Talent Pipelines
World-class Recruiting through Outsourcing
Barry Siegel, president, Interactive and Staffing Solutions, has been with Bernard Hodes Group since 1971. He founded Recruitment Enhancement Services(RES) 
in 1983, the industry's forerunner in providing recruitment outsourcing and applicant management services.
We sat down with Barry and captured some of his insights and recommendations on staffing solutions.
Q. What is recruitment outsourcing?
A. Simply defined, recruitment outsourcing is the delegation of a task (or a series of tasks) to an external third party, within the framework of talent acquisition. The use of employment agencies, temporary-staffing firms, ASPs and background investigating companies (even placing a help-wanted ad through an ad agency) all fall within this basic definition. However, most people view recruitment outsourcing as going further than these examples to encompass additional parts of the hiring process, from sourcing to hire.
Q. What led you to recognize the potential of recruitment outsourcing?
A. As much as I'd like to claim to being a visionary, the truth is, necessity was, once again, the mother of invention. I moved to Houston, Texas, during the oil boom of the late 1970s. At that time, Houston was a precursor to what happened to the rest of the country in the late 1990s--an overabundance of jobs and very few qualified people. Then the oil boom crashed. Not only did our recruitment advertising business fall off by more than 70 percent, but also many of my most talented client contacts were laid off.
My creative and marketing teams had used groundbreaking, innovative techniques to assist those clients in recruiting projects far more complex than those found in other parts of the country. It begged the question, could we not hire some of these former client contacts and utilize what we learned for the benefit of Hodes clients in other states?
Unfortunately, the word "outsourcing" had not yet been invented. When we attempted to explain what we wanted to do, far too many prospects would say, "But that's my job!" This attitude, however, changed dramatically when the "War for Talent" broke out in the mid 1990s.
Q. How does an HR function determine if, and what, they need to outsource?
A. The major variables are cost, time and expertise. If you can get a third party to do something better, faster and less expensively than you can do it yourself, you should seriously consider it. In estimating cost, consider this: How much does it cost your organization when you can't focus on your core competencies because you are simultaneously required to perform less productive tasks?
For example, when you place a recruitment ad, it's very important that each response be properly handled, even though 90 percent of the applicants will likely be unqualified. After all, those respondents may be existing or potential customers, and/or stockholders, as well as candidates for other positions down the road. Wouldn't your time be better spent focusing on the qualified candidates, while delegating the rest to a competent third party?
Q. What is RPO and what does it bring to the table?
A. Recruitment Process Outsourcing is defined as the transfer of ownership of the process of talent acquisition from the buyer to the supplier. It involves integrating the people, process, tools, and technology associated with all aspects of talent acquisition into one cohesive unit. This units components would included: Recruitment Marketing, Physical Recruiting, Technology and Hiring Process Re-engineering.
Q. How does this differ from other recruitment outsourcing offerings?
A. Most organizations utilize some form of limited recruitment outsourcing (even if it's just to place a help-wanted ad). Organizations that utilize RPO are outsourcing the majority of their recruiting function.
Q. When should a company consider utilizing RPO?
A. Every organization should now be thinking about upgrading their staffing function because the “War for Talent” is about to get more ferocious than ever. Do an analysis and determine what it will take to acquire the talent your organization needs for the future: What will it cost to get it done properly? And what will it cost if you don't get it done properly? Then compare your answers to those of an RPO supplier with an outstanding track record, and decide which route to follow.
Q. What tools and resources does a company need in order for RPO to be effective?
A. The director of HR and the staffing manager will delegate tasks and responsibilities--as opposed to total accountability--to a third party. They will enter into an alliance with a partner (as opposed to a vendor) that will only succeed with a total commitment from the client's top management. This needs to translate into a buy-in from the hiring managers. Of course, the RPO supplier shares the accountability. After all, they'll lose your account if they're unsuccessful. But the installation of the best technology, processes, creativity and people will not work without total support, coaching, cheerleading and good old hard work from the director of HR and the staffing manager.
Q. Give us a real-world example of how RPO provided a total outsourcing solution.
A. The Kellogg Company in Battle Creek, MI, had the foresight to seek out RPO back in 1998. More important, they had the fortitude to stick with it despite some early setbacks. Today, by all measurement standards, the Kellogg Company is recognized as an employer of choice, and their staffing function is viewed as truly world class. Numerous organizations have followed their lead in improving quality and increasing hiring manager and candidate satisfaction, while simultaneously lowering costs.
Q. Where do you see recruitment outsourcing going in the future?
A. All projections point to a shortage of workers from now until 2020. The HR function will have its hands full keeping its existing staff, much less recruiting new talent. It's unreasonable to expect the internal HR function to acquire and maintain state-of-the-art technology, process, creativity and marketing expertise (as well as a talented variety of researchers, relationship managers and recruiters) all on their own. While RPO might not be for everyone, the vast majority of companies will be increasing their use of some forms of recruitment outsourcing. Necessity strikes again!
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