by Steven Lindner | Oct 20, 2015 | Recruitment Process Outsourcing |
Why Use Recruitment Process Outsourcing?
Recruitment Process Outsourcing (RPO) providers are service providers specializing in recruitment who represent employers. They serve as an extension of an employer’s recruiting function or in some instances as the employer’s recruiting department. RPO providers offer a range of services from Project Recruiting to end-to-end Recruitment Process Outsourcing. Recruitment Process Outsourcing providers also vary significantly in terms of their capabilities and areas of focus. In our article, What is Recruitment Process Outsourcing (RPO), we provide an overview of Recruitment Outsourcing and Recruitment Process Outsourcing. In this article we will answer the question why use recruitment process outsourcing?
Why Partner with a Recruitment Process Outsourcing Provider?
Employers outsource recruiting to gain the expertise, resources, and/or scalability they need to effectively respond to the continual ebbs and flows of hiring. Many outsourced recruiting programs often begin as recruitment projects due to rapid growth, corporate expansion, or opening a new location.
Companies outsource recruiting because hiring needs are difficult to predict. There are peaks and valleys that leave in-house recruiting departments either understaffed or overstaffed. In addition, the various skill sets and talent that organizations need to hire require staffing and recruiting departments to have expertise, methodologies, and sourcing strategies to attract and acquire the full range of non-exempt, exempt, technical, and managerial talent across a variety of functional areas like Sales, Marketing, Customer Service, and Research and Development.
Most organizations can’t afford the luxury of having idle recruitment resources or employing all the recruiting expertise they need to effectively respond to their own hiring needs. For example, few companies have the capability to instantaneously add 10 recruiters to a hiring initiative and then remove them a few hours later when the candidate pipeline is full. Furthermore, few companies have recruiters and assessments capable of consistently evaluating candidates from a multitude of occupations.
Use a Project Recruiting RPO Strategy for Short Term Needs
Recruitment Process Outsourcing generally means a multi-year commitment. Most RPO agreements are 2 to 5 years in length with renewable terms. Here’s a link to an overview of Recruitment Process Outsourcing services and solutions.
However many Recruitment Process Outsourcing providers, such as The WorkPlace Group, offer project recruiting RPO programs for shorter-term recruitment needs. Project Recruiting RPO services are a great way to get the recruiting support needed as well as test out the RPO model before committing to a long-term strategic partnership.
Project Recruiting RPO partnerships have become a common strategy for Talent Acquisition and Recruitment departments to use to fulfill their companies’ need for talent. In fact, many recruitment process outsourcing programs start as recruiting projects. Project Recruiting RPO engagements often start as short-term projects and continue on for years. Project Recruiting RPO projects might focus on a particular division or job family, or support a corporate recruitment department across the entire company during peak hiring periods.
Project Recruiting RPO services provide employers with the scalability and recruiting and process expertise they need to get through high-volume or specialized recruiting needs. Project Recruiting RPO strategies can maximize the cost benefits of other recruitment options such as contract recruiters, staffing agencies and recruitment search firms. If your needs are short-term or narrow in scope, look for Recruitment Process Outsourcing providers who provide Project Recruiting RPO services.
Why Recruitment Process Outsourcing has strategic benefits beyond cost-savings?
Cost savings is often a big driver of why a company initially becomes interested in Recruitment Process Outsourcing services. However, Recruitment Outsourcing strategies that stop at costs savings are missing what is far more valuable.
Achieving meaningful recruitment results requires much more than a dedicated team with diverse expertise willing to work long hours. Achieving results important enough to be cited in a client company’s annual report, for example, requires a team that is coordinated, responsive, and overseen by managers with a strong appreciation and keen insight into the clients business environment and challenges.
To give you a specific example, The WorkPlace Group helped one the worlds largest and most comprehensive drug development services company double its volume of new hires, bringing in approximately 1,600 employees on board in a single year. While doubling hiring volume, they also helped the company decrease their overall cost-per-hire by approximately 15% and improved time-to-fill by 10%.
