The benefits offered by recruitment process outsourcing are numerous, but companies and recruitment firms must work together for maximum effect. HIRING VIKAS SETHIA, QUESS CORP A win-win collaboration E very organisation has a unique DNA, characterised and represented by its people. In a growing and diverse economy like India, it is interesting to see the versatility of our people who can moderate themselves to not only fit into roles with large MNCs and mid-sized companies but also challenge themselves to join the dreams of some quite unusual startup ideas—brewed during endless brainstorming sessions and scribbled on cafe napkins. Recruiting is amongst the brightest stars in the galaxy of organisational functions. Once a next-door placement agency task, it has evolved through a series of needs, techniques, strategies, and innovative methodologies; and now RPO has gained prominence in the minds of every HR personnel and business stakeholder. The availability of the right talent at the right time has become a key success driver for every business plan. Organisations today believe in staying lean, yet require the agility and preparedness needed to achieve on-demand availability of an extremely diverse and multiskilled workforce. With roles starting to being framed around some sharp KRAs and KPIs, it has become imminent to run an equally efficient 74 INDIAN MANAGEMENT JANUARY 2016 INDIAN MANAGEMENT JANUARY 2016 75 RPO partnerships have ensured that external hiring teams are not only equipped with access to company information, but also exposed to its cultural legacy. ©shutterstock.com and robust hiring process. While some organisations have attempted to build and manage their own processes—focusing on manpower planning, turnaround time (TAT), quality of hires, and the inevitable cost per hire— there is also an emerging trend of outsourcing in anticipation of best practices or addressing an unsaid intent of handing over some tedious and uninteresting scope of the recruiting workflow. RPO discussions are not without flavours: right from hiring en masse (sales roles in BFSI or vanilla skills in IT and ITES) to hiring cross-functional teams for greenfield and brownfield projects, to (most commonly) hiring round the year as an extended yet integrated arm of the company’s HR function. RPO programmes have demonstrated some quite attractive propositions when rolled out with well-defined and measurable objectives. And it is perfectly okay for these objectives to vary—both in size and priority—from organisation to organisation. For decades, the recruiting industry has been skimming professional fees—ranging from 30-90 days of the selected candidate’s salary which is 8.33% of CTC and onwards. This was coupled with organisations being serviced by an endless count of recruiting partners, and HR managers finding it difficult to manage them. It soon turned into mutual interest to park hiring requirements with a few select partners. For organisations, it not only ensured greater service attention and quality but also raw negotiating power. For recruitment firms, it helped in developing key account relationships and channelising efforts into more result-oriented hiring, with minimum pilferage of the candidate pipeline. This win-win collaboration slowly turned into a more evolved programme that we now call RPO. Recruiting firms today are globally integrated and hence have the ability to manage global hiring programmes for clients. RPO partnerships have ensured that the external hiring teams are not only equipped with elaborate access to company and role information, but also exposed to its cultural legacy that helps in evaluating and hiring best-fit and steady-tenure candidates. Talent acquisition teams are faced with another challenge of keeping costs in control. To achieve this, firms are strategising a channel mix of hiring through external partners and internal channels like internal job postings, employee referrals, campus placements, social media tools, etc. Internal channel is yet another outsourced RPO proposition, and offsets the relatively high cost of the direct-sourcing partner channel, thus optimising overall hiring costs. It also disallows any skewed pattern of talent that external channels may be feeding into the organisation. Internal channels are also receiving greater attention and preference since they establish natural connect with existing employees and contribute favourably to employee engagement and attrition rates. Every RPO pitch starts with an introduction meeting and a series of capability presentations. While these presentations are getting increasingly impressive by the day, it is important for organisations to conduct uncompromising due diligence. Many clues can be picked up when the partners present their understanding of the client’s need along with recommended ©shutterstock.com HIRING The success of RPO partnerships rests with the quality of process design and a sustained implementation plan throughout the programme tenure. ABOUT THE AUTHOR Vikas Sethia is Head - Excellence and Sustainability Programs, Quess Corp Limited. solutions. Companies should ensure that the RPO solution vividly demonstrates the implementation preparedness in line with their planned hiring objectives, and is commercially feasible too. It is not uncommon to seek at least two to three professional client references before a final sign-off. Recruitment firms likewise are advised to ask questions that help in understanding the client’s hiring plan, current processes, challenges, and SLA (service-level agreement) expectations. It may be important to discuss and moderate unreasonable expectations, if any. These firms quite often get complacent in anticipation of a key account sign-off, and tend to unduly agree to all the deliverables proposed. There is a good chance that such partnerships eventually face SLA gaps and break up early. They also need to exercise caution with RPO enquiries that do not demonstrate clear objectives or any serious thought process. These could simply be commercial information-gathering exercises or an attempt to evaluate RPOs because the world around them is doing so. It is amusing to be part of such enquiries, and nearly all such clients who have shown haste right from the first hour never took off with any RPO (you will hear them say that this is most urgent, and they intend to meet and sign- off in the next two days). The success of RPO partnerships rests with the quality of process design and a sustained implementation plan throughout the programme tenure. The size and scale of these programmes warrant the need to capture data and run a continuous data analytics engine to keep every minor to major programme objective in control. Rightful data reporting and interpretation also ensure timely decisions across all the participants —recruiters, HR teams, hiring managers, candidates, etc. Stakeholder relationship is another key driver that can keep these programmes rolling smooth for years. RPOs are the outcome of long-gestation evaluations and discussions, and the interdependency between the RPO firm and client is hence unassumingly integrated. The choice to recruit together gets mutually stronger with every passing year. INDIAN MANAGEMENT JANUARY 2016 77
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