Back in the Recruiting Game Renewed Hiring Brings New Opportunities, New Challenges

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1 LEADING THE WAY IN SPECIAL ADVERTISING SECTION Back in the Recruiting Game Renewed Hiring Brings New Opportunities, New Challenges Hiring is in an upswing, yet recruiting departments are leaner than ever. During this fragile turning point, more and more employers are turning to recruitment process outsourcing (RPO) as a strategic, cost-effective solution. IIT S BEEN A LONG, COLD NIGHT FOR DECIMATED RECRUITING TEAMS EVERYWHERE. But as BY JULIE BOS organizations begin to crawl out of a universal hiring slump, a new day may be dawning. Aggressive recruitment is back, says Terry Terhark, CEO of The RightThing, a leading RPO provider. Since the first of the year, almost all of our clients are hiring in much more robust ways than they did in 2009, and all indications are that this trend will continue for the remainder of the year. 42 Workƒorce MANAGEMENT june 2010

2 START Finding people is one thing. As your trusted strategic Finding talented, productive, value driven people is our thing. partner, The RightThing can turn your most complex hiring initiatives into a simple, custom, strategic process that delivers the right fit for your culture. Learn why we are the #1 recruitment process outsourcing provider. FINISH Repeat performance! Proud to be the #1, overall RPO provider for the second consecutive year.

3 LEADING THE WAY IN SPECIAL ADVERTISING SECTION COMPANY PROFILE For more than 20 years, Kenexa has studied human behavior and team dynamics in the workplace and has developed the software solutions, business processes and expert consulting that help organizations impact positive business outcomes through HR. Kenexa is the only company that offers a comprehensive suite of unified products and services that support the entire employee lifecycle from pre-hire to exit., including: Recruitment Process Outsourcing Employment Branding Employee Assessments Recruitment Technology Onboarding Performance Management Employee Surveys Learning Management Leadership Solutions Succession Planning Leaders at Kenexa agree. It s like a gun went off on January second and released a lot of pent-up demand, says Tim Geisert, VP, principal and global head of strategy for RPO sales and marketing. Now that business is coming back, many companies are trying to decide whether they should outsource or rebuild their recruitment teams. There are a lot of new buyers in the marketplace today that weren t there two or three years ago, as well as many experienced buyers who are re-shopping, in hopes of getting higher quality candidates. While a healthy dose of hiring may signal promise for a full economic recovery, it s also spelling big challenges for organizations that are not fully prepared. Top Five Pain Points Organizations are feeling the pain on several levels: Understaffed Recruiting Teams The recession caused most companies to make tough cutbacks, and for many, recruiting was one of the first areas to go. Now, those same companies are distressed about the requisition load their remaining recruiters are carrying and they re looking for solutions. Many downsized their recruiting departments so much, they have few recruiters left a fact that has left them unprepared for an economic upturn, says Candy Lewandowski, vice president and global practice lead for KellyOCG. Clients are looking to RPO to help overcome their immediate pain, as well as to map out a longer-term plan for the future. Restricted Budgets Companies today have a growth mindset with a recession budget, says Rebecca Bleiman, VP, national account director for Allegis RPO, a provider that has witnessed a 30-50% uptick in client hiring since last November. As hiring volume rises, companies real challenge is to become more strategic in their recruitment efforts. Because of head-count restrictions, they can t bring in a lot of full-time people so they re looking at alternative ways to augment their staffing needs. Increased Job Complexity Restructuring and downsizing have led many companies to upgrade their talent levels resulting in increased job complexity, more specialized skill sets and higher expectations for the new employees they bring in. Given this complexity, companies now need qualified recruiters who have experience in hiring these more specialized skill sets and those that can recruit fast enough to manage this rapidly evolving landscape. Talent Mismatch According to recent research from Staffing.org, candidate quality is the number one staffing priority for employers right now (up from third position in 2009). But according to Manpower s new 2010 Talent Shortage Survey, 31% of employers worldwide are experiencing difficulty in filling key positions. The immediate problem is not the number of candidates, but rather a talent mismatch: There are not enough sufficiently skilled people in the right places at the right times. Evolved Technology and Techniques While recruiting efforts have largely stood still, technology tools and hiring techniques definitely haven t. Now that companies are back to hiring, they re realizing that recruiting technology is quite different from what they were used to, says Zachary Misko, global director of the outsourcing and consulting group in Kelly s RPO Practice. In addition, the candidate lifestyles, methods of connecting and the impact of social relevance of the internet have all changed it s just not the same playing field. 44 Workƒorce MANAGEMENT june 2010

