The Value of Offshore Recruiting Teams
Corporate recruiting departments and staffing firms have a continual need to lower costs while increasing recruiting productivity — and some recruiting organizations have turned to outsourcing. Outsourcing can take many forms including retaining a U.S.-based recruitment process outsourcing firm, sending job orders to staffing agencies, participating in split-fee recruiter networks, or hiring U.S.-based contract sourcers and/or recruiters.
A less-expensive solution being implemented by progressive U.S. companies is partnering with an offshore recruiting firm. Most offshore recruiting firms have recruiting operations in India. The cost of an offshore sourcer or recruiter is generally about one-third to one-half the cost of a U.S.-based contract sourcer or recruiter. Offshore recruiting firms allow U.S.-based in-house recruiters to offload time-consuming, but important tasks, such as candidate sourcing and screening. With the additional time, in-house recruiters can work on and close more open positions, focus on complex tasks requiring the greatest skills, provide a more positive experience for candidates, and delight hiring managers by presenting higher quality candidates.
You Cannot Outsource Your Problems
Offshore recruiting is not a magic tonic. A dysfunctional recruiting department will not suddenly have success by outsourcing — whether the recruiting functions are outsourced to a U.S.-based or an offshore firm. keep reading…
SelectMinds, TheLadders, an RPO, and more are making announcements at the ERE Expo in San Diego today. Just a sampling:
First SelectMinds, which “moved deeper into the employee referral world” a couple of years ago and then into the “talent communities” competition, today is launching what it calls the “first-of-its-kind software to allow corporate HR to automate all aspects of social recruiting.”
It’s an upgrade to the company’s TalentVine product with six new modules: a jobs distributor to send out listings and links to company Facebook pages and Twitter accounts; a talent community module; a referral program module; a Facebook jobs page builder; a social-media-friendly career-site builder; and a module that optimizes job listings for mobile phones. keep reading…
A time right about now,
In a galaxy not far, far away,
A world exists where recruiting labor swirls
Within corporate hiring needs,
Melding with sourcing and branding,
Colliding with hiring process and adoption,
A war has erupted in the expanse of options in how to best recruit to fill corporate talent voids: Outsource vs. In Source; RPO vs. RPWhat; RPWho vs. RPHuh?
I am not a Star Wars geek but a fan of the movie series (as a child of the 1980s). When I sat down to write about recruitment process outsourcing services and the necessity of developing a comprehensive Request for Proposal process when selecting a supplier, I realized the story was much bigger. The title popped in my head as I looked at the evolution of RPO. But as I continued to write, I realized that RPO is a world into itself fighting for relevance as it continues to be defined.
I opted to tell the story from a corporate staffing leader’s perspective, taking it from the initial decision point of whether or not to outsource recruiting labor. keep reading…
Never before has the time been riper for recruiters to make a real difference to the profitability of their firms. The differentiator between profits, innovative products, and long-term success is, very simply, the quality of talent.
As gatekeepers, your function is far from trivial. You are key to finding the best talent and therefore ultimately a core player in corporate success. But we continue to act like our job is about as important as sorting screws or stocking shelves. We are rarely influencers or early adopters of technology.
Influencers are noted for focus, their ability to make a case for what they want that is backed up with data, and for empowering others to act. In many cases, they also use the latest tools to raise awareness and efficiency.
If you want to be an influencer here are some ideas, concepts, and provocative moves you can use to transform your recruiting function.
Narrow the Field
Most recruiters have too large a scope and hence spread themselves very thinly, pleasing no one. keep reading…
Marine Drive - Mumbai
After declining for about three years, India’s popularity as an outsourcing hotspot for tech companies has increased sharply.
That’s according to BDO USA, an accounting/consulting organization, in a poll of 100 U.S. technology CFOs.
|Current outsourcing destinations
BDO also found that: keep reading…
I was just reviewing the predictions I made for 2011 written at roughly this time a year ago. Much of what I thought would happen unfolded as expected, except for talent management. I had thought there would more focus on integrating the employee development and recruitment functions, and more internal hiring. I still think that’s on tap for this year. I was on target regarding hiring: There was no great uptick in the volume of hiring, and unemployment remained static. And I was on target with predicting that social media would be core to recruiting success and that RPOs would thrive.
Over the past two years, the way we think about work has changed. Perhaps accelerated by the recession, there is more focus now on finding satisfying and rewarding work than on just finding a job that pays the most.
More people are thinking about finding something interesting, challenging, and perhaps even fun to do that provides enough income. The key words here are interesting/challenging and enough. Fewer expect to get rich and there is less focus on the money. There is more focus on lifestyle, flexibility, free time to pursue other learning or hobbies or sports, and less interest in family. I’ll do more columns on these trends soon, but partly because of them here are the major changes that I see happening this year.
Internal Recruiting Goes Mainstream
Perhaps one of the most significant trends will be a greater focus on finding current employees to fill existing jobs. keep reading…
ADP, best known by the adjective “payroll processor,” will need to launch a rebranding campaign. Something like, “ADP, the full-service human capital company.”
