1. 1. 2015 Crain Communications Inc. MSP & RPO Masterclass Ciett World Employment Conference Rome, 28th May 2015 John Nurthen Executive Director Global Research jnurthen@staffingindustry.com Francesca Vassallo-Todaro Operations Development Specialist fvassallo@staffingindustry.com
2. 2. 2015 Crain Communications Inc. Agenda Managed Service Provision Recruitment Process Outsourcing Total Talent Management
3. 3. 2015 Crain Communications Inc. MSP VMS Contingent Labour RPO ATS Direct Hire/ Permanent Placement Confused?
4. 4. 2015 Crain Communications Inc. Understanding Terminology Free to download from www.staffingindustry.com
5. 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. 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. 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. 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. 9. 2015 Crain Communications Inc. Hybrid Programmes are Common By geography By skills category By type of worker
10. 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. 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. 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. 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. 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. 15. 2015 Crain Communications Inc. Agenda Managed Service Provision Recruitment Process Outsourcing Total Talent Management
16. 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. 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
18. 18. 2015 Crain Communications Inc. ATS Functionality Source: ATS Landscape (February 2015)
19. 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. 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. 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. 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. 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. 24. 2015 Crain Communications Inc. Agenda Managed Service Provision Recruitment Process Outsourcing Total Talent Management
25. 25. 2015 Crain Communications Inc. Converging Markets/Converging Solutions Contingent Hire Permanent Hire RPOMSP
26. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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 London, UK 8-9 December Northern CA ONGOING Online Certification class or training
37. 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 fvassallo@staffingindustry.com
38. 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 fvassallo@staffingindustry.com Register now for the lowest introductory rates, PLUS receive an additional 100 off for attending the webinar. Use discount code: WEBINAR by 30 June