4 RECRUITMENT PROCESS OUTSOURCING BUSINESS PROCESS OUTSOURCING CONTINGENT WORKFORCE OUTSOURCING THINK PROGRESS. CHANGE UNDERWAY? Look to the Leaders in Recruitment Process Improvement KellyOCG s Recruitment Process Outsourcing (RPO) practice has over 15 years experience working with Fortune 500 companies to improve process efficiency, reduce waste and enhance teamwork. Our results and experience speak for themselves. CREATE CURRENT AND FUTURE STATE VALUE STREAM PROCESS MAPS Reduced GE Healthcare s talent acquisition process by 32 steps = 34% decrease in cycle time and 82% reduction in process errors. DESIGN PROCESS MAPS/FLOW TO ENSURE CONSISTENCY AND END USER SATISFACTION Created process for new center hiring at Talecris Biotherapeutics = 100% fill rate and 35% reduction in cycle time. IMPLEMENT AUTOMATION Created automated customer service center and interviewing process at GE Money = 22% increase in fill rate and 50% increase in customer satisfaction. kellyocg.com HUMAN RESOURCES CONSULTING CAREER TRANSITION & ORGANIZATIONAL EFFECTIVENESS EXECUTIVE SEARCH

5 LEADING THE WAY IN SPECIAL ADVERTISING SECTION COMPANY PROFILE The RightThing is the number one enterprise recruitment process outsourcing (RPO) provider. Harnessing the power of unmatched proprietary technology, The RightThing continues to lead the industry with innovative, scalable solutions that help clients find, recruit, hire and retain top talent. Dedicated to recruitment leadership, technology and outsourcing, The RightThing offers recruiting solutions to small, medium and large organizations serving many of Is RPO the Answer? As people cautiously approach the economic upswing, many are turning to RPO as a viable way to build and maintain expertise. And for good reason. The benefit of outsourcing is that you ve got the flexibility and scalability to get the positions filled and get some work done, says Misko. An RPO solution allows you that flexibility plus, an RPO provider already has the latest technology, training and knowledge to ensure organizations are using the latest and greatest recruitment techniques. The beauty of RPO is that you create your own internal sourcing capability by bringing in a very robust and strategic recruitment function, adds Bleiman. In essence, you re bringing an agency in-house and you gain scale and continuity of messaging to the external market. Whether your company is suffering under the weight of an unmanageable requisition load, or simply burdened by understaffed recruiting team, RPO may be the answer. The key to a successful engagement, however, is proper planning from the start. Consider these tips to guide your way. Tips for a Successful RPO Engagement Determine if your company is ready Not every company is ready for an RPO. Make sure your organization has an executive commitment to a path of improvement, which will include significant change management. In addition, decide on your primary objective. Is it increased quality of hire? Increased speed of hire? Becoming more scalable? Or simply a cost-saving strategy? Decide what you want to own Kate Donovan, managing director RPO/BPO for Manpower Business Solutions, adds more sage advice. RPO products are very flexible and scalable, which enables companies to decide which core competencies they want to keep in-house, she says. Some want to have an outsourcing firm do the up-front part, while they handle the candidate on-boarding process themselves. My advice for employers: Outsource what s mission critical, but not core. Ensure the provider s top priority is quality candidates Essentially, all roads should lead to a single end-goal: obtaining quality candidates (as opposed to merely a higher quantity of candidates). While some RPO providers are still recruiting the same way they ve done for years, others have spent their time reinvesting in more mature technology, new delivery methods and other mechanisms for obtaining higher quality candidates. As a result, companies are noticing the difference. the world s leading companies. The RightThing is also parent company to AIRS, the leading provider of recruitment training. For more information, please visit What Market Sectors Are Coming Back? According to Manpower Business Solutions, hiring in several markets is on the rise. On a global basis, we re seeing the temporary business coming back rapidly, says Kate Donovan, managing director of Manpower Business Solutions RPO/BPO. When employers reemerge after a recession, they typically go for temporary employees first just like they let go of temporary employees first. We re seeing year-over-year temporary hiring is up 30% worldwide. On the domestic side, Donovan has also seen growth in permanent hiring, specifically in financial services, sales and telecommunications, with less movement in retail and home-building. 46 Workƒorce MANAGEMENT june 2010

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7 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 & recruitment solutions. Since Scrutinize the management team When dealing with a top RPO firm, good recruiting is a given. Wise companies look beyond this obvious skill and examine the tenure of the RPO executives and account managers. Seek to determine: Who will be working with you on a day-to-day basis? Is that person a strategic thinker or an operations person? Do you have access to executives who are committed to RPO for the long-term? Can they provide the real insight to help you become as strategic as possible? Give it enough time Proper RPO takes time time for the RPO firm to fully understand the client, time to build the right processes and time to deploy the right technology. There s a natural curve by which the RPO relationship starts to become productive. It s not as simple as calling an RPO provider today and tomorrow having a solution in place. A good implementation could be 6-12 weeks, and adoption can be anywhere from days. Look for full RPO engagements Ask about the number of full RPO engagements a provider has done before you sign on the dotted line. One RPO engagement or a contingency staffing agency calling themselves a full RPO provider does not suffice. Find out whether the RPO provider is doing full RPO or just parts of the process. Seek out specialization and innovation Look at providers that can provide the skill sets and demonstrate proven experience around your specific functional needs, including your industry and those particular skills you have the most difficulty recruiting. Examine providers past performance, including the nature of the roles they ve filled. Don t forget to look 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. For more information on how we can work for you visit today. Today s RPO Facts Consider these facts from the Global RPO Report 2010, prepared by Kelly Outsourcing and Consulting Group (KellyOCG) and the Human Resources Outsourcing Association (HROA): The top recruiting challenge is a shortage of skilled staff, cited by 58% of respondents. Europe is the worst affected, while Asia Pacific is impacted by what is described as uncompetitive salaries. The quality of candidates is the biggest factor slowing the hiring process. Two-thirds of organizations plan to use recruiting firms in their hiring efforts. The top job categories to be filled are business operations support, and mid-level executives. Some 60% of HR units are operating with five or less staff. More than a third spend less than 10% of their time on recruitment, and only 20% devote at least 75% of time to recruitment. Familiarity with RPO continues to rise steadily. Three years ago, 56% of respondents said they were familiar with RPO; last year that number was 62%; and this year, 65% of HR professionals said they have familiarity with RPO. The biggest expectation from an RPO partner is improved hiring times, followed by lower cost, and integration of multiple hiring channels. More than a quarter of firms are outsourcing their recruitment process, with spectacular growth in the Asia Pacific region. 48 Workƒorce MANAGEMENT june 2010

