Conference Interview - The Conference Board’s HRO Conference, Chicago, Sept 19-20, 2006

If you couldn’t make it to the Conference Board's Human Resources Outsourcing (HRO) Conference in Chicago, here are some highlights.

Recruitment Process Outsourcing (RPO) has come a long way, baby – from simple applicant tracking, to resume screening and interviewing, to complete strategic outsourcing of the entire recruitment function.. This evolution was a much-discussed topic at The Conference Board’s recent HRO Conference in Chicago, where the Human Resources Outsourcing Association (HROA) facilitated an open frank panel discussion on RPO’s changing face. Panel participants included representatives from RPO industry leaders Pinstripe, StraightSource, Hyrian and RES.

The general consensus was that while more customers embrace change before moving toward a full and transformational RPO implementation, many are continuing to take a first step into the RPO solution by securing a provider to supplement their recruiting department by outsourcing projects and/or transactional work. One attendee who is a strategic user of an enterprise wide-end to end RPO solutions asked a good question of the panelists: If RPO vendors are so focused on transformational solutions, why do their pitches and presentations focus so much on transactional prices and solutions? The panels response stated the transactional focus is most often driven by customers who push the vendors towards those transactional solutions and are not ready to embrace full RPO solutions and the strategic impact that it can make to create a high performing staffing function.

When asked for some crystal ball predictions for RPO in the coming years, Pinstripe President Anne Nimke offered some interesting thoughts:

1. “RPO – still in the early in on the adoption curve is defined very broadly – which can be confusing to buyers. This will continue as providers and buyers more openly share document the success and performance results from their programs.”
2. “While it might sound obvious, RPO firms need to become great recruiters! Many current programs do an exceptional job processing candidates, but lack the sourcing and recruiting expertise that will be needed more and more as we move toward the next decade.”
3. “Buyers have a great opportunity to make choices that will create an impact on the talent trajectory of their organization. Starting with defining what the drivers are behind the outsourcing decision, and understand which type of relationship they want: transactional, or transformational. Add to it the change management plan and good partner management skills and RPO success will be a critical way to achieve a “talent mindset” within their organization."
4. “HRO organizations that have shown success on the administrative transaction solutions (benefits, self-service, and payroll) have not provided transformational recruitment services as part of their end-to-end HRO solutions. We’re beginning to see HRO/RPO provider partnerships and alliances forming. In addition we have begun to see some RPO firms will expand their services to include more HRO services as well.”

Other recurring themes were the future state of employee demographics and the substantial labor shortage expected in the US. There will be a need for much more proactive, creative and efficient recruiting over the next several years in the US and globally.

Pinstripe’s CEO Susan Marks also addressed the critical role communications planning plays in the success of outsourcing initiatives. Sue’s presentation, "Is What I Heard What You Said; and is What You Said What You Meant?" provided an entertaining look at successful communication strategies and tactics that can facilitate buy-in from stakeholders throughout the outsourcing lifecycle, helping companies avoid speed bumps on the road to outsourcing success. Sue reviewed specific strategies for developing a strategic outsourcing communications plan, including practical templates and toolkits, and examples of best (and worst) practices. "Too often, outsourcing initiatives that look promising early-on fail to deliver the expected return on investment as a result of poor communications planning," said Marks. "Organizations that make strategic communication planning a key part of their outsourcing program from the beginning stand a much better chance of success than those that do not. Having a clear communications plan in place that targets all audiences and incorporates all phases of the engagement, from design through ongoing operation, will result in a much smoother, coordinated program that has a greater likelihood to deliver all of the intended benefits."

For more information on outsourcing communication strategies or for a copy of the slides presented on this topic, contact contact@pinstripetalent.com.