In-house vs. Outsourcing Pank Koria, CEO, Project People
Agenda The acquisition of talent In-house vs. outsourced resourcing models Key Performance Areas
Project People A few brief facts about Project People GSMA 800 mobile operators 3 UK 3G mobile operator Ericsson UK
THE ACQUISITION OF TALENT
What keeps the CEO awake at night? Strategies for managing talent Organisational structure Managing risk Corporate reputation and building trust Capital structure Engagement with the workforce 78% 72% 67% 50% 43% 35% Source: PWC CEO Survey 2011/2012
Challenges for the CHRO Source: Bersin & Associates 2011
The retention time bomb Attrition Amongst Technology Employees
IN-HOUSE vs. OUTSOURCING
Case study
A different philosophy We want the best of the best to come to Google. We budget what it takes to find the best of the best. Todd Carlisle, Google Director of Staffing, Feb 2012
Google numbers Average number of employees per recruiter: 577 to 1. Google employees per recruiter: at least 64 to 1. Average Silicon Valley staff attrition: 20-30% Google turnover: less than 5% Google employees in 2005: 5,000 Google employees in 2012: 33,000 Google s position in Fortune s Best Companies To Work For list: 1
What Google does differently Specialist roles to enable the resourcing process: Recruiting research analysts Candidate developers (sourcers) Process co-ordinators Candidate screeners Specialised recruiters for further/higher education Specialised recruiters for technical/leadership roles Specialised international recruiters based locally Recruiting Programme Managers Recruiting Project Managers
What Google does additionally Competitions Pushing Boundaries Intelligent Metric Analysis
When In-house Works In-house recruiting functions work best when: There is an exceptional employer brand in place Organisational values and direction can be clearly communicated Recruitment function is extremely well resourced Recruitment activity is of consistent grade and quality Responsibility for sourcing lies with dedicated recruitment professionals Sophisticated measurement and analysis of recruitment metrics
What if we can t all budget like? Outsourcing can provide some of the advantages Maturing pool of outsourcing providers Innovation is part of the outsourcing contract
Current spend on Talent Acquisition
The development of resourcing solutions Full Full RPO RPO Managed service Managed service Managing agent Managing agent PSL managed in-house PSL managed in-house Ad hoc supply Ad hoc supply
Case Studies: 3 UK and Ericsson Talent sourced: over 2200 / 1600 Employer brand: regularly review and translate to external candidates Hire Quality: significant improvement in retention E-Enabled: End-to-end electronic workforce management solution Adaptability: Embedded teams blended with scalable support BI & Analytics: Over 20 metrics analysed and used to reengineer the process Cost savings: Several million GBP over the last 12 / 7 years Compliance: 0% error rate over the last 12 / 7 years Evolution: Transformed into an RPO over a 12 / 7 year period
How technology is accelerating and driving change Connected Society Innovative software Big Data We are at inflexion point; Organisations which learn to leverage big data will far outperform those who do not.
Project People s leading edge talent management application: iresource.com Recognises the flexibility & responsiveness needed to meet today s talent challenge: Drives talent through the organisation Emerging talent recruited instead of replacing experienced talent Employees automatically invited to interview for roles they nearly have the skills to perform Enables the crunching of Big data from thousands of applicants and hires to influence future selection criteria Fujitsu, IBM, NHS and MBNL currently use iresource.com
Key Performance Areas (KPAs) for talent acquisition People Strategy aligned to Business Plan People Policies and Brand promote acquisition and retention Organisation knows What good looks like Talent Management processes are robust and integrated Effective technology supports Talent Management Big Data, BI, analysis and insight Stakeholder Perception L&D and Innovation
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