Outsourcing vs. in-house - CTO Koria_HR4ICT12.pdfIn-house vs. Outsourcing ... Case Studies: 3 UK and...

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In-house vs. Outsourcing Pank Koria, CEO, Project People

Transcript of Outsourcing vs. in-house - CTO Koria_HR4ICT12.pdfIn-house vs. Outsourcing ... Case Studies: 3 UK and...

In-house vs. Outsourcing

Pank Koria, CEO, Project People

Agenda

The acquisition of talent

In-house vs. outsourced resourcing models

Key Performance Areas

Project People

A few brief facts about Project People

GSMA – 800 mobile operators

3 UK – 3G mobile operator

Ericsson UK

THE ACQUISITION OF TALENT

What keeps the CEO awake at night?

Source: PWC CEO Survey 2011/2012

78%

72%

67%

50%

43%

35%

Strategies for managing talent

Organisational structure

Managing risk

Corporate reputation and building trust

Capital structure

Engagement with the workforce

Challenges for the CHRO

Source: Bersin & Associates 2011

The retention time bomb

Attrition Amongst Technology Employees

IN-HOUSE vs. OUTSOURCING

Case study

A different philosophy

“We want the best of the best to come to Google. We budget

what it takes to find the best of the best.”

Todd Carlisle, Google Director of Staffing, Feb 2012

Google numbers

Average number of employees per recruiter: 577 to 1.

Google employees per recruiter: at least 64 to 1.

Average Silicon Valley staff attrition: 20-30%

Google turnover: less than 5%

Google employees in 2005: 5,000

Google employees in 2012: 33,000

Google’s position in Fortune’s Best Companies To Work For list: 1

What Google does differently

Specialist roles to enable the resourcing process:

Recruiting research analysts

Candidate developers (sourcers)

Process co-ordinators

Candidate screeners

Specialised recruiters for further/higher education

Specialised recruiters for technical/leadership roles

Specialised international recruiters based locally

Recruiting Programme Managers

Recruiting Project Managers

What Google does additionally

Competitions

Pushing Boundaries

Intelligent Metric Analysis

When In-house Works

In-house recruiting functions work best when:

There is an exceptional employer brand in place

Organisational values and direction can be clearly communicated

Recruitment function is extremely well resourced

Recruitment activity is of consistent grade and quality

Responsibility for sourcing lies with dedicated recruitment

professionals

Sophisticated measurement and analysis of recruitment metrics

What if we can’t all budget

like ?

Outsourcing can provide some of the advantages

Maturing pool of outsourcing providers

Innovation is part of the outsourcing contract

Current spend on Talent Acquisition

Full

RPO

Managing agent

Ad hoc supply

Ad hoc supply

PSL managed in-house

Managing agent

Managed

service

Full

RPO

The development of resourcing solutions

Full

RPO

Managing agent

Ad hoc supply

Managed

service

PSL managed in-house

Case Studies: 3 UK and Ericsson

Talent sourced: over 2200 / 1600

Employer brand: regularly review and translate to external

candidates

Hire Quality: significant improvement in retention

E-Enabled: End-to-end electronic workforce management

solution

Adaptability: Embedded teams blended with scalable support

BI & Analytics: Over 20 metrics analysed and used to re-

engineer the process

Cost savings: Several million GBP over the last 12 / 7 years

Compliance: 0% error rate over the last 12 / 7 years

Evolution: Transformed into an RPO over a 12 / 7 year period

How technology is accelerating and driving

change

Connected Society

Innovative software

Big Data “We are at inflexion point; Organisations which

learn to leverage big data will far outperform those who

do not.”

Project People’s leading edge talent

management application: iResource.com

Recognises the flexibility & responsiveness needed to

meet today’s talent challenge:

Drives talent through the organisation

Emerging talent recruited instead of replacing experienced

talent

Employees automatically invited to interview for roles they

nearly have the skills to perform

Enables the crunching of ‘Big data’ from thousands of

applicants and hires to influence future selection criteria

Fujitsu, IBM, NHS and MBNL currently use iResource.com

Key Performance Areas (KPAs) for talent

acquisition

People Strategy aligned to Business Plan

People Policies and Brand promote acquisition and retention

Organisation knows ‘What good looks like’

Talent Management processes are robust and integrated

Effective technology supports Talent Management

Big Data, BI, analysis and insight

Stakeholder Perception

L&D and Innovation

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