the journey to a blended workforce · we are building an enabler, not a solution, a solution is...
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The journey to a blended workforce
Peter Wareham - Head of experienced and contingent recruitmentNovember 2013
www.pwc.co.uk
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PwC
Blended workforce, the latest HR fad…
…Or the greatest opportunity we have ever had to help shape and deliver company strategy…
A journey to blended RPO2
November 2013
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PwC
AgendaHow do companies balance their traditional “captive” talent with contract talent? This session will share the challenges and solutions PWC experienced in their journey towards a Blended Workforce.
Blended workforces are not simply about permanent and contingent workforce. A blended workforce, to me encompasses:
Perm FT;
Perm PT;
Outsourced relationships;
FTC;
Contingent workers;
And, SOW contractors.
That is our total talent landscape
3November 2013A journey to blended RPO
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PwCA journey to blended RPO
4November 2013
Average age of women
having children
increasing rapidly
The world is changing
December 20121.6m
Contingent workers
TUC
Employment stability
increases with ageONS 2003
Home ownership improves
job stabilityONS 2003
Contingent workers up
230000 since 2005
TUC
Millenialsexpect to have 15 – 20 jobs in their lifetime
Future workplace survey U.S.
Average graduate 1st
job tenure is 18 months
The marketer’s forum 2012
2001 average
job tenure 4 years
ONS 2003
1995 average job
tenure 5 years
ONS 2003
655000 contingent
workers due to no perm work –
doubled since 2005
TUC
40% of graduates
surveyed left their first role due to lack of progression
The marketer’s forum 2012
Since 2008 job tenure in the UK has
been increasing!
1/3 of employers to
increase contingent
headcount in next 12 months
REC
Mobile working
Globalisation
Average age of marriage
increasing –now early 30’s
1/3 of workers will be over 50
by 2020Madouros 2006
71% of millenialswant and expect an
international experience in their career
PwC
Is this:Generational change;
Economic change;Technological change
or Global change?
The new norm or a short term aberration?
Which came first, the chicken or the egg?
MillenialsOver 50’sWorld of work
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PwC
The mind of a CEO
A journey to blended RPO5
November 2013
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PwC
What does this mean for organisations
• A one size fits all approach to talent management & recruitment will likely not engage all talent groups
• Retaining talent is becoming more complex
• ‘One size fits all’ EVP’s will become less effective
• Impact on organisational culture
• Talent management and succession planning becoming more complex
• One lens across all organisational talent becoming increasingly critical
• Challenges embedded models of who does what, where and how
• The ability of organisations to dictate how they want to engage talent is lessening
• We will see cost arbitrage applied to an organisations work force, efficiency (cost cutting) in some areas and strategic investment in others
• A long term talent view will be essential
A journey to blended RPO6
November 2013
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PwC
What does this mean in our world
A journey to blended RPO7
November 2013
The organisational constructs and silos that most talent acquisition functions have will rapidly be unable to support organisational aspirations, an urgent need exists to consider:
The type of functions;
What else should be in our functions;
The technology which supports functions;
The objectives of the function;
The connectivity of the function;
EVP construction;
And, commonality in selection processes.
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PwC - journey to a blended workforce
www.pwc.co.uk
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PwC 9
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PwC
One big challenge for PwC
A journey to blended RPO10
November 2013
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PwC
One fundamental question
A journey to blended RPO11
November 2013
What does the shape of our workforce need to be
in the future to deliver the needs of our clients and also deliver commercial
returns?
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PwC
Starting with a blank piece of paperThe now
Reviewing recruitment – as it
Getting recruitment fit for purpose today – pronto
The definite future
Restructure recruitment to deliver business needs
Look at cost efficient delivery models
Build scalable and agile foundations that can be flexed / re-pointed at short notice
The possible future
Look at labour market & macro economic trends and weave this thinking in to the definite future
We didn’t get it all right, but we did spot some of the major trends and work out why we wouldn’t be able to meet them
A journey to blended RPO12
November 2013
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PwC
An ivory tower is no useBack to basics, we spoke to anyone and everyone!
A journey to blended RPO13
November 2013
The Team
Leadership
The business
Providers
Candidates
Procurement
The hiring community
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PwC
What we found• Unable to deliver BAU recruitment
• Poor knowledge of business
• High agency reliance
• Fragmented outsource landscape
• Inefficient leverage of spend
• Complex risk management
• Multiple contact points for hiring managers
• Process inefficiency
• Underutilisation of internal market knowledge
• Inability to rapidly scale function to changing needs
• No planning or budget for contingent labour
A journey to blended RPO14
November 2013
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PwC
Deficient technology led to our thinking on holistic access to talent
A journey to blended RPO15
November 2013
ATS VMSStudent alumni
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PwC
The vision we created
A journey to blended RPO16
November 2013
Leadership
The business
CandidatesThe Team
Providers
The hiring community
Procurement
ConsistentSimple
Compelling
Transform recruitment from a transactional, process driven service, to an agile, leading edge talent acquisition
capability, directly supporting the strategic goals of the business and delivering careers of real value to our
people.
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Because the world is changing, if we don’t evolve with it we will loose the ability to attract and engage with the best talent.
Organisations can no longer afford to engage with the best talent once
We will need to engage with talent communities from school age to retirement
During that period we will have multiple employment and contingent relationships with that person
We will increasingly not recruit to fill jobs - We will recruit for skills
We will be tasked with repetitively bringing these skills in and out of organisations
Individuals will dictate when they want to supply labour and how
Why we decided to take a blended approach
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PwC
We are building an enabler, not a solution, a solution is only relevant to a moment in time
A truly blended solution – we practice what we preach!
Retained in-house EH recruitment team, comprising of:
Core permanent headcount;
FTC headcount;
Contingent headcount;
And a blended RPO solution from RSR.
We have become the enabler for blended workforce solutions which is now helping the board develop strategies.A journey to blended RPO
18November 2013
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The journey to a blended workforce
Organisational options for enabling transformation November 2013
www.pwc.co.uk
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PwC
Simply there are 5 options
Blended RPO
Separate MSP and RPO
In-house EH and MSP
All in-house
Don’t address the challenge!
A journey to blended RPO20
November 2013
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PwC
What is blended RPO
21November 2013A journey to blended RPO
Blended Workforce solutions provide a combined approach - RPO and MSP - this encompasses traditional talent acquisition for permanent
employees, as well as management of contingent workforce suppliers, temporary workers and contractors. By managing these elements under one process, companies are achieving significant benefits, from better
visibility into workforce supply and demand, to improvements in compliance, cost control, and talent quality.
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PwC
A quick analysis of the options
A journey to blended RPO22
November 2013
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RPO & MSP
Blended RPO
MI
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IH & MSPBuying a blended RPO solution, or creating a
blended in-house solution will not solve the challenge of the blended workforce on its own. You must create a strong internally aligned vision and
have firm foundations built first. Only then can you move to build a truly agile function that can constantly and quickly evolve for the future.
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PwC
Blended workforce…
…the greatest opportunity we have ever had to help shape and deliver company strategy…
A journey to blended RPO23
November 2013
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I am now at your mercy!
This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, PricewaterhouseCoopers LLP, its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.
© 2013 PricewaterhouseCoopers LLP. All rights reserved. In this document, “PwC” refers to PricewaterhouseCoopers LLP (a limited liability partnership in the United Kingdom) which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity.