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