In this example, the most important benefit to the company’s business was not the 15% cost savings. It was the additional revenue they were able to generate by reducing the time-to-hire and having 1,600 individuals productive 10% sooner. That’s the kind of impact that gets the attention of C-level Executives.
To explore how recruitment process outsourcing can help you, please contact us here at The WorkPlace Group.
by Steven Lindner | Oct 13, 2015 | Recruitment Process Outsourcing |
What is Recruitment Process Outsourcing? It’s the act of transferring talent acquisition, selection and hiring activities to an entity that specializes in recruiting services. Recruiting involves a range of activities that begin with identifying, attracting and sourcing candidates and concludes with the actual act of hiring. Once a new hire is employed and on the job, the recruitment process ends.
Why has Recruitment Process Outsourcing (RPO) become an industry standard?
Hiring needs are difficult to predict. There are peaks and valleys that leave in-house recruiting departments either understaffed or overstaffed. In addition, the various skill sets and talent that organizations need to hire require staffing and recruiting departments to have candidate sourcing, screening, assessing and on-boarding expertise across the full range of entry-level, technical, managerial and executive level job openings. Talent acquisition and recruiting leaders depend on RPOs to help ensure hiring needs are met. Why Partner with an Recruitment Process Outsourcing Provider shares several examples of why talent acquisition and recruiting leaders are using Recruitment Process Outsourcing and Project Recruiting RPO services.
How do I know if a recruitment provider is an RPO?
The RPO marketplace can be very confusing. Many companies refer to themselves as RPOs but don’t actually recruit. Some providers only offer recruitment technology, such as applicant tracking systems. Technology solution providers are not RPOs. Still other providers who engage in recruitment and refer to themselves as RPOs are not true outsourcers at all, but staffing agencies providing temporary or leased workers, or headhunters and search firms offering stripped down versions of their full-scale services.
Recruitment Process Outsourcing (RPO) providers represent employers and specialize in recruitment services. They serve as an extension of an employers recruiting function or in some cases as the employers whole recruiting department. True RPOs, whether they refer to themselves as Recruitment Outsourcing or Recruitment Process Outsourcing companies, provide recruiting services that can support or carry out the entire end-to-end recruitment process. The setup of the relationship is no different than calling Microsoft for tech support, thinking you are speaking with Microsoft, when in fact you are speaking with a third party supplier who is representing Microsoft and authorized to do so by Microsoft. To job seekers, the perception is they are speaking with the employer itself.
In contrast, headhunters, search firms, and staffing agencies represent the candidates. They serve as an agent for candidates and represent candidates to many potential buyers; in this case the buyers are employers. Whereas headhunters, search firms, and staffing agencies negotiate with employers for the best possible employment opportunity for their client – the candidate – recruitment outsourcers protect the interests of employers, ensuring their client – the employer – hires the best person for the job in the most efficient and effective manner.
What is Recruitment Process Outsourcing versus Recruitment Outsourcing?
Recruitment Outsourcing and Recruitment Process Outsourcing are used interchangeably. The acronym RPO refers to both Recruitment Outsourcing and Recruitment Process Outsourcing.
Recruitment Outsourcing and Recruitment Process Outsourcing providers can be differentiated by the R , P and O capabilities.
CHARACTERISTICS OF RECRUITMENT PROCESS OUTSOURCING PROVIDERS
RPOs must have outsourcing capabilities and provide
recruiting and/or processing services |
|
R = Recruitment |
Do they find, attract and source candidates? |
|
P = Process |
Do they manage transactions that carry out the act of hiring? |
|
O = Outsourcing |
Do they have the ability to carry out the recruiting process from start to finish? |
(more…)
by Steven Lindner | Sep 29, 2015 | Hiring and Retention, Industry Research and Recruiting Metrics, Talent Acquisition |
Are you ready for the talent shortage?
With a national unemployment rate expected to reach 4.25% by August 2016, we need to get ready for another war for talent4. As a result, over the next two to three years, we will see the fight for talent strongly intensify.
Why?
Because the number of individuals with current, relevant experience (supply side of the candidate pool) is quickly falling below employers’ needs (demand side of the candidate pool) — thus leading to a talent shortage.
