RPO: Reduce Hiring Costs and Improve Efficiency in Your HR Department

Reduce Costs and Improve Efficiency

in Your HR Department

Presented by Randall W. Hatcher

Information in this presentation is property of MAU Workforce Solutions

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Core/Noncore


Internal Movement

The Employment Function

External Movement


Internal Movement


• Promotions• Transfers

• Job, Shift, Location• Absenteeism


• Full-Time Regular • Part-Time• Temporary Workers• Outsourced Workers• Co-ops & Interns

Contingent Workforce

Direct Hire


External Movement


Internal Movement


External Movement


Internal transfer starts

Post-interview meeting

Post position internally

Forward qualified applicants to Hiring

Manager

Requisition Approved

Hiring Manager approvesLog in requisition

Route for HRL approval

Route for VP approval

Position Qualification

Revise job posting and send to Hiring

Manager

Collects bids

Screen bids

Send letters to non-qualified applicants

Schedule telephone interview

Hiring Manager conducts interview

Schedule plant interview

Coordinate travel

Conduct plant interview

Route Approval to Employ paperwork

Extend offer to candidate

Communicate start date internally

Coordinate relocation

New hire orientation

Promotions & Transfers

Hiring Manager provides feedback to

MAU

Internal Movement

Requisition Qualification/Posting Interview Post Interview/Hire


Internal transfer starts

Post-interview meeting

Post position internally

Forward qualified applicants to Hiring

Manager

Requisition Approved

Hiring Manager approvesLog in requisition

Route for HRL approval

Route for VP approval

Position Qualification

Revise job posting and send to Hiring

Manager

Collects bids

Screen bids

Send letters to non-qualified applicants

Schedule telephone interview

Hiring Manager conducts interview

Schedule plant interview

Coordinate travel

Conduct plant interview

Route Approval to Employ paperwork

Extend offer to candidate

Communicate start date internally

Coordinate relocation

New hire orientation

Promotions & Transfers

Hiring Manager provides feedback to

MAU

Internal Movement

Requisition Qualification/Posting Interview Post Interview/Hire

Client: 6 Steps

MAU: 19 Steps


Internal Movement

• Planned Absenteeism• Unplanned Absenteeism


Internal Movement:

• Vacation• Holidays • Personal Time• Leave

4-8% Fixed Costs

Planned Absenteeism


Internal Movement:

• Holdover• Call in• O. T.• Shut Down

• Fixed Cost• Premium Pay

7:00am

?

Unplanned Absenteeism


4-8%

Fixed Cost Variable Cost

Absenteeism Pool

Internal Movement: Unplanned Absenteeism


Internal Movement


External Movement


Full Time Regular

Part Time

Outsourced

Co-Ops/Interns

Temporary

One Stop Shop

External Movement

Direct Hire

Contingent Workers

Direct Hire: RPO


• What does it look like? • Why RPO?• How to Manage?• How to Measure?• Obstacles • It’s a Journey

External Movement RPO


Client:42 Steps

Recruiter2 Steps

Schedule Field Ride Interview #4 Complete quarterly EEOC applicant flow log and route to HR

Conduct Interview #6 with VP NA Sales, National Sales Director & 2 others

Contact appropriate search firm(s)

Conduct screening interview #1

Schedule Interview # 2 with Region Manager to use Initial Interview Guide

Schedule Interview # 3 (face-to-face) with Region Manager to use Second Interview

Guide

Provide feedback to Recruiter


Conduct Interview # 2


Conduct Interview # 3

Schedule screening interview #1 with Region Manager

Recruit candidates

RM coordinates candidate travel (if necessary)

Background paperwork sent to Global Security and Vereda

Conduct Field Ride Interview #4

RM coordinates candidate travel

Area office reviews and routes candidate overview and pre-offer packet to client.

Conduct Interview #5 – Area Office

Pre-offer approved

HRAA schedules Interview #6

HRAA sends background check paperwork

Candidate completes and returns background paperwork

Area AA distributes interview packets

RM completes and routes candidate overview and pre-offer packet to Area Office.

