The current recession is unprecedented in terms of speed and depth. Whilst reports such as that produced by the Economic and Social Research Council appear optimistic, the impact will remain for sometime. The current economic situation is creating continued uncertainty for people, and HR leaders can use this time to showcase their leadership credentials and feel empowered to transform their processes.
Outsourcing is one example of how the shape of HR is changing. It is one way to meet the increasing demands being placed upon HR functions to deliver greater levels of efficiencies whilst at the same time raising the level of HR activity to focus on strategic, value added service.
HR functions need continually to improve the efficiency of the administrative services they deliver, as part of their shift to a more strategic and influential future. In order to act as a strategic partner in the business, basic HR service requirements need to be provided in a seamless manner: outsourcing is one potential route to achieving this.
UK companies spend over £3.5 billion per annum on permanent recruitment through 10,000 agencies. With this resource frequently sourced at point of use it is easy to see why it is often poorly leveraged and badly managed.
Trends will present challenges to old business models of recruitment, driven by new expectations on the part of both employers and employees. The consequences of the economic position of the psyche of UK plc has been an interesting issue to reflect upon in terms of the challenge it creates for HR.
The economic downturn has brought with it many HR challenges, the most prominent being the need for HR professionals to secure true value for money from their recruitment budget. With this in mind it is not surprising that we have witnessed an increase in the outsourcing of recruitment as organisations realise the significant cost and variances of recruitment fees:
- most agencies charge a % fee, so the higher the offer, the higher their fee
- most agencies charge a fee on total remuneration / package and not basic salary, so you pay a % of basic, car, bonus & benefits
- fees range from 10% to 30% depending on the skill set and agency
- fees vary 6% to 10% for the same level of person performing the same job in the same location
Save money to deliver more revenue to the bottom line of the business. By removing the need to use multiple agencies we put in place a client branded recruitment team and an HR implant. The multitude of fees, payment terms, invoices and fee structures are replaced with one fixed monthly management fee, fixed placement fees and one monthly invoice, regardless of the number of hires you make. We have a track record of delivering 20 - 40% reduction in spend on external recruitment.
By far the biggest 'hidden cost' in recruitment is the time hiring managers spend on dealing with unsolicited agency calls and e-mails, reviewing CVs and, in particular, conducting interviews with unsuitable candidates.
Save time to free up operational time to focus on other areas of the business. Instead of receiving multiple, unsolicited CV's and interviewing unqualified candidates the client resourcing team will conduct all of the job / person specification work, identify suitable candidates, screen them against the specification, interview all candidates and present a shortlist to the line manager of interviewed, pre qualified candidates capable of doing the job. Additionally the resourcing team will build a candidate pool from which to source candidates in the future, saving time at the beginning of the recruitment process.
By implementing 'best practice' recruitment processes and improving your recruitment ratios, the resource team will accelerate your recruitment cycle, ensuring that the average time that it takes to hire candidates is reduced - so key, new employees will be contributing to your business sooner.
The recession has served to deepen further the war for talent as competition for the best talent to enhance an organisations performance and competiveness increases. Previous recessions have shown that, even during periods of economic slowdown, skills shortages have not eased. The vast majority of employers believe turnover of nay kind has a detrimental effect on organisational performance and it has become even more critical for recruitment budgets to be used more effectively.
In many cases hiring managers use a 'gut instinct' to hire individuals into the company. No pre-agreed competency and eligibility matrixes results in different hiring managers looking for different attributes in new hires. Coupled with a lack of inconsistency, varying levels of recruitment expertise and limited time rash decisions can be made leading to a lack of quality hires and a high attrition rate amongst new starters.
Improving quality of new hires reduces attrition, saves money and time and increases the impact a new starter can have on an organisation. The resourcing team use company culture, operational need and person specifications to build an eligibility and competency matrix. Including these in a structure, consistent recruitment process, conducted by recruitment experts ensures that where a recruitment need exists, talented individuals with the right skills, knowledge and attributes can be hired and can deliver high levels of organisational performance.
The use of exit interviews across the business helps to develop the process further. The results are implemented into future recruitment methodologies and frameworks to improve quality on a continued basis.
In order to increase effectiveness it is important to first have visibility over the recruitment process and its impact, and then to control the process to show deliverable results.
Visibility and control through PermSourceTM helps clients to understand where and how their recruitment budget is spent, how long the recruitment process takes and how successful the process is. Coupled with key statistics such as diversity this information can be utilised to have a tangible impact on the business moving forward.
PermSourceTM technology will enhance the way in which you manage your recruitment activities by improving the ways in which you identify and interface with prospective employees. By tracking the progress and success of each individual application key statistics and performance indicators can be identified and monitored. The use of PermSourceTM to build a candidate pool helps to create future time and cost savings, and visibility over the potential talent available to you.
Smart organisations are not only thinking about survival in the current economic climate, but about how to grow and thrive in the future to take competitive advantage. Employer branding needs to ensure that all candidates, whether successful or not, leave the recruitment experience wanting to work for you. This maintains a positive presence in the recruitment market, maintains employee engagement and helps to nurture talent inside the organisation.
In an uncertain business context, communication and consistent messaging to your candidate base is increasingly important.
Enhance your recruitment process to protect your brand in the marketplace. Your resourcing team will implant the company culture into your recruitment process, ensuring all candidate communication is a positive experience with a consistent employer brand message. Using professional engagement throughout the recruitment process we can nurture candidates throughout the client experience to ensure their experience is a positive one, regardless of the outcome.
Additionally your resource team will work with internal and external colleagues, share insights and qualitative feedback and techniques and work with you to promote your employer brand through your internal communications, PR & marketing.
"Since City Link implemented the de Poel solution in June 2008 it has delivered benefits to the organisation on many levels. From the initial discussion, through data analysis and implementation to ongoing account management City Link has been delighted with the de Poel offering."
