Talent Acquisition: In-house or outsource? - 6 steps to a meaningful business case

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Ebook by Sally Hunter on how to build a business case for in-house vs outsource recruitment.

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Talent Acquisition: In-house or outsource? - 6 steps to a meaningful business case

  1. TalentAcquisition:In-house oroutsource?6 steps to a meaningful business casesally hunter
  2. Rethinking the case for changeWhether it’s managed in-house or outsourced, the Talent Acquisition functionand its costs are continually scrutinized and assessed for potential efficiencies.While it can be frustrating for HR to linked to Talent and that talented employees Go further than simply accepting andbe routinely challenged on cost and simply don’t stay as long and attracting absorbing change, and instead start tovalue brought, the creation of a robust them in the first place takes tenacity and take control and lead the change for thebusiness case can be a powerful lever in consistent focus. commercial good of the organization.demonstrating value shoulder to shoulder That means demonstrating the true valuewith the cost/efficiency benefits. People are one of the greatest costs any of recruitment across the organization, organization carries, not the cost of recruiting as well as how much it really costs. AndIn the current economic climate, the pressure those people, so Talent Acquisition leaders here, we offer ways to do just that.to reduce cost and improve efficiency remain need to lead the strategy and debate abouta key priority, however there is increasing their organizations greatest assets andevidence that Shareholders recognize demonstrate their value within the broadercompetitive advantage is intrinsically plan and people agenda. 2
  3. 1 / Don’t let the document drive your processEvery organization has its own unique way of building out a business case. There will bedocuments and forums that differ from business to business, but it must ask and answer theright questions if the right case is to be made. No matter what form the business case takes,the process and the documentation must:1. Capture what it really costs, not 4. Establish the benchmark by measuring just the obvious costs such as that key indicators of just how successful of the talent team’s wages and the the recruitment process currently is. advertising costs of each role. 5. Demonstrate the timeline for2. Map the process to find all savings to be delivered. hidden/underlying costs and to show where inefficiencies lie 6. Answer these central questions: • How do we deliver the most3. Prepare stakeholders so that they optimal talent acquisition understand why you’re embarking service to Hiring Managers? on the business case in the first place • How do we attract and retain and to ensure any general grievances the best applicants? or issues are addressed in it. • How do we measure the value of talent acquisition to the business? 3
  4. 2 / Dig deeper to find out what it is really worthRecruitment functions must not only learnto identify the total cost of recruitment, To gain a true total cost of recruitment youthey must learn to justify the potential must factor in the cost/spend related to:investment and/or identify the potentialsavings from any proposed change. This • The existing Talent Acquisition Teammight seem fundamental to the very idea • Time spent by non-Talent Acquisition HR resources e.g. HR Business Partners, HR Admin, HR Systemsof a business case, but identifying these • The ATS deployed to support the recruitment process including licenses, maintenance, upgrades and enhancementselements takes significant effort—often far • Maintenance of web content, as it relates to advertising vacancies and brandmore than we first assume. • Creation, design, maintenance and bounty payments for candidate referral programsUnderstanding the total cost of the • Agency feesrecruitment process prior to confirming • Creation of recruitment marketing creative and collateral, either via external partners or in-housethe scope of any potential outsourcing or • Recruitment marketing e.g. job-board licenses, press/online ads, events, fairs, sponsorshipinsourcing move allows an organization • Hiring Manager time i.e. creation of vacancy, approval process, screening applications,to identify the greatest opportunities for scheduling interviews, interviews, offer negotiation and on-boardingsavings and process enhancements. • Discreet resources or teams within the business that have been created to support the recruitment process i.e. recruitment champions, admin teams, Central Governance Teams • Third-party assessment tools e.g. psychometric testing, behavioral analysis • Background screening/reference checking and preparation of paperwork for onboarding • Any communication with unsuccessful applicants 4
  5. 3 / Understand the processThe act of mapping the end-to-endrecruitment process can be invaluable To ensure you have the full picture, map the—well beyond simply helping entire process from all three perspectives:organizations to identify and capture anyhidden costs. Above all, it will highlightthe complexity or gaps within the Candidate Hiring manager HR/Procurementprocess and may offer its own insightsinto the real improvement solution. • How/where will they find the job opening? • How do I raise my job opening? • What documentation do I need to • How do I apply? • What documentation/ conversations do I prepare throughout the process? • How do I find out about the need to have upfront/during/at the end? • What communication do I have with progress of my application? • What part do I play in interviews/ my own team, with hiring managers selection and screening the candidate? and external providers/candidates? • What happens if I am unsuccessful but still a valued contact? • What time/resources do I • Do I engage with different put into onboarding? processes for different roles? • What records do I need submit/update when a new hire starts work with me? 5
