Rethinking Talent Management: Where Do We Go from Here?

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1 LEADING THE WAY IN SPECIAL ADVERTISING SECTION Rethinking Talent Management: Where Do We Go from Here? O BY Is the Great Recession finally over? While economists argue both sides, one thing is certainly clear: the landscape of talent management has forever changed. Read about the latest trends and how your organization can move forward with clarity and confidence. JULIE BOS OUR ECONOMIC RECESSION MAY OR MAY NOT BE OVER. But either way, the old rules of talent management no longer apply. Today s companies still need to face a tightening labor market, reign in unnecessary costs and do more with less. So where do you go from here? And how are you supposed to plan for talent acquisition in a post-recession economy? Understanding the recent trends is a great place to start. Trend #1: More Reliance on a Contingent Workforce When the recession first hit, layoffs were a knee-jerk first response for many companies. Most reduced their workforces by an average of percent (and some cut much more drastically). So when the economic upswing brings increased hiring opportunities, do organizations plan to refill all their previous positions? According to Jay Lash, executive director of Allegis Group Services, the answer is no. We re not going to go back to business as usual, he says. Companies are recogniz- 50 Workƒorce MANAGEMENT october 19, 2009

2 The world s leading companies work with KellyOCG to achieve ongoing recruitment process outsourcing success. RECRUITMENT PROCESS OUTSOURCING BUSINESS PROCESS OUTSOURCING CONTINGENT WORKFORCE OUTSOURCING HUMAN RESOURCES CONSULTING CAREER TRANSITION & ORGANIZATIONAL EFFECTIVENESS EXECUTIVE SEARCH Award-winning leadership in RPO New Holland reduced cost per hire from $12,200 to $3,700. achieved $800,000 in hard cost savings on a three-month recruitment project. reduced cycle time from 115 to 47 days through a lean-delivery model. Recruitment Process Outsourcing Our RPO practice is a global leader in enterprise-wide recruiting, placement, and retention solutions. We provide efficient sourcing of top-quality talent across all disciplines, job levels, and geographies. Leverage our experience to optimize your recruiting investment aligned with your existing infrastructure and culture for ensured compliance. All trademarks are property of their respective owners 2009 Kelly Services, Inc. U1974A

3 LEADING THE WAY IN SPECIAL ADVERTISING SECTION COMPANY PROFILE Kelly s Outsourcing & Consulting Group (KellyOCG), Recruitment Process Outsourcing (RPO) practice is a global leader in managing enterprise wide 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. 100 percent of our global business capabilities are dedicated to RPO, with over 550 recruitment professionals across 43 sites nationwide and in over 40 countries to provide recruitment solutions for clients ranging from 75 to 7,000 annual hires. For more information on how we can work for you visit today. ing that having full-time employees is very expensive it s expensive to scale and difficult to expand globally. And as your markets and products change, it s virtually impossible for these full-time workers to accommodate all those fluctuations. Instead, companies are starting to look at their core competencies, key business strengths and talent pool while taking a close look at things they can begin to offload or outsource through a contingent workforce, in order to provide that buffer, he says. As a result, they are starting to build greater dependencies on the variablecost workforce versus the fixed-cost workforce. Recent research from Veritude confirms this trend. The company s July report titled The New Normal: Recession Response and Workforce Planning revealed that the current recession has impacted how HR professionals operate, as 38 percent of HR professionals surveyed shared that their staffing models will not revert to what it was in the past. In fact, seeking more flexibility in cutting staff when necessary, 33 percent of respondents are considering increased reliance on contingent staff. Reasons cited for turning to contingent workers were gaining the ability to handle fluctuations in volume (30 percent) and having a try before you buy approach (20 percent). Trend #2: Increased Focus on Hiring Quality and the Role of Selection Science Quality of hire has always been the holy grail of recruiting. The recent recession has not changed that fact if anything, it s made finding quality employees even more important. Today, there are more applicants and fewer jobs, says Steve Earl, director of product marketing at Kronos, Inc. The applicant pool has expanded in terms of volume, experience levels and diversity making the hiring manager s job a whole lot harder. Using selection tools that help identify quality not just attract quality can help hiring managers sift through the expanded applicant pool to find the one who best fits the position requirements. Trend #3: Continued Awareness of RPO as a Long-Term, Strategic Option According to the recent Global RPO Report 2009, released in July by Kelly Outsourcing and Consulting Group (KellyOCG), familiarity with RPO appears to be on the rise. 62 percent of survey respondents say they are familiar or very familiar with RPO versus 56 percent last year. When the current recession passes, as it will, the war for skills and talent shortages will return in even more dramatic forms, says Zachary Misko, global director of RPO for KellyOCG. HR departments that have downsized in the lean times will be overwhelmed with the complexities of identifying and on-boarding the quality and quantity of talent they need to fuel their company s renewed growth. The value that RPO can play in such an environment to enable organizations to respond rapidly will be, if anything, more pronounced. Trend #4: Ongoing Interest in Off-shoring According to Lash, most companies that can accommodate certain functions offshore are either already doing it, or seriously exploring it. Many companies have told us that they are off-shoring at least some piece of their work perhaps some processing functions that have moved to India, a new test center in China, or a new manufacturing line in Malaysia, he says. That has more or less been the wave during the economic downturn. However, we shouldn t look at this as a negative, he adds. Instead, offshoring represents growth indicating positive things happening for global companies. Trend #5: Increased Need for Temporary Workers An increase in outsourcing and offshoring is causing another trend: an increased need for temporary labor to help organize, package (and sometimes manage) the outsourced work. Once a company chooses to outsource or off-shore some work, the next step is to have someone actually package up the work to deliver it to the new provider, explains Lash. 52 Workƒorce MANAGEMENT october 19, 2009

