1. 2015 Crain Communications Inc. MSP & RPO Masterclass
Ciett World Employment Conference Rome, 28th May 2015 John Nurthen
Executive Director Global Research [email protected]
Francesca Vassallo-Todaro Operations Development Specialist
[email protected]
2. 2015 Crain Communications Inc. Agenda Managed Service
Provision Recruitment Process Outsourcing Total Talent
Management
3. 2015 Crain Communications Inc. MSP VMS Contingent Labour RPO
ATS Direct Hire/ Permanent Placement Confused?
4. 2015 Crain Communications Inc. Understanding Terminology
Free to download from www.staffingindustry.com
5. 2015 Crain Communications Inc. MSP - Managed Service
Provider A company that takes on primary responsibility for
managing an organisations contingent workforce program. Typical
responsibilities of an MSP include overall program management,
reporting, and tracking, supplier selection and management, order
distribution and often consolidated billing. The vast majority of
MSPs also provide their clients with a vendor management system
(VMS) and may have a physical presence on the clients site. An MSP
may or may not be independent of a staffing supplier. Source:
Staffing Industry Analysts Lexicon of Global Contingent
Workforce-Related Terms
6. 2015 Crain Communications Inc. VMS Vendor Management System
An Internet-enabled, often Web-based application that acts as a
mechanism for a business to manage and procure staffing services
(temporary help and, in some cases, permanent placement services)
as well as outside contract or contingent labour. Typical features
of a VMS include order distribution, consolidated billing and
significant enhancements in reporting capabilities over manual
systems and processes. Source: Staffing Industry Analysts Lexicon
of Global Contingent Workforce-Related Terms
7. 2015 Crain Communications Inc. Do You Know? What are you
paying for your contingent workforce and is it the right amount?
Are your internal customers satisfied with contingent worker
talent, output and fit? Is your contingent workforce program able
to scale to handle future growth and/or contraction? Who are the
contingent workers on your premises and how long have they been
there? Who supplies the contingent talent and what is your legal
relationship with those companies? What might someone sue you for
and what are you doing to protect yourself?
8. 2015 Crain Communications Inc. Best and Worst Decisions Ever
made Worst Decision Allowing local branches/managers too much
control Overspending Unclear or insufficient management of
contingent workforce Not using VMS/MSP sooner Working with too many
suppliers Best Decision Implementing an MSP Implementing a VMS
Consolidating vendors Consolidating all contingent workers under
one programme Standardization, transparency, tracking of results
Source: Staffing Industry Analysts Contingent Workforce Managers
Survey 2014 Ranked by frequency cited
9. 2015 Crain Communications Inc. Hybrid Programmes are Common
By geography By skills category By type of worker
10. 2015 Crain Communications Inc. MSP Trends Disaggregation of
MSP and VMS Partnerships ERPs recognize contingent workforce
management Rise of independent worker engagement models Development
of Freelancer Management Systems (FMS) Source: Staffing Industry
Analysts 2014 VMS and MSP Supplier Competitive Landscape
11. 2015 Crain Communications Inc. The Inevitable Growth of MSP
2% 3% 8% 11% 19% 28% 32% 34% 40% 44% 86% Australia France The
Netherlands UK US India Spain Japan Canada Belgium Germany Source:
Staffing Industry Analysts 2014 VMS and MSP Supplier Competitive
Landscape 2012/2013 MSP Growth Spend by Country 131 100 190 (Number
of Programmes) 51 93 59 1,674 148 63 113 277
12. 2015 Crain Communications Inc. 2015 Crain Communications
Inc. All rights reserved. 2013 Global MSP Spend Temp/Contract SOW
Outsourced Services82.8% 16.7% 0.5% Source: Staffing Industry
Analysts 2014 VMS and MSP Supplier Competitive Landscape 104% 61%
13% 19% Outsourced Services SOW Temp/Contract Total MSP By Work
Arrangement Growth by Work Arrangement
13. 2015 Crain Communications Inc. 2015 Crain Communications
Inc. All rights reserved. Fifth of the Global Temp Market Comes via
MSP 0 50 100 150 200 250 300 Temp MSP Global Temp Market v MSP 2013
SOW & Outsourced Services Source: Staffing Industry
Analysts
14. 2015 Crain Communications Inc. 2015 Crain Communications
Inc. All rights reserved. MSP Structures are Not the Same Globally
Principal Model commonly used in the UK, US and Netherlands
Alternative models used where legislation prevents the Principal
Model (such as France, Germany, Japan) Agency Model Margin
Model
15. 2015 Crain Communications Inc. Agenda Managed Service
Provision Recruitment Process Outsourcing Total Talent
Management
16. 2015 Crain Communications Inc. RPO Recruitment Process
Outsourcing Partial or full outsourcing of the internal recruitment
function to a third-party specialist provider, which services to
provide the necessary skills, activities, tools, technologies
related recruitment supply chain partners and process methodologies
to assume the role of the clients recruiting department by owning
and managing its recruitment process and related recruitment supply
chain partner relationships. RPO is more commonly used as a method
for employers to recruit direct-hire personnel, particularly in the
U.S. In Europe contingent workers will also be included within that
scope in some instances. Source: Staffing Industry Analysts Lexicon
of Global Contingent Workforce-Related Terms
17. 2015 Crain Communications Inc. ATS Applicant Tracking