RM coordinates candidate travel (if necessary)

Schedule Area Office Interview #5 with Area Director and Operations Manager


Complete Field Ride Form

Completed background returned to HRAA

Debbie sends formal offer package to candidate including HR paperwork

RM provides feedback to Recruiter

Candidate accepts offer

Drug screen via Choicepoint

E-Memo generated by Region Manager

BID number generated by KCPC

Area AA generates PCN

Candidate starts work

Interviewers complete Candidate Evaluation Form and route to area office and RM

RM extends verbal offer contingent upon background check and drug screen

Send qualified resumes to Region Manager



Total:44 Steps

External Movement RPORECRUITMENT

SCREENING

OFFER

EEOC Tracking


Recruit candidates

Review ResultsConduct Area Office Targeted Selection Panel

Interview

Coordinate candidate travel (if necessary)

Schedule Interview with Area Director, Region Manager & Operations Manager

Complete Field Ride and provide feedback

Conduct Field Ride Interview

Coordinate candidate travel (if necessary)

Schedule Field Ride Interview


Send candidate paperwork package # 2

Conduct screening interview

Candidate returns paperwork package #1

Schedule screening interview (face-to-face) with Region Manager

Send candidate paperwork package #1


Send qualified resumes to Region Manager

Complete quarterly EEOC applicant flow log and route to HR

Pre-offer approved

Area AA generates PCN

Candidate returns completed HR paperwork

Region Manager generates E-Memo

Candidate starts work

Drug screen via Choicepoint

Client generates BID number

Send Post Fill survey to hiring manager

Candidate accepts offer

Extend formal offer package to candidate including HR paperwork

Completed background returned to Recruiter

Background paperwork sent to Global Security and Vereda

Complete pre-offer

Conduct post interview assessment

Client:13 Steps

MAU:19 Steps

Total:32 Steps

External Movement RPO

RECRUITMENT

SCREENING

OFFER

EEOC Tracking


The Goal


Time Reduction

Cost Reduction

70%

Salaries$2625

Savings Per Hire


Management Fee• Monthly

Flat Recruitment Fee• 35-50% less

Consolidation of Recruiters• 15 -> 5• 10 -> 2

Pricing Model


• Reduce recruiting costs 15-40%• Convert fixed to variable costs

Economic

Strategic

Operational

Flexibility and Scalability

Technology

Focus

Why RPO?


Economic

• Strategic Advantage vs. Staff Function• Improve talent base and bench strength

Strategic

Operational


Technology

Focus

Why RPO?


Economic

Strategic

• Metrics and quantifiable results drive• Vendor Optimization

Operational


Technology

Focus

Why RPO?


Economic

Strategic

Operational

• Respond quicker and with improved results


Technology

Focus

Why RPO?


Economic

Strategic

Operational


• Gain access to the best recruiting technology solutions

Technology

Focus

Why RPO?


Economic

Strategic

Operational


Technology

• Strategic workforce planning and management

Focus

Why RPO?


MAU Client MAU Client MAU Client Client

8 Days 2 Days 2 Days 5 Days 8 Days 2 Days 1.5 Days 4 Days 15 Days 47.5 Days

REQ. # Position Dept ManagerCurrent Days in Process

External Search Date

Candidate Submittal DateResume

Feedback Date

Phone Interview Feedback Date On-site interviewPost Interview Assessment

Offer Extended Offer Accepted Start DateExternal Time to

FillComments

30014844 Devlopment Eng ECH Johanek 47 4/26/2005

Mike Hudik 4/28/2005 5/4/2005 5/5/2005 5/9/2005 Not interested - has another offer

Christina Kramer 4/28/2005 5/4/2005 5/6/2005 5/9/2005 removed herself from process

Nathan Buescher 5/17/2005 5/18/2005 5/23/2005 5/23/2005

Everitt Doddington 5/18/2005 5/18/2005 5/19/2005 5/20/2005 5/25/2005 5/26/2005 5/31/2005 6/3/2005 7/6/2005 51Delayed due to thesis

completion

30048494 Development Eng. ENT Schmidt 42 3/7/2005position reposted in plant

4/21/05

Jared Garder 3/7/2005 3/8/2005 better fit for test position

Jerome Burke 4/8/2005decided to pursue internal

candidate

Chris Andrews 3/15/2005 3/17/2005decided to pursue internal

candidate

30033170 Assoc Mfg Eng MOE2 Denk 21 5/19/2005

Matthew Raplenovich 5/19/2005 5/20/2005 5/20/2005 5/20/2005 6/1/2005 6/1/2005 6/9/2005 6/17/2005 7/11/2005 36 Delayed due to relocation

30048488 IDP/MOE4 MOE4 Widmann 15 6/1/2005

Preston Bakaric 6/14/2005 6/16/2005 no secured a job with Lear

Joshua Stidman 6/16/2005 6/20/2005 6/21/2005 waiting on feedback

30033132 Purchasing Eng/Sr PUR3 Kaelber 21 6/6/2005

Matt Fennell 6/8/2005 6/9/2005 6/10/2005 6/10/2005 6/20/2005

30033147 Quality Engineer/Sr QAM 3 Evans 32 5/17/2005

Terry Zimmerman 5/25/2005 5/25/2005 n/a n/a 5/20/2005 6/15/2005 pursuing a stronger candidate