4 MANAGED SERVICE PROGRAMS RECRUITMENT PROCESS OUTSOURCING HUMAN CAPITAL CONSULTING Exper se Ma ers. When it comes to medical care, you d never risk your health by choosing a doctor with questionable expertise. And in the area of human capital management, you should apply the same high standards. At Allegis Group Services, we offer our clients a wide range of service solutions that enable them to optimize their use of human capital. As part of the Allegis Group family of companies, Allegis Group Services provides Workforce Management Solutions, Recruitment Process Outsourcing and Consulting Services that help build staffing supply chains, secure top talent, guide Vendor Management System selection and implement Managed Service programs for the world s leading companies COPYRIGHT 2009 ALLEGIS GROUP SERVICES EQUAL OPPORTUNITY EMPLOYER

5 LEADING THE WAY IN SPECIAL ADVERTISING SECTION COMPANY PROFILE Allegis Group Services provides human capital and workforce management solutions that enable our customers to optimize their use of human capital. As part of the Allegis Group family of companies, Allegis Group Services provides Managed Services, Recruitment Process Outsourcing and Consulting Services that help build staffing supply chains, procure top talent, guide VMS technology selection and/or implement MSP programs. Whether you re in need of a Managed Services Provider, Recruitment Process Outsourcing, or Human Capital Consulting, contact us at (877) or visit for more information. We learned all these lessons from companies recent off-shoring and outsourcing endeavors. Simply giving an outside contractor the task is probably not enough. Somebody actually has to package the work so that it s well defined with clear milestones and deliverables and many times, manage the project to ensure tangible results that demonstrate real efficiencies and savings. This role often falls to temporary business analysts many of whom are ex-employees, recent retirees and those who may soon retire. This group understands the business; they understand the applications; and they understand the customers, says Lash. Trend #6: Lean Principles Being Applied to Recruitment Most of us are familiar with Lean principles within manufacturing. But these days, the same concepts of reducing waste, increasing quality and improving production are now being used to improve the talent acquisition function. In a time of reduced hiring quantity, HR professionals are shifting more of their focus to hiring quality, says Misko. Consequently, people are realizing they can use Lean principles in business processes to help reduce waste, eliminate redundancies, shorten cycle times and eliminate costs. So outside of just eliminating head count a blanket cost we re helping organizations use a Lean philosophy to really refine their recruitment process and reduce a lot of waste. For example, using Lean tools like value-stream mapping and kan-ban, KellyOCG helped one of its clients reduce offer defects by 80 percent, eliminate the use of incorrect offer forms, reduce inventory, save money and increase hiring manager satisfaction. Trend #7: More Attention to Candidates Schedule Preferences In the retail world, it s important to consider an applicant s schedule preferences during the hiring process particularly in hourly, frontline positions, says Earl. This mismatch is a key reason for voluntary turnover. Even though employee retention is longer in this recession, this is a practice that will yield positive results when the economy turns around. In corporate positions, hiring managers are dealing with similar issues primarily a younger generation of workers that have their own ideas about work schedules. From our view, more and more workers particularly the younger generations are choosing independent, less structured forms of employment, says Lash. They don t want to work 9 to 5. They may not mind working until midnight, but they may want to do it from home. They are requiring more flexibility in their jobs, as well as more purpose. In order to have more satisfaction in their jobs, they need to feel they are contributing in some way. Going Lean With Your Recruiting Processes Based on recent success with one of its clients, the KellyOCG RPO team recommends several strategies for process improvement in the recruiting process. Create application instructions Standardize the initial candidate phone screening Create a compliant process for documenting search strings Standardize the hiring manager call for newly posted positions Create a staffing quick reference guide for hiring managers Document the employee referral process Create a checklist for offer compliance Define compliant candidate disposition codes to use in the applicant tracking system Institute a Kanban for offer letters 54 Workƒorce MANAGEMENT october 19, 2009