The $10 billion company announced today it is acquiring The RightThing, a leading recruitment process outsourcer, which three years ago acquired AIRS. Terms of the deal weren’t announced.
It’s the second acquisition for ADP in as many months. In September it bought Asparity Decision Solutions, a supplier of employee health benefits decision support tools.
Besides giving ADP a strong and immediate presence in the burgeoning RPO business, The RightThing’s AIRS unit brings a sophisticated recruitment technology and a well-regarded recruiter Internet training component.
However, the announcement strongly suggests that it was the RPO side of the house that ADP was after in the acquisition. keep reading…
Doing less with more. We measure it. Monitor it. Optimize it. Benchmark it. Roll it. So many schools of thought channeling through webinars, blogs, SMS feeds, etc. assail the minds of talent acquisition leaders daily. It can be hard to take the time to process it all, let alone roll out a custom implementation when what is really needed today is a purple squirrel with an engineering degree willing to relocate for less money. Late nights at the office resuscitated the question, “Can we get back some of the time we spent executing necessary, yet time-consuming transactional activities and reallocate the team’s time to more strategic client-facing initiatives and management’s time to taking care of the team?”
I approached this conundrum earlier in my career with the help of my talent acquisition team at that time. As we began an examination our own processes, we tried to keep a “lean-esque” perspective on what we see is the incremental value recognized through individual process steps. The central challenge became whether we could change the way in which something is executed, while still retaining (or increasing) its incremental value. Ultimately, can we do it quicker, cheaper, and not cannibalize our effectiveness and efficiency?
As the years have rolled by I have become increasingly aware of how poorly internal recruiting functions perform when compared to recruitment process outsourcing organizations or agencies. These have to make a profit or go out of business. They have to operate efficiently and continue to innovate and stay ahead of the demands or questions that clients will have.
Internal functions don’t have to do any of these things. They are entrenched in almost all organizations, and because their function is perceived as incidental to overall organizational performance or success, not much in the way of efficiency is really expected or, unfortunately, rewarded. This means that few recruiting leaders have any incentive to improve their function. In fact, doing so may mean a smaller budget, less headcount, and even less status.
So this leads to the headline question: Do we need an internal function at all? Does it do something that an external provider cannot do? Can it do it at least as cheap or as fast? Can it provide a higher-caliber candidate?
Some thoughts: keep reading…
Even though we are in an economic down cycle and unemployment in the U.S. is hovering around 10%, recruiters are still struggling to find people with the skills and experience their hiring managers are looking for.
Partly this is driven by the commonly held assumption that these skilled and experienced people have been affected by the recession and are actually in the job market. Recruiters know this is not the case and that many candidates have become even more difficult to find and entice away from a secure position.
While demand for lesser-experienced, educated, and skilled candidates has slacked, it has risen for those with higher-level skills. Many firms are trying to replace the employees they had with moderate skills or who were in learning roles, with people already accomplished in their profession. keep reading…
John Smith began 2010 with the hope that hiring would ramp up slowly over the year and that he would be able to re-establish his crackerjack sourcing team that was eliminated in 2009. He believed that sourcing passive candidates off the Internet would provide enough candidates, with very little need for job postings or agency involvement.
Instead, he found that hiring in some niche areas greatly exceeded his expectations, but that overall, hiring was slow. The slew of candidates just applying for anything grew all year, swamping his team’s ability to evaluate and respond to each candidate. But at the same time, the candidates he desperately needed were not among them. Internet searching turned up a few candidates, as did employee referrals, but there were many unfilled requisitions as 2010 came to a close.
As he crafted his plans for 2011, he pondered the use of social media, which they had only dabbled in and not very successfully in 2010, and well as whether he really needed his sourcing team — at least as it had been designed with a heavy emphasis on Internet sourcing of passive candidates.
If this story rings true to you, here are some ideas on what 2011 may bring. keep reading…
What does it mean when a recruiter in Texas announces a line of recruiter fashion and another one in Santa Monica launches a website offering “management and employee removal services?”
That we are in the dog days of August? That we’ve been in the summer sun too long? That I’m being Punk’d?
Turns out the press releases about these ventures are for real.
The LeafBuilder clothing line is an assortment of T-shirts that you use to flaunt your recruiting prowess. The number of maple leafs on the shirts corresponds to your placements — and the price. The entry-level T with a single leaf (corresponding to between 1 and 1,999 candidate placements) is $21.95.
Make it into the agency ownership ranks and a seven leaf, long-sleeved version will set you back $293.95. Somewhere on the site there’s a product that will run you over $1,500. keep reading…
As the nation and the world emerge from the depths of the recession, labor economists tell us that this recovery will be slower and bumpier than most Americans living today can remember. Like the Great Depression of the 1930s, this one will leave its scars on the economy and the national psyche. Employers will feel its consequences rippling through their workforce and their recruiting efforts, with effects lasting for years, if not an entire generation.
What are the consequences for employers? What are the long-lasting changes the recession has wrought on the recruiting and retention of workers? There are several, say industry leaders, vendors, suppliers and individual recruiters.
