Global Trends in Recruiting And Recruitment Outsourcing

Global Trends in Recruiting And Recruitment Outsourcing Recruiting Convent 2008 MrTed Ltd Jerome Ternynck The Context The Perfect Storm perfect storm refers to the simultaneous occurrence of events which, taken individually, would be far less powerful than the result of their chance combination. Perfect Storm in Talent Management « Simultaneous occurrence of events » ? 1. Demographics : Workforce is shrinking 2. Knowledge Economy : People make the difference 3. Global Economy : Global workforce 4. Reduced average tenure : no job for life What does that mean for a recruiter ? Well, it basically means we are operating on a market where: A 21st century recruiter contemplating global market trends •Demand is increasing •Supply is shrinking •Global competition is on •Goods are increasingly valuable •And also increasingly volatile So it doesn’t take Warren Buffet’s type instinct to understand that, on this market, some people are going to make lots of money and others will suffer great pains 300 years in business 19th Century 20th Century 21st Century Money Ideas People Industrial Revolution The Innovation Boom Knowledge Economy Business is all about Money is available, it’s all There’s lots of ideas and capital – Who has money about having ideas, piles of money around but makes money products, technologies.. execution now makes the difference - It’s all about the people Our #1 Asset Bottom line, in the 21st century global economy, organizations that are able to consistently attract, hire and retain the best talent will win. And CEOs around the world have understood it already for a long time: « People are our #1 Asset » How is HR doing ? Being able to consistently deliver the very best talent on-demand is such a critical objective that obviously : •We never loose a good resume because it’s laying on a desk •We never let a great candidate slip because the manager couldn’t see him in time •We never hire someone external if there’s a good internal candidate •We always prioritize redeployees over other candidates •We have a full transparent picture of what’s happening in resourcing •We track the best alumnis to re-hire them later •We track the best students/interns to hire them when they graduate •We track the best contractors to get them into perm jobs •…. Total Resourcing Excellence The Total Resourcing Excellence (TRE) Model is a methodology that allows to measure and benchmark an TRE Index organization’s level of excellence in resourcing. 5. Excellent When surveying Global 2000 companies, on a self assessment basis, we get an average score of 2.37, ie just a bit better than poor. 4. Good And this is on really simple stuff. For example, to get a 5 3. Average in the area of Career Site consistency, you need to say « Yes Fully » to the following statement : 2.37 2. Poor « The Career site offers job seekers a consistent and consolidated access to all career opportunities around the 1. Ugly world » Context Summary There’s a big storm coming and most people aren’t prepared 5 Global Trends Trend #1 – A Quality Game • Talent Management is increasingly a Quality game Who are you hiring? • Talent War is Back and it’s here to stay – only, not a war for any talent First you can anymore, it’s now a war for the Best Second best you’ve seen Talent Best you’ve seen Best on the market • Cost per Hire / Time to Hire are dead – Best in the market Quality of Hire is the only thing that matters. Making it measurable is difficult Trend #2 : Delivery Transformation The quest for quality and the ongoing pressure for cost Efficiency lead to more effective, more professional talent management functions. This means more Advanced Service Delivery models, that are customer centric (manager & talent), backed by clear SLAs and cost effective infrastructure (automation, shared services, global delivery models…) Trend #3: The Technology Leverage • Most/All Global 2000 companies will deploy / have started to deploy groupwide/worldwide Talent Management solution: For Transparency (you cannot improve what you cannot see) For Consistency (global market, global standards) For Efficiency (automation, shared services) For Quality (no quality without technology) • Leveraging Technology (Not a basic ATS) is a critical component of any Talent Management strategy. Trend #4 – One World, One Workforce • Global 2000 companies are global, they think global, they act global. The strategy, solutions, providers that they need are also global. For them, they will soon be no such thing as a local strategy or a local provider. • Total Workforce Management (Perm, Temps, Contractors, Consultants…) all part of a single objective : the best talent on- demand. Contingent Workforce will increasingly belong to HR Trend #5 – SMBs call 911 The ability to attract, hire and retain the very best talent in the market on- demand is going to be the main competitive differentiator of the 21st century. SMBs who cannot develop this ability will suffer. Their recruitment spend will increase rapidly as they try and buy themselves out of the problem. For Service Providers : Massive opportunity on the SMB market. Recruitment Process Outsourcing Emergence of a new Industry Recruitment Process Outsourcing Comprehensive End to End solutions Total Workforce Management Ad-hoc Service Providers Global Delivery capabilities Technology Provision Single Process Retained to transform Part Workforce Focus on Quality increase Local focus Short Term Long Term relationships Cost savings Transaction The RPO Industry Global Capabilities Staffing Giants BPO Giants Staffing Expertise Expertise in BPO Global presence Global Presence Beefing up on BPO Beefing up on Staffing Ex: Kelly, Adecco… Ex: Accenture, IBM.. $30Bn Staffing Global BPO Expertise Full Scope Expertise RPO Staffing Expertise: BPO Expertise: Focus on quality and Focus on automation bespoke solutions and standardization Delivers largely onsite Pure Plays Invest heavily in can handle exceptions technology and unstructured Expertise in Staffing & BPO Leverages shared processes Lack Global Capabilities services and offshore capabilities Ex: AMS, Talent2… Fig-01: The $30bn Global RPO market Conclusion Conclusion Reaching for Total Resourcing Excellence is a must for companies in the 21st Century Whether you do it alone, or have a specialist recruitment process outsourcing (RPO) company do it for you, doesn’t really matter but standing still is not an option Thank you for your time Questions ? Reactions ? About MrTed Founded in London in 1999 by professional Global Provider recruiters. Leading global provider of Talent Management Solutions Pioneered the e-staffing concepts and technology 7 years ago and continue to drive industry and technology forward 150 blue chip customers representing 50,000 « MrTedTalentLinkTM promotes consistency, corporate users across 100 countries. efficiency and transparency in recruiting and internal mobility, thus creating a worldwide interactive talent network with hundreds of Last Year powered 200,000 jobs, 6 million recruiters and thousands of hiring managers » candidates Dr Hans Hoeller, VP Corporate Recruiting, Siemens AG