6 SPECIAL ADVERTISING SECTION LEADING THE WAY IN What Next? Nobody knows for sure when we may see an upturn in the economy. We do know, however, that in order to survive in the current climate and to ensure a sustainable future, companies need to ensure that their attention is focused on their greatest asset their people. Strategies for Success Realizing these trends, how can you move forward in your organization today? Consider these tips: Continue searching for great talent Don t stop hiring during the economic downturn. In a soft market, many of the best engineers, sales people, marketing people, managers and executives are looking around. Take advantage of the unique opportunity to strengthen these highly competitive areas. Don t dismiss the value of job boards With over 850,000 different job boards and social networking sites available today, it s become more difficult than ever to fully understand how to utilize all those sites, post positions or effectively communicate on all of them. Take the time to understand which sites work best for you or partner with someone who can help. Treat job candidates as if they were customers With more and more people online applying for jobs, employers should seek to provide a positive applicant experience while candidates are at the career site. In many cases, these people will be the customers shopping in your stores once the recession is over. A positive experience will leave them feeling good about your company and brand. Turn outward, not inward Spend even more time focusing on customers needs. Take time to examine what products and services are doing well, and which are not. Look at how the economy has affected your customers and look for new needs you can fill. Aim to keep current employees satisfied If increasing compensation is not possible, look for cost-effective ways to retain, engage and motivate employees through other means. Flexible work hours, hand-written thank-you notes and employee-led best-practice sharing sessions are a few ideas for keeping your workforce engaged. Don t abandon your employee recognition programs Even when times are tough, you ll find many people performing at high levels of performance. Rewarding them should remain a priority. Continue investing in talent development and recognition efforts, and remember that talent development is a long-term investment. Communicate a growth path for employees Employees will better understand that managers are invested in their futures, and they ll be more confident in investing their time and career with the organization. Look for ways to keep your knowledge in-house Consider contracting with exemployees and recent retirees, many of whom have spent decades in the field and represent a tremendous wealth of knowledge. Communicate honestly and clearly Clearly explain your organization s rainy day plan where it s going to invest, where it needs to cut expenses, where it needs to do more with less and how it plans to bring the company out of its current problems. This communication is vital not only with employees, but also with candidates. Consider Recruitment Process Outsourcing (RPO) Teaming up with an RPO provider can help you save money while maximizing your scalability in a down economy enabling you to get the exact number of resources you need today, while poising you for growth tomorrow. Don t be afraid to change your talent management philosophy Many companies are rethinking their positions on telecommuting, virtual meetings, more flexible schedules and increased use of contingent workers. In today s environment, change is everywhere and wise companies are embracing that change and capitalizing on the opportunity to reinvent themselves. COMPANY PROFILE Kronos time and attendance, scheduling, absence management, HR and payroll, hiring, and labor analytics solutions give our customers the edge they need to compete in the global marketplace. With thousands of installations in organizations of all sizes in retail, healthcare, manufacturing, services, transportation and distribution, airlines, government, education, and beyond we re proving workforce management doesn t have to be so hard. (800) october 19, 2009 Workƒorce MANAGEMENT 55

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