THE GLOBALIZATION OF RPOPresented by
Danny Zhang – Senior Director of Operations, Asia PacificNicole Cook – Managing Director, Australia/New Zealand
GROWTHDRIVER– THERPOSHIFT
INTHEBEGINNING…
2000 2005 2010 2015 2020
• TransactionalService
• HelpCompaniesQuicklyAttract&ScreenaHigh
NumberofRecruitsforLowLevelPositions
• HighVolume/LowSkilled
Therewasn’talotof‘talent’in‘talentacquisition.’ Strategicrelationshipsarekey.• HiringHard-to-FindTalentis IncreasinglyDifficult
• GrowthforDemandinSkilledRoles
• MoreCompanies RecognizetheBenefits thatcan
beDerivedfromRPO Vendors
• AdditionofLowVolume/HighSkilledRoles
CURRENTSTATE
RECESSION
11% 41%%Companiesusing RPOstofillrolesthatarecloselytiedtoorganizational performance&productivity
Average#ofHiresperDeal/DealSize Average#ofTotalDeals
Asmorecompanies ofvaryingsizesentertheglobalmarket,averagedealsizegoesdownastotalnumberofdealsgoesup.
Upto2014 2015 2016 2017 Inorafter2018
6%
26%10%
35%
23%
71%From2015to2017,mostofthe
currentRPOdealswillenterthe
next-generation.
715dealswithmorethan900,000newhiresperyearinscopewillbeupforrenewalduringthe
nextthreeyears.
RPO– AMATUREMARKET
Source:EverestGlobal,Inc.
Source:EverestGlobal,Inc.
THEGLOBALPICTURE Source:EverestGlobal,Inc.Note:2014dataisrepresented. 2015figures arenotyetpublished.
Growthdippedsignificantlyinthe
NorthAmericanMarket,whichis
themostmaturemarket.
NorthAmerica EMEA APAC
6% 21% 31%LatinAmerica
11%
MARKETGROWTH
GROWTHSLOWSINNORTHAMERICA
GROWTHINAPAC&EUROPESignificantsinglecountrydeal
activitywaswitnessedinemerging
APACmarket.Majordealdrivers
includeIndia,ChinaandJapan.
MODESTGROWTHINLATINAMERICAModestgrowthintheyoung
marketofLatinAmerica.Itwas
primarilyincludedinglobaldeals.
NOTABLEINDUSTRIES
Non-mainstreamindustriesare
movingintotheRPOmarket,suchas:
Travel,Hospitality,Logistics,Media
ACTIVITYINTHEAPACREGION
Source:PeopleMatters.in,2015MARKETGROWTH
DEVELOPED&EMERGINGMARKETS• RPOisdeveloped inmarketssuchas:
Australia/New Zealand(ANZ)|Singapore|HongKong
APAC
31%
Theadoptionof
RPOinAsiaPacific
isgrowingatarate
thatisnoticeably
higherthanall
otherregions.
• RPOisemerging innewmarketssuchas:
India|China
APACHROMARKET– ”UN-TAPPEDPOTENTIAL”
Payroll BAO LSO RPO Multi-Process HRO
MarketPenetrationinPercentagePotentialinBillionUSD
7-8BillionUSD
4-5BillionUSD
6-7BillionUSD
6-7BillionUSD
12-14BillionUSD
14%2% 2% 4% 3%
THEFUTUREOFRPO
Companiestodaydon’twanttoworkwithadifferentRPOineverycountry.Theywantserviceproviderswhocanofferthemcommonglobalprocessesandgovernancestructure.
THEMOSTVALUABLEDEAL– MULTI-COUNTRYRPO(MCPRO)
197Multi-countryRPOdealsthatare
currentlyactive.
