Keep the Best, Outsource the Rest Corporate Outsourcing and the Staffing Industry

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1 Register Today Staffing World 2010 will take place Oct in Las Vegas. Register by June 25 and save up to $400 on a full convention and expo package, plus an additional 10% off each subsequent registration, for other members of your team. Visit staffingworld.org for more details. Keep the Best, Outsource the Rest Corporate Outsourcing and the Staffing Industry June 10 Webinar Audio Options 1. Voice Over Internet Protocol The audio portion of this event will automatically stream through your computer speakers via VoIP. Remember to turn up your speakers in your computer settings as well as the volume knob on your physical speakers. 2. Connect to the Conference Change the Audio Mode to Use Telephone in your GoToWebinars panel. 1

2 Ask a Question Directly to ASA! Make sure you are listening to the Webinar using your telephone (Use Telephone mode). Click Raise Hand on your Webinar panel during Q&A period. Unmute your telephone on your end. Emily will open your list and prompt you to begin talking. Your questions will be recorded language please! HRO and BPO in the U.S. Reasons to consider outsourcing First steps No matter your size the three areas in staffing where you can get the most impact Pitfalls Questions and answers 2

3 HRO BPO 16% CAGR $103.2B 14.4% CAGR $103.2B 2010 e 2010 e HR Outsourcing is the fastest-growing segment of business process outsourcing (BPO) and is expected to grow annually at a rate of 16%. Source : EDI Cutting Costs 29% Focus on Core Business 29% Avoiding Capital investments 14% In ability to stay current (technology/process and staff) 14% Improve service 14% Source: The Outsource Center 3

4 Sourcing Matching Sales leads Web design Data mining PR Recruiting Sales/marketing Back office Other Systems Accounting Payroll Legal Training Procurement Risk HR Risk Recruiting Back office 4

5 Prescreen Application Interview Orientation Client Qualification LOSS PREVENTION LOSS CONTROL ACCIDENT Carrier Relations Modified Duty Accident Investigations Accident/Injury Protocol Physician Relations Source: RCS On boarding Bench marking Loss analysis Operational assessment Targets and roll-out Risk evaluation Implementation Training developed Internet resource center Client safety partnership Review progress Set future targets and on-going Next steps and supplementing services Annual risk action plan Ongoing 5

6 Source: RCS Source: RCS Proven best practices that will: Lower workers comp and insurance costs Lower collateral - capital Help you invest your time and energy with clients Understand at the deepest level your risk and rewards of a comprehensive plan Benefit of the experience of an outsourcing firm that services over 900 other staffing firms Differentiate your value to your clients through WRC Certification 6

7 Gallagher Bassett SRS Insurance carriers provided loss control Brokers provided loss control Job Board Recruiting Direct Recruiting Research / Sourcing Sales Lead Generation Company A s recruiters identify and qualify active candidates, and hand them off to clients - Candidates are sourced through jobboards and screened by Company A recruiters - Candidates are contacted and assessed by phone - Qualified candidates are endorsed to clients and interview logistics are managed Company A s recruiters identify and qualify passive candidates, and hand them off to clients - Sourcing is done using various phone-based and internet-based techniques - Client/ Position value proposition details are articulated to potential candidates, and interested candidates are screened by phone - Qualified and interested candidates are endorsed to clients and interview logistics are managed Company A s researchers identify passive and active candidates, and hand them off to clients - Sourcing is done through job boards for active candidates and through broader internet research for passive candidates - After non-verbal screening against client specifications, candidates are endorsed to clients Company A s recruiters compile targeted sales leads and pass them to clients - Clients specify job titles, functions, industries, geographies, etc., that they are trying to sell into - Company A s recruiters develop lists of open job orders that match the specified criteria, including the names and contact information of decision makers 7

8 Areas Company A Supports Clients Sourcing Qualification Matching Presentation Client Interview Closing Source passive or active candidates Qualify / interview candidates Match Present Prep and Manage clients qualified qualified debrief and candidates candidates to candidates to candidates for through open job clients interviews, closing/ orders manage acceptance process Company A takes over or supplements one or more of the earlier stages of a client s recruiting process, allowing the client to save money and increase the flexibility of their business Cost Savings Additional Benefits Compensation Costs: Between 30% and 60%+ savings off current costs per recruiter/sourcing specialist Support Costs: Reduction/elimination of the hard costs related to supporting in-house staff, including telephony, technology, office space, etc. Flexibility: Elimination of the time, cost, and risk associated with ramping in-house staff up and down Access to Best Practices: Access to best recruiting practices built up through 20 years of staffing and recruiting industry experience Cost Impact of Adding One Offshore Recruiter* $K $14K $54K ($29K) Infra. $40K Benefits $25K In this example, an onshore recruiter costs more than twice what an offshore recruiter costs *Note: Example assumes client pays $2,100 monthly per recruiter for Company A s service ($25K/yr), vs. $3,333 (or $40K/yr) for an internal recruiter 8

