msp & rpo masterclass - assolavoro › uploads › 2015 › francesca...a software application...

© 2015 Crain Communications Inc.

MSP & RPO Masterclass Ciett World Employment Conference Rome, 28th May 2015

John Nurthen Executive Director Global Research [email protected]

Francesca Vassallo-Todaro Operations Development Specialist

[email protected]


Agenda

• Managed Service Provision

• Recruitment Process Outsourcing

• Total Talent Management


MSP

VMS Contingent

Labour

RPO ATS

Direct Hire/

Permanent

Placement

Confused?


Understanding Terminology

Free to download from www.staffingindustry.com


MSP - Managed Service Provider

A company that takes on primary responsibility for managing an organisations contingent workforce program. Typical responsibilities of an MSP include overall program management, reporting, and tracking, supplier selection and management, order distribution and often consolidated billing.

The vast majority of MSP’s also provide their clients with a vendor management system (VMS) and may have a physical presence on the client’s site. An MSP may or may not be independent of a staffing supplier.

Source: Staffing Industry Analysts Lexicon of Global Contingent Workforce-Related Terms


VMS – Vendor Management System

An Internet-enabled, often Web-based application that acts as a mechanism for a business to manage and procure staffing services (temporary help and, in some cases, permanent placement services) as well as outside contract or contingent labour.

Typical features of a VMS include order distribution, consolidated billing and significant enhancements in reporting capabilities over manual systems and processes.



Do You Know?

• What are you paying for your contingent workforce and is it the right amount?

• Are your internal customers satisfied with contingent worker talent, output and fit?

• Is your contingent workforce program able to scale to handle future growth and/or contraction?

• Who are the contingent workers on your premises and how long have they been there?

• Who supplies the contingent talent and what is your legal relationship with those companies?

• What might someone sue you for and what are you doing to protect yourself?


Best and Worst Decisions Ever made

Worst Decision

Allowing local branches/managers too much control

Overspending

Unclear or insufficient management of contingent workforce

Not using VMS/MSP sooner

Working with too many suppliers

Best Decision

Implementing an MSP

Implementing a VMS

Consolidating vendors

Consolidating all contingent workers under one programme

Standardization, transparency, tracking of results

Source: Staffing Industry Analysts – Contingent Workforce Managers Survey 2014

Ranked by frequency cited


Hybrid Programmes are Common

• By geography

• By skills category

• By type of worker


MSP Trends

• Disaggregation of MSP and VMS

• Partnerships

• ERP’s recognize contingent workforce management

• Rise of independent worker engagement models

Development of Freelancer Management Systems (FMS)

Source: Staffing Industry Analysts – 2014 VMS and MSP Supplier Competitive Landscape


The Inevitable Growth of MSP

2%

3%

8%

11%

19%

28%

32%

34%

40%

44%

86%

Australia

France

The Netherlands

UK

US

India

Spain

Japan

Canada

Belgium

Germany


2012/2013 MSP Growth Spend by Country

131

100

190

(Number of Programmes)

51

93

59

1,674

148

63

113

277

© 2015 Crain Communications Inc. © 2015 Crain Communications Inc. All rights reserved.

2013 Global MSP Spend

Temp/Contract

SOW

Outsourced Services 82.8%

16.7%

0.5%


104%

61%

13%

19%

Outsourced Services

SOW

Temp/Contract

Total MSP

By Work Arrangement

Growth by Work Arrangement


Fifth of the Global Temp Market Comes via MSP

0

50

100

150

200

250

300

Temp MSP

Global Temp Market v MSP 2013

SOW & Outsourced Services

Source: Staffing Industry Analysts


MSP Structures are Not the Same Globally

• ‘Principal Model’ commonly used in the UK, US and Netherlands

• Alternative models used where legislation prevents the Principal Model (such as France, Germany, Japan)

Agency Model

Margin Model


Agenda





RPO – Recruitment Process Outsourcing

Partial or full outsourcing of the internal recruitment function to a third-party specialist provider, which services to provide the necessary skills, activities, tools, technologies related recruitment supply chain partners and process methodologies to assume the role of the client’s recruiting department by owning and managing its recruitment process and related recruitment supply chain partner relationships.

RPO is more commonly used as a method for employers to recruit direct-hire personnel, particularly in the U.S. In Europe contingent workers will also be included within that scope in some instances.



ATS – Applicant Tracking System

A Software application that enables the electronic handling of corporate recruitment needs. Most incorporate a company website, enabling companies to post jobs onto their own website, as a way to attract candidates.

The ATS solutions store these candidate data inside a database to enable effective searching, filtering and routing of applications.

Certain vendors use a different description for ATS software, such as talent management software (TMS), candidate management system (CMS) or recruitment management system (RMS).



ATS Functionality

Source: ATS Landscape (February 2015)


Val

ue

Complexity

Direct Hire

Volume Direct Hire

Recruiting Services

Selective RPO

Comprehensive RPO

RPO Solutions Spectrum



RPO Mix of Hires by Assignment Type

Temporary Hires; 30%

Permanent Hires; 68%

Other; 2%

Source: RPO Insight (October 2014)


Less than a Tenth of the Global Perm Market Comes via RPO

0

5

10

15

20

25

30

35

Place & Search RPO

Global Perm Market v RPO 2013



Which of the following are currently in place in your organisation?

Source: 2014 Staffing Buyers’ Survey

Contingent Buyer Priorities

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Master supplier

Trying new suppliers

Direct sourcing

RPO

Strategy planning (incl. contingent work)

HRO

SOW

Global management (contingent work)

Supplier tiering

MSP

Consolidating staffing suppliers

VMS

Approved supplier list

In place today


Which of the following are currently in place in your organisation, or are likely to be seriously explored within two years?