VeryfrequentlyIncluded(>50deals)
FrequentlyIncluded(30-50deals)
Source:ManpowerGroup,2015
ModeratelyIncluded(20-30deals)
RarelyIncluded(10-20deals)
4.4 BILLIONEstimatedGlobalRPOMarketSpendperby2017
Source:EverestGlobal,Inc.,2015
GLOBALRESOURCEAUGMENTATION&THE24HOURWORKDAY
Service Providersareexploringefficiencies inoffshoringandsharingworkwithsupportofficesacrosstheglobetocreatea24hourworkday.
Globalresourcescanbeleveragedtoprovidesignificantly increasedprocessefficiencies.
» RequisitionCreation» Postings» CompensationAnalysis» ReferralManagement
» NameGeneration» MarketIntelligence» AssessmentCoordination&Review» Background&Pre-EmploymentProcesses
REMAININGCOMPETITIVEINTHEGLOBALMARKET
InordertobesuccessfulintheMCRPOmarket,serviceprovidersmustutilizetechnologyandprocessenhancingservicestoincreaseefficiencies.
REMAININGCOMPETITIVEINTHEGLOBALMARKET
APPLICANTTRACKINGSYSTEMS
VALUEADDSERVICES
PREDICTIVEANALYTICS
82%want“EasiertousebyEmployees”
PollSource:Bersin byDeloitte,2015DriversofTechnologyTransformation
82% 73% 66% 59%
Nearly60%ofalllargeHRserviceprovidersarereplacing,planningareplacement,orhaverecentlyreplacedtheircoresystems.
73%want“IntegratedData&Analytics”
66%want“CloudBasedSolutions”
59%want“IntegratedTalentManagement”
Today,wewillexplore…
THEAPPLICANTTRACKINGSYSTEM(ATS)
Anapplicanttrackingsystem(ATS),alsocalledacandidatemanagementsystem,isa
softwareapplicationdesignedtohelpanenterpriserecruitemployeesmoreefficiently.
Source:http://searchcio.techtarget.com/definition/applicant-tracking-system
Itisestimatedthatroughly
50percentofallmid-sized
companiesuseanapplicant
trackingsystem.
ATS [abbreviation – shortforApplicantTrackingSystem]
NEARLY ALL
Nearlyalllarge
companiesusean
applicanttracking
system.
CHECKLISTOFATSBENEFITS
• Administrative&ComplianceNeeds
• BackgroundScreening
• CompliancewithEqualEmploymentOpportunityCommission
TraditionalATSSystems
NewATSSystems
• CapabilitiesExpandedtoBuildaCandidatePipeline
An important difference exists between:
Processes necessary for bringing talent into an organization.
and
Processes necessary for finding new candidates and supporting the employment brand.
ATS
SMSTextCampaign
SocialMedia
Campaign
EmailBlastCampaign
CandidateSourcingEvents
CommunicateEVP/Brand
MobileOptimizedProcess
ThoughtLeadershipDistribution
EmployeeReferrals
“KeepWarm”Contact
ACTIVATEREQUISITION
CANDIDATEPIPELININGUSINGANAPPLICANTTRACKINGSYSTEM
(ATS)
2010 2011 2012 2013 2014
40% 38%39%38%43%
Source:EverestGlobal,Inc.
Therehasbeenaconsistentfrequencyoftechnologybundling.However,thereisahigher
incidence forfirst-time buyers,sincetheylackbasicRPO technology.
INCLUSIONOFATS-RELATEDACTIVITIESWITHINRPO
NEXT GENERATIONBuyersinmatureRPOmarkets look
atadd-on/peripheraltoolswith
advancedcapabilities.
Source:EverestGlobal,Inc
MostRPO Providersaretechnologyagnostic–somehavepartnershipsinplace
PERCENTAGEOFATSINCLUSIONINRPO
”“THEADDITIONOFVALUEADDSERVICES
Tooperateeffectivelyintoday’sdynamicbusinessenvironment,organizationsmustbeabletoidentifytheprocessesandsolutionsthatcanenhancethewaytheyacquirequalifiedtalent.
