2. The world of work is rapidly changing and providers need
to adapt to stay relevant
Economy Technology Demographics Sociology Regulations
“Permanent”
Flexible Workforce NEW SKILLS required
Ageing will create
a SKILL GAP
Multi-generational
environments
More flexibilityand
less bureaucracy
The changing environment is disrupting traditional talent models
MacroTrends
3. The economy is dominated by volatility & uncertainty
Direct
short-term
Traditional Temp.
Staffing
SOW
Independent
Contractors
Permanent / indefinitecontract
Total Workforce
…and the effect-multiple sourcing channels
Today 33% is external - 44% in 5yrs time
Actual
Before 1990
Pre-Crisis
GDP grow th and volatility
(Source: SIA World Employment Conference
4. Solutions are evolving to reflect changing needs
.
Master Vendor
MSP
RPO
► Focus on Permanent
talent acquisition
► Utilise internal and
external talent
channels
► Promote EVP
► Technology led
application based
ecosy stem
► Technology enabled
► Div erse sourcing
strategy –Direct and
Supply chain
► Temp, prof essional and
SOW skill areas
► Focus on cost, risk,
data, and quality and
speed of talent
► International/global
► Technology supported
► Tier 1 supplier f ocus
► Limited supply chain
► Generalist skill areas
► Volume sav ing
► Country centric
► Integrated sourcing strategy
► Multi-channel sourcing
► Embedded into organization
HR f unction
► Global v iew of labour demand
► Integrated internal/external
v iew of labor
► Technology led
Total Workforce
Management
Technology impact (VMS/ATS/CRM/AI)
Multi-vendor
Preferred
Supplier
► List of suppliers
► Contract in place
► SLA of ten agreed
► Light coordination
► Decentralised
Strategic Partnership
5. Traditional models are under increasing pressureparticularly in the UK
Disintermediation
HR Tech / Online staffing
Falling demand
Pricing / commoditisation
6. But at the same time there are signs buyersare disengaging with the
‘usual suspects’
Rigid pricing
models
Poor
fulfilment
Sales vs
reality
Offshoring
No
expertise
Lack of
agility
7. How should SMES’s and specialists approach the solutions market
Focus on being experts
Build solutionswrapper
Agile, flexibleand customised approach
Be easy to do business with
Consider risk appetite
Avoidovercommitting
8. Segment the market and avoid reliance on the enterprise sector
Enterprise
• >1000 FTEs
• Mature buyers with
category specialists
• Consolidated
buying across skill
categories
• HR tech enabled
• Price sensitive –
single digit margins
Medium
• 250-1000 FTEs
• Some centralised
buying but typically
via generalists
• Specialist supply
focus
• Ad hoc HR tech
infrastructure
• Increasing price
sensitivity but
margins still double
digit
Small
• <250 employees
• Retail
• No formal buying
infrastructure
• Limited HR tech
• Supplier driven
pricing
9. Better together – consider partnership and collaborative offerings
• Form ‘joint ventures’ to bid for opportunitiesthat may be
too large, complex or risky to undertake on your own
• The big MSP/RPO playershave been doing this for years
• Ensure partnershipsare symbiotic – too much overlap and
competitiontends to emerge
• Build and work with channel partners across the
resourcing ecosystem
10. HR tech and online staffing are here to stay
Embrace and invest – partnerships
and co-sourcing can be better than a
build strategy
Pace of change is fast and constant –
work with interims to leverage
expertise
Focus on the ‘why’ – improved
efficient, client experience and
candidate experience
