, Nike, Northgate, Novartis, Origin Energy, Premier Foods, RBS, Rolls Royce, RSA Group, Royal Mail, RS Components, Sainsbury’s, Santander, Serco, Vodafone, and Zurich. Services: • Integrated recruitment process outsourcing • Recruitment process outsourcing • Contingent workforce solutions • Resourcing augmentation • source cloud™
• • • • •
Employer brand management services Emerging talent programs Executive talent acquisition Outplacement and redeployment consulting Operations and technology consulting
• • • • • •
Assessment consulting Diversity consulting Strategic workforce planning Workforce analytics Supply chain consulting Brand and creative consulting
Important client metrics: • •
[16]
Time and cost-related Strategic metrics, including quality, experience, and business outcome
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• • •
Reducing attrition Improving performance (and time to productivity) in role Diversity in the extended leadership group
equals
FOCUS
Aiming high in providing top talent for your business
what does www.advantagexpo.com Follow us on:
mean to you?
RPO
Recruitment Process Outsourcing
MSP
Managed Service Programs
SWM
Strategic Workforce Management
BPO
Business Process Outsourcing
2013 Baker’s Dozen: RPO 2. Randstad Sourceright Website: www.randstadsourceright.com Randstad Sourceright is a global talent leader, providing solutions and expertise that help companies position for growth, execute on strategy, and improve business agility. Our experience encompasses all facets of talent, including traditional employees and the contingent, free agent workforce. Key offerings include blended workforce solutions, recruitment process outsourcing (RPO), managed services provider (MSP) programs, and contingent workforce services (CWS). We successfully entered the business process outsourcing marketplace in 1989 and formally entered the RPO market more than a decade ago, becoming one of the preeminent RPO providers in the world. As part of the Randstad Holding nv family of companies, we are the second largest HR solutions company in the world with revenues of $22 billion. Our global footprint includes offices in more than 40 countries from which we can provide services to our clients. Randstad Sourceright has resources located on-site within our client accounts, as well as off-site within our virtual recruiting team and our service centers, creating a flexible delivery mechanism for cost efficiency and quality. Key clients: N/A Services: • Blended workforce solutions: a comprehensive management of talent acquisition, encompassing traditional employees, contingent workforce suppliers and free agents, and drawing on integrated delivery and management of RPO, MSP, and contingent workforce services. • Recruitment process outsourcing (RPO): a global recruitment solution to optimize candidate quality, control costs, and deliver measurable results in performance and business impact. • Managed services provider (MSP): a solution to improve engagement and management of the contingent and free agent workforce and suppliers, increasing quality, reducing costs, and supporting core business goals. • Contingent workforce services: enhance the engagement of free agent talent by improving access, containing costs, and mitigating compliance risks. Services include independent contractor risk assessment services, independent contractor compliance management (ICCM), and professional payrolling. Important client metrics: • • •
Time-to-fill Responsiveness Customer satisfaction
• • •
Candidate quality (ratio of candidates submitted to candidates interviewed) Candidate satisfaction Diversity of candidate slate
• • •
Offer letter accuracy/timeliness Invoicing accuracy/timeliness Data accuracy
3. Pinstripe & Ochre House Website: ochrehouse.pinstripe.com Pinstripe combined with Ochre House in July of 2013 to form the largest independent provider of global recruitment process outsourcing (RPO) and talent management solutions. Serving world-class organizations in the financial services, healthcare, technology, life sciences and advanced manufacturing industries, Pinstripe & Ochre House deliver customized, talent-centric solutions that drive business results. Key clients: AB In-Bev, Agilent Technologies, Bupa, Carondelet Health System, Citi, Cone Health System, Johns Manville, Kimberley-Clark, Phoebe Putney Health System, Princeton Healthcare System, Reynolds American International, SEHA, SSM, Smiths Group, Telefonica 02, United Biscuits, and VWR. Services: • • • • • •
Enterprise, co-sourcing, and project recruitment process outsourcing Workforce planning Resource management Requisition management Sourcing Screening
• • • • • • •
Recruiting Selection Logistics and administration Offer process Onboarding Process reengineering Strategic advisory services
• • • • • • •
Recruitment marketing services Social media services HR technology services Training Off-boarding Talent management Executive search
• • •
Cycle time Source of hire Candidate acceptance ratio
• •
Interview to offer ratio Recruiting efficiency ratio
Important client metrics: • • •
[18]
Quality of hire Stakeholder satisfaction Diversity
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By the time you read this ad, Pontoon will have placed yet another candidate. Globally, Pontoon is responsible for a new hire every seven minutes of every working day. We have a proven track record of delivering high quality services, measurable performance improvements and cost-effective solutions for the world’s best companies. And assuming you read very slow, we will have just done it again.
Turning the ordinary into the extraordinary.
pontoonsolutions.com
you deserve an rpo solution designed
around you Finding top talent takes more than a one-size-fits-all, cookie-cutter solution. So when it comes to choosing an RPO provider, why settle for a solution that doesn’t fully meet your needs? We are the only company that can tailor recruitment for your business—getting you quality candidates who will produce more and stay longer. Every part of our RPO offering is designed around you. From sourcing strategies, applicant tracking technology and tailored implementation to geography, culture and scope, we offer a complete solution that is designed to meet your needs. And because we’re now part of IBM, we have a global network that never stops working for you. We’re experts in every piece of the recruitment journey. Where other companies focus on just one piece, we bring them all together to create the best picture for your company’s success. The bottom line—we work to deliver a recruitment solution that’s completely designed around you.
recruitment solutions
It’s all part of a smarter Workforce
877.734.0002 www.kenexa.com © 2013 Kenexa Corporation
2013 Baker’s Dozen: RPO 4. Pontoon Website: www.pontoonsolutions.com Pontoon is the worldwide leader in workforce solutions, offering total talent acquisition and management services that bring greater value to our CWS and RPO clients. We provide true workforce planning through both contingent and permanent industry expertise. Pontoon, a division of Adecco, is a leader in the recruitment process outsourcing space in terms of scale, size, flexibility, customer service, and customer satisfaction. While finding talent is a big part of what we do, we are experts in managing the entire hiring process or augmenting it with additional resources for activities like sourcing, screening and assessment, market expansion, recruitment administration, cyclical and part-time hiring, onboarding, and offer management. We also specialize in university and campus recruitment programs supporting 59 countries. Pontoon delivers industry-vertical workforce solutions for the following sectors: financial services, pharmaceutical, healthcare, life sciences, information technology, energy, manufacturing, telecommunications, business services, retail, government, defense contractors, logistics and transport, and others. Key clients: N/A Services: • Research and sourcing • Workforce analytics and supply and demand planning • Talent acquisition process design, redesign, and optimization • Culture and values assessments • Employer branding and messaging • Innovative passive candidate sourcing • Recruitment technology and systems modernization • Management information, business analytics, and reporting dashboards • Specialized executive search capabilities • University and campus recruitment Important client metrics: • Quality of hire • Interview to hire • Time to start • Cost per hire • Turnover/retention
5. AllegisTalent2 Website: www.allegisgroupservices.com AllegisTalent2 provides human capital and workforce management solutions to customers in a wide range of industries globally. AllegisTalent2’s offerings include managed services provider (MSP) programs, recruitment process outsourcing (RPO), and advisory services. Key clients: N/A Services: • Managed services provider solutions: services procurement management, payroll, 1099, and IC services. •
Recruitment process outsourcing solutions: full-life cycle recruitment support, internal candidate management, employee referral program development, digital recruiting, and social media strategy development.
•
Advisory services: talent attraction strategy development, human capital consulting, workforce optimization, and business analytics.
Important client metrics: • Manager satisfaction • Bill rate management • Diversity spend • Cycle time • Invoicing accuracy • Failure to start • Fill ratio
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Pinpoint Performance-Ready Talent with Aon Hewitt Recruitment Process Outsourcing Aon Hewitt’s Recruitment Process Outsourcing experts can bring new hires that start producing from Day 1. Our specialists can improve the way you source, qualify, and manage talent. How do we do it? Experience–Expertise to assess 12MM candidates and assist our clients with more than 200,000 hires annually Assessments–Tests to identify skills, motivation and potential Innovation–Technology to engage a diverse candidate pool Flexible, Tailored Recruiting–Crafted to transform your business Learn more. Visit aonhewittrpo.com or contact us at rpo@aonhewitt.com.
2013 Baker’s Dozen: RPO 6. Kenexa, an IBM Company Website: www.kenexa.com To us, business has always been personal—and it’s always been about making the workforce smarter, which is why we’re proud to be the platform for a smarter workforce. We look at it from two angles—empowering people and transforming business. Our tools enable businesses to attract and keep the best people, develop their skills, cultivate new leaders, and capitalize on their collective intelligence by applying human insights, social tools, and workforce analytics to transform the way they work. We provide deep insight and experience in employee engagement, talent management, and leadership development mixed with the world’s best technology and social platforms, giving us the unique ability to build a smarter workforce. Key clients: N/A Services: • • • • •
Recruitment solutions (RPO) Project-based recruiting Recruitment technology Employment branding Organizational culture survey
Important client metrics: • Cost per hire • Customer satisfaction • Effectiveness
• • • • •
Vendor management Social sourcing Talent management Employee assessments Onboarding
• • • • •
Performance management Learning management Compensation solutions Engagement surveys Leadership solutions
• • •
Efficiency Fill rate On-time delivery
• •
Quality of candidates Turnover/retention
7. PeopleScout Website: www.peoplescout.com PeopleScout is a leading provider of RPO services aimed at helping companies with their exempt and non-exempt hiring needs. PeopleScout has helped their clients make 220,000 hires annually. The firm’s suite of services includes RPO, employment branding, onboarding, and employee retention. Industries served include airline, financial services, telecommunications, retail, utilities, pharmaceutical, manufacturing, and transportation. PeopleScout has managed the recruitment efforts of companies on six continents and in more than 69 countries and has helped more than 40 Fortune 1000 companies. Key clients: N/A Services: • Proprietary ATS technology • Employment brand development • Advertising • Sourcing • Screening • Interview scheduling Important client metrics: • • • • •
[24]
Time to fill Fill rate Candidate quality Candidate diversity 90-day attrition
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• • • • • •
On-site assistance Offer administration Onboarding coordination Requisition management Pre-employment verifications Workforce planning
• • • • •
Employee retention services Contract recruiter services Contingent staffing Payrolling services Managed service provider services
Pinstripe & Ochre House have joined forces to become the world’s largest independent global RPO and strategic talent management provider. We are bringing together leadership, resources and expertise to change the way the world views talent. Together, Pinstripe & Ochre House will leverage our shared history, values, and passion for quality service to deliver superior business results for our clients. As one, we will continue to provide customized solutions across a spectrum of industry specialties, including healthcare, advanced manufacturing, ďŹ nancial services, life sciences and technology. For more information on the new company, our services and global footprint, please visit ochrehouse.pinstripe.com
2013 Baker’s Dozen: RPO 8. Advantage xPO Website: www.advantagexpo.com Advantage xPO®, a leading provider of consultative workforce management solutions, is a division of Advantage Resourcing® one of the largest staffing companies in the world. Advantage xPO delivers global solutions in recruitment process outsourcing (RPO) and managed service programs (MSP) to clients across a variety of industries, and is a trusted partner to leading organizations seeking world-class strategic workforce solutions. Key clients: N/A Services: • • • •
Recruitment process outsourcing: full-cycle RPO, partial-cycle RPO, and project-based/volume hires Managed service programs: solution consulting, program and supplier management, independent contractor/1099 compliance, and payrolling Strategic workforce planning: talent strategy partner, market research and competitor intel, and talent composition recommendations (temporary vs. permanent) Business process outsourcing: exclusive transfer of non-core functional work, complete oversight of recruitment administration activities managed by SLAs, and manufacturing and distribution process outsourcing
Important client metrics: • Candidate quality • Time to submit • Submission ratio • Time to fill • Compliance • Hiring manager/candidate/supplier satisfaction • Cost savings
9. Hudson RPO Website: www.www.hudsonrpo.com Hudson is a global talent solutions company with offices in 25 countries worldwide. Core business lines include leadership and specialist recruitment, recruitment process outsourcing (RPO), talent management and professional contracting. Hudson RPO manages the people, processes, and technology associated with recruitment of permanent or contingent talent on a fully outsourced, hybrid, or project basis. A global force in talent solutions, Hudson RPO designs, implements, and manages custom recruitment process outsourcing programs for mid- to large-cap multi-national companies. Key clients: N/A Services: • Recruitment process outsourcing (RPO): recruitment demand forecasting, sourcing, talent pooling and pipelining, internal recruitment, response management and screening, interviewing and selection, psychometric testing and behavioural assessment, job offer and placement, recruitment administration, vendor management, and onboarding.
•
Recruitment projects: defined, catalyst driven recruitment engagements and typically functional role types that can operate as a stand-alone team or extension of the existing infrastructure.
•
Contingent workforce solutions: neutral vendor management to select and manage contingent labor providers and direct sourcing of contingent workers
•
Consulting services: review of recruitment models, processes, technology, and metrics and customized recommendations for improved efficiencies, effectiveness, and cost saving.
• •
Time to shortlist Ratio of shortlisted to interviewed candidates Ratio of interviewed to placed candidates
Most important metrics: • • • • •
[26]
Hiring manager satisfaction Candidate satisfaction Vendor satisfaction Direct fill rate percentage Retention within warranty
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• • • • •
Retention within first year Quality of hire Source of hire Cost per hire Time to fill
•
Ask anybody. If your business is looking to grow in today’s unpredictable marketplace, you may be asking some tough questions... What can I do to contain costs across variable hiring structures? How can I tap quality candidates who fit my organization’s exact requirements? Where can I find a partner who will work just as hard to meet my goals as I do?
The answer lies in finding the right RPO partner. Ask anybody we’ve worked with. They’ll tell you why PeopleScout has an unparalleled record of customer satisfaction and client retention.