– RajeshRanjanVP,EverestGroup
SERVICEPROVIDERSBRINGINADDITIONALTECHNOLOGYFORADDEDVALUE
PROPRIETARYTOOLS PARTNERSHIP-ORIENTEDTECHNOLOGY
Source:EverestGlobal,Inc
PartnershipwithaTechnology
Vendor,toProvideNicheCapabilities
InternalDevelopmentof
Add-Ons/PeripheralTechnology
Twocommonwaystobringinadditionaltechnology.
1. 2.
Example:
PeopleScoutownsSpringboard™, aproprietaryCRM&ATS
Intoday’smatureRPOmarket,secondandthirdgenerationbuyersarelookingtoenhancetheirRPOservicepackages.
Example:
Partnershipswith3rd partycompanieslikeHireVue,whichoffersvideojobinterviewandteamaccelerationsoftware
ADDEDVALUETOOLS
SocialSearch
EmployeeReferral
RecruitmentMarketing
CandidateRelationshipManagement
MobileCandidateMarketing
VideoInterviewing
Self-Service Scheduling Tools
Assessment
BackgroundScreening MarketIntelligenceServices
LOOKINGTOTHEFUTUREINRECRUITMENT
PredictiveAnalytics,theuseofbigdatatopredictfuturetrendsandhelpmakedecisions,isbecomingamainstayonRPOmanagementdecisionmaking.
LOOKINGTOTHEFUTUREINRECRUITMENT– PREDICTIVEANALYTICS
IntuitiveDecisions
DecisionsValidatedby
Data&PredictiveModeling
THEADOPTIONOFANALYTICS
REPORTINGANALYTICS
DESCRIPTIVEANALYTICS
PREDICTIVE/PRESCRIPTIVEANALYTICSStrongInterestinthisarea.Tractioniscurrentlylowbutisrisingrapidly.
Inbusiness,predictivemodelsexploitpatternsfoundinhistoricalandtransactionaldatatoidentifyrisksandopportunities,whichguidesdecisionmakingforcandidatetransactions.
PREDICTIVE ANALYTICS
47%50%
41%22%
ExecutedinHouse ExecutedbyanExternalProvider
PREDICTIVEANALYTICS– APPLICATIONEXAMPLES
Recruitment Learning&Development
TalentManagement&Retention
OrganizationalChange
Source:RecruitmentProcessOutsourcingAssociation
PredictiveAnalyticscanhelpidentifyreliableindicatorsoftherightmixof:
• Skills• Experience• Competencies
Pastperformancehasbeenusedasanindicatoroffuturesuccess.Thisisnotreliable,especiallyathighlevels.AHarvardBusinessReviewstudyshowsthat:
2 out of 5 CEOs fail within first 18
months
Identifywhichcompetenciesareeasiesttolearnandwhichskillsareofmostbenefittoacompany.
Thiscanteachus…
Whichapproachestotrainingwillmostsuitaparticularemployee.
Whentheywillbereadyforasignificantlearningopportunity.
Identifytrendsin• FactorsthatLeadto
Retention• FactorsthatLeadto
Resignation
Thisenablesusto...
Planinterventionsbeforevaluedemployeeshaveachancetoresign.
Proactivelyretaintoptalent.
Habitsarethebiggestbarriersinorganizationalchange.
Analyticscanidentifypointswhenpeoplewillbemostreceptivetochanginghabits.
Thisinformationallowsusto…
Plansignificantorganizationalreorganizationandbusinessimprovementwork
REVIEW
TheMatureRPOMarketGlobalGrowthTheMulti-CountryRPODeal
ApplicantTrackingSystemSTAYINGCOMPETITIVE INTHEGLOBALMARKET
THEGLOBALSTAGE
ValueAddServicesPredictiveAnalytics
TODOWNLOADACOPYOFTHISPRESENTATION,VISIT:
www.peoplescout.com/mcrpo