As the available supply of labor with current, relevant experience diminishes, employers will need to use pay, benefits, fringes and other working incentives to woo candidates from competitors as well as implement programs to increase the supply side of the labor market.
Recruiting and Talent Acquisition professionals are already feeling the heat to hire experienced hourly employees and staff-level professionals. We are seeing a big push to attract experienced candidates for positions such as technical support, customer service, inbound and outbound sales, banking and financial services, and software engineers.
In Low Unemployment Rate Sparks New Tactics for Recruiters, we described how entry level and experienced, hourly hires have been the largest driver of new job creation. As a result, this demand has thankfully and dramatically driven down the unemployment rate both nationally and locally across states. As early as 2014, we began seeing employers offering many kinds of incentives to experienced, hourly hires including sign-on bonuses and relocation assistance — benefits often reserved for management only positions.
Based on the data being released by the Bureau of Labor Statistics (BLS), we have not seen this kind of labor market since 2006. But this impending talent shortage is nothing new for those of us who have been in the space for longer than we would like to admit. Remember the Y2K IT Talent Shortage? How about the dot com or the pharmaceutical talent shortage in the early 2000s?
Employers have been in the driver seat since 2008, when the number of unemployed individuals per job opening rose from a prior low of 2 to 1 to almost 7 to 1 by mid-2009; meaning there were almost 7 unemployed individuals for each job opening. As Chart 1 shows8, as of July 2015 there is clearly a talent shortage. There are now only 1.4 unemployed individuals for each job opening. No wonder the average time to hire has increased by 10.3 days and will continue to do so (New Labor Market Realities: Recruiting Friend or Foe?).
Very few employers will be able to pay employees at the top of the pay scale as a strategy for attracting all the talent they need to address the talent shortage. Even the few who can and do, will not be able to do so for every new hire. Let’s also keep in mind that what has mostly driven our low employment rate has been cheap labor, with job gains going disproportionately to the least educated, and lowest-paid workers5.
Addressing the Supply Side of the Talent Shortage
There are other ways to increase the supply side of the candidate pool for employers without outsourcing or importing talent from other countries. But to do this, employers will need to broaden their talent acquisition strategy to address the impending talent shortage.
There is a big opportunity to do so.
If you combine the (a) recent unemployed and (b) long term unemployed (i.e, those looking for work for 27 weeks or longer) with (c) the marginally attached workers (i.e., those who are on the verge of giving up or stopped looking for work), the unemployment rate increases twofold from 5.2% to 10.4%6. This 10.4% does not include the almost 6.5 million workers who are working part-time (some working as little as an hour a week) but who would prefer full-time work7. With all these individuals sitting on the sidelines this is an enormous supply side – candidate pool – to tap into.
So why are we seeing the emergence of a “Talent War” for tech support, customer service, inbound & outbound sales, billing, collections, order processing, loan processing, software engineers and similar?
Answer: The demand for “Current, Relevant Work Experience” exceeds supply.
A talent shortage is partly the result of employers’ unwillingness to step outside of their comfort zone. There is comfort in hiring those who currently do the same job as the one you want to hire them to do for you. Candidates with current, relevant work experience are able to articulate and describe how they perform the job you need them to do and have recent examples to describe how they carry out their work. In contrast, an individual who has not worked in many months or lacks experience in your particular line of work requires a much stronger leap of faith that they will be successful within your company.
With over 5 million job openings, unless we hire everyone who has been unemployed for less than 6 months, we have to address the talent shortage with a strategy beyond passive, direct candidate sourcing and recruiting of individuals doing the same or similar job for a competitor. For entry level and hourly positions, employers should start building talent acquisition strategies to source, recruit, and screen candidates from the long-term unemployed and part-time workers with transferable skills, as well as retirees and parents who want to return to the workforce.
To address the supply side of the talent shortage many employers will need to add Return to Work and Apprenticeship programs for some portion of their talent needs. Many entry level & hourly positions already begin with structured training programs. Thus, adding content to training to bring individuals’ knowledge and skills up-to-date can pay big dividends. Partnering with local workforce development offices and other workskills development providers is a great way to give candidates the opportunity to ready themselves for your work requirements.