9 Net Income Impact (of Migrating 25 Recruiters Offshore From a 200 Person Staffing Company) $K $4,000K $589K $118K $88K $4,795K In this example, migrating 20 recruiters offshore from a 200 person staffing company can increase company profitability by ~20% Company A has clients who have moved a much greater portion of their workforces offshore *Note: Base assumes revenues of $100M and net income of 4% Offshore recruiting is a relatively new industry, with most competitors having sprung up from smaller Indian IT outsourcing firms that branched into recruiting - Industry participants are typically quite small, and with few exceptions do not have a U.S. presence Call ASA or visit the ASA online membership directory to find and contact outsourcing firms. 9

10 Managed & Hosted IT Payroll & Funding Insurance & Risk Other Services Single, integrated Back Office (pay/bill, reporting) Best of Breed Front Office apps Online & electronic time capture Live help desk & tech support All Processing & tax administration On-site check printing, paycards, direct deposit Credit/collections, optional accounting & statements HIRE Act admin Aggregated workers comp & professional liability insurance Professional risk management support HR, legal, benefits and all claims (WC, UE, EEO) management services Expert strategic management consulting, advisement, planning support Aggregated buying power for other consumable products and services Accounts receivable financing, fully administered Staffing Company Staffing Company with Company B Sales Biz Dev Client Relations Recruiting Selection Fulfillment Service Day to Day Customer & Employee Support Back Office IT & Systems Payroll & Billing Banking, Accounting Risk & Insurance Sales Service Biz Dev Day to Day Client Relations Customer & Sales Team Employee Support Management/Training Retention Strategy Strategy Metrics/Reporting Recruiting Selection Fulfillment Follow-Up Development Back Office Company B National Support Service Center Improved Systems & Efficiency Improved back office systems, processes, capacity and outcomes Workload relief (non-revenue producing activities eliminated) Leadership freed to focus on core strategic initiatives Access to highly specialized expertise Reduced Costs Fixed overhead expenses converted to variables More scalable operating model No capital expenditures or infrastructure investment Reduced direct labor and overhead costs Reduced Risk Reduced exposure to employment-related and other inherent staffing business risks 10

11 The top 25% of staffing firms in the Company B Network grew by more than 46% in their first year of the arrangement. A commercial staffing company in NY made more money in its first year with Company B than it had in the previous 4 years combined. A 15-branch healthcare staffing company cut annual overhead by more than $900K with Company B. Company B showed a $175M multi-state staffing group how to eliminate almost $2.5M in back office costs. A 17-year old multi-branch staffing company has quadrupled sales and increased operating income sevenfold over 5 years with Company B. Alternatives to consider include: Two or more providers pieced together (software company, payroll processor, funding agency, etc.) see ASA Web site for listings. Piggy-backing on another staffing company s back office Eplica Mainstay 11

12 Protect your IP Ensure data privacy Require consent for subcontracting Include an exit strategy Properly address dispute resolution Indemnification Have a plan Questions and Answers 12

13 To Submit Your CE From This Webinar on ASAPro: Visit the ASAPro home page at americanstaffing.net/asapro. Log in to your ASAPro account. Click on CE Submission Form. Submit your hours directly to ASA with no paperwork! For more information and to purchase archived courses, visit americanstaffing.net/asapro. Overcoming Objections and Getting to Decision Makers on the Phone June p.m. Eastern time When you call prospects, do you hear yourself saying phrases like "I know you're busy," "I'm sorry to bother you," and "This won't take long" the instant you hear "Hello" on the other end of the line? If you do get permission to continue the conversation, do you proceed with a 30-second brain dump, rattling off who you are, what you do, and what you can do for the prospect without taking a moment to breathe, let alone ask a question? Learn to rethink traditional sales methods and use nontraditional approaches to regain the initiative, close more sales, and restore dignity and integrity to your sales efforts during this ASAPro Webinar presented by Tim Alderman, president and chief executive officer of Alderman Hockaday and Associates LLC. For more information and to register, visit americanstaffing.net/webinars. Generate Sales Leads and Improve Recruiting With Inbound Marketing June :30 p.m. Eastern time Many staffing professionals still rely on cold calling as their primary lead-generation technique. For years, it was the best way to generate leads, but now there is another option: inbound marketing. This tactic enables you to attract clients and candidates on demand, and it costs far less than hiring an additional salesperson but it yields far more sales leads. Inbound marketing allows your company be found by the right people at the right time. Unlike traditional, interruption-based cold calling, advertising, and blasting it works by using the Internet in new ways to connect with employers and job seekers. During this ASAPro Webinar, David Searns and Brad Smith of Haley Marketing Group will teach you what inbound marketing is all about and how you can integrate it into your marketing strategy for almost no additional investment. For more information and to register, visit americanstaffing.net/webinars. 13

14 Register Today Staffing World 2010 will take place Oct in Las Vegas. Register by June 25 and save up to $400 on a full convention and expo package, plus an additional 10% off each subsequent registration, for other members of your team. Visit staffingworld.org for more details. ASA Supports Haiti Relief Effort The ASA corporate social responsibility committee is considering ways the staffing industry can continue to help over the long term. Visit the CSR Web page, americanstaffing.net/members/csr.cfm, and tell ASA what your firm is doing to help now and what you think the staffing industry should do in the months ahead. 14

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