global recruitment transformation leads to huge cost savings

January 8, 2015

An environmental technology giant reaps the benefits of a comprehensive RPO program delivered around the world.

the business need

A global environmental technology leader delivering innovations to manufacturers in more than 30 countries required a continuous flow of high-quality talent to maintain its market- leading position. To ensure access to critical skills around the world, the company looked for an outsourced solution that could elevate its recruitment process while achieving optimal cost effectiveness and efficiency. After a disappointing prior engagement with another service provider, the manufacturer turned to Randstad Sourceright for a comprehensive global recruitment process outsourcing (RPO) solution.

the situation

Global alignment – Although headquartered in New York, the company obtains nearly three-quarters of its sales from outside the US. With a presence in just about every developed market around the world, the company needed a solution attuned to the needs of each of its local businesses while being aligned across the globe. This would also provide the compliance and process visibility HR leaders desired.

Access to talent – Because of the specialized skill-set the company needs to drive product innovation, the company often competes for candidates in small talent pools. In a number of industries, the organization faces not only competitors but also customers for the same skill-sets. As a result, time-to-fill was a chronic challenge for hiring managers and HR. In addition, the company does not have a well- recognized employer brand, a significant hurdle since others competing for the same talent are better known.  

Program value – A key goal for the environmental technology company in outsourcing is to gain maximum value from the RPO program, which meant achieving cost savings through a reduction in agency usage without sacrificing time-to-hire or quality of candidates. It also needs the program to continue to deliver value well after implementation.

the solution

A global solution – To support the company’s goal of aligning its hiring processes around the world, Randstad Sourceright developed a global program that provided visibility to the client to more quickly source, engage, and onboard the talent it needed. By connecting all its businesses and regions through this platform, HR leadership could better respond to the talent needs of the operations anywhere in the world.

Cost savings – A key desire of the client was to significantly reduce its use of agencies in its recruitment effort. Cost of hiring globally was unacceptably high, in part because of the specialized skills the company required. In addition, its internal processes were inefficient, which also affected its cost basis. It turned to Randstad Sourceright to deliver candidates through a much higher use of direct sourcing and, thereby, slashing agency fees.

Process excellence – Along with cost savings, the client needed streamlined processes that could quickly enable hiring managers to source and hire the specialized talent they sought. Reducing time-to-hire was a critical requirement of the RPO program, and Randstad Sourceright was expected to help align the client’s processes by leveraging its expertise.

the success

Huge cost savings – A year after implementation, the client significantly slashed agency usage, resulting in savings of $3 million around the world. Hires through agencies fell to 17% worldwide and just 2% in Asia. In Europe, the percentage of non-agency hires reached 65% in the latest quarter, which was well above the contracted SLA of 35%.

Growing customer satisfaction – As the program has stabilized, hiring manager satisfaction rates have steadily climbed. In the second quarter of 2014, those managers have expressed greater confidence in the RPO, giving the program an average satisfaction score of 3.17 compared with a score of 2.8 in the previous quarter.

Robust process in place – Across all regions, the company now operates under a consistent recruitment process that includes a rigorous sourcing strategy, dedicated recruiters for each market, enabling technology that provides clear reporting and analytics, and remediation steps to address aging requisitions and other day-to-day issues. The process is also supported by a growing team that has grown from 10 at the start of implementation to 35 today.

Strong governance – Specialized virtual and onsite teams aligned to the client’s structure as well as a global director managing the partnership help ensure that a robust governance framework exists across all regions.

Path to program enhancements – Having achieved significant savings and implemented a robust and standardized recruitment process in place during its first year of operation, the program is now focused on delivering additional value around reporting and analytics; further reducing agency usage and time-to-fill; measuring and raising candidate quality; and improving internal communications.

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