To source, recruit and screen candidates who do not have current work experience, employers need to use recruitment and screening methodologies that focus on aptitudes and competencies. Rather than focusing on recent work experiences, address the talent shortage by recruiting and selecting candidates who have the core work ethics, competencies and aptitude to successfully perform the job given a reasonable amount of upfront training. For insights on competencies for contact centers please review Call Center Agent Recruiting & Selection: Is a single competency profile enough? For specific recommendations on How To Find Great Talent Among the Underemployed Workers see Identifying Underemployed Workers: How to Find Great Talent.
References
1Schwartz, N. & Applebaum, B. (Sep. 4, 2015). Jobs Report Gives Ammunition to Both Sides of Fed Rate Debate, NY Times.
2Jackie Odum & Michael Madowitz (Aug. 6, 2015). The State of the U.S. Labor Market: Pre-August 2015 Jobs Release, Center for American Progress.
3 Hilsenrath, J. (May 22, 2014). More Gloom for the Long-Term Unemployed from Alan Krueger, Wall Street Journal.
4 Jakab, S. (Sep. 5 – 6, 2015). Jobs Report: What’s Not to Hate? Wall Street Journal, B12.
5 Achutan, L. (Sep. 10, 2015). Glimmers of Hope or Growth Slowdown for U.S. Economy. Bloomberg Business.
6 Republic 3.0 (March 2015). Jobless Rates Fall, But the Long-term Unemployed Still Struggle.
7 Innovate+Educate (2014). Skills Based Hiring.
8 BLS charts are from http://www.bls.gov/web/jolts/jlt_labstatgraphs.pdf
by Steven Lindner | Aug 25, 2015 | Candidate Assessment and Selection, Hiring and Retention, Industry Research and Recruiting Metrics |
What’s The Business Value of Call Center Agents?
Call centers have well defined performance metrics. Want to grab the attention of the C-Suite? Then ensure your recruiting and selection efforts enable the call center agents to meet or exceed the centers performance metrics and deliver real value to the business bottom line.
When it comes to servicing customers — whether it be for technical support, product information, billing and payment processing, or online shopping assistance — quality counts. Call center agents, whether in an inbound, outbound or blended contact center, perform a vital function that drives sales, maintains customers and most importantly, builds brand loyalty.
Sixty (60%) percent of buyers prefer to pay more for better customer service. Eighty-six (86%) percent will stop doing business with a brand because of bad customer service experiences. Eighty-nine (89%) percent of buyers will migrate to a competitor after a poor customer interaction with the original brand1. If these three reasons are not compelling enough to receive the recruiting budget and timeline you need to positively influence your company’s bottom line, then consider the following fact. Buyers are more likely to share their negative experiences than their positive ones. With the rise of social media, negative reviews can rapidly reach thousands of people and impact a company’s reputation in just a few short business hours. Now more than ever, customers are the ones who promote a company’s brand. The ability of call center agents to deliver superior customer service, be it order, billing, account maintenance or help desk support, can give a company an edge over its competitors.
We are all in agreement that empty call center seats have real cost to the business, but so do seats occupied with the wrong talent. More and more, call centers are investing heavily in call center agent talent acquisition and recruiting in an effort to add good talent to their teams. As discussed in Recruiting Budgets, is it money well spent? investing in recruiting and selection can pay dividends.
Identifying Quality Call Center Agent Talent Is Simple Right?
In order to deliver quality customer service and maintain strong relationships with clients, companies need to identify and employ competent and skilled call center agents capable of turning each customer into a loyal brand ambassador. Based on our experience in high volume call center recruiting, the biggest challenge for recruiting and HR professionals is determining how to select the best talent for such positions when the competencies needed to perform these duties change and evolve constantly. Many contact centers use multiple channels to provide quality service to customers via phone, email, online chat, and in some cases video chat. Each channel requires a unique constellation of competencies to perform well, and a call center agent who might perform well using one channel may not be able to perform equally as well at another. This makes it important for recruiters to identify what competencies are most important for specific roles before starting the search for qualified candidates.