100% Referenceable Client Base Successfully implemented 10 recent 2nd generation RPO Engagements Near 100% Client Retention over the last 4 years Eight years running on HRO Today’s Baker’s Dozen
1-866-895-5728
2013 Baker’s Dozen: RPO
10. Aon Hewitt Website: www.aonhewittrpo.com Aon Hewitt’s RPO solution offers clients project-based and end-to-end talent acquisition solutions, including sourcing, recruitment, assessments, and global support, and management of select recruiting processes and short-term projects. Each year, we assess more than 12 million candidates and assist with over 200,000 hires, saving our clients more than $50 million annually through early turnover reduction. Aon Hewitt empowers organizations and individuals to secure a better future through innovative talent, retirement and health solutions. We advise, design and execute a wide range of solutions that enable clients to cultivate talent to drive organizational and personal performance and growth, navigate retirement risk while providing new levels of financial security, and redefine health solutions for greater choice, affordability and wellness. Aon Hewitt is the global leader in human resource solutions with over 30,000 professionals in 90 countries serving more than 20,000 clients worldwide. Key clients: N/A Services: • • • • •
Talent acquisition consulting Program design Workforce planning Applicant tracking system(s) Career site development/SEO
• • • • • •
Candidate sourcing Talent community technology Assessment and selection Digital interview platform Candidate interviewing Interview scheduling technology
• • • •
Pre-employment check administration Onboarding administration Candidate care support Integrated governance and reporting capabilities and technology
Important client metrics: • •
Reducing early turnover Interview-to-hire ratio
•
Candidate and hiring manager satisfaction
• •
Time-to-fill New hire performance
11. Seven Step RPO Website: www.sevenstepRPO.com Seven Step Recruiting is a recruitment process outsourcing (RPO) company with operations in Boston, MA and Denver, CO. We offer end-toend enterprise and project-based recruitment and sourcing solutions for leading global companies in the manufacturing, financial, technical, healthcare, and retail sectors. Key clients: N/A Services: • • • • • • • • • •
Recruitment process analysis Recruitment tools/vendors selection Transition process management Process change management Custom reporting Productivity data analytics Recruitment process training Hiring manager training Competitive analysis Career site creation/optimization
• • • • • • • • • • •
Employment branding Recruitment advertising consulting Search engine optimization Advanced online search Social media design Social media engagement Talent community architecture Talent community marketing Applicant pre-screening Skills assessment Behavioral descriptive interviewing
• • • • • • • • • •
Interview schedule coordination Feedback acquisition and analysis Interview process consultation Pre-closure offer analysis Offer letter management Compliance consulting Background certification Reference checking Onboarding facilitation Pre-boarding engagement
• • • • • • • • •
Time to post Time to source Time to present Time-to-resume feedback Time to schedule Time-to-interview feedback Time to pre-closure Time to verbal offer Time to written offer
• • • • • • • •
Time to onboard Sourced per job Screens per job Presented per job Scheduled per job Passed per job Offers per job Accepted per job
Important client metrics: • • • • • • • • •
[28]
Job-posting conversion rate Sourcing acceptance rate Phone screen pass rate Resume acceptance rate Scheduling occurrence rate Interview success rate Offer acceptance rate Start rate Time to open
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recruitment process outsourcing human capital consulting managed services provider
THE RIGHT PEOPLE MAKE ALL THE DIFFERENCE. This is why our focus is on attracting high-quality candidates to fill your business-impacting roles. With WilsonHCG as your partner, you can count on top talent that takes your organization to the next level.
the talent landscape is changing: are you keeping up?
Shifting Demographics. Innovation. Globalization. The dynamics of talent and business are evolving. That’s why top companies turn to Randstad Sourceright. Our solutions drive business impact across the changing talent landscape, from traditional employees, to free agents and contractors, to the flexible talent supply chain. Learn how we can help you turn the challenges of change into a talent advantage.
Vision and trust for the changing world of talent • Blended Workforce Solutions • Recruitment Process Outsourcing (RPO) • Managed Services Provider (MSP) Solutions • Contingent Workforce Services
We’re keeping our clients ahead of the curve. Take a look! Get a taste of the latest industry presentations, case studies and thought leadership from Randstad Sourceright. Visit: www.randstadsourceright.com/HROTSeptember2013
2013 Baker’s Dozen: RPO 12. Futurestep, A Korn Ferry Company Website: www.futurestep.com Futurestep is the global industry leader in high-impact recruitment solutions, offering fully customized, flexible strategies to help organizations meet specific workforce needs. Our clients turn to us for proven expertise, a global process and infrastructure, proprietary competency models, innovative sourcing strategies, and a unique approach to measure and optimize business impact. As a Korn/Ferry Company, Futurestep can meet a variety of workforce requirements; from RPO and project recruitment, to single search and consulting, our solutions apply a truly world-class capability to deliver talent with impact, providing the experience and global reach to identify, attract and retain the people who drive business success. Key clients: AGL Energy Ltd, Apple, Astra Zeneca, BNY Mellon, Catholic Health Initiatives, Cummins Inc., EMD Serono, Fonterra, GE, Hilton Grand Vacations, Ingenico, Itron, Jones Lang Lasalle, Kraft, Lhoist, Microsoft, Nestle, Newedge Group, Nike, One Steel, Orica, Otsuka, Rio Tinto, Roche, Samsung, Schweppes, Shinogi, Tyco, Treasury Wine Estates, and XL Global. Services: • • •
Sourcing, screening, and recruitment administration services RPO Search
• •
• •
•
Project recruitment Talent acquisition consulting/ diagnostics Assessment services
•
Technology consulting services Employer brand and talent communications Workforce planning
• •
Time to fill Diversity metrics
•
Sourcing metrics
Important client metrics: • •
Quality of hire Cost per hire
13. Kelly Outsourcing & Consulting Group (KellyOCG) Website: www.kellyocg.com Kelly Outsourcing & Consulting Group (KellyOCG), recruitment process outsourcing (RPO) practice is a global leader in managing enterprisewide talent acquisition process, sourcing, and recruitment solutions. Since 1995, we have delivered best-in-class talent acquisition processes and services with a proven record of success through our experience in advanced sourcing techniques, LEAN methodologies and recruitment process design and management. KellyOCG is a global leader in innovative talent management solutions in the areas of RPO, BPO, CWO, human resources consulting, career transition and organizational effectiveness, and executive search. Key clients: N/A Services: • Recruitment process outsourcing (RPO) • Requisition development with hiring management • Sourcing • Screening • Interview scheduling • Requisition management (direct responsibility to hiring managers and direct communication with hiring managers) • Management of offer processes including offer presentation to prospective candidates and preemployment requirements Important client metrics: • Time to fill/cycle time/sub cycle time • Quality of hire • Candidate experience
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•
• • •
Management of onboarding processes (i.e., I-9 form collection, benefit enrollment, provisioning coordination) Reporting and metrics for recruiting and talent acquisition Strategic workforce planning Employment brand development consulting and program management Employment advertising budget coordination and advertisement strategy development Advertisement creation and placement Recruitment trends workshops Recruitment research and industry/
• •
Recruiter efficiency Quality of hire
• • • •
• •
• • • • • • •
• •
competitive trends analysis LEAN consulting Total workforce solutions (MSP, business process outsourcing, contingent or temporary hiring and/ or RPO) Direct hire Employer value proposition Career events Talent supply chain management Talent relationship management Talent resourcing Executive search
Customer satisfaction (HR, hiring manager, candidate) Cost per hire
Without it...
Innovation The
Imperative A global insight study exploring the potential impact of innovative methods in recruiting, developing and engaging staff
Download the report at futurestep.com/innovate Talent with impact
2013 Baker’s Dozen: RPO
OVERALL LEADERS Provider
Breadth of Service
Size of Deals
Quality of Service
Overall Score
1.
Alexander Mann Solutions (AMS)
16.89
8.89
273.33
608.93
2.
Randstad Sourceright
17.04
8.00
271.50
604.72
3.
Pinstripe & Ochre House
18.71
9.00
267.00
598.81
4.
Pontoon
17.37
7.85
261.50
584.18
5.
AllegisTalent2
19.89
8.79
255.83
577.21
6.
Kenexa, an IBM Company
16.36
9.09
251.02
561.32
7.
PeopleScout
15.25
9.08
251.88
561.22
8.
Advantage xPO
16.25
8.63
249.60
557.82
9.
Hudson RPO
17.44
7.78
244.67
548.90
10. Aon Hewitt
15.00
8.14
238.83
532.74
11. Seven Step RPO
18.17
7.83
224.50
507.82
12. Futurestep
16.32
7.80
225.16
506.04
13. KellyOCG
15.77
7.72
214.36
482.37
BREADTH OF SERVICE LEADERS Provider
[34]
Breadth of Service
1.
AllegisTalent2
19.89
2.
Pinstripe & Ochre House
18.71
3.
Seven Step RPO
18.17
4.
Hudson RPO
17.44
5.
Pontoon
17.37
6.
Randstad Sourceright
17.04
7.
Alexander Mann Solutions (AMS)
16.89
8.
Kenexa, an IBM Company
16.36
9.
Futurestep
16.32
10. Advantage xPO
16.25
11. KellyOCG
15.77
12. PeopleScout
15.25
13. Aon Hewitt
15.00
HRO TODAY MAGAZINE
| SEPTEMBER 2013
2013 Baker’s Dozen: RPO
SIZE OF DEAL LEADERS Provider
Size of Deals
1.
Kenexa, an IBM Company
9.09
2.
PeopleScout
9.08
3.
Pinstripe & Ochre House
9.00
4.
Alexander Mann Solutions (AMS)
8.89
5.
AllegisTalent2
8.79
6.
Advantage xPO
8.63
7.
Aon Hewitt
8.14
8.
Randstad Sourceright
8.00
9.
Pontoon
7.85
10. Seven Step RPO
7.83
11. Futurestep
7.80
12. Hudson RPO
7.78
13. KellyOCG
7.72
QUALITY OF SERVICE LEADERS Provider
[36]
Quality of Service
1.
Alexander Mann Solutions (AMS)
273.33
2.
Randstad Sourceright
271.50
3.
Pinstripe & Ochre House
267.00
4.
Pontoon
261.50
5.
AllegisTalent2
255.83
6.
PeopleScout
251.88
7.
Kenexa, an IBM Company
251.02
8.
Advantage xPO
249.60
9.
Hudson RPO
244.67
10. Aon Hewitt
238.83
11. Futurestep
225.16
12. Seven Step RPO
224.50
13. KellyOCG
214.36
HRO TODAY MAGAZINE
| SEPTEMBER 2013
Transforming the Way the World Acquires Talent
Allegis Group Services offers human capital and workforce management solutions to clients in a wide range of industries. We assist you in maximizing the efficiency and effectiveness of your programs while bringing industry best practices and world class service to every engagement.
Managed Services Provider Solutions Recruitment Process Outsourcing Solutions Advisory Services
Learn more about our vision for the future of recruitment
877.247.4426 | www.allegisgroupservices.com | info@allegisgroupservices.com
2013 Baker’s Dozen RPO: Europe Leaders
OVERALL EUROPE LEADERS Provider
[38]
Breadth of Service
Size of Deals
Quality of Service
Overall Score
1.
Alexander Mann Solutions (AMS)
18.00
9.83
282.25
630.21
2.
Randstad Sourceright
17.33
8.67
280.50
624.58
3.
Pinstripe & Ochre House
18.29
9.14
278.14
621.59
4.
Hudson RPO
19.14
8.43
273.21
612.19
5.
Advantage xPO
16.18
7.73
173.55
397.36
6.
Kenexa, an IBM Company
14.60
6.70
167.90
382.10
7.
Futurestep
16.57
6.86
164.71
378.87
8.
KellyOCG
13.00
6.60
137.00
314.42
HRO TODAY MAGAZINE
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Elevating RPO Your partner for strategic growth. As the world’s leading provider of talent acquisition and management services, Alexander Mann Solutions partners with you to deliver more than cost savings and efficiencies. We help you align your talent strategy to wider business outcomes; leveraging the true impact of RPO and strategic talent management. Find out how Alexander Mann Solutions works with 65 RPO clients in over 75 countries, and consults to hundreds more; increasing retention rates; improving employer brands, reducing operational risk, and driving revenue. Jerry Collier +44 (0)20 7832 2700 www.alexandermannsolutions.com/hrotoday @WeAreAMS
2013 Baker’s Dozen RPO: APAC Leaders
OVERALL APAC LEADERS Provider
[40]
Breadth of Service
Size of Deals
Quality of Service
Overall Score
1.
AllegisTalent2
18.50
10.00
284.63
636.16
2.
Hudson RPO
18.20
8.60
271.20
606.48
3.
Futurestep
16.93
8.27
222.24
501.28
4.
Alexander Mann Solutions (AMS)
15.40
8.00
189.20
429.10
5.
KellyOCG
14.17
6.50
173.50
392.98
HRO TODAY MAGAZINE
| SEPTEMBER 2013
R focused on recruitment
Recruitment is the first word in RPO for a reason. We’ve never lost sight of that fact. If there’s one thing the past 40 years of experience have shown us, it’s that recruitment still requires the
human touch. As much as we believe in embracing the latest technologies, we know that nothing can replace direct recruitment. We combine our recruiters’ ability to identify, attract and engage the best talent with a process that is compliant, contains costs and guarantees results. Bring your organization's recruitment back into focus, by allowing PrincetonOne to customize a solution to meet your specific needs.
317.887.2990 PrincetonOneRPO@PrincetonOne.com www.PrincetonOne.com
2013 Baker’s Dozen RPO: Healthcare Leaders
OVERALL HEALTHCARE LEADERS Provider
Size of Deals
Quality of Service
Overall Score
1.
AMN Healthcare
15.38
6.00
317.06
696.17
2.
Seven Step RPO
17.00
7.25
309.00
682.88
3.
Pinstripe & Ochre House
21.29
9.86
276.21
623.14
4.
Kenexa, an IBM Company
16.86
8.00
279.21
620.61
5.
Alexander Mann Solutions (AMS)
16.00
8.20
262.80
584.82
6.
KellyOCG
17.67
10.67
257.25
577.73
7.
Hudson RPO
17.29
8.43
254.68
570.11
8.
Pontoon
19.20
9.20
244.50
552.53
9.
PPR Healthcare
15.00
5.67
187.40
423.01
14.40
5.40
161.50
367.41
10. PrincetonOne
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2013 Baker’s Dozen RPO: Emerging Market Leaders
OVERALL EMERGING MARKET LEADERS Provider
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Breadth of Service
Size of Deals
Quality of Service
Overall Score
1.
Yoh
16.94
7.50
211.38
477.88
2.
AMN Healthcare
15.38
6.00
211.38
474.23
3.
WilsonHCG
15.85
7.60
194.95
441.66
4.
PPR Healthcare
15.00
5.43
188.07
424.25
5.
PrincetonOne
15.83
6.56
174.56
398.07
6.