System A Software application that enables the electronic handling
of corporate recruitment needs. Most incorporate a company website,
enabling companies to post jobs onto their own website, as a way to
attract candidates. The ATS solutions store these candidate data
inside a database to enable effective searching, filtering and
routing of applications. Certain vendors use a different
description for ATS software, such as talent management software
(TMS), candidate management system (CMS) or recruitment management
system (RMS). Source: Staffing Industry Analysts Lexicon of Global
Contingent Workforce-Related Terms
19. 2015 Crain Communications Inc. Value Complexity Direct Hire
Volume Direct Hire Recruiting Services Selective RPO Comprehensive
RPO RPO Solutions Spectrum Source: Staffing Industry Analysts
20. 2015 Crain Communications Inc. RPO Mix of Hires by
Assignment Type Temporary Hires, 30% Permanent Hires, 68% Other, 2%
Source: RPO Insight (October 2014)
21. 2015 Crain Communications Inc. 2015 Crain Communications
Inc. All rights reserved. Less than a Tenth of the Global Perm
Market Comes via RPO 0 5 10 15 20 25 30 35 Place & Search RPO
Global Perm Market v RPO 2013 Source: Staffing Industry
Analysts
22. 2015 Crain Communications Inc. Which of the following are
currently in place in your organisation? Source: 2014 Staffing
Buyers Survey Contingent Buyer Priorities 0% 10% 20% 30% 40% 50%
60% 70% 80% 90% 100% Master supplier Trying new suppliers Direct
sourcing RPO Strategy planning (incl. contingent work) HRO SOW
Global management (contingent work) Supplier tiering MSP
Consolidating staffing suppliers VMS Approved supplier list In
place today
23. 2015 Crain Communications Inc. Which of the following are
currently in place in your organisation, or are likely to be
seriously explored within two years? Contingent Buyer Priorities 0%
10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Master supplier Trying new
suppliers Direct sourcing RPO Strategy planning (incl. contingent
work) HRO SOW Global management (contingent work) Supplier tiering
MSP Consolidating staffing suppliers VMS Approved supplier list In
place today Exploring in two years No plans Source: 2014 Staffing
Buyers Survey
24. 2015 Crain Communications Inc. Agenda Managed Service
Provision Recruitment Process Outsourcing Total Talent
Management
25. 2015 Crain Communications Inc. Converging
Markets/Converging Solutions Contingent Hire Permanent Hire
RPOMSP
26. 2015 Crain Communications Inc. 0% 20% 40% 60% 80% 100%
Source: Staffing Industry Analysts, Global Total Talent Management
Survey, May 2015 Full-time/Part-time Apprentices/Trainees/Interns
Temps Contractors Online workers Professional services Outsourced
services Partners Formal volunteers Informal volunteers
Franchisees/Affiliates/Associates Robots/Drones/Cognitive computing
applications RPO already addressing % MSP already addressing %
Percentage RPOs and MSPs Whose Services Address Each Worker
Type
27. 2015 Crain Communications Inc. 0% 20% 40% 60% 80% 100%
Source: Staffing Industry Analysts, Global Total Talent Management
Survey, May 2015 Full-time/Part-time Apprentices/Trainees/Interns
Temps Contractors Online workers Professional services Outsourced
services Partners Formal volunteers Informal volunteers
Franchisees/Affiliates/Associates Robots/Drones/Cognitive computing
applications RPO already addressing % RPO addressing by end 2017 %
MSP already addressing % MSP addressing by end 2017 % Percentage
RPOs and MSPs Whose Services Address Each Worker Type by end
2017
28. 2015 Crain Communications Inc. What is Total Talent
Management? Total Talent Management (TTM) refers to an employers
practice of routinely considering TOTAL TALENT when it comes to
talent acquisition or management. For example, when there is a job
to fill, an employer that practices TTM will consider various
options such as hiring an employee, using a contingent worker,
acquiring a robot, etc. And when thinking about engaging talent, an
employer that practices TTM will design programs/approaches that
engage ALL Talent, not just employee talent. Source: Staffing
Industry Analysts, Global Total Talent Management Survey, May
2015
29. 2015 Crain Communications Inc. Firms Use a Wide Variety of
Non-Employees Based on what you know, which of the following types
of workers did work on behalf of your company/organization during
2014? Source: Staffing Industry Analysts, Global Total Talent
Management Survey, May 2015 62% 62% 54% 45% 27% 14% 10% 6% 5% 5% 0%
10% 20% 30% 40% 50% 60% 70% Independent contractors or
consultants/freelancers Temporary workers Professional services
Outsourced services Partners Formal volunteers
Franchisees/affiliates/associates On-line workers Informal
volunteers Robots/drones/cognitive computing
30. 2015 Crain Communications Inc. Organisational
View/Understanding of Workforce On any given month, to what extent
do you believe that your company/organisation has a good view of
workforce activity? i.e. has the ability to see and measure
(Percent of Good and Very Good view responses) 78% 73% 71% 69% 46%
46% 34% 49% 49% 49% 39% 33% 28% 17% 0% 10% 20% 30% 40% 50% 60% 70%
80% 90% Number of workers Number of open positions Total Labor
costs Tenure Level of productivity Skills deployed Lervel of
motivation Non-employees Employees Source: Staffing Industry
Analysts, Global Total Talent Management Survey, May 2015
31. 2015 Crain Communications Inc. Engagement/Motivation of
Workers What level of effort do you believe you (your clients)
SHOULD be making to engage and/or motivate these worker types?
