The Significant Cost Savings to SME's by Recruitment Outsourcing

March 30, 2010 - PRLog -- THE BENEFITS OF RECRUITMENT OUTSOURCING
- why Omniture chose CPH Consulting

In January 2008, Omniture contacted CPH Consulting to discuss their business expansion and EMEA recruitment plans for the year. Omniture expected to double their headcount via organic growth and selective acquisitions, from around 90 staff to circa 180, which meant hiring in the region of fifty additional people. These additional heads were across all disciplines and throughout the EMEA region, some in existing Omniture locations and others in new, to be established entities.

At that time Omniture had no local in-house recruitment or HR function and hiring managers were recruiting via their own resources, supported by the US HR team for offer letters and new employee on-boarding. They were highly dependent on agencies for candidate generation with managers using a variety of different firms and with no consistent fee structures being applied. This approach was neither cost effective (due to high agency fees) nor time efficient, with some hiring managers spending a large percentage of their time on recruitment related activities.

CPH Consulting placed an ‘Omniture branded’ team onsite, comprising  two experienced recruiters and a resourcing specialist, supported by an offsite recruitment coordinator, to assist with interview and travel arrangements for candidates. They immediately began to streamline Omniture’s recruitment process, implementing best practices and procedures to ensure the right approach and results, and in parallel with this started moving Omniture to a direct recruitment model to remove their dependency on agencies.

The team worked closely with the hiring managers and, where appropriate, travelled to different country offices to support the local recruitment, pro-actively sourcing and headhunting candidates from the market with the objective of continually improving the quality of hires.

After a year onsite the CPH Consulting team had achieved the following:

•   Headcount targets had been hit across all disciplines

•   Agency generated placements had reduced from over 90% to below 5%

•   The average cost per hire had been reduced

•   The ‘time to fill’ vacancies had significantly reduced

•   Implemented a scorecard assessment for panel interviews, to standardize selection across the EMEA region

•   Made significant savings in hiring manager time by removing all administrative aspects of the recruitment process, agency calls and e-mails etc from them and, through better initial candidate selection and pre-screening, reduced the amount of time they had to spend interviewing. Our team represented a ‘single point of contact’ for them on all talent acquisition related matters

•   Taken control of the full recruitment lifecycle from initial role approval through to offer approval and creation  

These successes resulted in CPH Consulting being awarded a further year’s contract.
Since summer 2008, all permanent candidates have been sourced directly by the CPH team, without recruitment agencies - significantly improving the ‘time to fill' vacancies. CPH Consulting’s direct recruitment model delivered a substantial annual recruitment cost saving and contributed to the global reduction in cost per hire from $22,000 to $10,000.

CPH Consulting worked successfully with Omniture until shortly after they were acquired by Adobe when the service was then transitioned over to Adobe’s European ‘in house’ Talent Acquisition team at the end of 2009.

Scott Russell, Joint MD at CPH Consulting commented “I am delighted we have been able to successfully demonstrate that we can deliver benefits to organizations with lower hiring numbers than are normally associated with an outsourced recruitment solution. The benefits our clients enjoy are over and above those delivered by RO providers to larger companies, particularly given our direct sourcing model eliminates the use of agencies. We work much closer with our clients’ senior management team and with candidates and, as such, are able to provide a ‘higher touch’ service, whilst being able to adapt quickly to changes in market conditions”

Neil Weston, SVP & GM, International, Omniture said, “Using CPH changed our recruiting capability from a time consuming nightmare into a well oiled productive machine which allowed the business to get on with its job of selling, increasing headcount and servicing customers, while someone else (CPH acting as Omniture) owned the delivering of high quality, excellent profile people for us to hire”

www.cphconsulting.co.uk

ENDS

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CPH Consulting is a specialist provider of talent management solutions for small, medium sized and emerging companies. Its mission is to support each of its clients in building and managing a direct resourcing model, which enables them to attract, retain and develop the right talent to accelerate the growth of their business. It has clients in a number of sectors including business services, digital media, e-commerce, professional services and software.