Seminar on The New ABC of Talent Acquisition :      Acquiring, Branding & Cost Optimization                             Ja...
The TA Puzzle of Cost Optimization                                                         Offer Acceptance               ...
Secret of Solving the TA PuzzleFocus on basic Maths• The rule of BODMAS      – Budgeting Factors      – Optimized Channel ...
Budgeting Factors  • Volume of hiring  • Channel Mix  • Team Size vs Team Productivity  • Optimization of Process (intervi...
Optimized             Channel Mix  • Judicious use of Staffing agencies (consultants)  • Maintain the mix through differen...
Optimized Channel Mix….leading to Cost saving  Illustration  Organization hire minimum 1000 candidates in an year and at a...
Development of internal team competence  Leading to enhancing Productivity:            •   Sustaining quicker Hiring Time ...
Development of internal team competence  • Recruiters’ Training        •   Effective goal setting        •   Altruism - th...
Measurement and Analysis  What to track to constantly improve Productivity?        –   Hiring Cycle time        –   Conver...
Measurement and Analysis (contd.)                                           Open Requisitions SLA %age %                  ...
Measurement and Analysis                                                           (contd.)                               ...
Measurement and Analysis : Hiring AccuracyHiring Accuracy : Hiring Accuracy helps in continuous improvement inthe hiring p...
Measurement and Analysis: Hiring Accuracy Quality of Hire •   Total no of employees joined in last 6 months, say : 12 •   ...
Amalgamation of Technology & Process  • Investing in a reliable Automated Recruiting System            •   Scalable       ...
Strategic Capability : Center of Excellence  Increasing the ‘Pull Factor’ through Recruitment Marketing        – Career Si...
Strategic Capability : Center of Excellence       Lateral hiring   •     Recruiters’ Training   •     Effective Recruiters...
Strategic Capability : Center of Excellence    Fresher Hiring•      Identifying the right Institutes           • Improving...
Crunching numbers and playing with members is fun             but let us always remember….            “Data without Analys...
Thank You            e-mail ids : senindrajit@hotmail.com              indrajit.sen@mosaikglobal.com                  Mobi...
Cost Optimization through RPO
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Cost Optimization through RPO

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Panelist: Indrajit Sen

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Cost Optimization through RPO