Recruiters should begin by deciding which relevant competencies can easily and reliably be assessed and how to sequence them in terms of priority for the selection process. For example, listening skills would be more important for representatives responding to customers via phone or video chat compared to those addressing customer concerns through email and text chat, where reading comprehension plays a greater role. Similarly, written communication skills and attention to detail would be more critical for call center agents communicating via text chat and emails than over the phone.
Against our advice, a client of ours once promoted their best customer service agents from phone-based support to email and text chat support only to find many of them unable to satisfy customers. One funny example that comes to mind, which was not so funny at the time, was when a well-intended call center agent responded with I am sorry our product damaged your sh*t when he meant shirt. Clearly, not all competencies are created equal across the different call center agent roles. Identifying and assessing critical competencies for successful performance is key for selecting the right quality candidates.
Obviously, not all call center agent positions are the same. The competencies important in customer service positions also vary based on the type of call center and the services they provide. For example, inbound center agents may need high level skills with conflict resolution, problem solving, technical trouble-shooting, or empathy. An outbound center agent may require greater skills in presentation, negotiation, and relationship building. Likewise, agents who communicate with customers through multiple channels may require higher level skills across a broader spectrum of competencies than a representative that focuses on a single channel.
As call centers adapt and change into contact centers with multiple customer service channels, companies will need to refine their competency models and change the candidate profiles of who they recruit and hire. Reviewing and identifying critical competencies for specific positions can significantly impact the quality of candidates selected and, as a result, contact center performance. Since quality customer service plays a critical role in a company’s ability to maintain business relationships with customers and protect its brand, ensuring that call center agents have the necessary skill sets at the appropriate level is a critical factor in ensuring business success.
How Call Center / Contact Center Agent Recruiting Professionals Can Impact the Business
- Critically evaluate the competency model with the hiring team to ensure it is appropriate for the specific role you are recruiting
- Build your candidate sourcing strategy from the competencies established for each unique role
- Screen candidates for the specific competencies associated with each call center agent role
- Revise your sourcing strategy and candidate screening process as positions evolve
- Look beyond call center / contact center experience and focus more on the underlying competencies required for successful performance to build wider candidate pools
- Partner with the hiring team to ensure recruitment and selection strategies are yielding hires that positively influence the key performance indicators that impact customer satisfaction and help the business meet its objectives
For more information about how to identify and connect critical call center agent competencies to call center recruiting strategies, please contact us here at The WorkPlace Group.
References
1. Top Contact Center Trends for 2015 – Compare Business Products http://www.comparebusinessproducts.com/resources/item/the-contact-center-in-2015
by Steven Lindner | Jul 29, 2015 | Industry Research and Recruiting Metrics, Talent Acquisition |
The June 2015 job report – showing 223,000 new jobs created in June and a 5.3% national unemployment rate at a 7-year low – was great news for those who have been job hunting 1. But for companies that need to hire new employees, these numbers are creating new challenges to find the perfect candidate.
According to the Wall Street Journal, the declining unemployment rate is not just a result of job creation, but also owed in part to a decline in the number of people looking for work. Indeed, the labor-force participation rate 2, or the share of the population working or looking for a job, marked a 38-year low at 62.6%. According to Steve Goldstein of MarketWatch, this is a combination of baby boomers hitting retirement (the bigger factor) and other people who have given up trying to get a job. The percentage of those who aren’t in the labor force and who want a job, at 7.1% in June 2015, is only slightly higher than the 6.8% rate in June 2007, before the onset of the Great Recession. 3
Juggling Time to Hire with Quality of Hire
Finding that perfect candidate is becoming increasingly more difficult and employers are feeling heightened pressure to fill job openings. As the job market tightens, time-to-hire increases. In a study conducted by Glassdoor.com, in comparison to 2010, the average time-to-hire has increased by 10.3 days.4 With time-to-hire being an important recruiting metric, the pressure to hire less-than-ideal candidates is compounded when fewer job candidates exist. In an effort to avoid having positions vacant for too long, employers are frequently tempted to hire less-than-ideal candidates despite the long term implications.
