Thursday, May 23, 2013 | Home› Articles
HR strives to be a strategic business partner” and “The HR chief demands a place on the Board” - are the most common catchphrases in workshops and seminars reaffirmed by passionate HR chiefs. This is the way forward, but the challenge lies in whether or not the HR functionary can do so without compromising the quality of delivery.
With talent acquisition, the highest priority for HR managers, becoming more intricate, the focus must be on effective functioning at optimal cost. Cross location, multiple skills, blend of technologies and personal attributes make the hiring process a very involved effort. By outsourcing the talent acquisition function, the team can focus on core business issues while they have a reliable framework of talent supply.
Managed Services Providers (MSPs) typically complement talent acquisition and partner with the HR manager. MSPs have the required processes, expertise and an extensive database of resumes and the networking required to source all types of candidates and at the same time, are cost efficient. They can help organizations save up to 20 to 30 percent of the recruiting costs and reflect savings in the per-hire cost parameter. Also, they allow the HR staff to focus their efforts on the company’s core business and ensure a supply of high quality staff members for all positions. Further, they see to it that the contracts are built on top of tight service levels, where the payouts are proportional to the performance of the MSP, thereby bringing in accountability.
Today, firms are constantly in a flux of whether to add in more recruiters during a spike or move more roles to channel partners. But, this may not be cost effective. Most firms today are looking at outsourcing project-based hiring through RPO models that will help them manage the spikes. This reduces cost and improves effectiveness. Companies are increasingly engaging with RPO firms in outsourcing operational areas such as screening, scheduling, coordinating, offer management, outplacement and compensation & benefit management, diligence, etc. which all form part of the talent management process.
Talent acquisition needs must factor in flexible workforces for staffing & temping and MSPs can enable hiring managers to devote less of their time in contingent manpower management. This will help business by implementing scalable programs to source, select, and manage the best available talent matching the exact needs. This helps in refining the process and minimizing the vendors list into a lean one, enhances creation of precise and customized workflows ensuring consistency in hiring processes, whilst ensuring statutory compliance in letter and spirit every time.
It would be prudent not to look at a ‘one–size-fits-all model’ and a clear strategy for talent acquisition is essential for its success. If chosen well, an MSP can deliver more value than just simple cost-cutting. Partnering with an MSP is the way forward for the HR function as it encompasses both talent management and talent acquisition and the potential benefits for an organization far outweigh the potential risks.
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