Foremost, probably predictably, is the need to rebuild recruiting programs. Beyond that, there are almost as many opinions concerning the recession’s impacts as there are people I asked about it. Some predict that the cuts to job board spending will be permanent; others say social media recruiting will become a key sourcing tool, others suspect it will never amount to more than a minor tool; most expect that recruiting will be held to a higher standard of performance and economy.
Out of all the predictions and expectations — those I solicited and those I came across in discussions and blog posts and even tweets — I distilled four broad trends. You can read about these in more depth in the July issue of the Journal of Corporate Recruiting Leadership. For now, here’s a brief look at these trends. keep reading…
Mike Nale is a victim of the recession. In less than three years he has gone from promising founder of a recruitment marketing agency in Oahu, to living in a pay-by-the-day room. Having long ago sold off his possessions and swallowed his pride, Nale depends on handouts from friends and the rare odd-job.
A few weeks ago he took the desperate step of sending a plea for money to his LinkedIn network.
“It was a slow, downward spiral,” he told me recently. “I could see it happening, but I thought, ‘It will get better. I’ll find a job. Something will come through.’”
At 6.9 percent, Hawaii’s unemployment rate is among the nation’s lowest. For Nale, though, it hardly matters. “I don’t know where the jobs are,” says the one-time Manpower recruiter who two short years ago was being interviewed for his launch of a jobs TV show for the Islands. “I was a recruiter. You would think I should know how to find a job.”
His last TV appearance was as the central figure in a news story about Hawaii’s unemployed.
Nale’s story may among the more desperate, but his difficulty in finding work is not at all unusual. keep reading…
Spring has arrived, and much like our economic recovery, it is working to get a foothold on the slippery chill of winter. Like the seasons, business cycles are perpetual and growth and employment will return. Like the affects of a harsh winter, the landscape can forever be changed and it can be argued that the economic downturn has forever changed corporate recruiting. In many corporations, recruiting is seen as a cost center and many functions were downsized in cost-cutting measures. As economists analyze signs of economic recovery, hiring activity has picked up in comparison to a year ago. And many of these recruiting functions that were impacted by layoffs are now being challenged to keep up with hiring demand with fewer resources.
To augment the labor load balance of supply and demand, talent acquisition leaders restricted by headcount and budget limitations are partnering with external suppliers. Recruitment process outsourcing or RPO service providers are seen as a logical choice to partner for recruiting labor support. However, RPO service standards do not exist, and vary between organizations. Talent acquisition leaders are left to decipher between service offerings to identify the right partners to align with. With the term RPO being uses loosely by many suppliers, the marketplace can be confusing.
To contribute to the confusion, many of the true RPO providers have evolved from pure outsourced providers to offering specific task-oriented services to support the individual steps of the recruiting process. I describe the move from broad scope to narrow scope as the emergence of micro-recruiting services. In an attempt to understand the change, I will explore the relationship between RPO providers and their customers and the catalyst for transformation. keep reading…
This recession is accelerating a trend that was already underway: the tendency of organizations to outsource and decentralize non-core functions. I define core very simply: anything that generates revenue (e.g. the sales team), invents new products or services (e.g., R&D) or deeply touches customers (e.g. consultants, advisors). And, let’s face it, internal recruiting functions are not core. keep reading…
During this economic downturn, recession, slump — pick your phrase — we have seen more contract recruiters and search companies take a hit. Not a surprise. Fewer hires, and thereby less to outsource to third parties. As I talk with third-party recruiting organizations, many are trying desperately to branch out into other industries, get new accounts, and market. Many are changing terms and offering discounts. This behavior was expected, and as with the time after the Internet boom, and there are a percentage of these staffing companies that just won’t make it. There are a number of contract recruiters who will also want to go inside.
However, our U.S. economic situation may not allow for expansion of RPO or the conversion of contractors to full-time hires. keep reading…
There’s an interesting discussion going on over at the Video 2.0 for Recruitment blog about the U.S. Army’s $33 million investment in a recruiting video game.
Ernest Feiteira picked up on an item I posted and started a conversation about the value of such recruiting tools. A couple others chimed in about the ROI, something I’m looking into for a future article.
At this point in the discussion, there’s no resolution to the question of how you would calculate the ROI.
However, Down Under, the Aussies must believe that outsourcing their military recruiting pays off because they have been doing it for some years. I know that because I talked with a Manpower spokeswoman about a press release announcing that the Milwaukee firm just won a $200 million recruiting contract from the Australian Defence Force. keep reading…
Despite mixed results with HR outsourcing, outsourcing parts or all of the recruitment process is growing as companies discover the flexibility and scalability that external worker provisioning can offer.
A new study from outsourcing research firm Everest Global suggests that while the recession is reducing the size of RPO contracts, interest is growing, especially among employers with 8,00-15,000 employees.
“RPO buyers are attracted to a value proposition with cost reduction and scalability elevated due to the current economic climate, followed by improvement of recruitment processes, access to best-of-breed options and technologies, and enhanced employer branding,” said Katrina Menzigian, Global’s VP of Research. keep reading…
Chris Forman of AIRS talks about the economy, how his company is doing, and what’s going on with the recruitment outsourcing business. keep reading…