Decision Toolbox
14.33
4.57
165.43
374.97
HRO TODAY MAGAZINE
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2013 Baker’s Dozen RPO: Emerging Market Leaders 1. Yoh Website: yoh.com For over 70 years, Yoh has been one of the most trusted providers of highly-skilled professionals and talent-related services that customers and candidates choose first. We provide the talent needed for the jobs and projects critical to client success by delivering comprehensive workforce solutions that focus on aerospace and defense, engineering, government, healthcare, life sciences, information technology, and telecommunications. Yoh has quickly become a leader in innovative talent acquisition programs and the delivery of client-specific recruiting solutions. Yoh’s blog, The Seamless Workforce (www.seamlessworkforce.com), provides ongoing coverage of HR issues, workforce trends, and advice for all users of recruitment process outsourcing and workforce solutions. Founded in 1940, Yoh operates from 75 locations throughout North America and the U.K., and is headquartered in Philadelphia, PA. As a business unit of Day & Zimmermann, Yoh has a burgeoning global footprint, as our parent company operates from more than 150 worldwide locations.
Services: • Recruitment process outsourcing: end-to-end, full-cycle RPO; short-term/project RPO; limited/point-of-service RPO; on-demand RPO; and workforce planning and consulting. Important client metrics: • • • •
Time to submit Time to fill Candidate quality Candidate and hiring manager satisfaction
• • • •
•
Contingent labor managed and outsourced solutions: managed services provider (MSP); payroll services; independent contractor compliance; statement of work (SOW); and vendor management system (VMS)
Cost per hire Interview to hire ratio Offer to acceptance ratio Diversity of slate
• • • •
Diversity of hire Source of hire (ROI) Sourcing effectiveness Attrition by source/recruiter
2. AMN Healthcare Website: www.amnhealthcare.com AMN Healthcare is the innovator in healthcare workforce solutions to healthcare facilities across the nation. AMN Healthcare’s workforce solutions-including recruitment process outsourcing, MSP, and consulting services–enable providers to successfully reduce complexity, increase efficiency and improve patient outcomes. The company provides access to the largest network of quality clinicians and physicians through its innovative recruitment strategies and breadth of career opportunities. Services: • • • • • •
RPO, enterprise-wide or project based LEAN process consulting Recruitment marketing Employer branding Requisition management Lominger position profile development
• • • • •
Sourcing and screening Clinical assessments Social sourcing Mobile RN and physician sourcing iPhone apps Interview scheduling and travel management
• • • •
ATS implementation and management Offer management Exit interviewing Comprehensive data analysis and reporting
Source of hire Retention Candidate quality and years of experience
• • • •
Cost per hire Hiring leader satisfaction Candidate satisfaction Improved compliance
Important client metrics: • • • •
Fill rate Time to submit candidates Interview to hire ratios Overall time to hire
• • •
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2013 Baker’s Dozen RPO: Emerging Market Leaders 3. WilsonHCG Website: www.wilsonhcg.com WilsonHCG, a full-service recruitment process outsourcing (RPO) and human capital consulting provider, operates on the principle of providing true partnership to its clients. Creating scalable and customizable human capital solutions, the company is revolutionizing the recruitment process and bringing innovation to the industry. WilsonHCG is globally recognized as a top RPO provider and leader in the marketplace. Founded in 2002, the company headquarters is located in Tampa, Florida. While maximizing clients’ talent acquisition processes is essential, WilsonHCG recognizes the relationships it develops lead to the results its clients realize. Services • Recruitment process outsourcing (RPO) • Human capital consulting • Managed services provider (MSP) Important client metrics: • Candidate quality • Customer satisfaction • Hiring manager satisfaction • Candidate satisfaction • Time to fill • Cost per hire • Diversity slate of candidate pool • Submit to interview • First-year turnover rate
4. PPR Healthcare Website: www.www.pprmanagedservices.com PPR Talent Management group is the nation’s leader in healthcare RPO. Through unique relationships with healthcare organizations, PPR becomes a strategic and tactical partner for clients for ‘everything recruiting’. As an organization that has been ranked on the Best Places to Work list for nine consecutive years, our foundation is culture-based hiring. We pass this expertise on to our healthcare clients while making them the best at recruiting in their market. Services: • • • • • • •
Enterprise-wide RPO RPO (1 or more recruiter seat) Project RPO Contract recruiters Sourcing Screening Recruiting
Important client metrics: • • •
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Time to fill Retention Cost per hire
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2013 Baker’s Dozen RPO: Emerging Market Leaders 5. PrincetonOne Website: www.PrincetonOne.com PrincetonOne RPO designs and delivers innovative and scalable recruitment solutions that help our clients identify, attract, recruit and hire top talent. From sourcing strategies and process design to technology, culture and scope, every solution that we deliver is unique and based around each client’s specific needs. With an extensive heritage of recruiting experience and no ties to proprietary technology, PrincetonOne RPO creates custom recruitment process outsourcing (RPO) solutions that are grounded in best practices, including current technologies and recruiting trends, and leverage our proven methodology. The success of each solution is guaranteed through service-level agreements and confirmed through published metrics. Services: • Program consultation/management: requisition development with hiring management; requisition management (direct responsibility to hiring managers and direct communication with hiring managers); reporting and metrics for staffing operations; workforce planning support; staffing department budgeting support; employment brand development consulting and program management; employment advertising budget coordination and advertisement strategy development; and advertisement creation and placement •
Candidate recruitment and sourcing: employee referral program management; executive search - retained and contingent; implementation and management of the client’s internal employee and employee referral program as well as corporate career center.; post on all top job boards as well as a multitude of niche and diversity sites; social media campaign that has the ability to post positions to 300 plus different social media outlets; research associates and lead generation coordinators with expertise in competitor mapping, passive recruiting and mining to search; name gathering via web-based search engines and specialty sites as well as ask candidates currently in the screening process for referrals; temporary staffing; and college recruiting
Important client metrics: • Time to fill • Time to submit candidates • Position-vacancy rate
• • •
•
Assessment: web-based screening questions to verify minimum requirements; qualifying phone screen to verify minimum requirements; standard phone assessment (client-provided); customized behavioral-based phone assessment; standard online assessment (client-provided); customized competency based online assessment for both personality and position based; and skills-based testing
•
Interview logistics coordination: client phone interview; client face-to-face interview; mileage reimbursement; air travel; hotel accommodations; rental cars; expense reimbursement processing; and on-site interview personnel
•
Onboarding: management of offer processes, including offer presentation to prospective candidates; offer letter generation: proper modification of client-provided offer letter template, print and FedEx; I-9 form collection; benefit enrollment; provisioning coordination; SSN trace; county criminal felony and misdemeanor (7 years); education (highest degree); employment (up to 3 employers or 7 year history); credit; MVR; professional references (3 reference interviews); drug (9-panel urinalysis); new hire packet distribution
Diversity hires Offer acceptance rate Source effectiveness
• •
Manager/new hire/applicant satisfaction Cost per hire
6. Decision Toolbox Website: www.dtoolbox.com Founded in 1992, Decision Toolbox provides scalable and easily integrated recruitment solutions for a 7 percent cost per hire on average while incorporating rigorous quality controls and a 12-month candidate guarantee. Armed with the very latest tools and a team of seasoned U.S.based recruiters and sourcers, Decision Toolbox is an on-demand recruiting department for one critical search, for large projects, or a complete RPO solution. Decision Toolbox has taken a leadership role in almost every aspect of recruitment, introducing an RPO offering in 2000, four years before it became industry practice. Services: • On-demand RPO • Standard full service search • Advanced full service search • Talent pipelining • Name generation • Competitive mapping Important client metrics: • Time to fill • Hiring manager satisfaction • Cost per hire
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RPO
Debunking Millennial Myths Why your organization should be hiring more Gen Y workers. By John Wilson
A collaborative, resourceful person who is an innovative thinker and loves a challenge sounds like the perfect employee, right? Well, that’s been my experience with Generation Y employees. So why wouldn’t organizations want to hire them? Members of Gen Y, also referred to as Millennials, have gotten a lot of heat lately. And they don’t deserve it. During the past few months, plenty of articles have described what Gen Y is not. But there’s value this generation brings to a company. Not only should companies be hiring Millennials, we need them. In the fast-paced, ever-changing world of recruitment process outsourcing (RPO), flexible and hardworking employees are a must. Millennials’ willingness to be accessible is especially important in recruitment, with candidates and clients calling at all hours. These techsavvy, networking gurus, which could be called the “mobile generation,” are always plugged in. They are happy to answer a call from a candidate at 7 p.m. if it means an impressive submission to their client the next morning. Of
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course, while it’s a plus that Millennials are so flexible, they want employers to give them the same courtesy. They expect to be able to run to a doctor’s appointment in the middle of the day without issue, and will answer emails in the waiting room. With Gen Y, it’s all about blending work with life. Diversity is also playing an important role. With more women and other minorities obtaining post-secondary education, these groups have a higher presence in leadership positions. So, not only are we getting new ideas because they’re part of a different generation, but the knowledge exchange contains fresh perspectives. Diversifying your workforce is essential for innovation and growth to occur, and the entrance of Gen Y into the workforce has facilitated that. Millennials are eager to give their input and come ready for your feedback, whether it’s positive or negative. It’s important for them to be part of your company’s goals. Leverage their enthusiasm and motivation to expedite
RPO
projects and work toward your company’s goals. Colleagues who want constructive criticism to improve their work not only make your job easier, but it’s essential when working for clients. It’s crucial for RPO providers to continue to learn what our clients want and deliver that. RPO professionals have to bend and mold their work styles to fit their clients’ needs, and Millennials are eager to hear how they’re doing and put suggestions for improvement into motion. Millennials also have a sense of curiosity. They want to know why they’re following a certain process or why they’ve been assigned to a specific project. One of the most respected HR leaders in the history of the industry once said that the number one quality he looks for in a prospective new hire is curiosity. An organization full of robots agreeing to process doesn’t promote growth. Millennials question because they’re thinking of ways to improve processes or become more involved in the strategy of a project. They’re interested in making an impact on the company and the HR world. While they do aim big, Millennials take the time to set realistic goals. Coupled with determination and drive, this leads to success. Tactics That Attract Millennials Gen Y will positively contribute to your company, so how can you attract them?
Technology. Millennials are tech-savvy and appreciate new technologies. Be ahead of the technology curve. Beyond that, they’re on social media, so your company should be too. That’s where they’ll head first to research your organization. Your recruiters should be knowledgeable about social recruiting and not afraid to try new approaches to get better results. Employee branding and referrals. The recently released study by the Boston Consulting Group, The Millennial Consumer: Debunking Stereotypes, reported that millennials trust friends more than “corporate mouthpieces.” The study noted that a person with credibility and brand knowledge has shifted from someone with professional credentials to someone who has experienced it firsthand. Take advantage of this shift by building your brand with your employees and let them become your biggest advocates. Create an employee brand ambassador program that showcases your employees’ passion for the company and their work. Your Gen Y employees will gladly sign up to get involved and when
Create an employee brand ambassador program that showcases your employees’ passion for the company and their work. Let them be your biggest advocates. Your Gen Y employees will gladly sign up to get involved and when other Millennials see that passion, it will spark their interest in applying for a position. other Millennials see that passion, it will spark their interest in applying for a position.
Innovate hiring practices. Millennials appreciate speed and ease so if your application or hiring process has too many steps, these candidates may be discouraged and not finish the forms. Simplify and streamline the hiring process. Video interviewing or virtual career fairs, for example, are HR technologies that enable recruiters to be efficient. And Millennials embrace the opportunity to interact with these new tools. There’s no question that Millennials are changing the workforce as we know it. Instead of picking apart how they’re different from previous generations, let’s embrace what they bring to the table. Employing people who enjoy what they do every day, regardless of their generation label, and adapting to the changing employment landscape leads to a company’s continued success. Learning what makes each generation tick and realizing the positive attributes each generation offers will separate your organization from the rest.
John Wilson is the founder and CEO of WilsonHCG.
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RPO
World Conquest The impacts of the recent Pinstripe and Ochre House merger. By Elliot Clark Five years ago I had a spirited debate with a CEO of one of the top RPO firms. He was not as convinced as I was about the spread of global RPO. I had long believed (back to my Kenexa days) that eventually global companies and global providers would agree that HR services needed to be—what was the word I was thinking of—well, global. Last month we saw the merger of Pinstripe and Ochre House as evidence that this trend is now simply a global given. Pinstripe has been a leading provider of RPO and talent management solutions to clients since its inception. It has grown to be one of the top players in the space and the only top player (with the acquisition by IBM of Kenexa) that is not a division of a global staffing or HR BPO firm in North America. Pinstripe has industrial vertical expertise in financial services, manufacturing, technology, and healthcare. Pinstripe was initially funded by R.W. Baird and has done a good job in dealing with the private equity firms as evidenced by securing a significant second round from AccelKKR. The company used these funds to invest internally and secure the merger with Ochre House. Ochre House has been a challenger brand for the last few years and has also grown dramatically. It also expanded globally, buying TAAHEED and Carmichael Fisher to secure markets in the Middle East and North Africa. There may not be a lot of RPO in the Middle East and North Africa right now, but if you recall the quote by ice hockey great Wayne Gretzsky “that it was not about skating to where the puck is but where it is headed next,” than this strategy makes great sense. The combination of the firms creates a company with more than 750 professionals servicing clients in 43 countries in 26 languages. Both impressive and necessary to support global HR organizations.
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The Pinstripe and Ochre House merger started as a partnership agreement in 2009. The problem with partnerships is that many of them have not gone well for the providers or the clients supported. Alexander Mann Solutions (AMS) partnered briefly with The Right Thing (now ADP) and then decided to launch in the United States itself after differences in the corporate cultures caused issues. SourceRight Solutions had a global partnership with Hays until they were wooed away from that romance by Randstad with, frankly, a couple of billion dollars. In each case, the stress of maintaining the relationship may have exceeded the benefit and the anxiety extends to the customer. I have had senior-level HR executives tell me that they will not buy anymore from companies with a “partnership story.” Almost all of the RPO firms are now part of global staffing firms. Pinstripe based in the U.S. and AMS in Europe are the largest “independent” firms out there in the market, but on size alone, I am not sure what “independent” means anymore. I might add under the definition of independent would also include Peoplescout, WilsonHCG, and SevenStep RPO. But among the independent firms, Pinstripe now ascends to the level of true global player. They can challenge any international staffing firm on footprint, capability, and language support. It was a necessity to survive in the rarified and highly competitive atmosphere at the top of the RPO market. We congratulate Pinstripe and Ochre House on the merger. It changes the game, and adds a new and potent player to the 2014 RFP season. And what is next? I don’t know. Which RPO firm has the contract to staff the first space station?
