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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?
Source: PWC CEO Survey 2011/2012
78%
72%
67%
50%
43%
35%
Strategies for managing talent
Organisational structure
Managing risk
Corporate reputation and building trust
Capital structure
Engagement with the workforce
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 SiliconValley 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 ToWork 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
Full
RPO
Managing agent
Ad hoc supply
Ad hoc supply
PSL managed in-house
Managing agent
Managed
service
Full
RPO
The development of resourcing solutions
Full
RPO
Managing agent
Ad hoc supply
Managed
service
PSL managed in-house
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 re-
engineer 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 supportsTalent Management
 Big Data, BI, analysis and insight
 Stakeholder Perception
 L&D and Innovation
Want to work for Google?
Pank Koria HR4 ICT12

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Pank Koria HR4 ICT12

  • 1. In-house vs. Outsourcing Pank Koria, CEO, Project People
  • 2. Agenda  The acquisition of talent  In-house vs. outsourced resourcing models  Key Performance Areas
  • 3. Project People  A few brief facts about Project People  GSMA – 800 mobile operators  3 UK – 3G mobile operator  Ericsson UK
  • 5. What keeps the CEO awake at night? Source: PWC CEO Survey 2011/2012 78% 72% 67% 50% 43% 35% Strategies for managing talent Organisational structure Managing risk Corporate reputation and building trust Capital structure Engagement with the workforce
  • 6. Challenges for the CHRO Source: Bersin & Associates 2011
  • 7. The retention time bomb Attrition Amongst Technology Employees
  • 10. 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
  • 11. Google numbers Average number of employees per recruiter: 577 to 1. Google employees per recruiter: at least 64 to 1. Average SiliconValley 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 ToWork For list: 1
  • 12. 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
  • 13. What Google does additionally  Competitions  Pushing Boundaries  Intelligent Metric Analysis
  • 14. 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
  • 15. 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
  • 16. Current spend on Talent Acquisition
  • 17. Full RPO Managing agent Ad hoc supply Ad hoc supply PSL managed in-house Managing agent Managed service Full RPO The development of resourcing solutions Full RPO Managing agent Ad hoc supply Managed service PSL managed in-house
  • 18. 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 re- engineer 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
  • 19. 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.”
  • 20. 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
  • 21. 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 supportsTalent Management  Big Data, BI, analysis and insight  Stakeholder Perception  L&D and Innovation
  • 22. Want to work for Google?