(Percent of Big and Very Big effort responses) 91% 58% 36% 27% 13%
24% 24% 28% 22% 17% 17% 87% 56% 62% 42% 17% 31% 25% 39% 27% 23% 27%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Full-Time &
Part-Time Apprentices/Interns Temps Contractors On-line
Professional services Outsourced services Partners Formal
Volunteers Informal Volunteers Franchisees Suppliers Companies
NON-EMPLOYEES EMPLOYEES Source: Staffing Industry Analysts, Global
Total Talent Management Survey, May 2015
32. 2015 Crain Communications Inc. Barriers to a Whole
Workforce View Which of the following are barriers/constraints to
your company/organization (or your clients) achieving a combined
understanding/view of the Employee and Non- Employee components of
your workforce? (Check all that apply) Source: Staffing Industry
Analysts, Global Total Talent Management Survey, May 2015 23% 8%
14% 14% 19% 22% 32% 38% 43% 5% 31% 31% 47% 30% 66% 65% 45% 62% 0%
10% 20% 30% 40% 50% 60% 70% None of the above Prevented by
contractual arrangements Risk aversion Lack of senior stakeholder
support Inconsistent terminology Lack of experience/know-how
Conflicting inter-departmental priorities Systems/data
functionality not geared to this purpose Operational inconsistency
Column2 Column1 All supplier respondents All organization
respondents that believe obtaining a combined workforce
view/understanding is important/extremely important to their
HR/Executive leadership
33. 2015 Crain Communications Inc. Examples of Total Talent
Initiatives Kelly Workforce Solutions KellyOCG service line A Total
Talent Approach A holistic approach to talent acquisition and
management Randstad Integrated Talent Management Group Launched in
January 2015 A holistic capability offering Volt Consulting Group
Total Talent Management Solutions Blending recruiting of both
contingent and perm workers Peoplefluent A total workforce
management solution that spans the acquisition and management of
your hourly, salaried, and contingent workers Tapfin Integrated
Resource Fulfilment
34. 2015 Crain Communications Inc. Major Facets of Total Talent
Management Total Talent Acquisition Recruiting Compensation/ Reward
Coaching/ Training Performance Management Organizational
Development Tenure Workforce Planning Performance Metrics People
Engagement Acquisition of Non-Employee Workers (and vendors that
provide them) HR Technology Managing Diversity HRs Role &
Responsibilities Resource Fulfillment Workforce Communication
Source: Staffing Industry Analysts, Global Total Talent Management
Survey, May 2015 Existing initiatives only address these facets of
Total Talent Management
35. 2015 Crain Communications Inc. Summary/Recommendations
Establish a position in the market that uses your company strengths
relative to MSP and RPO Doesnt mean you have to develop your own
MSP and/or RPO services, or act as a sub-contractor But it does
mean that you should plan on the basis that these services will
continue to grow globally Explore threats and opportunities posed
by the development of Total Talent Management Are you ready to meet
the next important workforce challenge?
36. 2015 Crain Communications Inc.
www.staffingindustry.com/certification REGISTER for Remaining 2015
Classes 14-15 July Chicago, IL 21-22 October Dallas, TX 6-7 October
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37. 2015 Crain Communications Inc. Mark Your Calendar 2015
Staffing Executive Conferences Executive Forum Europe | 6-7 October
2015 Park Plaza Riverbank, London, England www.siexecutiveforum.eu
Executive Forum North America | 22-25 February 2016 Arizona
Biltmore, Phoenix, Ariona, USA www.siexecutiveforum.com For
attendance, please contact [email protected]
38. 2015 Crain Communications Inc. Mark Your Calendar 2015
Staffing Executive Conferences Executive Forum Europe | 6-7 October
2015 Park Plaza Riverbank, London, England www.siexecutiveforum.eu
Executive Forum North America | 22-25 February 2016 Arizona
Biltmore, Phoenix, Ariona, USA www.siexecutiveforum.com For
attendance, please contact [email protected] Register
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