NOBODY SUCCEEDS ALONE
Global Operational Excellence • Service Delivery Models • Formation – Reformation – Transformation • Manage Your Resources From the Executive Suite to Employee Desktop
Where does the HR leader find the resources needed to help optimize internal resources and strategically employ external resources?
Work with your peers to build: GLOBAL COMMUNITIES
Share information with peers in your industry, of similar size, and in similar geographies who face the same challenges that come across your desk. Partner with other leaders and practitioners to improve operational outcomes and internal customer satisfaction.
INNOVATIVE TECHNOLOGY
Technology – used effectively – enables opportunity. Identifying and engaging the right technologies in the right situations at the right times are the keys to using it effectively.
ACCURATE DATA
Data drives decision-making. While data is abundant, relevant actionable data can be difficult to find and use to drive results. The HRO Today Institute marries the internal operational data volunteered by its members, with the global data collected by HRO Today and HRO Today Global magazines to build a library of internal and external practises in operation on a global basis.
Why The HRO Today Institute? HRO Today and HRO Today Global magazines are the definitive resource on HR outsourcing and operations for HR leaders. The 28,000+ HR leaders who have been reading HRO Today for years rely on our products and services to improve outcomes across their enterprises. On top of the wealth of data and content available in the pages (actual and virtual) of HRO Today and HRO Today Global, we provide senior executives with unparalleled learning, meeting, and networking experiences through a variety of vehicles, including events – from forums to webinars, market/client surveys, industry landscape analyses, case studies, and more. Through this rich extensive experience we have developed unequalled access to and relationships with the key players in the marketplace around the globe, putting us in a unique position to assist CHROs in achieving their goals of driving the HR-empowered enterprise. THE HR-EMPOWERED ENTERPRISE For more information, please contact Vince Albergato at 215-606-9562 (Vince.Albergato@SharedXpertise.com).
RPO
Sophistication, Elevated Both sides of the RPO equation have evolved. It’s time to meld expertise and innovation into an effective talent acquisition strategy. By Jeanne MacDonald The role of the recruitment process outsourcing (RPO) provider is changing. Gone are the days of a simple one-size-fits-all approach, and instead we herald an era of tailored talent management solutions that directly feed into a company’s business strategy. As the expression states, you are only as good as your best people, and the boardroom is taking note. In order to survive in an increasingly competitive economic environment, measures need to be taken to ensure talent acquisition is being addressed as a top priority.
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As a result, the role of the chief human resources officer (CHRO) has become increasingly valued among the C-suite. Securing this well-earned place at the executive table brings with it a degree of pressure around contributing value, formulating new strategies, and designing an innovative operating model for the business. When it comes to talent acquisition, RPO has a role. Aberdeen research recently found that more than 50 percent of businesses are considering an element of RPO or full-scale RPO into their talent acquisition strategies. This continues to drive home the need for an on-set strategic partnership between the RPO buyer and its provider.
RPO
Today’s sophisticated buyers expect their provider to become an integral part of their workforce. RPO providers must have the capability to fully immerse into an organization to understand its recruitment challenges. Working closely with the CHRO allows access to a company’s entire business infrastructure, providing the strategic assessment team to fully delve into operational performance and current talent strategy. Before there may have been some reluctance, but this is essential to enable a better understanding to foster the best possible solution. Often members of the consulting team will even stay on during transition to ensure seamlessness. Practitioners are also taking steps to increase their internal involvement. Organizations that have a dedicated internal contact that executes an appropriate level of joint diagnosis and examination is a worthwhile investment and will lead to the most customized solution, yielding the best possible results for both parties. This ‘internal champion’ operating among the C-suite can effectively communicate the overall holistic framework of the business, and work with RPO provider to develop an effective strategy. As the CHRO has become more sophisticated so have the nature of the solutions. They are more complex and no longer restricted to talent acquisition alone. New research from the Aberdeen Group shows that best-in-class organizations are deploying next-generation solutions that offer innovation and in-depth functionality across all areas of recruitment. It is critical that the RPO partner provide consultancy in areas that are intrinsically linked with talent acquisition that achieve better overall outcomes, efficiencies, and ultimately a reduced cost per hire metric. This involves a host of services extending from building strategic talent communities, developing an organization’s employer brand, strategizing workforce planning, and integrating competent HR technologies. This is where RPO comes into its own, building on its expert knowledge of the recruitment market and providing innovation in areas critical to meeting the business’s immediate and long-term strategic and financial objectives. Elusive Innovation The importance global organizations place on innovation can no longer be underestimated. In fact, recent research from Futurestep shows that employees are demanding innovation at every stage of the employee lifecycle. With more than 75 percent of employees expecting employers to innovative in the way they retain and engage their staff, organizations need to formulate a
plan in order to secure an edge over their competitors. But they aren’t. While 77 percent of HR professionals in North America think that demonstrating innovation in recruitment and talent management is crucial to achieving growth targets, an equal amount—76 percent— confirmed their organization should be doing more to demonstrate innovation in this way. So what is stopping the CHRO? In the United States, research showed the significant barriers to adopting best practice methods were a shortage of financial investment and lack of senior buy-in. The role of the CHRO is to make the case to the board that innovation is crucial to standing out from the crowd and winning the war for talent, while maintaining growth and profitability. A partnership with an RPO provider can help. Their market expertise in implementing innovative practices across the board will ensure to attract and retain the best talent available. Other benefits include keeping motivation and productivity levels high in order to drive growth in a continuingly challenging economic climate. And in a market as competitive as the U..S, securing and keeping the very best talent is crucial. Innovation isn’t a tick-box exercise, or a whim of a tech-savvy HR manager, but a technique to help gain competitive advantage through talent, which is a company’s greatest asset. For the CHRO, being able to take guidance from the RPO partner means the design of a customized and effective business strategy to achieve these goals. As talent, knowledge, and leadership become the currency of competitive advantage for organizations around the world, the role of the CHRO is more critical than ever to achieve business success. While the CHRO will understand the needs of the business, a strategic and objective third party with a specialized skill set and expertise is an essential addition to meet the needs of high-performing companies. With this, the role of the RPO provider is becoming more that of a consultant, advising organizations how best to compete effectively in the business space. In today’s tightening talent market, the strength of your talent acquisition function will make or break your company. This only becomes more complex when you look at global organizations examining at their talent needs around the world. As the CHRO and an RPO work together, such challenges and demands can be addresses and dealt with effectively.
Jeanne MacDonald is chief global sales and solutions officer for Futurestep.
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Talent Management
Quantifying Quality of Hire Putting metrics around your top talent offers some useful insight. By The Editors Recent research from The Conference Board reports that the top challenge CEOs face is human capital, a finding that further emphasizes the potential impact talent has on the bottom line. If talent is so valued, how can organizations quantify their quality of hires? That complicated question was researched by a recent study undertaken jointly by Hudson RPO and the HRO Today Institute. The research sought to glean information on global opinions of the importance of quality of hire and the efforts to measure it quantitatively. The study surveyed 246 companies worldwide, with 47 percent coming from the Americas, 35 percent from the Europe-Middle East-Africa (EMEA) region, and the remaining 18 percent from Asia Pacific (APAC). Of those 246 organizations, 80 percent were from the private sector with the other 20 percent being government or nonprofit organizations. “I think most of us who are in professions of recruitment or HR because we fundamentally believe that talent makes a difference,” says Global RPO Leader for Hudson
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RPO Kimberley Hubble. That feeling was reflected in the study. Among the companies surveyed, 97 percent believed that quality of hire is a critical element of business success. Earlier studies have provided evidence of this. As Hubble explains, “The differences between average performers and high performers create real business impact.” A McKinsey study provides empirical proof. McKinsey reported that in operational roles the difference in business impact between an average and high performer can be as much as 40 percent, while it approaches 50 percent in general management roles and reaches as high as 67 percent for sales personnel. In spite of these quantified impacts, only about onethird of the companies surveyed were measuring quality of hire with a formal process and 45 percent report they had discussed the issue internally but did not have plans in place to establish an appropriate process (see Figure 1). While measuring this metric is on the table for many organizations, very few have taken any action, and among those that had, most had only began their programs in the past two years.
Talent Management
Figure 1
Figure 2
Most employers do not differentiate metrics for executives, managers, professional, and sales—and that needs to change. Why is this—especially when the quality of employees drives so many important business outcomes? Executives stress that when measuring quality of hire, it can be hard to pinpoint exactly what to measure, and how to quantify and evaluate it. Hubble offered some metrics that are a solid starting point for evaluating quality of hire: •
Retention;
•
Feedback from hiring managers;
•
Employee performance appraisals;
•
Employee productivity measures; and
•
Actual financial metrics such as revenue, profit, or revenue growth per employee.
In fact, the study found that of those measuring quality of hire, 82 percent monitor retention of new hires, 74 percent look at hiring manager feedback, and 63 percent
analyze employee performance appraisal ratings (see Figure 2). It’s also necessary to cross-reference metrics to create a multidimensional view of performance when measuring quality of hire — a single metric in isolation may not reveal the full story. For example, using employee performance ratings without integrating retention data only tells half the tale; an organization that hires good people who leave within the first six to 12 months needs to know more. Companies also need to consider developing specific metrics to fit specific job positions. Currently most employers do not differentiate between executives, managers, professional, and sales—and that needs to change. “My view is that a good quality of hire program will have far more impact if you are focusing on the really business critical roles for your organization rather than an onesize-fits-all approach,” Hubble shares.
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Talent Management
Businesses therefore must be able to identify those critical roles and choose the most effective metrics to measure quality of hire within those areas. According to Hubble, part of this challenge stems from inefficiency in human resources information systems (HRIS). Only around a third (35 percent) report their systems work ‘very well’ or ‘fairly well’ in delivering the data needed. The remaining two thirds say their systems are ‘okay’ (31 percent), ‘poor’ or ‘very poor’ (34 percent). Why is this the case? Organizations are plagued by systems that don’t capture the necessary data; a lack of integration; inaccuracy in data; difficulty reporting data; and a misstep in analyzing the data.
Figure 3
While there are a number of obstacles to improving and measuring quality of hire, Hubble believes that these hurdles can be overcome. “I believe that as a profession we really need to get better at this,” she said. “We need to put the hard yards in to get the results. If we do that, there’s a great reward at the end.” In fact, a clear majority (85 percent) of organizations that measure quality of hire and take action as a result believes doing so has a positive impact (10 percent or more improvement) on hiring quality. Close to half (45 percent) believe there is a significant impact (improvement of more than 25 percent) (see Figure 3). Of the top three quality of hire metrics used, (retention of new hires, hiring manager feedback, and employee performance appraisal ratings) the study found that retention of new hires is most significantly affected by the introduction of quality of hire measures: 62 percent say there is a dramatic impact (more than 25 percent improvement). Employee performance appraisal ratings and hiring manager feedback are also boosted with the introduction of quality of hire metrics: 56 percent and 52 percent respectively report a significant impact. “I think this has great potential,” concludes Hubble. “It can change the process, make organizations look more seriously at their recruitment panels to see who is getting more involved and who training hiring managers are. You’ll be able to determine the source of the highest performers. There are lots of other interesting implications companies can introduce once they know.”
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A clear majority (85 percent) of organizations that measure quality of hire and take action as a result believes doing so has a positive impact (10 percent or more improvement) on hiring quality.
Talent Management
Better Employees Equals Better Bottom Line Experience the benefits of measuring the quality of hires by taking these steps:
Get executives on board. Work with the HR director, CEO, and other executives to publicize the value in quality of hire, identify business critical roles, and secure resources for these initiatives. Use multidimensional criteria. Incorporate financial measures, gather client feedback, and determine what separates average and high performers. Determine the most relevant metrics for quality of new hires in your organization. Encourage debate about the best measures for each role family to ensure the most appropriate metrics are used. Ensure the data your organization chooses is high quality and incorporates multiple elements that validate one another. Present information to the decision makers. “Ask for a spot at the executive team meeting to present what you found,� said Hubble. Make the necessary changes. Begin training programs for hiring managers, seek out new recruiters, create a more robust selection process, and employ different tools for deeper assessments. Review program annually. Once you know what is influencing the quality of your hires, you can take concerted action to replicate this in all hires. Be prepared to challenge the status quo and seek external advice and help as needed. Don’t think you need to do everything yourself. Document a specific project plan and keep people up to date on what is happening. Revisit your quality of hire program each year to ensure you are studying the right roles, using the best metrics, collating and analyzing the most appropriate data and driving real change as a result. Most importantly, revisit the business case and quantify and report the benefits the program has delivered for your organization.
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Social Media Savvy Today’s technology powers job connections and branding, and can position your organization as a great place to work. By Carol Johnson Today’s clinical job seekers are becoming more sophisticated, engaged, and targeted in their use of digital, mobile, and social media, leveraging tools to more efficiently and effectively manage their job search and connect with others who can help their careers. A vast number of social and mobile tools provide access to companies, jobs, and the ability to network, network, network. Though a variety of healthcare career search options abound, clinicians appear to be using significantly fewer resources in 2013 to look for a job than in prior years; instead, they are taking advantage of social media to connect with companies, and making sure their professional persona shines through online. These are among the findings from AMN Healthcare’s third annual survey of clinicians’ use of social media and mobile for career purposes. Of the clinicians who responded, one-third said they are actively looking for a job right now and two-thirds reported that they searched for jobs in the past two years. This recent study further examines clinicians’ job search behaviors and utilization of technology.
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The job search methods most popular for physicians, nurses, pharmacists and allied professionals in 2013 include: •
Direct contact with an organization (62 percent)
•
Use of job boards (60 percent)
•
Referrals (51 percent)
•
Search engines (49 percent)
•
Recruiter found me (38 percent)
•
Healthcare-focused social media sites (30 percent)
•
General social media sites (21 percent)
While referrals declined precipitously year over year among clinicians, it is still one of the top sources cited for getting hired. Other job search methods, which all declined year over year, include open houses, career fairs. and print newspaper ads; they were bested this year by healthcare-focused social media sites (30 percent) and general social media sites (21 percent).