  1. 1. Seminar on The New ABC of Talent Acquisition : Acquiring, Branding & Cost Optimization January 20, 2012 NHRD Network, Habitat Centre, New Delhi1/26/2012 2
  2. 2. The TA Puzzle of Cost Optimization Offer Acceptance Offer Ratio e Decline Channel Team Productivity Mix Quality of Hire Hiring Candidates within defined SLAs Qualitative profile sourcing Managing Cost Per Hire1/26/2012 3
  3. 3. Secret of Solving the TA PuzzleFocus on basic Maths• The rule of BODMAS – Budgeting Factors – Optimized Channel Mix – Development of internal team competence – Measurement and Analysis – Amalgamation of Technology & Process – Strategic capability : Center of Excellence1/26/2012 4
  4. 4. Budgeting Factors • Volume of hiring • Channel Mix • Team Size vs Team Productivity • Optimization of Process (interviewing, assessment) • Conversion ratios / Lead times (hit on team productivity) • Attrition and poor performance within 6 months (poor hires ??) • Travel costs (Location spread of talent pools) • Recruitment marketing Costs (ads, event management, internal team vs external Partners)1/26/2012 5
  5. 5. Optimized Channel Mix • Judicious use of Staffing agencies (consultants) • Maintain the mix through different internal initiatives 2007-08 2006-07 2005-06 32% 28% 20% 34% 38% 43% TR 7% Direct STA Employee Referral 35% 9% 12% 29% 13%1/26/2012 6
  6. 6. Optimized Channel Mix….leading to Cost saving Illustration Organization hire minimum 1000 candidates in an year and at an average salary of $15000 through any staffing agencies on payment terms and conditions of 8.33%, then payout will be approx $1249. The average payout to staffing agencies differs across years as the average salaries have arisen, so we have increased 15% average payout taking last year as base payout. 50% $500,000 $437,150 45% $416,150 45% $450,000 40% $400,000 35% $350,000 30% $300,000 25% $198,000 $250,000 20% $200,000 15% $150,000 10% 10% $100,000 5% $50,000 0% 0% $0 2005-06 2006-07 2007-08 Total Payments to STA Cost Saving1/26/2012 7
  7. 7. Development of internal team competence Leading to enhancing Productivity: • Sustaining quicker Hiring Time • Reducing poor hires • Managing ‘Funnels’ effectively • Forecasting effectively • Identifying ‘Talent Pools’ in anticipation • Monitoring Process adherence (Enhancing ‘Conversion Ratios’ and ‘Lead Times’) Per Recruiter yield goes up , Team size optimal, Reduction in cost per hire1/26/2012 8
  8. 8. Development of internal team competence • Recruiters’ Training • Effective goal setting • Altruism - the mindset • Technique of ‘selling benefits’ to candidates –creating ‘win-win’ • CV reading, assessing and managing • Tracking Funnel and Process • Effective Interviewing • Self organization • Communication and engagement • Recruiters’/ TA managers Incentive Plans driving desired Recruiter behavior • Reward and Recognition for Recruiters Also • Goal Orientation and Better Time Management introduce • Benchmarking / Best practices ‘fun’ in Recruitment! All of above also enhances Recruiting Team’s actual Recruiting Time.1/26/2012 9
  9. 9. Measurement and Analysis What to track to constantly improve Productivity? – Hiring Cycle time – Conversion Ratios – Process Lead Times – Campus Throughputs – Offer : Joining Ratios – Hiring Accuracy Where to improve to increase Productivity? – Business Units / Managers – Locations – Channels – Campuses – Recruiters / TA Managers1/26/2012 10
  10. 10. Measurement and Analysis (contd.) Open Requisitions SLA %age % Open NHR Unmapped SLA 100% % 50% 0% 91- 0-30 Days 31-45 Days 46-60 Days 61-75 Days 76-90 Days >115Days 115Days ThePES can same PES BU 1 38% 9% 7% 12% 9% 6% 19% be done CSS BU 2 CSS 80% 11% 7% 0% 0% 0% 1% Recruiter wise FROG BU 3 FROG 33% 17% 0% 0% 17% 0% 33% or location wise Aricent Total Total Aricent Total 58% 10% 7% 6% 5% 3% 11% or channel wise Offer - Joining Ratio Grade 1 Grade 2 Grade 3 Grade 41/26/2012 11
  11. 11. Measurement and Analysis (contd.) Overall Conversion Ratio (April09-Mar10) 30000 25148 25000 20327 20000 15591 15000 11802 81% 10000 77% 20% 73% 5000 76% 2325 1699 0 Total Profile Profiles SL by HR Profiles SL by Tech Tech I/V Conducted HR I/V Conducted Offers Made Sourced Panel To be done BU wise, grade wise, skill wise, channel wise, location wise etc Top 5 Competitors as a source1/26/2012 12
  12. 12. Measurement and Analysis : Hiring AccuracyHiring Accuracy : Hiring Accuracy helps in continuous improvement inthe hiring process by assessing the quality of hiringRecommended Model:• Focus on quality of hire based on 2 parameters: • Performance Rating • Longevity (First 6 months)• Type of Reports: • Grade wise • Base location • Business units • Institute • Hiring channel source• Reflect the efficiency of the sourcing channel, BU hiring team and institute• Help in depicting TA as value adding business partner• Able to counter negative perception with data• Plan strategies like which campus to target with which gives “Best performers” and a higher productivity 1/26/2012 13
  13. 13. Measurement and Analysis: Hiring Accuracy Quality of Hire • Total no of employees joined in last 6 months, say : 12 • No. of employees who have completed their 6 months and got Top 2 ratings : 5 • No. of employees who left before 6 months (probation review) : 4 • No. of employees who have completed their 6 months and got Bottom 2 ratings: 3 Formula: • Hiring Accuracy = 100 * [1 - (count hires in past 6-months left company within 6 months joining + count hires in past 6-months have bottom 2 ratings in 6-month review)] ----------------------------------------------------------------------------------------------------------- Total hires in the past 6 months • Hiring Accuracy = 100*[1 – ( 4+3) /12] = 42% Can we1/26/2012 consistently improve on this score? 14
  14. 14. Amalgamation of Technology & Process • Investing in a reliable Automated Recruiting System • Scalable • Robust data base capabilities • Good flexibility in handling process • Good ‘search’ capabilities • Good ‘Duplication’ detection capabilities • Strong MIS capabilities • Implementing a Disciplined Hiring Process • All Stakeholders must have buy-in • Disciplined but flexible as per business needs • Adherence to timelines (SLAs) from all stakeholders • Commitment at the top to be ensure Reduces Recruiters’ unproductive time considerably and thereby enhances productivity1/26/2012 15
  15. 15. Strategic Capability : Center of Excellence Increasing the ‘Pull Factor’ through Recruitment Marketing – Career Site : • Marketing content • Creating ‘glues’ • Alumni web engagement • Campus web engagement – Print and Web advertising – Effective use of Social Networking sites – Employee Referral program: • Branding • Communication (events / kiosks / posters / e campaigns) • Designing and implementing the Program • Increasing Participation • Top-up programs Low cost creative initiatives – Campus engagement: supporting TA Delivery team • Communication of all types create more value for money • Events vis a vis high cost print ads and – CSR initiatives STA hiring1/26/2012 16
  16. 16. Strategic Capability : Center of Excellence Lateral hiring • Recruiters’ Training • Effective Recruiters’ Incentive • Reducing Hiring programs Time • Optimal Channel Mix • Improving Recruiter • Pipeline Tracking Productivity • Candidate Engagement (till joining) • Improving Joining • Identifying relevant Talent Pools Ratio • Automated Recruiting Tool • Improve Quality of • Internal Customer Engagement program hires • Effective SLAs sign off with Internal • Reducing Cost per customers Hire • Finding constant improvement points through analyzing trends • Six Sigma1/26/2012 17
  17. 17. Strategic Capability : Center of Excellence Fresher Hiring• Identifying the right Institutes • Improving Campus• Fresher Recruiters’ Training Throughput• Standardized Selection Process • Getting higher slots • Improving Quality• Fresher Interviewers Training • Reducing Cost per• Leveraging Internal Ambassadors Hire• Campus Engagement programs • Improving Joining• Finding constant improvement points Ratio through analyzing trends and Six Sigma • Improving batch• Effective Recruiters’ Incentive Programs Accuracy• Automated Fresher Recruiting Tool • Reduces Cost• Interview Management Recognition per Hire 1/26/2012 18
  18. 18. Crunching numbers and playing with members is fun but let us always remember…. “Data without Analysis cause Paralysis” 1/26/2012 19
  19. 19. Thank You e-mail ids : senindrajit@hotmail.com indrajit.sen@mosaikglobal.com Mobile: +9198117920201/26/2012 20

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