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Hudson Recruitment Solution Reduces HR Costs

OVERALL COST OF RUNNING HR REDUCED BY 11.5% IN 12 MONTHS

EnergyAustralia is one of the company’s largest generators, retailers and traders of energy. The client owns and operates a multi-billion dollar portfolio of energy generation and storage facilities, and services more than 2.7 million retail customers through a functionally and geographically diverse workforce.

CHALLENGE: 

Following a large acquisition, major energy company EnergyAustralia was operating under a relatively unknown retail brand in its primary location for recruitment. It had significant ongoing recruitment levels, a new regional contact center to build, and de-centralized contingent recruitment. The company was heavily reliant on multiple outside agencies, which were high in cost and did nothing to promote its brand or employee value proposition (EVP).

HUDSON RECRUITMENT SOLUTION:

Hudson RPO started onsite in September 2013 implementing a blended RPO/MSP solution delivering end-to-end recruitment and onboarding for all job families. The team focused on three key areas:

  • Filling up to 1,200 positions annually with a 95% direct-fill rate
  • Centralizing contingent recruitment
  • Recruiting for a new 310-seat regional contact center

Year 1 Results
Team delivery was structured by specialization, augmented by a dedicated onsite sourcing team, including access to our Shared Services Center. The team also is supported by specialists in EVP/employer branding and sourcing offsite.  In the first 12 months the solution delivered:

  • 1,662 positions filled (internal, external, permanent, fixed term, contingent)
  • 96% direct-sourced external hires, resulting in significant cost avoidance
  • Employer brand and employee value proposition are visible and being actively communicated

Centralizing contingent labor was achieved via an RPO/CMO (Contingent Management Organization) partnership, which has since delivered:

  • Transition of all incumbent suppliers into a single model
  • 83% direct-fill for contingent versus 100% agency-filled in prior model
  • Full visibility and control of spend, and substantial direct cost savings

Recruiting for the all-new 310-seat regional contact center involved establishing a dedicated project team, which in Phase 1 delivered the following:                 

  • 243 hires, from 1,728 applications managed (part of the 1,662 total hires mentioned above)
  • 100% direct fill in a new region with no pre-existing talent pools
  • A highly visible dedicated advertising campaign and microsite

In Year 1, Hudson RPO implemented innovative solutions to improve talent attraction, streamline processes, and improve reporting, including:

Employer Brand/EVP project
A full employer branding and employee value proposition project completed in partnership with a specialist consultancy and senior executives at EnergyAustralia.

Regional Contact Center – Geelong Campaign
A highly visible campaign with a dedicated EnergyAustralia careers microsite. The build of the microsite was project-managed by experts in employer branding from Hudson RPO in conjunction with a specialist design agency. Content was delivered in-house by Hudson RPO. The campaign strategy and media campaign was developed by our onsite sourcing and branding manager.

Employee Referral Program|
Designed, developed, and implemented an employee referral program, including supporting policy development, managed through PageUp technology.

Exit Interviews
Designed, developed and implemented exit surveys and reporting. Previously, there was no central or reportable view of exit survey data.

Background, Qualification, Work Rights and Reference Checks
Hudson RPO introduced structure and specialist solutions across all forms of checks. Prior to this, checks were either not completed, low-standard or manual.  We now partner with several specialist vendors for reference and full background checks, and ensure all new starters have work rights.

Assessment
In 2014, we introduced “Wasabi Waiter” from Revelian to the mix of assessments used. This tool introduced gamification into the assessment of cognitive ability for candidates for the regional contact center roles. It’s been well received, and has provided an innovative experience for candidates.

Search Assignments
Executive search methods were employed by senior consultants on the onsite team to source talent for two executive appointments. This included dedicated research, market mapping and sourcing support. Both appointments were successfully placed, saving in excess of AU$150,000 in agency fees.

Agency Spend
The KPI for agency usage in Year 1 was 10%.The solution far exceeded expectations (despite significantly higher than anticipated volumes). Agency usage for Year 1 was 4%, resulting in significant cost savings.

Proactive Sourcing and Talent Pools
Achieved the 20% Proactive Sourcing KPI (despite significantly higher than expected recruitment volumes), resulting from the growth of a proactive talent pool of candidates from zero before October 2013 to 866 a year later. Of the 866 candidates, 332 are actively managed.

RESULTS:

  • Previously, there had been no central view of recruitment or contracting. EnergyAustralia now has full visibility of the recruitment and contracting process and receives reporting that aids workforce management 
  • EnergyAustralia had been reliant on talent agencies for 90% of its external recruitment; it now sources 96% of external hires directly
  • Diversity and internal mobility was poor. Both have increased significantly over the first 12 months and are fully reportable
  • The average cost per hire has been reduced by 74.6%
  • The overall cost of running HR at EnergyAustralia has reduced by 11.5% in 12 months, most of which is credited to the Hudson RPO
Project Summary

CLIENT:  
National energy provider

CLIENT HQ LOCATION:
Australia

CHALLENGE:

  • Following a large acquisition, major energy company EnergyAustralia was operating under a relatively unknown retail brand in its primary location for recruitment 
  • Decentralized and reactive contingent recruitment process
  • Heavily reliant on multiple, high-cost recruitment agencies
  • Its employer brand and EVP were not being promoted

SOLUTION: 
End-to-end RPO solution

RESULTS:

  • The team has delivered against volumes that exceeded those planned by 20%, while at the same time exceeding all expectations for direct fill
  • The onsite team has direct- filled positions from entry level to senior executive, in one instance saving an estimated $104k in recruitment cost on a single placement versus using an executive search provider.
  • From 0% to 92% direct-fill of contingent labor in three months and 100% of contractors engaged via a single model

 

RPO Contact
Paula

Paula Nolan

General Manager, Hudson RPO
 
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