Talent Management
How Clinicians Use Social Media According to the AMN survey, a striking 85 percent of clinicians use social media in a variety of ways, including to source jobs. While pushing out job postings to candidates isn’t a bad idea, employers shouldn’t discount the opportunity to share the company’s values, culture, and purpose via social media as well. Consider using social media to raise your flag of authenticity through videos, peer-to-peer interaction, and directly through the voice of your customer and employees. Begin to establish yourself as an authority in the field by building awareness about a specific career path within an industry. Take, for example, American Mobile Healthcare (an AMN Healthcare company) and the website TravelNurisng.com recently hosting a video contest, The Traveler’s Journey. It called for nurses to develop videos showcasing why travel nursing is a career opportunity to consider. The program provided real stories, peer-to-peer advice, and high interaction. In fact, one of the most popular aspects of the contest included allowing the community to choose the winning video. Some of the videos were also sponsored on Facebook and shared on YouTube, and they remain a popular resource for nurses to learn about the career opportunity. AMN’s survey of social and mobile media also shows that one in four clinicians use social media to research companies, which gives rise to the opportunity to focus on your employment brand. What’s more, one-third of healthcare professionals use social media to see if they know someone in a company to make a career connection, and one in five use social media to locate recruiters. At Med Travelers (an AMN Healthcare company), allied recruiters are frequently contacted by candidates on their personal and company social sites, particularly Facebook and LinkedIn. In fact, a recent connection made between a Med Travelers recruitment manager and a candidate resulted in a successful hire and a recommendation on the social site where they connected, which has since led to other career connections. Social Sites of Choice Clinicians have fine-tuned where they spend their social time. Most notably, their top career-related social site
has shifted from Facebook to LinkedIn. Facebook was the dominant choice among nurses and allied professionals, and to a lesser degree among physicians and pharmacists, for the past few years. In 2013, LinkedIn catapulted ahead: 58 percent of clinicians now select it as their preferred site for career purposes. Their second favorite is Facebook (24 percent) and Google+ (10 percent) is a distant third. Twitter is currently favored by only 1 percent of clinicians. Apparently clinicians are in the right place, as Forrester and Simply Hired reported in June that recruiters are also leaving Facebook behind in favor of LinkedIn. Nurses, doctors, and other healthcare professionals are also taking a look at their professional reputations online. The majority of clinicians surveyed said they enhanced their social profiles online this year. It’s a smart idea: online image management websites like Trusted ID and Reppler.com are sources recruiters leverage for professional discrepancies and assessing candidates’ online images. According to AMN’s survey, 61 percent of clinicians updated their profiles in 2013. About one-third said they refrained from posting negative/offensive content, 25 percent updated their profiles with a professional image, while 24 percent chose to make their profiles private. In addition, candidates are showing they understand the value of keyword discovery—14 percent enhanced their profiles with topics relevant to jobs of interest. About 10 percent also used their contacts for professional gain or requested endorsements from connections. The bottom line? Talent sourcing continues to evolve for organizations. Understanding the candidate’s digital, social, and technological behaviors is critical to being seen as a trusted career advisor. Tap into the networks where your audience interacts—then listen, learn, engage, experiment, and refine. No two solutions are likely to be the same for every company.
Carol Johnson, MBA, is vice president of sourcing and digital marketing for AMN Healthcare. To request your complimentary copy of survey results, contact her directly at carol.johnson@amnhealthcare.com.
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Judge and Jury How candidates feel about your hiring process. By Tom Boyle What does your company look like from the candidate’s side of the desk? Every interaction with a candidate is a brandbuilding opportunity for your organization. Gaining insight into the candidate’s experience is vital, given the high cost of recruitment and competition for the best talent. In a recent SilkRoad survey, 2013 Employment Marketplace Survey Results: The Candidate’s Perspective, nearly 250 professionals revealed what they thought of companies’ talent acquisition practices, as well as the tools and techniques organizations employ. This survey examined how companies’ recruitment practices are perceived. A wide range of professionals were polled: those who are happily employed, those who “sample the market” occasionally, and those who are actively looking for a new position. The results can help talent management professionals determine whether their companies operate in positive ways to source, attract, interview, and engage candidates.
each ranked third, receiving 36 percent of the response (see Figure 1). The connection between work-life balance and good benefits is clear-cut. Workers have an easier time balancing between family and personal life when they have paid time off, paid sick leave, child care benefits, and a quality healthcare plan. According to a United States Department of Labor survey, Selected Paid Leave Benefits, among all workers in private industry, 61 percent have paid sick leave and 77 percent have paid vacation and holidays. Among management and professional workers, the percentages rose to 83 percent for paid sick leave, 88 percent for paid vacation, and 89 percent for paid holidays. These can be important elements of your company’s value proposition to the candidate—especially if your organization is competing for highly skilled talent in a turbulent economy.
Tapping in the Mind of the Candidate
The least popular choices were companies that are committed to diversity (3 percent) and noted for corporate citizenship (2 percent).
Organizational preferences. When asked what organizational characteristics candidates value most, more than half (55 percent) seek a work-life balance, while 38 percent are interested in good benefits, indicating that job seekers highly regard non-wage compensation when they look for jobs. The qualities of providing opportunities for professional growth and trustworthy, strong leadership
The survey also showed there were differences between the preferences of baby boomers, generation X employees, and millennials. Millennials were more likely to value flexible work arrangements and a passionate, engaged workforce; generation X favored a work-life balance and opportunities for professional development; and baby boomers more often chose good benefits and recognizes and rewards
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Talent Management
Figure 1
Source: SilkRoad achievement as characteristics they’d consider favorably. Given these findings, a recruiter might consider varying the company’s employment presentation by generation.
Job sources. Company websites rank as the top job-hunting source with 65 percent of respondents reporting them as their favored method (see Figure 2). SilkRoad’s 2013 Recruitment Marketing Effectiveness Report echoes this finding. An analysis of more than 10 million applicants, 300,000 interviews, and 150,000 hires showed that of the top 10 online recruitment sources, company career sites provided the largest number of hires and the second largest number of interviews. A company website provides a unified brand image, which can reflect the culture and values of an organization. That image, plus more detailed job descriptions on the site, helps the potential recruit decide whether he or she is the right fit for the organization and the job.
Survey participants’ second choice source was job boards (65 percent) such as Career Builder, Glassdoor, LinkedIn, and Monster. While many industry experts wonder whether large, generalist job boards are still relevant, it appears that respondents in our survey sample value them highly. The third job source, referral from a trusted friend (61 percent), shows that referrals remain a strong base for recruiting. Candidates undoubtedly know that having a referral separates their resume from the pack. Studies and research (like the article “In Hiring, a Friend in Need Is a Prospect, Indeed” from the New York Times) show that referred candidates are 10 times more likely to be hired than other candidates in some companies. The lowest ranked sources were newspaper ads and general search engines. Not surprisingly, newspapers’ job sections have been displaced by online media and have had decreasing advertising revenue for years.
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Talent Management
Figure 2
Source: SilkRoad
Social networks. LinkedIn, the well-known professional job networking site, was more than four times as popular as other social networking sites when it comes to job hunting. This impressive number may be attributed to the fact that LinkedIn is primarily targeted at professionals and is career-centered. Moreover, LinkedIn enables a job seeker to network easily with special interest groups in specific industries or professions. There’s been a lot of buzz in the media this year concerning the use of Twitter and Facebook as tools to identify and engage candidates. But, SilkRoad’s survey respondents did not rank these as important sources of job leads: 18 percent chose Facebook as a source of leads; only 7 percent chose Twitter as a likely source. One reason for Twitter’s low rating may be that it’s difficult to deliver sufficient information about a job within the 140-character limitation. Do these results differ by generation? After additional analysis, LinkedIn was still the most popular source among all generations. Not unexpectedly, the survey found that millennials were slightly more likely to use Twitter for job leads. Still, only 14 percent of millennials said that they would likely receive leads via Twitter.
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Application process. Without a doubt, electronic media dominates when it comes to the way candidates prefer to apply for jobs. Forty-eight percent of survey participants said they would prefer applying for a job on a company’s website (see Figure 3). But what kinds of information or features do candidates want most on company website? Overwhelmingly, 91 percent reported detailed job descriptions were the most important to them. Sixty-seven percent said the ability to complete the entire application online was critical while 64 percent valued the ability to search and pinpoint jobs by title or geography. Testimonials were also deemed helpful by 32 percent and 31 percent felt executive profiles, annual reports, and messages from the CEO were also important. A company’s career site can make or break the candidate’s experience. It’s clear that a combination of good content and well-designed functionality make up an effective company career site. Hiring Process Pet Peeves The way candidates are treated during the recruitment
Talent Management
Figure 3
Source: SilkRoad process surely leaves a lasting impression. Candidates share information among themselves and their opinions resonate long after a position has been filled. In fact, they shape your organization’s reputation. How did candidates perceive they were treated by prospective employers? In an open-ended question, the survey asked participants to describe their job hunting experiences and to identify their pet peeves about the way they were treated during the recruitment process. Five themes emerged from their responses: • Companies are unresponsive when a candidate submits a resume or an application. This was perceived as an indication that the company does not value applicants. • Follow-up or communication after the interview is not common. Many respondents said they would like an acknowledgement or an update, indicating where the company is in the process of hiring. • The application process can be difficult and lengthy. Companies’ career sites were sometimes poorly designed and hard to use, requiring candidates to enter unnecessary information as well as upload a resume. When this occurs, candidates lose interest and tended to drop out. • Interviewers or interviewing techniques were not professional; interviewers were described as distracted, impersonal, late for the appointment, or asking irrelevant questions.
Even when the recruitment market is less competitive and candidates are plentiful, organizations must demonstrate professionalism in their recruitment practices. The application process, the interviewer, and the interaction with the applicant are the face of an organization. Poor behavior on the part of an interviewer, flawed technology, and unresponsiveness can cause serious damage to a company’s brand. Given the widespread use of social media—and sites that rate companies (like Glassdoor)—a bad experience can go viral. With efficient use of new technology and best practices, companies can ensure that they are more responsive and communicative. Steps for Improvement The survey found that recruitment technology and company career sites are principal ways that candidates find and apply for jobs. Yet, companies are not making the most of technology to attract and engage job seekers. Here are a few best practices of the ways companies can use technology to sharpen their recruitment process: • There’s no need for a candidate’s application to go unacknowledged. Most recruitment systems enable a recruiter to set personalized and automated workflows, sending an email that acknowledges the application and sets expectations for next steps. • Candidates who are qualified enough to merit an interview also deserve a follow-up note, even when the job has been filled. Recruitment systems can send an
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automated email thanking the person for their time and letting them know where the company stands in the hiring process. • Recruitment technology can make the application process straightforward. Many automated systems enable an employer to create a step-by-step process with easy ways to submit an application—such as using a LinkedIn profile. • Job seekers do not want to waste their time seeking out a company or a job that’s not right for them. Survey respondents said they wanted detailed job descriptions, in addition to better ways to pinpoint jobs on a company’s career site. Rich content presented on a career site— company mission, philosophy, and culture—can help a potential recruit decide whether they are the right fit for the organization and the job. Additionally, recruitment technology, specifically company career sites, can provide potential recruits with a transparent view—a window into the organization. It’s the “storefront” where a vital stage of recruitment begins. • Those who are job hunting express a high level of frustration with their ability to find the right job. When companies use recruitment technology for distribution of job leads, the process is more precise. Leveraging the latest technology, organizations have the ability to review metrics that show the best sources of hire for the organization. The entire process is targeted and reaches best-fit candidates for a company’s positions. More exact targeting results in higher candidate satisfaction—as well as greater efficiency and reduced cost-per-hire for the employeer. There’s no doubt that job seekers are living through “the best of times and the worst of times” in the workplace and the economy. Survey participants clearly and sometimes critically described significant changes occurring in today’s employment marketplace. It’s the “best of times” for technology in talent acquisition. Online media and recruitment technologies are great enablers—and vital links between the employer and the candidate. Career sites, recruitment software, and social networking sites have certainly made job information more available than ever before. The majority of survey participants said online technology is the most important way for them to locate open positions.
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Leveraging the latest technology, organizations have the ability to review metrics that show the best sources of hire for the organization. As for the “worst of times,” many survey participants characterized the relationship between the potential employer and the candidate as transactional. The reality is that the employment marketplace is crowded, and there are only so many positions to be filled. Even as the economy turns a corner, companies are inundated with resumes, so it is difficult for them to give candidates the personal attention they deserve. Corporate and agency recruiters have a broader choice of candidates and can be more selective. Survey participants indicated that companies appear to be interviewing many candidates and treating them impersonally. To improve the overall process for all parties involved, every organization should periodically review its approach, assess its technology and career portal, and survey its candidates. Only through feedback can an organization continuously improve in talent acquisition. To move toward an employer of choice, companies should develop a value proposition that communicates the characteristics that candidates value. The survey reported work-life balance, good benefits, professional development opportunities, and strong leadership were important. Every contact with a candidate, from receipt of an application through salary negotiation, is an opportunity to enhance a company’s brand. Company values, technology, recruiters’ behavior, and current employees are all components of a strong brand. Every company should strive to be recognized by its current and potential employees as a great place to work.
Tom Boyle is director of product marketing at SilkRoad. For access to the entire report, please visit http://pages.silkroad.com/Sharpening-YourTalent-Acquisition-Practices-Registration.html
Contingent Labor
Workforce Redefined The benefits, challenges, and best practices of a blended staffing model. By Jennifer Berry
IBM’s recent announcement of trimming between 6,000 and 8,000 jobs globally was described by a June article on Bloomberg.com as part of an ongoing “workforce remix.” The latest step in that “remix” process will apparently cost the global computing giant around $1 billion. Keep in mind this is on top of more than $1.2 billion the company has already spent on workforce restructuring over the past two years. The eye-popping price tag is due largely to the size of IBM. But the logistical wrangling and expense involved in making structural staffing changes to full-time employees also stands in stark contrast to a small passage later in the piece. It explained that “IBM also has been cutting hours of its contract employees” and that “…the company relies on contractors to manage labor costs on informationtechnology projects for clients.”
a structural and cultural shift, with contract and part-time workers becoming more prominent in the professional landscape. Businesses operating in tech-heavy industries and other specialized fields have been particularly active in embracing this model. The Harvard Business Review reported last year that, according to workforce solutions provider Pontoon (then Adecco), “the rate of growth in contingent workers will be three to four times the growth rate among traditional workforces,” and that up to 25 percent of the global workforce will soon be comprised of contract workers. The Bureau of Labor Statistics (BLS) reinforces the momentum of that trend, concluding the average worker today stays at each job for less than four and a half years.
