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How to Get Started with Recruitment Process Outsourcing

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How to Get Started with Recruitment Process Outsourcing

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What would you offer employers looking for a scalable recruiting solution that’s more cost effective and flexible? Recruitment process outsourcing is a recruiting model that emerged in response to companies’s needs to cut recruiting cost and hire best talent without having the internal resources and expertise in-house. RPO is currently on the rise with growing adoption rates from large and small-to-medium (SMB) businesses alike. In 2016, Credance reported “The recruitment process outsourcing market worldwide accounted for revenue of US$ 3,537.2 Mn in 2014. The market is projected to expand with a CAGR of 14.4% during the forecast period from 2015 to 2022.”

If you’re considering adding RPO services to your recruiting offering, knowledge and experience are likely your greatest barrier to entry. What RPO services should you offer? How do you negotiate and close an RPO contract? What should you include in a service level agreement? What technologies should you use and what does an RPO implementation look like?

Cynthia Cohen and Maru Gonzalez have been in the RPO industry for over ten years and currently provide support and consultation for companies looking to transition into RPO.

What would you offer employers looking for a scalable recruiting solution that’s more cost effective and flexible? Recruitment process outsourcing is a recruiting model that emerged in response to companies’s needs to cut recruiting cost and hire best talent without having the internal resources and expertise in-house. RPO is currently on the rise with growing adoption rates from large and small-to-medium (SMB) businesses alike. In 2016, Credance reported “The recruitment process outsourcing market worldwide accounted for revenue of US$ 3,537.2 Mn in 2014. The market is projected to expand with a CAGR of 14.4% during the forecast period from 2015 to 2022.”

If you’re considering adding RPO services to your recruiting offering, knowledge and experience are likely your greatest barrier to entry. What RPO services should you offer? How do you negotiate and close an RPO contract? What should you include in a service level agreement? What technologies should you use and what does an RPO implementation look like?

Cynthia Cohen and Maru Gonzalez have been in the RPO industry for over ten years and currently provide support and consultation for companies looking to transition into RPO.

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How to Get Started with Recruitment Process Outsourcing