Contingent Buyer Priorities

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Master supplier

Trying new suppliers

Direct sourcing

RPO

Strategy planning (incl. contingent work)

HRO

SOW

Global management (contingent work)

Supplier tiering

MSP

Consolidating staffing suppliers

VMS

Approved supplier list

In place today Exploring in two years No plans

Source: 2014 Staffing Buyers’ Survey


Agenda





Converging Markets/Converging Solutions

Contingent Hire Permanent Hire

RPO MSP


0% 20% 40% 60% 80% 100% Source: Staffing Industry Analysts, Global Total Talent Management Survey, May 2015

Full-time/Part-time

Apprentices/Trainees/Interns

Temps

Contractors

Online workers

Professional services

Outsourced services

Partners

Formal volunteers

Informal volunteers

Franchisees/Affiliates/Associates

Robots/Drones/Cognitive computing applications

RPO already addressing %

MSP already addressing %

Percentage RPOs and MSPs Whose Services Address Each Worker Type


0% 20% 40% 60% 80% 100%

Source: Staffing Industry Analysts, Global Total Talent Management Survey, May 2015

Full-time/Part-time

Apprentices/Trainees/Interns

Temps

Contractors

Online workers


Outsourced services

Partners

Formal volunteers

Informal volunteers

Franchisees/Affiliates/Associates

Robots/Drones/Cognitive computing applications

RPO already addressing % RPO addressing by end 2017 %

MSP already addressing % MSP addressing by end 2017 %

Percentage RPOs and MSPs Whose Services Address Each Worker Type by end 2017


What is Total Talent Management?

Total Talent Management (TTM) refers to an employer’s practice of routinely considering TOTAL TALENT when it comes to talent acquisition or management. For example, when there is a job to “fill”, an employer that practices TTM will consider various options such as hiring an employee, using a contingent worker, acquiring a robot, etc. And when thinking about “engaging” talent, an employer that practices TTM will design programs/approaches that engage ALL Talent, not just employee talent.



Firms Use a Wide Variety of Non-Employees

Based on what you know, which of the following types of ‘workers’

did work on behalf of your company/organization during 2014?


62%

62%

54%

45%

27%

14%

10%

6%

5%

5%

0% 10% 20% 30% 40% 50% 60% 70%

Independent contractors or consultants/freelancers

Temporary workers


Outsourced services

Partners

Formal volunteers

Franchisees/affiliates/associates

On-line workers

Informal volunteers

Robots/drones/cognitive computing


Organisational View/Understanding of Workforce

On any given month, to what extent do you believe that your company/organisation

has a good view of workforce activity? i.e. has the ability to see and measure

(Percent of ‘Good’ and ‘Very Good’ view responses)

78%

73%

71%

69%

46%

46%

34%

49%

49%

49%

39%

33%

28%

17%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Number of workers

Number of open positions

Total Labor costs

Tenure

Level of productivity

Skills deployed

Lervel of motivation

Non-employees

Employees



Engagement/Motivation of Workers

What level of effort do you believe you (your clients) SHOULD be making to engage and/or motivate these worker types? (Percent of ‘Big’ and ‘Very Big’ effort responses)

91%

58%

36%

27%

13%

24%

24%

28%

22%

17%

17%

87%

56%

62%

42%

17%

31%

25%

39%

27%

23%

27%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Full-Time & Part-Time

Apprentices/Interns

Temps

Contractors

On-line


Outsourced services

Partners

Formal Volunteers

Informal Volunteers

Franchisees

Suppliers

Companies

NON-EMPLOYEES

EMPLOYEES



Barriers to a Whole Workforce View Which of the following are barriers/constraints to your company/organization (or

your clients) achieving a combined understanding/view of the Employee and Non-

Employee components of your workforce? (Check all that apply)


23%

8%

14%

14%

19%

22%

32%

38%

43%

5%

31%

31%

47%

30%

66%

65%

45%

62%

0% 10% 20% 30% 40% 50% 60% 70%

None of the above

Prevented by contractual arrangements

Risk aversion

Lack of senior stakeholder support

Inconsistent terminology

Lack of experience/know-how

Conflicting inter-departmental priorities

Systems/data functionality not geared to this purpose

Operational inconsistency

Column2

Column1

All supplier respondents

All organization respondents that believe obtaining a combined workforce view/understanding is important/extremely important to their HR/Executive leadership


Examples of Total Talent Initiatives

• Kelly Workforce Solutions – KellyOCG service line – “A Total Talent Approach” – “A holistic approach to talent acquisition and management”

• Randstad Integrated Talent Management Group – Launched in January 2015 – “A holistic capability offering…”

• Volt Consulting Group – Total Talent Management Solutions – Blending recruiting of both contingent and perm workers

• Peoplefluent – A total workforce management solution that spans the acquisition

and management of your hourly, salaried, and contingent workers

• Tapfin – Integrated Resource Fulfilment


Major Facets of Total Talent Management

Total Talent Acquisition

Recruiting Compensation/Reward

Coaching/ Training

Performance Management

Organizational Development

Tenure Workforce Planning

Performance Metrics

People Engagement

Acquisition of Non-Employee Workers (and vendors that

provide them)

HR Technology

Managing Diversity

HR’s Role & Responsibilities

Resource Fulfillment

Workforce Communication


Existing initiatives only address these facets of

Total Talent Management


Summary/Recommendations

• Establish a position in the market that uses your company strengths relative to MSP and RPO

Doesn’t mean you have to develop your own MSP and/or RPO services, or act as a sub-contractor

But it does mean that you should plan on the basis that these services will continue to grow globally

• Explore threats and opportunities posed by the development of Total Talent Management

Are you ready to meet the next important workforce challenge?


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