The relative ease with which IBM was able to throttle back on contract staffing—and the lack of any significant expense associated with doing so—supports in large part why blended staffing has become an increasingly popular option for businesses in recent years. Blended staffing relies on both full-time salaried employees and a roster of proven outside consultants to make up an entire organization’s workforce.
The expected tenure for younger workers is shorter still. Multiple Generations @ Work by Future Workplace, a recent study of nearly 1,200 employees and 150 managers, found that 91 percent of millennials expect to stay in their current job for less than three years. The BLS also reported that, as of January 2012, more than one in five wage and salary workers have had one year or less of tenure with their current employer. The employment landscape is changing, and today’s workforce is moving toward a more independent and flexible professional structure.
One reason why the blended staffing model has been getting more attention recently is simple: professional demographics. An evolving workforce has been undergoing
The internal flexibility and favorable cost-benefit associated with blended staffing is an attractive value add. Combine that with the ability to leverage the expertise of highly
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specialized professionals that deliver improved service to clients, and it is no surprise that this trend is on the rise. While blended staffing comes with some significant benefits, it also has its own set of challenges.Leveraging a blended program to deliver optimum efficiency for your firm and your clients requires a nuanced and sophisticated understanding of those strengths and weaknesses. Challenges and Opportunities For companies in general, and HR managers in particular, the appeal of blended staffing stems from its ability to support the core mission of any company: to provide better service for customers. With blended staffing, companies are able to draw from a much larger talent pool. Instead of providing their customers with the best in-house employee, they are able to provide the best period. But these experts are not necessarily employed full-time with the same company any more. Increased specificity with matching talent, availability, and suitability makes it that much easier to backfill a resource than if you are limited exclusively to full-time employees. This flexibility also allows mature and more experienced workers enhanced opportunities to stay employed longer and to leverage their knowledge and expertise in new spaces and new ways. While existing stigmas of independent contracting have largely been dispelled, blended staffing does add complexity to the staffing equation, and presents a challenge for HR professionals unfamiliar with its operation. The vetting process for independent employees must be rigorous, and maintaining control, consistency, and communication is essential. HR needs to ensure that all independent operators are well versed in the firm’s methodologies and core values, as well as its professional culture, standards, and expectations. Adhering to established best practices for blended staffing is critical. Some guidelines to follow:
Extensive vetting. Because your firm’s reputation is perhaps your most important professional asset, vetting independent employees is essential. Use a combination of recommendations, past experience, and a multi-stage interview process to identify strong candidates. Ensure that HR and technical personnel are involved in the process. Reviewing resumes and verifying skillsets is important, but it is also crucial to understand how to match the right personality with specific customers. Customer relationship management software tools (CRMs) are a popular choice for many companies that utilize a blended model, and
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With blended staffing, companies are able to draw from a much larger talent pool. Instead of providing their customers with the best in-house employee, they are able to provide the best period. maintaining a database of trusted experts who have proven themselves in the past is also a good idea.
Consistency and oversight. Detailed orientation and rigorous training programs are the best way to establish and maintain consistency with independent employees. Some firms have developed seminars that all their independent workers attend, and others ensure that all part-time workers have an on-site engagement manager or supervisor to provide additional oversight. There is a compelling argument to be made that companies who follow these basic steps actually have more control over contract workers—who are often highly motivated to meet the needs of their customer, the employer—than full-time employees. Relationship building. Treat employees the same when onsite or on the job: as a part of your team. Make it a point to include all contract employees in team dinners and other informal events. Building, strengthening, and maintaining unity is particularly important for companies utilizing a blended staffing model, and internal communication is important for making that happen. Keep all employees updated and informed, even when they are not currently on a job. Being mindful of quality of life issues, such as scheduling flexibility and timely payment, is another important way to strengthen relationships. Ultimately, customers do not care about an employee’s tax status. They are focused on performance, skillset, and professional approach and demeanor. And with more and more contract workers and independent employees demonstrating that they can consistently deliver on those key priorities, the appeal of the blended staffing model seems unlikely to diminish.
Jennifer Berry is director of human resources for MIPRO, a consultancy specializing in implementations, upgrades, and optimizations of Oracle’s PeopleSoft and Fusion applications.
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Relocation
Transferee Technology Mobile apps deliver all the essentials—and much more—right in the palm of your hand. By Russ Banham Few career demands are as financially and emotionally taxing as relocation, one of the most stressful transitions for employees to undergo. For their employers, the process is also demanding, given the complex array of relocation challenges, particularly in international reassignments. Now imagine a mobile app that makes it easy and fun for both companies and employees to attend to the tasks involved in moving to another location. Such apps are now a reality and, according to the relocation services providers that deliver the tools, have become exceedingly multifunctional.
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For employees, technology provides the ability to click onto the app using a smartphone or tablet anywhere and at anytime to peruse pretty much everything entailed in their transfer: the market price of homes at the new employment site, school rankings, and delivery timetables for their household goods in transit. Even expense reporting for reimbursement can be tracked if the employee simply photographs each invoice or receipt related to the move with the mobile device and an app takes care of repayment in the background. For employers, the apps result in more efficient reporting procedures, and with relocation made easier for
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Relocation
employees, the potential retention risks are reduced. But, the key benefit is strategic—if the CFO needs to know the relocation spend over the past two quarters to compare to forecasts and budgets, he or she can tap the app and get the results instantly. Ditto such granular information as the expenditures earmarked for temporary housing or moving van expenses. Based on this insight, decisions around resource allocation can be revised. While such capabilities were available in past using the websites of many relocation services providers, a portal is not a mobile device. Not only is the ease of accessing data on a smartphone or tablet far superior—one does not have to sit at a desktop or log onto a laptop and then slowly navigate through muddy waters—so is the volume of information flying through the airwaves. Indeed, business apps hosted in the cloud have great horsepower, are easy to deploy, and present wide flexibility. A CFO or chief HR officer can quickly access an enormous amount of data from across the world to slice and dice and thereby scrutinize relocation expense trends, sifting through the information to improve the overall process. The improvements in relocation apps have even the providers excited. “I’ve been in the relocation industry for 29 years, and this is by far the coolest development in the business,” says Jennifer Thomas, senior vice president of global business development at NEI Global Relocation. Yet, like all things cool, some are less cool than others.
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Technology provides the ability to click onto the app using a smartphone or tablet to peruse pretty much everything entailed in their transfer: the market price of homes at the new employment site, school rankings, and delivery timetables for their household goods in transit. Even expense reporting can be tracked if the employee photographs each receipt then an app takes care of repayment in the background. “I did some homework and learned that there are 106 apps that are listed when you type the words ‘relocation’ in the App Store,” Thomas says. “Some are aimed just at employers or employees, some are aimed at both, some support only parts of the relocation process like real estate or moving household goods, and some are really not apps at all, just mobile links to website portals. I saw one that was called “Denver Relocation”, which I thought would be a vendor of some sort. It wasn’t. It was Denver the city, and the benefits of relocating there.”
Relocation
Mix and Match To Thomas’s point, employers would be wise to do their due diligence when it comes to relocation apps and their promoted technological sophistication. “The intent of a relocation app should be to take the functionality that users have grown accustomed to with a portal, functionality that they value and appreciate, and then put it at their fingertips whenever they need that information,” she explains. “The goal should be to have as much if not more functionality than was previously available.” As many users of business apps would attest, this functionality is rising. Early banking apps, for instance, provided a glimpse of current account balances and not much else. Today, they offer the ability to deposit checks with a click of a mobile camera and the ease of transferring sums of money from one account to another. Early airline apps also were limited to information, but they, too, now present the opportunity to book European vacations, while feeding the pigeons in the park. XONEX Relocation LLC has also experienced the growing sophistication of technology with its relocation app. “We looked at the (website) technology we had and have made it mobile friendly for transferees, which is the focus of our app,” says Paige Holden, director of the app development team at the Wilmington, Delaware-based service provider. “It’s geared exclusively to the lifestyle changes they and their families undergo as part of the relocation process.”
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While NEI Global Relocation also leveraged the functionality of its website portal in building the employerfocused and employee-focused apps, Thomas says the final products have much greater scope and simplicity—the wheat without the chaff. “We looked at what our clients and their employees were accessing on our portals and elevated these features on the apps,” she explains. Of primary importance in creating the tools was the ability of individuals to use them on the fly. “Say you’re in a meeting or in a conference room and someone senior wants a quick answer,” Thomas says. “You can provide a response without having to go back to your desk. Often the people managing mobility programs are themselves traveling, so this fits right in.” Moving Fast The technology supporting business apps is growing quickly to incorporate new features and functionality. Big data feeds can be linked to an app to give constant updates on home prices in a region or even the weather the week of the planned move. Each new function compels providers to return to their tools to ensure they’re up-todate, if not at the bleeding edge. Such was the case at Global Mobility Solution in Scottsdale, Arizona. The services provider launched a client-facing and transferee-facing duo of apps a few years ago, when other providers were merely mulling the possibility. It has now pulled both apps off the shelf, reengineered the tools, and will unveil them this Fall.
Relocation
“The initial driver of our first apps was pure expense management—an efficient way to submit receipts,” explains Brian Schutjer, GMS executive vice president and co-founder. “Wherever you were in the world, you could upload this data for quicker reimbursement and accounting purposes. For the employer app, we focused on a simpler way to pull down reports, looking at dollars spent on this task or that one. It was all pretty basic.” Clients voiced their interest in a richer array of financial reports and metrics delivered via the app, such as candidate performance assessments, on-time delivery of household goods, and home sales statistics. “If you get a question on the fly and need information at your fingertips, the new apps can handle it,” he says. As with many industries today, big data is having its impact on relocation services. “As companies have become much more data driven, their needs have changed as well,” says Ron Dunlap, chief information officer the Graebel Companies, Inc. “Clients now expect proactive management of their entire global mobility program. This includes deploying predicative analytics that can lead to changes in their mobility policies to meet the needs of their existing and prospective employees quickly. This can be done via traditional reporting, ad hoc reporting, and automated dashboards that notify client decision-makers of changes that would have otherwise been reported days, if not weeks later.” What’s next for this technology? “Apps will continue to move toward the cloud,” says Dunlap. “While that may help companies and their relocating employees and transferees have great access to information, it will also require a much more detailed due diligence to ensure that the apps are secure for the type of personal, confidential information that is required during relocations or overseas assignments.” Rich content is also on the horizon. “To provide our clients’ employees with an even more enhanced experience, we’re currently working on the next generation of apps, which will take advantage of advances in smartphone and tablet technologies,” notes Eric Egnet, COO and CIO of Mobility Services International. “We see video, education and training, language, and culture apps being at the forefront of the next technological push.”
The Technophile Factor Enhanced features makes moving more efficient—and fun. Here are some of the best problem solvers. •
What’s in those boxes? Solved. XONEX provides transferees with labels that contain a QR code for their moving boxes. The app prompts the transferee to scan the QR code on the box and, via voice or finger typing, list the inventory within. “When the goods arrive at the destination, you just scan the QR code on the box again and it tells you what’s inside,” says Holden. “There’s no need to dig through a ton of paperwork to find the toaster.”
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What else do I have to do? Solved. XONEX’s app presents all relocations tasks in personalized checklists, which are split into different tasks, such as administrative, departure, home finding, home sale, and so on. Homeowners can easily keep tabs contracting escrow, setting up bank accounts, and meeting with realtors. “Each time you complete the task, the app recalibrates the percentage of tasks left to do. On the dashboard it will say, for instance, ‘37 percent still needs to be completed,’” Holden says.
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When are my boxes coming? Solved. Global Mobility Solution offers the expanded ability to view information on the various vendors assigned to their transfer. “It will have contact points for whoever is handling your relocation—Allied Van Lines or United,” Schutjer explains. “They [transferees] will now have direct feeds to updates from suppliers on when their goods will arrive, rather than have this information reside in our four walls here.”
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Where’s my support? Solved. “MSI’s app is integrated with social networks such as Facebook, Twitter, and LinkedIn, transferees can instantly communicate with friends, family members, and coworkers, and have a very positive overall experience,” says Egnet.
Russ Banham can be reached at www.russbanham.com
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Talent Acquisition
Star Struck Think before you poach talent. By Boris Groysberg
“Buyer beware” is a sign that could be hung outside the door of many of today’s HR managers when it comes to talent acquisition. Too often HR professionals are seduced by high-priced stars from other companies when they should be looking internally. By strengthening their own talent management programs, they will be able to cultivate and retain the stars of their own. Our research has shown that expensive “free agents,” who may have been stars at their previous organization, often suffer from a lack of performance when they leave the job for a similar position. In fact, my book Chasing Stars: The Myth of Talent and the Portability of Performance examined performance records of more than a thousand star analysts at Wall Street investment banks, and we found they often
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suffered an immediate and lasting decline in performance upon switching jobs. In those cases, the success of those stars went beyond their individual abilities. It was actually linked to the processes, platforms, and relationships they had at their previous place of employment. Relationships are based on mutual trust, which oftentimes has to be rebuilt at a new company, even if the employee walks in the door with impressive credentials. And rebuilding takes time. However, research has suggested a few exceptions to the “non-free agent” rule. In particular women who happened to be high performers at their previous jobs tended to maintain their performance even after joining a new company. One reason for this transitional success is that
Talent Acquisition
these women tend to keep most of their relationships outside of the firm. As a result, when they switch jobs, they still have the same supportive outside network rather than having to rely on internal relationships. Star women are also more strategic when picking their new firms compared to their male counterparts. Still, for most employees, emphasis on growing and maintaining internal and external networks is vital. The talent management system at any company is partially responsible for an individual’s success. Robust training programs, and coaching and mentorship relationships, both informal and formal, can help develop and retain talented employees. An employee who jumps to another company doesn’t take that strong “firm” capability with him, and therefore performance can suffer – even if the new company does similar work. Instead of expending time, energy, and money on poaching talent from competitors, a better plan for organizations is to look internally and focus on creating an innovative and effective talent management program that will help retain high-potential employees. Some of the best firms, such as Google and Amazon, now practice a hybrid talent strategy combining strategic rather than reactive hiring and a strong internal talent development program. Great firms are not only rigorous and strategic in selection but they also help their newly hired stars to get integrated. One trend that surfaced in a recent survey was that many executives have confidence in their CEO, but not in the depth of leadership on the bench. This further speaks to the need for managing talent both by developing it internally and hiring strategically from outside. Getting the best out of your talent is the next step. Keeping those employees engaged requires a detailed talent management program that is firmly rooted in the company’s overall mission and business plan. At leading companies like Google, IBM and GE, HR plays a critical role in the company’s business strategy. That’s no accident. In a 2008 case study Keeping Google ‘Googley,’ myself and several colleagues followed Kim Scott. Scott started with Google in 2004 and now leads Google’s AdSense online sales and operations. She wondered if she would she’d stay at Google, as she liked small, entrepreneurial companies. But she was still happy at growing Google in 2008. The
Instead of expending time, energy, and money on poaching talent from competitors, a better plan for organizations is to look internally and focus on creating an innovative and effective talent management program that will help retain high-potential employees. most important questions in this case: How should Google keep Google “Googley”? What talent management practices does the company need to continue its success? This case generates passionate debate about the role and impact of talent management. Google’s talent strategy involved a careful screening process, designed to match applicants with the company’s philosophy. They worked hard to maintain the company’s values through a period of rapid growth by maintaining a collaborative and rapid-fire decision-making process that centered around the company’s innovative character. Google’s competitive advantage (in part) rests on its people practices and unique culture. The company is very rigorous in attracting, hiring, developing, engaging, retaining, rewarding, and firing (if needed). By focusing on attracting talent, as well as developing and retaining valuable employees, Google continues to build its high performance and high-values culture. Examine your company’s HR needs and existing programs to identify your company’s unique needs and begin to build a robust talent management system. The most strategic and evidence-based talent models will help you attract, develop and retain star employees. Boris Groysberg is a professor of business administration in the organizational behavior unit at the Harvard Business School (HBS). He is the faculty chair of Driving Performance Through Talent Management at HBS, which will take place May 4 to 9, 2014 on the HBS campus.