Making poor hiring decisions by hiring less-than-ideal candidates can wind up costing companies much more in the end than holding out for the right hires. In Recruiting Budgets: Is it Money Well Spent? Googles Vice President of People Operations, Lazlo Bock shares that [Google] spends twice as much of its people budget hiring [recruiting budget] than the average company guided by the philosophy that the better job Google does to begin with, the fewer resources will have to be spent rehabilitating underachievers or replacing people who dont work out.
So what does all this mean for employers trying to recruit candidates?
As the market becomes more challenging, more creative candidate sourcing strategies are needed. Recruiters need to reach deeper into the labor pool, cast wider nets, and ensure they reach across recruitment channels to connect with candidates for both current and future talent needs. Employers also need to re-think the essential elements of their ideal candidate profiles.
Casting your line deeper and farther: Recruiting Outside the Box
As recruiters reach deeper and farther into the talent pool, building candidate communities that connect with your employment brand is one way to get ahead of the curve and avoid being myopically focused on just todays openings. Recruiters also need to connect the dots to new career paths for candidates as well as consider qualifications based on aptitudes and indicators of job success other than prior experience. For example, target candidates who have transferable skills. Candidates are frequently attracted to opportunities that help them transition into new career paths or industries. For positions offering training programs (like tech support and customer service) companies may also consider hiring individuals based on trainability rather than prior experience.
An initial step in this kind of candidate sourcing and selection is identifying what skills-can be pragmatically trained versus those skills and core knowledge that candidates need to have in order to benefit from your training. For example, its relatively easy to train employees on how to use a specific computer program or the ins and outs of your industry or companys offerings. In contrast, advanced programming skills or core engineering knowledge are much more challenging to tackle. Putting longer training programs in place can help compensate for a lack of industry or job knowledge, provided of course, all other qualities and competencies already exist.
Perhaps the most frequently passed over pool of untapped candidates exists among the underemployed. There are millions of working professionals employed in jobs that are below their skill levels. Included in this underemployed job segment are part-time workers who are actually in need of full-time jobs. Although the number of new jobs in the last few years has increased, the majority of those jobs are at the entry and low-experience level. Therefore, many of those laid off at the start or during the recession have, by necessity, been re-employed in positions that underutilize their skills and experience. For example, someone who held a Director-level position pre-recession may now be working as a manager. Identifying Underemployed Workers provides specific tips on how to find great talent among the underemployed.
Rabbit and the Turtle: Both have value in recruiting
In a tightening labor market, balancing hiring well with hiring fast is ever more difficult to achieve. The tendency is to tilt us towards selecting those we may not have hired a year or two ago. However that may not be a bad thing if it leads you to dig deeper, expanding your sourcing efforts, developing candidate communities and offering candidates opportunities they would not otherwise be able to have with you. In fact, when done well, it leads you to perfect candidates you would have ordinarily missed.
For more information about how to develop and utilize creative sourcing and selection strategies in your recruiting efforts, please contact us here at The WorkPlace Group.
References
1 Morath, Eric (July 2, 2015). Jobs at a Crossroads: Hiring Up, Pay Flat. The Wall Street Journal. http://www.wsj.com/articles/jobs-report-u-s-payrolls-climb-by-223-000-1435840430)
2 Timiraos, Nick (July 2, 2015). The June Jobs Report in 10 Charts. The Wall Street Journal. http://blogs.wsj.com/economics/2015/07/02/the-june-jobs-report-in-10-charts/)
3 Goldstein, Steve. (July 2, 2015). Labor-force participation drops to lowest level since 1977. MarketWatch. https://news.fidelity.com/news/news.jhtml?cat=Economy.US&articleid=201507021020MRKTWTCHNEWS_SVC000271&IMG=N)
4 Dill, Kathryn (June 22, 2015). Study Confirms The American Hiring Process Is Now 10.3 Days Longer. Forbes. http://www.forbes.com/sites/kathryndill/2015/06/22/study-confirms-the-american-hiring-process-is-now-10-3-days-longer/
5Image by http://quickbooks.intuit.com/r/hiring-and-recruiting/checklist-evaluating-job-candidates
