2. Recruitment Motto: Right people, right time, right place Randell + Associates 2
3. Recruitment Outsourcing Two models exist in the market: MSP and RPO MSP-Managed Service Programs RPO-Recruitment Process Outsourcing Randell + Associates 3
4. MSP RPO One company provides labour to another company through a network of recruitment firms who source the talent One to one relationship between the RPO provider who identifies talent and delivers it to the client Differences MSP and RPO Randell + Associates 4
8. Management of Cost of Labour A B C D E F G Recruitment Supplier Network Client Company A Randell + Associates 6
9. MSP MSP is designed to find the contingent (hourly) labour most organizations need in some form or other Selection of an MSP provider is normally done by the Procurement or Supply Chain departments Management of the MSP vendor is done by the Procurement or Supply Chain department Input from HR (Recruitment) is often sought through both processes Randell + Associates 7
10. MSP MSP vendors tend to be some of the largest staffing firms in the world They are paid by charging a management fee of x% to the client, which they pass on to the agencies who deliver the labour The size of MSP’s vary but the largest MSP in the world is worth $B’s and the largest in the USA is over $1B annually Canadian MSP’s are much smaller, in the $10’sM As a result, not many are operating here and it is not a true growth market Randell + Associates 8
11. MSP-How does it work? MSP team works with client managers to forecast labour needs Partners with agencies sending specs for jobs Ensures delivery of labour as needed and for agreed cost Recruitment agencies are the employer and responsible for payroll, benefits, training and management of the employee Randell + Associates 9
12. RPO RPO is designed to mimic the internal recruitment function and appear to candidates as the internal recruitment process In an RPO model, recruitment is provided by third party recruitment agencies, off site or on site RPO recruiters use internal emails, phone numbers and advertising materials, approved by the hiring organization The RPO provider appears as an extension of the HR department although they are not Randell + Associates 10
13. RPO RPO is often used for high volume recruitment (call centre staff) or project based roles (short to medium term) or to replace ALL internal recruitment The key difference with an MSP is that the roles recruited for in RPO are internal positions in the organization Randell + Associates 11
14. Why use RPO? Cost effective-the provider ramps up or down based on client needs No need to hire/fire recruiters RPO has talent pools available (or should) Can find an RPO that focuses on your niche (Manufacturing, Banking, IT) Fees are usually based on placements made and the RPO provider guarantees or replaces staff, like any recruitment agency Saves space, hiring needs as all recruiters are external resources Randell + Associates 12
15. Why use MSP? Cost Risk Quality Control Randell + Associates 13
16. Why use MSP? CostContainment The management fee, typically 1-3% of total cost of recruitment, is less than paying to recruit each hire MSP’s take on all the risk and cost that come with employees Contingent needs fluctuate greatly and costs per hour/project need to be managed tightly, which MSP does Risk Management MSP ensures contractors are compliant with organizational or regulatory requirementsand tracks that for the employer Workers are not client’s employees, so there is no duty of care or other requirements of employers Employing agency must have liability insurance, and other insurances such as worker’s compensation Randell + Associates 14
17. Why use MSP? Quality MSP screens and provides only the top talent Recruitment agencies are not guaranteed a set number of placements or continued opportunities to make placements, creating healthy competition Control Supplier networks are managed very closely for meeting pay requirements, and for employer obligations Randell + Associates 15
18. Why use MSP? Employing agency has full responsibility for managing the labour Labour can be removed at any time/flexibility Best access to talent across regions/borders MSP’s tend to be large global firms with large networks of agencies that specialize in core industries or geographies MSP providers need to meet organizational /legislative requirements for diversity/representation/small business etc. Deep talent pools readily available through the supplier networks Numbers focussed and numbers driven Randell + Associates 16
19. Why use MSP? MSP’s are generally awarded 3 year contracts and provide quarterly updates on the program success They must compete for the opportunity each time and must demonstrate compliance with the program requirements Randell + Associates 17
20. The future of Recruitment Outsourcing Significant growth in APAC and Europe Consolidation of MSP and RPO providers globally Larger, more global deals than before Primarily USA or HQ driven with subsidiaries/countries following Real benefit to organizations with either model Randell + Associates 18