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Data Analysis
Growth Opportunity Leverage feedback from exiting employees to find problems—and solve them. By Kerrie Main
While business leaders understand the importance of collecting employee feedback, many are not getting the return on investment for their efforts. In fact, many organizations make several common mistakes when it comes to properly collecting and executing on employee data. Do you fall into this category? 1. Managers are the ones conducting exit interviews. This is a huge mistake because if the manager is the problem, most employees will not admit to it to their face. Exit interviews that are conducted in an online portal may produce more honest responses. 2. Not asking the right questions. Reconsider your exit interview questions. Never ask two questions in one statement. Put yourself in the departing employee’s perspective and consider how you would feel answering the questions. Do not use exit interview questions that ask for feelings or emotions. 3. Not having a methodology for viewing the data. Set up the right demographics for your organization. This would include length of service, department/
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division, gender, and race. Be sure you are able to sort and parse the data as a whole to identify employee turnover drivers in the particular groups, as well as to earn a view of what’s happening in the organization as a whole. 4. Jumping to conclusions or making assumptions. This is where “anecdotal” takes over. If you’re only looking at employee feedback from the individual perspective—an employee’s particular complaints and problems—it’s too risky to base business strategies and planning around it. The story may or may not be accurate, and management risks going in the wrong direction or conversely dismissing the problem without solving it. 5. Searching for problems only. Exit interviews and other employee feedback can be used to identify the bright spots in the organization as well. This information can be used to replicate successes in other areas of the organization, as well as identify high performers for management positions or mentorships.
Data Analysis
These mistakes can be easily solved by simply approaching the employee feedback processes in a new, analytical way. Traditionally, the purpose of exit interviews was for executives and managers to gain an understanding of why a particular employee was leaving the company and in some cases, to present a counter-offer. This is a shortterm anecdotal way of thinking. To move to an analytical perspective, exit interviews should be viewed as an opportunity to learn about the company. One organization, INTEGRIS Health, Inc. outsourced their exit interviews to a provider that conducted them over the phone, but their participation rates were low—around 7 percent. They were only given raw exit data, and it wasn’t sustanital enough to support any claims being made by departments and managers about company turnover. INTERGRIS switched to an online exit interview management system. Their participation rates increased, and the company was able to identify the issue of significantly higher turnover of metro nurses before the 90-day mark. This data linked to specific cultural issues with their onboarding process, and the company has implemented new initiatives to curb it. Rather than looking at each individual exit interview in a vacuum, the exit interviews (and all employee feedback processes) should be looked at as pieces of a puzzle that come together to create a picture of employee turnover drivers. Exit interview data can be analyzed to identify areas of concern and trends that are causing turnover. With that valuable information, managers can formulate actionable items that can be implemented to improve the organization. This bigger picture approach is not possible with anecdotal feedback. Here are five tips to transform employee feedback from anecdotal to analytical: 1. Ask the right questions that will allow for trending and analysis. A best-practices approach combines quantitative (numerically-rated) and qualitative (openended) questions. 2. Set up a tracking method so you can easily view your averages. Small companies with low turnover can use something as simple as a spreadsheet, while larger organizations and those with high-turnover positions like tellers, call centers or nurses, can leverage an exit interview management system. This type of technology allows HR to automate the exit interview process—set
Exit interview data can be analyzed to identify areas of concern and trends that are causing turnover. With that valuable information, managers can formulate actionable items that can be implemented to improve the organization. up exit interviews online, email them to employees, and then be able to automatically capture, track, and statistically analyze the exit data. 3.
Have a methodology to view and aggregate the data. Be able to look at it from a wide variety of ways—from the overall organizational standpoint, by departments, by gender, by length of service, etc.
4. Use internal benchmarks. Look at the average rating for the entire company—your internal benchmark—and then look for areas that are above and below average. Look at higher-than-average areas to see what they’re doing well so you can replicate it in other areas. Look for the lower rated areas to identify your problems. 5. Make the time to look at the data you’ve gathered. Having great information won’t help if you don’t look at it to learn what it’s telling you. In the past, it was difficult to make the move from anecdotal to analytical. Using exit interviews as an example, each company would have sheets of individually completed exit interviews. Forward-thinking companies would enter the results into a spreadsheet and use that to track trends. Today there is sophisticated technology designed specifically to allow employees to complete exit interviews online and have all the results available for review and analysis. These exit interview management systems let companies look at the numbers and spot the trends and then use the anecdotes to highlight or illustrate the situations uncovered. Kerrie Main is communications manager at Nobscot Corporation. She can be reached at kerrie.main@nobscot.com.
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Talent Management
In The Know Why an employee referral program may be the answer to your recruiting and retention problems. By Cari Turley The right people can make or break a company. That’s great news for the self-employed, but unless you have a workforce of one, staffing is a major, perpetual concern. Sad but true, your employees won’t stay forever. One in three employees will leave a current job between 2013 and 2014, and as baby boomers begin to retire, replacement needs will exceed new job growth vacancies in four out of five occupations. The U.S. Bureau of Labor Statistics’ 2010– 2020 Employment Project Report forecasts a decreasing overall labor force over the course of the decade, leaving thousands of organizations in the lurch. Recruiting is a challenge even when you’re not trying to keep up with large-scale generational turnover. You need to hire quality candidates who won’t leave in six months. An employee referral plan is a great option. More than just a recruitment strategy, it’s an all-inclusive approach to engage your workforce and streamline your recruiting, all while saving time, money, and effort. An employee referral program can help acquire top talent at a fraction of what agencies will cost, all while strengthening your unique culture of employee success.
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What is employee success? It is the intersection of performance and engagement. It’s the secret of companies known for innovation, fantastic customer service, consistent business success, and inimitable culture that are consistently at the top of their field. Engaged employees provide exceptional service; exceptional service turns customers into supporters; and supporters lead to business success. With a shared vision for success, your workforce will lead, collaborate, innovate, and excel. So why move forward? Employee referral programs have a bevy of benefits that are backed up by statistics:
More efficient. Candidates found through employee referral programs are hired at a rate of one to three. Non-referrals are hired at a rate of one to ten. More cost-effective. Employee referrals usually cost less than $1,000 (See Sidebar Success story: Meridian). Actual hires. Employee-referred candidates make up just 6.9 percent of total candidates, but account for 40 percent of total hires. Passive candidates. Referrals bring jobs to the attention of
Talent Management
people who aren’t actively looking, getting your company in front of different pairs of eyes.
referral from a top employee yields candidates who have a 90 percent greater profit impact than the average referral.
Higher quality employees. New hires from well-designed employee referral programs routinely produce the highest on-the-job performance of any recruiting source. Recent research indicates that referred employees are roughly 25 percent more profitable than their peers.
Creating Your Program
Cultural fit. Your employees know your corporate culture better than anyone so they will not recommend a weak fit. They’re also likely to paint a realistic picture of the job for the candidate, which leads to more informed decisions. A recent Harris survey reveals that the two most trusted ways to learn about a company are through past and present employees. Reduced time to hire. Referred applicants are placed within 29 days. Applicants from job boards take 39 days, while applicants from career sites take 45. Decreased turnover. Eighty percent of employees hired from job boards will be leave a company in two years. But because employee-referred candidates join your company with more realistic expectations and a built-in sponsor, they leave at much lower rates equaling an average of 45 percent retention after two years. Also, because the referral adds a layer of pre-screening, these employees have a 350 percent reduced chance of being fired. But there are also some considerations to take into account:
Diversity. If your organization is not especially diverse, make an effort to branch out—the Equal Employment Opportunity Commission will be very interested in the diversity of your applicant pool if you rely solely on referrals. Reward referrals, not leads. If you pay for resumes regardless of quality, employees are incentivized to submit piles of unworthy applicants. To reap the benefits of employee referrals, insist on a personal recommendation. If an employee is willing to put her reputation on the line, that’s a candidate worth pursuing. Consider the source. In large companies, employee experiences can vary dramatically. If you’re hiring for the sales team, an employee in IT may not know exactly what that job involves. For the best results, give priority to referrals coming from the same team as the available position. Also give priority to your top performers—a
There are a few best practices to follow in order to secure a successful employee referral program. 1. Define your employee value proposition. An employee value proposition (EVP) is an extension of your corporate brand and a critical part of recruitment and retention. Your EVP is an expression of what you offer potential employees, and the more accurate it is, the easier it will be to recruit and retain top talent. 2. Set a measurable goal. Make sure the program works by setting benchmarks for the number of employeereferred hires you want to make and set a timeframe for completion. Be transparent—managers can’t work toward a goal if they don’t know what success looks like at the end. 3. Select a leader. Follow good project management best practices and designate someone to lead the charge. 4. Create incentives. Recognition alone is a powerful motivator, but you’ll get the best response if you give your employees a little something extra for their efforts. The more you offer, the more likely they are to participate, but make sure you’re only incentivizing quality leads or you’ll end up with unqualified candidates. 5. Spread the word. Your employees won’t start making referrals unless they know you’re looking. Communicate the entire strategy—not just the rewards part—to all employees, get your executives on board, and let everyone know when there’s an opening in their departments. 6. It’s a marathon not a sprint. After the launch, make a point to check in, remind employees, and give updates on your progress toward goals. It’s not a one-time push; it’s a permanent campaign. No HR program should exist in a silo. To make the most of your employee referral program, integrate it with an employee rewards and recognition solution and other human capital management software. With an online employee recognition program, you can create campaigns
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Talent Management
to drive employee referrals. Using those best practices, you can also create additional campaigns to drive other results, such as submitting cost-saving ideas, process improvements, or feedback for senior management. Instead of giving cash bonuses for employee referrals, integrate the campaign with an online rewards and recognition program and give employees a choice of rewards. By keeping the program online, participation becomes measurable—plus, a little friendly competition spurred by a live feed and leaderboard will encourage participation. An employee referral program is a great way to give your more introverted employees recognition. Your quieter employees are just as networked as the rest of your staff, and by giving them public praise on your company’s recognition feed, you help raise their profile in the office. Instead of emailing job announcements to employees with requests to forward them to friends or contacts, move the whole process online. You’ll eliminate hours of sifting through databases, reviewing lists of connections, and importing resumes. Social media networks are also powerful sources of referrals. According to new research by Aberdeen Group, recruiters in 53 percent of best-in-class organizations use social media networks for referrals, compared to only 37 percent of less successful organizations. But while the use of social networking sites to recruit potential job candidates increases by about 10 percent every year, it’s still no match for the 79 percent of job applicants who are likely to use social media in their job searches—many of whom are Millenials. Smart companies meet the candidates where they are: online. Particularly if your company hires a lot of young employees—87 percent of whom have already selected their preferred employer
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before entering the workforce—a presence on social media is a must. Your employees already have vibrant professional and personal social networks; make sure you capitalize on them. These networks include former co-workers, professional associates, classmates, suppliers, and others beyond the reach of traditional recruiting methods. Don’t miss the chance to tap these networks for referrals. Enable your employees to share open positions on social media. Send a companywide email every week to all employees with four featured job openings. Employees can forward those openings to people in their social networks who might be good prospects, or post them to their pages and groups. Technology allows for organizations to use referral buttons on their online job postings. This allows job seekers to see who among their Facebook friends or LinkedIn connections currently works at the company. If any matches are found, the applicant can send them a referral request. Some vendors even offer software that scours social media networks for candidates with work history, credentials, and a location that fit a current job opening and then alert the candidate’s contact at the company. The employee then has the opportunity to forward the job posting to his friend that the software has identified as a good fit. There’s no question: employee referral programs are effective. With almost no overhead, you can take advantage of the embedded team of recruiters you never knew you had: your employees. Even a generous referral reward will undoubtedly cost less than a headhunter. By including your employees in the recruitment process, you’re demonstrating that you value their input and this will make them feel like a stakeholder at the organization.
Cari Turley is a copywriter at Achievers.
SUCCESS STORY: Meridian Credit Union In 2011, Meridian Credit Union launched an employee referral campaign as part of their overall employee rewards and recognition program with Achievers. Their employees were directed to a streamlined, online portal where they could easily submit resumes, with the promise of public recognition and a $500 reward for every successful hire. In the first year of the program, one in four external hires (26 percent) were employee referrals— more than double the ratio of employee referrals before implementing the new program. Within nine months, their average cost per hire was just $511.