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9 LEADING THE WAY IN SPECIAL ADVERTISING SECTION COMPANY PROFILE Allegis RPO provides flexible recruitment solutions to serve your organization s evolving business objectives. closely at the innovativeness of their recruiting. Examine the cultural fit Studies show that about one-third of employees leave an organization because of a cultural mismatch. Make sure your RPO provider s culture matches yours, so you have a better chance of hiring employees who will go the distance. At the end of the day, your RPO provider is really an extension of your own HR department. Because of this close working relationship, finding cultural alignment is one key to success. Don t just focus on price While cost can be a driver, the price arrangement you make with an RPO provider will determine the quality level of the recruiters assigned to your firm. IT recruiters, for example, can come at a premium based upon geographical differences. Whether you need to outsource your entire recruiting function (enterprise-wide) or just need recruiting support for a defined need based on geography, position or business unit we can help. Our programs are flexible, scalable and can be delivered to your specifications, either on-site or off-site. Allegis RPO recruitment teams immerse themselves in our client s culture and business practices to understand what makes a successful placement within your organization. We develop specialized sourcing strategies to target your ideal employee and relay your compelling story, one candidate at a time. Considering RPO? Factors to Consider First Compliance Cost of hire Fluctuations in hiring volume Diversity Metrics management and reporting capability Quality of hire Recruiting program innovation Recruiting spend per year (cost/benefit analysis) Satisfaction among internal stakeholders Technology platform Time to hire The online hub for everything and everyone you need to know in Recruiting & Staffing. Use the Recruiting & Staffing channel on the workforce.com website as your information hub for finding and managing talent, 24/7! Get the most current stories, trends, strategies and special reports. Search by subject or company. Get news you might have missed. Find archived in-depth features. Visit the Commerce Center for a list of and information about different segments within the category, such as Assessment & Testing, Background Checks, Candidate Sourcing, Contingent Staffing, Retention, Telecommuting and Workforce Planning. Each directory includes profiles and links to resources and vendors, cutting down on your research time. Access is free, you simply need to register to become a member! > Go to: workforce.com/staffing Workƒorce MANAGEMENT MANAGEMENT 50 Workƒorce MANAGEMENT june 2010

10 SPECIAL ADVERTISING SECTION LEADING THE WAY IN Focus on the relationship first According to Kenexa s Tim Geisert, a successful RPO engagement begins with a great relationship with an RPO provider. Smart buyers start out by forging relationships, not by going through the standard procurement process, which sterilizes a very relationship-oriented purchase, he says. More and more companies today are going outside the RFP process to discuss their problems with a few providers before deciding who they want to include in their RFP process. Think strategically Look at what you need now, but don t neglect the strategic resources the company may be able to offer down the road. Some RPO providers are great at shortterm goals like filling seats but are less experienced with long-term strategic goals, such as technology adoption, assessments, workforce change, leadership and development. Finding a partner that can expand and contract with the needs of your business is critical to ultimate success. Look at year-over-year sustainability Any RPO provider worth its salt can make a difference in the first few months and year; but once the metrics have been set and the best practices have been adopted, how are they performing yearover-year? Can they continue to deliver value-add, cost-reduction and customer satisfaction? It s good to find out. Seek scalability After surviving the ups and downs of the recent recession, most companies view scalability as a top factor. You need an RPO firm that can scale up and down quickly without it being painful. Zero in on the results Perhaps most importantly, examine your potential RPO providers results. How effectively have they direct-recruited candidates? What impact have they made from the beginning of the account to the end of the account? Have them demonstrate their direct-recruiting capabilities, including how they ve decreased costs and driven up efficiencies. The Future of RPO: Looking Bright Jamie Minier, president of The Right- Thing notes, Over the past ninety days, many clients have indicated a level of urgency that we ve never experienced before. Understanding a strong talent pipeline is vital to their success, many organizations are looking for a solution that can be implemented quickly, offering a total talent solution without sacrificing quality. With the ability to address these critical pain points, 2010 could be a great year for RPO as a whole. june Workƒorce MANAGEMENT 51