  6. 4 / Read the moodEven when you know what your recruitmentprocess really costs, and you know what Surveying the end users helps to determine which improvements willthe process map looks like, you need to have the most impact, and how open to change they currently are:understand the conditions any change willbe made under.How willing people are to undertake major Candidate Hiring manager HR/Procurementchange (especially key stakeholders) can, • What’s my view of this company • How successful has the recruitment • How complex and time-consuming is theand will, determine the overall success of a from outside now that I’ve been process been in terms of meeting recruitment process? How many staff andbusiness case. Reading the mood as it relates through their recruitment process? my talent requirements? what proportion of their day is spent onto recruitment processes needs to be looked • How worthwhile was the process • Do I have a positive view of recruitment-related activities?at from internal and external points-of-view, for me and would I apply again? the process overall? • How effective is this investment inand it needs to address how well people delivering the right people to the right • Was the investment of time and • Is the process keeping pacefeel it delivers on their needs. roles in the right timeframes? energy too much/too little? with my hiring needs, or am IHow do the people that are using this • How professional was it? experiencing long cycle times? • What do I feel the process says about me/process most feel about the outcomes it is • Do I feel that there is too little/too much my team/our business?delivering? If people are generally happy, involvement from me in the process?what is the case for change dependent upon? • Do I feel the process cast us in theIf they’re not satisfied, is that because of the best light with the right talent?process, or due to broader business issues? 6
  7. 5 / Make your benchmark meaningfulWhen evaluating the current performance For other organizations, a meaningfulof the talent acquisition function, it is benchmark may look quite different. It Look for external help if you need it. This will ensure informed assumptions are made asimportant to measure those elements that may be about the quality of the candidates to what “good” talent acquisition should look like.most impact the business overall. Every or the ability to source very specific typesorganization is different, and this may of candidates. It will assist in capturing how theinclude measurements such as: organization could benefit from: In some cases, this kind of data is simply not• Time to hire going to be available. Hence, part of the Creative and innovative sourcing techniques• Average number of vacancies raised per business case may be to start capturing it. year, by business unit and skill type Strategic workforce planning and talent demand planning Or, you may need to benchmark and network• Average number of vacancies filled per with other similar-sized organizations with Market data drawn from multiple clients in your market or geography year, by business unit and skill type similar hiring profiles to fill the gaps. It’s• Typical sources of candidate per vacancy also possible to leverage the resources and Industry benchmarks, in terms of time to hire, sourcing optimization and filled e.g. agency, direct, internal, referral knowledge of an external partner, which can candidate satisfaction data, from their existing client base help to broaden the organization’s view of recruitment and any associated change that goes above and beyond process efficiencies. 7
  8. 6 / Define the value of recruitmentNo matter which solution the business case If the change gets the go-ahead, thisproposes (in-house or outsourced), taking measurement will form part of the In defining the value of recruitment,an outsourced approach to the performance rationale for communicating and selling consider how to:measurement of the organization’s the investment it requires to the rest ofrecruitment function will be a major the organization. Set service standards, but measure exceptions, not the micro detailadvantage in the long term. Measuring the performance of recruitment Measure the source of candidates, but share with the business aHR (like any other support function) is is about defining its value—and this is why comparison to what you would have spent in the alternative modelcontinually challenged to define, measure change may well be needed in the first Measure time to hire, but find of a way of identifying time to competencyand communicate the value it brings to place. Plus defining the value will resonate and the impact on productivity of carrying vacanciesthe organization. By using an outsourcing with Shareholders and give your Talentmethodology to create your performance Acquisition function a voice in the strategy Measure satisfaction of hiring managers AND candidatesmetrics, this value can be clearly and business planning process.communicated to the stakeholders. 8
  9. About the AuthorSally Hunter is RPO Practice Lead EMEA for the Kelly Outsourcing &Consulting Group and is responsible for the RPO proposition from clientrelationships via the account management team to consulting on HRtransformation. Sally has extensive experience in the human capital sector,including leadership positions within strategic account management for staffingproviders to operational delivery. Sally has also been on the “buy/client” sideleading transformational efficiency projects, that have included the outsourcing of large scalerecruitment and learning operations. As an independent Consultant, Sally has worked with anumber of clients to build the business case for change and shape their HR model in the context ofoutsourcing partnerships. Sally has worked with Clients across the following key industry sectors:Financial Services, Public Sector, Manufacturing and Pharmaceuticals.About KellyOCGKellyOCG is the Outsourcing and Consulting Group of Fortune 500 workforce solutions provider,Kelly Services, Inc. KellyOCG is a global leader in innovative talent management solutions in theareas of Recruitment Process Outsourcing (RPO), Business Process Outsourcing (BPO), ContingentWorkforce Outsourcing (CWO), including Independent Contractor Solutions, Human ResourcesConsulting, Career Transition and Organizational Effectiveness, and Executive Search.Further information about KellyOCG may be found at kellyocg.com. EXIT

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