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Kenexa’s partnership with HROA continues to evolve with our business needs. The ads that we place continue to support our brand awareness campaign. Most recently, we added a microsite to our repertoire for marketing. The microsite not only continued to support our brand awareness, but also aided in our lead generation campaign. Kenexa values the HRO partnership as an integral part of our business objectives. HRO Today has become a go-to resource for information and education on the contingent workplace for HR leaders. We commend their efforts to explore the trends driving the use of contingent labor and its place within broader HR strategy. HRO Today’s Thought Leadership Center has provided us with another valuable platform through which to share industry information and trends, best practices and client success stories with the HRO Today community of global HR leaders. Joan Davison President & Chief Operating Officer Staff Management | SMX
Shelly Smith Global Events Director Kenexa, an IBM Company The HRO Today Thought Leadership Center is a terrific place for organizations to gain valuable and oftentimes fresh insight on a wide range of talent management and retention topics, trends and more that can affect a business in today’s rapidly changing landscape. And because time a precious commodity, the Center’s information is easy to find and access. In our quest to be the unequivocal employer of choice in the relocation industry, the Center has also provided our organization with thought provoking suggestions. Carolyn White Senior Vice President Marketing & Public Relations Graebel
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The Benefits Package
New Prescriptions Best practices, innovative thinking, and gamification are elevating workforce wellness initiatives. By Mark Allen A robust health and wellness initiative can help offset rising health care costs, improve employee engagement, and even save lives. Yet nearly every company addressing workforce health and wellness struggles with the same challenge: long-term behavior change as it relates to employee’s health choices. The Centers for Disease Control and Prevention (CDC) report that chronic disease accounts for over 75 percent of healthcare costs in the U.S. Tobacco use, excessive alcohol consumption, poor nutrition, and lack of physical activity are responsible for most suffering related to chronic illness. These behaviors and habits are often very difficult to change, but with the right motivation and commitment, they can be modified toward healthier living. Companies hoping to inspire employees to make healthier choices are combining a blend of best practices with non-traditional thinking. Using networks of health and wellness champions, flexible infrastructure, innovative incentives, and even principles of gamification, these companies are embedding a new culture of health and wellness that continually supports healthier, more productive lives. Like a New Year’s resolution, initial participation in health and wellness shows promise, but the commitment required for success over the long haul often falls short. Sporadic participation, rather than desired long-term engagement, is a common occurrence. A classic example of this phenomenon occurs when a company offers worksite screenings. These are an integral part of health and wellness programs—an essential tool for tracking and measuring health and behavior, and the first step toward more healthful living. However, when participants neglect to follow through on recommendations, the benefit to the employee is lost. The American Heart Association reports that physical inactivity is
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on the rise. Sedentary jobs have increased 83 percent since 1950, and workers in the U.S. are spending more time on the job than they did 20 years ago. It’s a bigger commitment than ever to be healthy, and many don’t take the time. Long-term behavior modification (as it relates to health and wellness) is key to a program’s success. It’s time to take initiatives to the next level of supporting long-term employee wellness. Network of Champions A robust initiative cannot be accomplished without the aid of health and wellness champions at all levels of the company. Identifying and engaging these individuals is key to the program’s success. They are often acutely aware of site-specific health issues and can encourage programs to address them. Local champions can also drive participation in companywide or countrywide efforts. Naturally, champions at the executive level are critical. They have the visibility and power to send the message that the company is serious about establishing a culture of health and wellness. The most successful of these leaders possess not only the ability to affect change, but also a high degree of passion for human health and wellness. They also “walk the talk” by way of their own participation, and provide opportunities and facilities for their employees to participate. Committed individuals are essential at all levels throughout the company. A worksite leader can establish a culture of health and wellness within her entire facility, while a single employee with a talent for rallying others to a cause can drive ongoing engagement around him. Anyone with passion for the cause can do wonders for a unified health and wellness effort. Working
The Benefits Package
together, either directly or indirectly, these champions can help create a culture that supports long-term health and wellness. Before a company can make a positive effect on long-term health choices, it needs to motivate participation in the initiative. Ongoing employee engagement not only helps to integrate health and wellness into the culture at work, but also encourages employees to choose healthier lifestyles long-term. How well a health and wellness initiative fits within the business structure will help determine companywide participation. Traditionally, health and wellness is assigned to one department, often human resources (which makes sense given the ability of such programs to reduce medical plan costs). However, tasking the initiative to one silo has the unintended consequence of abdicating responsibility for the rest of the company. The entire effort is seen as another department’s “project.” Engagement might be viewed as a tiresome task that “has” to be performed, rather than a relationship with one’s own health and wellness. A successful provider in this realm will distribute responsibility throughout the entire company. That means establishing an inter-departmental network of health and wellness champions, underneath an umbrella of equally passionate executive leadership. Within this structure, sincerely engaged individuals can work together to execute goals and directives, continually breathing life into a long-lasting, companywide initiative. Let the Games Begin A trend gaining traction in worksite health and wellness initiatives is the application of gamification. Organized competition offers both executives and employees a playful way to engage at work while contributing to their own health and wellness, and it offers a first step toward behavior change and healthier lifestyles. Executives who participate in organized competition can drive significant, companywide engagement in health and wellness programs. Commonly driven by metrics and measurement, leaders enjoy the challenge to publicly outdo their peers. Healthy rivalry among leaders rallies the workforce and brings more executivelevel champions to the cause, strengthening the health and wellness initiative overall. Among the workforce, team-based competition, rather than individual activities, can significantly boost participation. Not only are team sports more fun, they keep participants motivated and accountable. Individuals are more committed and increase the likelihood of a successful program. The health and wellness initiative benefits overall, as more employees want to join the fun. Health education organizations like the American Heart
Association offer public opportunities ideally suited for employee health and wellness participation. By all accounts, the programs have inspired employees to be more physically active yearround. Months after walking challenges conclude, many are still “counting steps,” and attendance at the company gym has increased significantly. Additionally, wellness coordinators have noted that the team activities provide fertile ground for new and strengthened friendships to grow. Camaraderie at work benefits employees and business, according to a study by the National Institute for Occupational Safety and Health. The research shows that a network of supportive coworkers reduces workplace stress and contributes to long-term employee health and wellness. The Affordable Care Act (ACA) has ushered in unprecedented federal support for worksite wellness initiatives. Indeed, these work-based programs are part of a national public health strategy to address the nationwide increase in chronic illness, and improve human health and wellness. Incentives programs, both for short- and long-term health gain, are in the spotlight. Proposed rules to the ACA would increase the maximum permissible reward under a health-contingent wellness program from 20 percent to 30 percent of the cost of health coverage. Since long-term employee health is desired, businesses are exploring incentives that reward long-term health maintenance. Two popular emerging strategies that aim to support longterm health are incentives for participating in ongoing health maintenance programs, and reduced-cost health plans requiring a level of wellness as a gateway for entry. Committing to a healthier lifestyle is a challenge that many individuals confront. The effort required for success is often experienced as a burden, in the midst of modern cultures of convenience. Companies hoping to inspire employees to make healthier choices must embrace this difficult task. As healthcare costs continue to outpace inflation, and legislation supporting worksite health and wellness programs takes effect, businesses have a unique opportunity to reach outside familiar territory and experiment with new strategies. Innovative health and wellness initiatives are inspiring long-term behavior change and transforming work environments to support healthier, more productive lives.
Mark Allen works for TE Connectivity.
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GLOBAL
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The Employment Report
Hope, Hype, and Reality A brief history lesson in RPO. By Michael Beygelman
The concept of outsourcing some or all aspects of recruitment was greeted with a lot of hope nearly two decades ago. The market then went through more than a decade of superfluous hype, before coming full circle in the past 12 months. Companies are finally buying reality and expecting measurable results instead of aspirations scribed in PowerPoint decks that pontificated recruitment virtue. We should expect to see a slight repositioning in the provider landscape over the next 12 to 24 months because current buyers of recruitment services are savvier; they have higher expectations from their RPO partners to deliver on what they were promised. Procurement and sourcing advisors are also now more actively engaged, which helps HR buyers gain a broader perspective. The Premise and Promise What makes RPO different than other forms of outsourcing is that at its roots, it was a result of being a derivative of staffing—be it permanent or contingent—and not a derivative of outsourcing. Even basic research will reveal that a number of early founders of RPO companies were former staffing executives who saw how the world of recruitment could evolve to provide different service delivery models other than those that were being offered by traditional staffing companies at the time. In essence, the competency of recruitment was forged into the business model of outsourcing to give birth to what became know as recruitment process outsourcing, or RPO. There were key differentiators between an RPO firm and a staffing agency. A RPO firm contracted with a client to assume the ongoing operations and responsibilities of a specific business function, recruitment, while a staffing agency primarily supplemented the client’s existing recruitment team’s efforts or provided contingent workers. Simply put: A RPO firm was selling work while a staffing company was selling workers.
startup RPO companies didn’t have to compete with the large outsourcing providers (some of them being offshore) or staffing companies. It stood to reason that eventually outsourcing providers, staffing companies, and other newly created startups would flock to participate in the burgeoning RPO marketplace. But some of the new entrants didn’t have either the sophistication to build sustainable business models. As a result, the most overused term of the past decade, hybrid RPO, was manufactured. For some providers, this meant marketing their existing services—contingent staffing, consulting, candidate sourcing—in this new RPO marketplace with less competition. To some buyers of services, hybrid RPO meant saving money while experiencing little change and risk—and results. And while these two examples are by design at opposite ends of the spectrum, what essentially happened is massive buyer confusion because buyers seeking real outsourcing or cheap staffing received a solution aligned with their expectations. Reality Wins in the End As with all the bubbles, it is difficult to know when you’re in one. To some extent the RPO bubble is beginning to burst, which is great news for providers and buyers alike. In the past 12 months, there have been a number of true recruitment business process outsourcing engagements consummated, and even a larger number of recruitment ramp-up projects, contract recruiting, and also deals where clients transitioned their internal recruiters to the payroll of the provider to get the salary costs off their books.
The Allure of Success
Coming to terms with reality is great news for the marketplace because it will continue to create transparency for buyers and equal footing for provider competition. As you review research analyst results in the coming calendar year, don’t be surprised if you notice some service providers being repositioned, and make sure that you understand what you are reading. Some providers might move up or down in the rankings because their clients are getting better at articulating what they bought, and how well it has been delivered. Seldom will movement happen because a provider mysteriously became far better or far worse at what they do. What the research might be telling you is which provider is better at performing what kind of services.
RPO experienced some immediate success due to rapid client adoption during economic prosperity. Clients were able to outsource their recruitment operations to a provider at a lower total cost of ownership with a better outcome. Plus, these new
Michael Beygelman is North America RPO president at Pontoon. He can be reached at michael.beygelman@ pontoonsolutions.com.
In theory, applying an outsourcing business model to recruitment promised to help a company become more flexible by having a variable cost structure, not requiring them to invest in costly assets—employees or technology. Plus it nearly eliminated the need for resource management, presumably reducing the time and cost for a company to quickly adjust to economic changes.
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HRO TODAY MAGAZINE
| SEPTEMBER 2013
Technically Speaking
Contingently Changing Ways to develop strategy around your non-permanent workforce. By Madeline Laurano
With globalization, shifts in workforce demographics, and the shortage of critical skills, it is no surprise that organizations are rapidly embracing a more flexible workforce. In fact, nearly 27 percent of an average organization’s workforce is expected to be comprised of contingent labor by 2015. Although a flexible workforce can help organizations reduce costs, close talent gaps, and navigate change, developing a strategy around the use of contingent labor has become increasingly complex. In order to maximize the value of contingent labor and plan for future workforce needs, organizations must adopt a more systematic approach to the way they manage this critical talent pool. Achieving these goals requires organizations to give their contingent workforce the same attention that they give their full-time employees. As a result, contingent labor is much less about enhancing staff augmentation or keeping track of staffing suppliers—and more about planning for the complexities of a network of independent contractors, consultants, and statement-of-work (SOW)-based projects and services. The marketplace has several approaches that can be leveraged based on organizational needs. Some key recommendations for managing a contingent workforce:
Engaging in a managed services program (MSP). When outsourcing contingent labor management, 40 percent of best-in-class organizations are turning to MSPs compared to 20 percent of all others (industry average and laggard organizations). MSPs manage all aspects of contingent labor and serve as the primary point of contact for suppliers, contractors, and managers. In some cases, they provide additional offerings such as vendor management systems, SOW management, and workforce management solutions. Just a few years ago, the greatest benefit of an MSP was lifting the administrative burden placed on HR and procurement departments. Today, the value of an MSP is more strategic. Aberdeen research found that organizations that invest in MSPs are also better able to plan for future labor needs, handle onboarding, and mitigate risks. Embracing a blended workforce. Many organizations are looking beyond the long-standing boundaries that divide traditional employee talent acquisition from management of the contingent and free agent workforce talent supply. Companies are adopting a single-integrated framework for employee recruitment and contingent workforce supply chain
management, yielding what is known as a blended workforce approach to talent strategy. In fact, nearly 50 percent of bestin-class organizations listed a blended workforce as a top priority for 2013.
Distinguishing SOW-based projects. As contingent workforce management evolves, organizations are more likely to expand these programs to include SOW-based projects. Today, 50 percent of best-in-class organizations have standardized processes in place for handling SOW-based projects. The top strategies include a balance of both tactical and strategic elements. Tactical elements (management of master agreement and tracking of spend) allow organizations to stay compliant and lift the administrative burden placed on managers. Strategic elements (increased collaboration and ability to distinguish SOW from contingent in the requisition phases) ensure that SOW-based projects are aligning to business objectives in order to plan for future workforce needs. Onboarding contingent workers. Onboarding is one of the most critical yet underutilized elements of contingent workforce management. Sixty-six percent of best-in-class organizations have a proper onboarding strategy in place compared to 54 percent of industry average and 34 percent of laggard organizations. This represents a significant increase from the 40 percent of best-in-class organizations with a proper onboarding strategy in 2012. A negative onboarding experience can leave an organization at risk in terms of compliance, lost productivity, and negative branding. Organizations that invest in strategic onboarding or leverage third-party providers are able to get contingent workers up to speed and contribute to businessdriven initiatives much more quickly. These organizations are also better prepared to handle the forms management aspect of onboarding contingent workers as well as the training of time-keeping and company policies. As the contingent workforce grows in complexity, organizations must consider a new approach to managing this critical talent pool through improved strategies, and service and technology options. Organizations will achieve success by recognizing the best practices and key trends in contingent workforce management and selecting solution providers that meet their unique contingent needs.
Madeline Laurano is Aberdeen Group’s research director for talent acquisition solutions. She can be reached at madeline.laurano@aberdeen.com.
SEPTEMBER 2013
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www.hrotoday.com
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