Do you know your staffing costs? Do you know how your agencies are performing? Do you know cost by location for temps? Fill rates? Time to fill or hire?
Have you been tasked with getting a handle on staffing costs?
The task becomes even more challenging when assessing whether your staff and business units are making use of approved agencies on your PSL or opting for their own suppliers. Is the tail wagging the dog?
Furthermore, evaluating agency performance against Service Level Agreements (SLAs) adds another layer of complexity.
If you've found yourself grappling with these questions, you're likely in the position of considering the most effective approach for your business. Should you outsource your staffing supply chain, or is bringing it in-house a more strategic move? Additionally, are you inclined towards a neutral vendor model, offering roles to all agencies equally, or does a master vendor with tiers of suppliers below seem more suitable?
The good news is that you have a spectrum of options at your disposal, but the abundance of choices can be overwhelming.
Ensuring operational continuity is a paramount concern for organisations, and this pursuit often leads businesses to explore various solutions within Talent Acquisition Supply Chain Management. This intricate framework encompasses Vendor Management Systems (VMS), Managed Service Providers (MSP), Recruitment Process Outsourcing (RPO), and Total Talent Management (TTM).
So, what exactly are these options?
Vendor Management Systems (VMS)
Vendor Management Systems are software solutions designed to oversee the supply of workers, playing a pivotal role in optimising the management of contingent labour and external service providers. If your preference is to internally manage the overall staffing requirement, a VMS can seamlessly streamline processes. Covering everything from onboarding and compliance to performance tracking and invoicing, a VMS ensures transparency and efficiency in managing external workforce relationships. Different suppliers may offer varying features, but comprehensive rate management and the ability to manage tiers of suppliers should be standard.
Consider directly implementing a VMS if your business grapples with fluctuating staffing needs, engages in project-based work, or seeks enhanced visibility into external workforce management while maintaining direct oversight.
Managed Service Providers (MSP)
Managed Service Providers are external entities that assume responsibility for managing specific aspects of your business operations, particularly for temporary or contract roles. Ideal for organisations with a diverse temporary staffing requirement and looking to outsource workforce management tasks, this model offers scalability, cost-effectiveness, and access to specialised skills without the need for in-house expertise.
An MSP will typically have a stable of vendor management systems at their disposal and will implement one within your business to manage the agencies they/you work with.
MSPs give you scalability to quickly grow or throttle back as required. They will provide guidance and advice on suppliers via performance reporting and will consolidate billing to take the headache out of dealing with multiple suppliers. Working with an MSP typically streamlines your staffing function and brings with it measurable cost savings.
Engaging an MSP can be a strategic move, providing regular reporting of performance and strategic advice. Some MSPs even operate on a hybrid model, introducing their own recruitment business(es) as a master vendor.
Recruitment Process Outsourcing (RPO)
Recruitment Process Outsourcing (RPO) is a strategic business model where an organisation partners with an external service provider to outsource some or all aspects of its recruitment processes. The RPO provider takes on the responsibility of managing the end-to-end recruitment process, from sourcing and screening candidates to the final stages of the hiring process. This outsourcing arrangement is typically focused on permanent or high-end contractor roles.
Key features of Recruitment Process Outsourcing include:
End-to-End Recruitment Management: RPO providers handle the entire recruitment lifecycle, starting from job profiling and candidate sourcing to onboarding. They act as an extension of the client's HR or talent acquisition team.
Expertise and Resources: RPO providers bring specialised expertise, technology, and resources to streamline the recruitment process. They often leverage advanced tools and methodologies to enhance efficiency and effectiveness.
Scalability: RPO services can be scaled up or down based on the client's hiring needs. This scalability is particularly beneficial for organisations experiencing fluctuations in recruitment demand.
Flexibility: RPO allows organisations to customise the level of outsourcing based on their requirements. It can involve full outsourcing of the recruitment process or selective outsourcing of specific functions.
Cost Efficiency: By outsourcing recruitment processes, organisations can potentially reduce costs associated with hiring, training, and maintaining an in-house recruitment team. RPO providers may operate under a fee-for-service or performance-based model.
Technology Integration: RPO providers often leverage advanced recruitment technologies, including Applicant Tracking Systems (ATS), to enhance the efficiency and accuracy of the hiring process.
Strategic Partnership: RPO is not just about transactional recruiting; it involves a strategic partnership between the client and the RPO provider. This collaboration aims to align recruitment strategies with overall business objectives.
Quality of Hire: RPO providers are typically measured not only on the quantity but also on the quality of hires. This focus on quality ensures that the recruited talent aligns with the client's organisational goals and values.
Incorporating a Statement of Work (SOW) is another aspect of RPO where specific tasks, deliverables, timelines, and costs associated with the recruitment process are outlined, providing clarity in expectations and deliverables.
Recruitment Process Outsourcing is particularly beneficial for organisations facing challenges in attracting and hiring top-tier talent, managing high volumes of recruitment activities, or those looking to optimise their overall hiring process. It allows businesses to focus on their core competencies while relying on external experts to handle the complexities of talent acquisition.
Total Talent Management (TTM)
Total Talent Management brings it all together and is in effect outsourcing all your staffing requirement to a 3rd party. It is a fully outsourced model covering all aspects of the staffing supply chain. This comprehensive approach involves managing all types of talent within an organisation, from permanent employees to contingent workers, freelancers, and contractors. TTM strives to optimise the entire workforce, aligning talent strategy with overall business goals through strategic workforce planning, talent acquisition, and ongoing talent development.
A TTM solution will work with you in building and executing a strategic workforce plan to align the workforce with your business objectives. This will look different from one business to the next but can cover talent development, staff retention, talent pool attraction or project specific staffing requirements, compliance by department/role and cost management.
A TTM may bring in a host of different technologies to meet your requirements such as onboarding tools, an ATS, video interviewing technology and of course a VMS.
Consider TTM if your organisation values a holistic approach to workforce management and aims to align talent strategy with overarching business objectives through outsourcing.
Finding the Right Mix:
By strategically integrating the right combination of VMS, MSP, RPO (including SOW), and TTM strategies, your organisation can fortify its resilience, enhance efficiency, and thrive amid the ever-changing business environment. Evaluate your unique needs, engage stakeholders, and seek expert advice to tailor a strategy that aligns with your business continuity requirements.
The costings for each of the above vary hugely dependant on the supplier you work with, your business model and the work required to undertake deployment. Some MSPs may have their own VMS, others may bring in an external supplier and directly charge you a "technology" fee. Consider what works best for you and if we can be of any assistance in your review, by all means reach out to us via the contact form on this website.
Thanks
James
コメント