  1. 1. W W W . M Y N T C O N S U L T A N T S . C O M
  2. 2. A G E N D A What is RPO?  Why RPO?  RPO Principals & Models  Roles & Responsibilities  Implementation Methodology  Pricing models Contracting  Before you get started…  Q&A
  3. 3. W H A T I S R P O ? T H E R E C R U I T M E N T P R O C E S S O U T S O U R C I N G A S S O C I A T I O N ( R P O A )  The Recruitment Process Outsourcing Association defines recruitment process outsourcing (RPO) as a form of business process outsourcing (BPO) where an employer transfers all or part of its recruitment processes to an external service provider.  An RPO provider can provide its own or may assume the company’s staff, technology, methodologies and reporting. In all cases, RPO differs greatly from providers such as staffing companies and contingent/ retained search providers in that it assumes ownership of the design and management of the recruitment process and the responsibility of results. 
  4. 4. In-House Recruiting + Manual Process In-House Recruiting/Agencies + Manual Process EVOLUTION OF RECRUITING MODELS. Agencies + Manual Process Outsourced Recruiting + Automated Process
  5. 5. BUSINESS DRIVERS FOR RPO V A R I A T I O N S I N H I R I N G D E M A N D N O R E C R U I T I N G P R O C E S S & M E T R I C S C O S T P E R H I R E D I S O R G A N I Z E D R E C R U I T I N G P R O C E S S N O C A N D I D A T E F I T S T A F F C A N N O T F O C U S O N C O R E B U S I N E S S I S S U E S Dedicated and scalable recruiting team. ATS  records workflow. Process efficiency reduces costs by improving quality and visibility.  Tailored recruiting processes improve efficiency and consistency.  Sourcing strategies, branded  messages and standard screening  & assessment capabilities improve quality of hire. Outsourcing model allows your staff to focus on strategic business issues vs. day-to-day/low value transactional activities .
  6. 6. THE RECRUITMENT PROCESS AT ANY POINT OF TIME IS BASED ON THE PRESENT AND THE FUTURE REQUIREMENTS OF A COMPANY. The role of a clear recruitment process plays a critical part in organizational growth and is hence a must to understand its importance and need.
  7. 7. RPO PRINCIPALS Customizable solutions  Improve quality of the hiring process  Reduce risk  Increase employee retention  Promotion of company’s brand   R P O   i s a p a r t n e r s h i p b e t w e e n a c o m p a n y w i t h r e c r u i t i n g n e e d s ( R P O   b u y e r ) a n d a c o m p a n y w i t h r e c r u i t i n g s e r v i c e s ( R P O   p r o v i d e r ) i n w h i c h t h e   R P O   b u y e r ' s b r a n d i s b e i n g p r o m o t e d i n s t e a d o f t h e p r o v i d e r ' s .   R P O I S B A S E D O N F I V E P R I N C I P A L S
  8. 8. RPO MODELS Full RPO  Short Term Project RPO  Limited RPO Consulting RPO On-Demand RPO Co-Sourcing RPO  R P O S E R V I C E P O R T F O L I O
  9. 9. ROLES & RESPONSIBILITIES To have a truly effective performance management process that supports employee performance, development and success, you need to get everyone involved.
  10. 10. RPO TEAM STRUCTURE O P E R A T I O N S D I R E C T O R O P E R A T I O N S   M A N A G E R T E A M L E A D S T A F F I N G C O N S U L T A N T R E C R U I T E R S P R O G R A M C O O R D I N A T O R S O U R C E R S D E L I V E R Y O P T I O N S O N S I T E V I R T U A L S U P P O R T E D
  11. 11. Operations Director Alternate Names: CSD- Client Services Director, Program Manager, HSC-Head of Client Services Alternate Names: Onsite Recruiter, Lead Recruiter, Recruiting Lead, ORC- Onsite Resourcing Alternate Names:  CSM- Client Services Manager, CRM- Client Relationship ManagerOperations Manager Team Lead Staffing Consultant Recruiter Alternate Names: Lead Sourcing Specialist, Recruiting Specialist, Recruiter Junior   Program Coordinator Alternate Names: TAC-Talent Acquisition Coordinator, Recruiting Coordinator, Admin,                           OBS- Onboarding Specialist Alternate Names: Sourcing SpecialistSourcer
  12. 12. Collect project documentation Outline implementation timeline Define governance Begin Process Documentation and create future state process map Conduct Action Meeting Design and document  procedures  (Work Instructions and templates) Test all Technology Implementations and Integrations Create and deliver Recruiting Team Training, HR/HM Training Go Live H O W L O N G D O E S I T T A K E ? 30 day check & define improvements Transition to Operations Survey Client (if available)  & Internal team Conduct Close Report Evaluation IMPLEMENTATION METHODOLOGY P H A S E 1 From 12-16 weeks P H A S E 2 P H A S E 3 On-going change management and communication
  13. 13. In 2016, your recruiters and employer brand must be where the candidates are–and that is online, specifically on social media and mobile platforms. (Source: Glassdoor) The use of social media for for recruitment has grown 54% in the the past 5 years. (Source: Glassdoor) Almost half of employers (45 %) said that the time to fill open positions has grown since 2014. (Source: DHI) 79% of job seekers are likely to use social media in their job search (Source: WePow) 90% of fortune 500 company career sites do not support a mobile apply solution (Source: WePow) RECRUITING HAS MOVED ONLINE
  14. 14. Mobile application Candidate source: Job boards, Internals, Referrals & Agency Accurate reporting: By Role/By position/SLA/KPI Trackable recruitment activities: Req approval, Req open, Req on hold, Offer, Onboarding Streamlined Process: Step by step instructions Enhances collaboration in the recruiting team ATS PRO'S
  15. 15. Change Description Describes what is changing and why. Stakeholder Analysis Describes who is impacted and how. Communication Plan Who is going to receive which messages through communication and training. Delivery Delivery of messages through communications and training. APPROACH TO CHANGE MANAGEMENT
  16. 16. TRAINING IS THE STARTING POINT TO AN EFFECTIVE TALENT ACQUISITION PARTNERSHIP. It is the key element that allows the RPO team to make a clear and lasting impact on the clients’ businesses.
  17. 17. Program Training Locations  Program Training Client Training HM/HR Training HRBP Knowledge Transfer Technology Train the Trainer TRAINING METHODOLOGY
  18. 18. Training Topics: Client's expectations and contract Team structure Governance and Escalation Paths Process Map:  Overall process and process variances  Individual role responsibilities Desktop Procedures Forms and Templates Navigation of materials and reference documents storage site SLA/KPIs ATS Training  Orientation and internal systems Sourcing Science research and tools  Program Rehearsal  Training Topics: General client company overview Company culture Company strategic plans and long term program goals Company markets/products & Job Description Library By function / location: sub-culture, work environment, hiring challenges, hiring successes Investment in employee development/training  Internal systems as applicable Org structure Employee benefits Compensation / offer packages Data Privacy Policy Ethics & Compliance Health & Safety Security Vetting & Onboarding  PROGRAM TRAINING CLIENT TRAINING
  19. 19. PRICING MODELS Management Fee Only:  A fee is paid to the RPO provider for working on an agreed-upon number of positions. Cost Per Hire:  A fee is paid for each candidate who is successfully brought through the program and hired (or other action such as offered a position) by the customer. Cost per Hire + Management Fee: A combination of the two above. This combines the consistent recruiting effort under the management fee, with payments for the success (hires) of the program.
  20. 20. CONTRACTING
  21. 21. Do you have the right resources? Do you have the right technology? Do you have the right contracting documentation? Do you have the right tools & processes to implement RPO? BE PREPARED S E L F E V A L U A T I O N
  22. 22. QUESTIONS?
  23. 23. GET IN TOUCH WITH MYNT C O N T A C T U S J O I N O U R C O M M U N I T Y Email: info@myntconsultants.com Online: www.myntconsultants.com facebook/myntconsultants twitter:myntconsultants Instagram @myntconsultants W W W . M Y N T C O N S U L T A N T S . C O M

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