Paul Montaturo 5/25/2005 5/31/2005 n/a n/a 6/8/2005 6/15/2005 accepted another position

Fernando Pinelo 5/31/2005 6/3/2005 6/6/2005 6/8/2005 6/10/2005 6/15/2005 will receive an offer

MAU

Client

Open Orders Transparency

Current Openings External Process Cycle

How to Manage RPO Job Data Process Management


MAU Client MAU Client MAU Client Client

8 Days 2 Days 2 Days 5 Days 8 Days 2 Days 1.5 Days 4 Days 15 Days 47.5 Days

REQ. # Position Dept ManagerCurrent Days in Process

External Search Date

Candidate Submittal DateResume

Feedback Date

Phone Interview Feedback Date On-site interviewPost Interview Assessment

Offer Extended Offer Accepted Start DateExternal Time to

FillComments

30014844 Devlopment Eng ECH Johanek 47 4/26/2005

Mike Hudik 4/28/2005 5/4/2005 5/5/2005 5/9/2005 Not interested - has another offer

Christina Kramer 4/28/2005 5/4/2005 5/6/2005 5/9/2005 removed herself from process

Nathan Buescher 5/17/2005 5/18/2005 5/23/2005 5/23/2005

Everitt Doddington 5/18/2005 5/18/2005 5/19/2005 5/20/2005 5/25/2005 5/26/2005 5/31/2005 6/3/2005 7/6/2005 51Delayed due to thesis

completion

30048494 Development Eng. ENT Schmidt 42 3/7/2005position reposted in plant

4/21/05

Jared Garder 3/7/2005 3/8/2005 better fit for test position

Jerome Burke 4/8/2005decided to pursue internal

candidate

Chris Andrews 3/15/2005 3/17/2005decided to pursue internal

candidate

30033170 Assoc Mfg Eng MOE2 Denk 21 5/19/2005

Matthew Raplenovich 5/19/2005 5/20/2005 5/20/2005 5/20/2005 6/1/2005 6/1/2005 6/9/2005 6/17/2005 7/11/2005 36 Delayed due to relocation

30048488 IDP/MOE4 MOE4 Widmann 15 6/1/2005

Preston Bakaric 6/14/2005 6/16/2005 no secured a job with Lear

Joshua Stidman 6/16/2005 6/20/2005 6/21/2005 waiting on feedback

30033132 Purchasing Eng/Sr PUR3 Kaelber 21 6/6/2005

Matt Fennell 6/8/2005 6/9/2005 6/10/2005 6/10/2005 6/20/2005

30033147 Quality Engineer/Sr QAM 3 Evans 32 5/17/2005

Terry Zimmerman 5/25/2005 5/25/2005 n/a n/a 5/20/2005 6/15/2005 pursuing a stronger candidate

Paul Montaturo 5/25/2005 5/31/2005 n/a n/a 6/8/2005 6/15/2005 accepted another position

Fernando Pinelo 5/31/2005 6/3/2005 6/6/2005 6/8/2005 6/10/2005 6/15/2005 will receive an offer

MAU

Client

Open Orders Transparency

Current Openings External Process Cycle

How to Manage RPO Job Data Process Management


How to Measure RPO

First Pass YieldExempt

Goal: 90%Weight: 30%

Customer Satisfaction Index

Exempt Hiring Process

Goal: 90%

Time to FillExempt

Goal: 9.5 WeeksWeight: 30%

Cost Per HireExempt

Goal: $22,500Weight: 10%

Time to First Submittal

ExemptGoal: < 8 daysWeight: 30%








Obstacles

Can't find a good outsourcing partner

Knowledge level

Lack of internal expertise

Unable to measure

Internal cultural issues

Too expensive

Status Quo is okay

0% 10% 20% 30% 40% 50% 60% 70% 80%


It’s a Journey

1999

RPO: External &

Internal

1999

Co-ops and Interns

2000Contract

Professionals

2002

Temporary Workers

2002

Outsourced Assembly

2005

Absenteeism Pool


A Day in the Life…

8:10amTwo associates call

out sick. Need backfills

8:20amFive employees

transferred to second shift

9:00amProduction schedule

change – need 20 employees now

10:00amRelocation and Transfer

Package

11:15amAnnual Co-op Strategy

Meeting

2:00pmOn–Site Interviews for

Five Engineers

3:10pmGood News! Manager is

promoted

4:00pmHeadcount Analysis

due

6:00-7:00pmStrategy


218 Steps

Absenteeism 15 Steps Backfills

25 Steps

Production Change30 Steps

On-Site Interviews20 Steps

Relocation35 Steps

Transfer20 StepsCo-Op Programs

45 Steps

Promotion10 Steps

Headcount Analysis18 Steps

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