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The Key Objectives of a Contingent Workforce Solution

A contingent workforce solution
can be the coach calling on
bench players for a clutch play
when it's needed most.

In business, the permanent workforce plays the role of superstar starters, while the temporary workers are impact bench players. In an age of specialization and lurching demand, a contingent workforce solution becomes even more critical. In fact, research by the Aberdeen Group says that 20 percent of the average workforce is considered contingent labor, whether comprised of classic temporary workers, contractors, consultants or freelancers. It is a trend likely to gain even more momentum, driven by an aging population and workers' desire for work and family balance and flexibility.

Managing a constantly changing and evolving marketplace where qualified candidates are highly sought after can be facilitated by the expertise and cost savings of an effective contingent workforce solution.

More and more organizations are looking to deploy the flexibility and nimble response offered by engaging a managed service provider (MSP).

Key Objectives of a Managed Service Provider

The decision to retain a MSP grows from a desire to manage all facets of contingent labor while reducing the administrative burdens of the procurement team. The key objectives of an MSP can include:

  • Reducing or mitigating contingent labor risks.
  • Increasing contingent labor visibility.
  • Reducing contingent labor costs.
  • Improving the quality and effectiveness of completing projects.
  • Protecting intellectual property.
  • Reducing co-employment risks.
  • Managing and tracking contractor spend more efficiently.

Managing a Flexible Talent Pool

An effective contingent workforce solution will provide a scalable, high-quality temporary workforce with the flexibility to fine-tune that labor pool as needed to respond to varying market conditions. An added benefit is providing better service to hiring managers, contractors and even suppliers with a significant cost reduction. Statement of work (SOW) project management is enhanced as well.

And all of this is achieved through a single point of accountability. Much like the coach calling on the bench for a clutch play when it's needed most.

Learn how an effective contingent workforce solution can help your company.  Contact us today.

 
 
 

The Challenges and Benefits of a Blended RPO Solution

The war for talent requires a
coordinated effort using a
blended RPO strategy to acquire
an efficient workforce.

In the war for talent, few battles are won with feeble field commanders. Deploying the proper workforce resources takes coordination and a focused, strategic view. Contingent hires, such as independent professionals, temporary contract workers and freelancers, are becoming more important in a world increasingly dominated by knowledge-driven talent and vertical skill sets. Merging this tactical force with a battalion of permanent workers is difficult to accomplish when the missions are siloed: a managed service provider (MSP) coordinating contingent hiring while a recruitment process outsourcing (RPO) provider manages the permanent workforce.

It's time to launch a blended RPO solution.

The Benefits

A total talent acquisition strategy, folding the tasks of contingent and permanent hiring into one integrated system, can offer greater efficiency and cost effectiveness.

Coordinating the two pools of talent can allow an organization to respond with agility to rapidly shifting economic conditions and customer demand. Hiring practices and procedures can be further standardized and internal resources can be better utilized for higher-level talent management issues.

With on-demand staffing initiated through a single-source blended RPO provider, corporations can staff to the most efficient level, tapping the talent and skills of a properly scaled workforce.

Service and vendor fees can be reduced as well. In fact, a recent Everest Group analysis revealed that a blended RPO strategy can reduce costs by nearly 25 percent when compared to an ad hoc MSP and RPO arrangement.

The Challenges

While the benefits of a total talent acquisition strategy may be apparent, there are still challenges that must be overcome, including:

  • Organizational structure: Many firms continue to place the responsibility for contingent hiring with procurement departments, while HR manages permanent hiring. Shifting responsibility to or from a department can meet with resistance.
  • Concern regarding a single provider: Organizations can be wary about placing the entire talent acquisition process under the purview of just one provider, citing a concern for overdependence on a single vendor.
  • Technological challenges: Taking a systemic view of the workforce by analyzing and deploying the proper balance of permanent and contingent talent requires robust technology.
  • Outsourcing capabilities: Only a few providers have proven capabilities and experience in the blended RPO space.

Carefully considering and surmounting these challenges can allow the formation of a compelling competitive advantage. The blended RPO solution has been "battle tested." With more efficient workforce utilization comes enhanced strategic and economic benefits.

Consider the war for talent won.

Learn more about Hudson’s Contingent Workforce Solutions.

Learn how Hudson RPO can help with your blended RPO solution.  Contact us today.

 
 
 

Super-Charging Sales with Quality of Hiring Metrics

Utilizing custom quality of hiring
metrics when hiring sales
professionals can have a dramatic
impact on productivity.

Imagine the impact that a 20 percent sales increase would have on your company's bottom line. Now, imagine a 40 percent increase. With quality hires, your sales team can outperform your sales goals.

In fact, a study by the consulting firm McKinsey & Company reports that superior hires dramatically increase sales productivity by a staggering 67 percent. The difference between an average- and high-performance hire, especially in a sales role, has a significant impact on an organization's revenues. Conversely, think of the adverse effect below-average performers have in your prospective client-facing positions.

Getting recruitment right requires customized quality of hiring metrics tailored to your organization that can be implemented right now, and it's quite likely your competitors don't incorporate the process into their own employment efforts. That's an undeniable competitive edge.

Beyond the basics

Most companies measure quality of hiring by three metrics:

1) Retention of new hires

2) Hiring manager feedback

3) Employee performance appraisal ratings

Those are the basics, but consider what is missing. If retention is a primary factor, your organization may be harboring a contented crop of underachievers. Combining a performance measure with retention metrics can provide a multidimensional view of your workforce.

You can improve quality of hiring metrics by:

  • Identifying the qualities inherent in top-tier performers, which can vary by role and organizational segment
  • Assessing recruits on more than experience or technical skills
  • Determining the right attitude, behavioral and cultural fits required for the highest degree of success
  • Cross-referencing financial metrics such as revenue or profit per employee, particularly in sales roles

Less than 14 percent of respondents to a Hudson RPO survey of global organizations reported measuring revenue or profit per employee. In a sales capacity, what could be more important?

Sell me this pen

Years ago, a standard component of a sales interview would be the "sell me this pen" challenge. It seems such a quaint and even laughable process today. But hiring methodologies continue to evolve. Reference checks, resume screening and background interviews are the most common assessment tools used by hiring managers, but they are the least effective in predicting high performance behavior.

Far beyond the "sell me this pen" techniques of the past, today's hiring process can include psychometric testing, verbal, numerical and abstract reasoning assessments, behavioral tests and role-playing simulations. The use of external recruiters and consultants is also gaining broad acceptance.

It's an infinite loop: success breeds success. Seventy percent of respondents to the Hudson RPO survey said that including productivity as a quality of hire metric delivered significant improvement to productivity. In biology, it is known as "the winner effect." A winner keeps on winning, which may perfectly explain the science of making great hires.

Learn how Hudson RPO can help measure your quality hires.  Contact us today.

 
 
 

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Hudson is a global talent solutions company. We help transform the workplace and unleash the full potential of organizations and individuals. Our expert team and proprietary tools provide you with unique insights and services that help you maximize your success. Across 20 countries, we deliver a range of recruitment, talent management and recruitment process outsourcing solutions to get you and your business where you want to be.