RPO RFX Process Best Practices to Obtaining the

RPO RFX Process: Best Practices to Obtaining the Visibility you need to Avoid a Failed Engagement January 17 th, 2012 Stephen M. Clancy, Director, Strategies & Research sclancy@staffingindustry. com © 2012 by Crain Communications Inc. All rights reserved.

Agenda § Know thy Self: Outsource vs. Insource, Vendor Management vs. Partnership, Transformative vs. Enhancement § Top Best and Worst Practices in RPO RFX Process Management § Today’s top drivers in the “Go vs. No Go” RPO Engagement Decision sclancy@staffingindustry. com © 2012 by Crain Communications Inc. All rights reserved.

RPO Adoption Rate Continues to Increase Steadily, YOY Estimated and Projections 45 40 35 30 25 20 15 10 5 0 40% 30% 21% 14% 8% 22% 17% 4% 2005 2006 2007 2008 2009 2010 2011 2013 Source: Staffing Industry Analysts’ 2011 CW Buyer Survey sclancy@staffingindustry. com (P) © 2012 by Crain Communications Inc. All rights reserved.

Know thy Self. . . Outsource vs. Insource, Vendor Management vs. Partnership, Transformative vs.

Insourcing vs. Outsourcing Culture Business Process Outsourcing Does your company currently have any business process outsourcing (BPO) contracts in place? % of Respondents (N=510) Is this with an onshore, near shore, or offshore provider? % of Respondents (N=211) Onshore Offshore Don’t know (4%) Looking forward, do you have any plans for BPO? % of Respondents (N=280) No Yes (41%) Near shore Don’t know Note: Multiple responses allowed. No (55%) Looking forward, will your company outsource more, less, or the same as you did last year? % of Respondents (N=211) More Yes, Onshore Same Yes, Offshore Less Yes, Near shore Don't know Yes, Not sure how Don't know Source: ITSMA, Professional Services and Solutions: 2010 Brand Tracking Study

Efficiency vs. Enhancement vs Transformation The Three Types of Service Deals The types of deals are related to the scope of change, the relationship complexity, and the business value expected from a service delivery relationship. Business Value Transformation Enhancement Efficiency TRANSACTIONAL FOCUS Selective Process PROCESS FOCUS Relationship Complexity MORE ART THAN SCIENCE FOCUS Full Process Source: Multisourcing, Moving Beyond Outsourcing to Achieve Growth sclancy@staffingindustry. com and Agility, Cohen & Young, Harvard Business School Press, 2006

Recruiting Services Engagement Frameworks sclancy@staffingindustry. com © 2012 by Crain Communications Inc. All rights

RPO Solution Models/Variations o o o o o Comprehensive RPO Selective RPO Project RPO Administrative RPO Out-Tasking Recruiter-On Demand (ROD) University RPO Workstream Internal Mobility Workstream Co-Sourcing, Hybrid Delivery Multi-Sourcing v Typically a Combination is deployed…. sclancy@staffingindustry. com © 2012 by Crain Communications Inc. All rights reserved.

RPO Pricing Models & Savings/ Optimization Leverage RPO Pricing Models § § § § § Transaction Fee Success Fee Management Fee Combination Contract Minimums Pay for Performance Levels Contingency Costs Transition Fees Financing Fees Term Savings/Optimization Leverage § Process Optimization § Comprehensive vs Selective § Eliminating Perm Agency Spend § Variable Expense § Partner’s Economy of scale § Shared Services/COE § 10% to 25% plus savings opportunity sclancy@staffingindustry. com © 2012 by Crain Communications Inc. All rights reserved.

Integrating Technology into an RPO Strategy ü Understand Mission for RPO Engagement Strategy ü ATS: Buy vs Leverage ü Define RPO Metrics Protocol ü Integration: Legacy IT Infrastructure & RPO Supply Chain/Social Media Technologies/Tools ü “Universal” Report & Analytics Platform ü Globalization ü Cloud Recruiting: Web 2. 0 Sourcing Networking Strategies ü Beware of Web Elitism ü Change Management: The Vital Consideration sclancy@staffingindustry. com © 2012 by Crain Communications Inc. All rights reserved.

Talent Acquisition Capability Strategy/Roadmap I. III. IV. Phase 1 Phase 2 Phase 3 Phase 4 SCALE / DELIVER IMPROVE / OPERATE TRANSFORM OPTIMIZE/CONTROL XX XXXXX Today I. III. IV. XX XXXXX Six Months I. III. IV. XX XXXXX One Year sclancy@staffingindustry. com I. III. IV. XX XXXXX Two Years © 2012 by Crain Communications Inc. All rights reserved.

RPO Initiative Assimilation Readiness. . ? Competitive Talent Acquisition Strategy Established Current Talent Acquisition Resource & Process Mapped/Analyzed Strong Senior Executive Sponsorship Established Enterprise Stakeholder and Decision Support Roles Established Measure Outsourcing Assimilation & Partnership Mgmt. Capability sclancy@staffingindustry. com © 2012 by Crain Communications Inc. All rights reserved.

Top Best and Worst Practices in RPO RFx Process Management sclancy@staffingindustry. com © 2012

RFx Best Practices 1 st 2 nd 3 rd • Visible and Well-Designed, Decision. Making Criteria • Clear Strategy & Definition of Success • Strong Stakeholder Initiative Team sclancy@staffingindustry. com © 2012 by Crain Communications Inc. All rights reserved.

RFx Best Practices (CONTINUED) 4 th 5 th • Efficient RFx Questionnaire/ Process • Engage only Suppliers who are Competitive…Leverage RFI to Explore & Consolidate sclancy@staffingindustry. com © 2012 by Crain Communications Inc. All rights reserved.

RFx Worst Practices 1 st 2 nd 3 rd • Weak Initiative Mission & Strategy • Poor Decision-Making Criteria & Visibility • Pre-conceived Solution Target sclancy@staffingindustry. com © 2012 by Crain Communications Inc. All rights reserved.

RFx Worst Practices (CONTINUED) 4 th • Burdensome RFx Questionnaire/Process 5 th • Unaligned RFx Instrument/Process to Decision-Making Criteria/Scoring sclancy@staffingindustry. com © 2012 by Crain Communications Inc. All rights reserved.

Today’s Top Drivers in the “Go vs. No Go” RPO Engagement Decision sclancy@staffingindustry. com

Leading “Go/No Go” Decision Drivers Enhanced Access to Quality Talent Yes, If the Choice is Clear & Self -Evident Scaling and Responsive Solution Model Strong Process Visibility & Control No, if Price is your only Differentiat or Yes, if Solid Cultural Fit “Go vs. No Go” RPO Decision sclancy@staffingindustry. com Alignment to Initiative Mission/ Strategy © 2012 by Crain Communications Inc. All rights reserved.

Summary of Successful RPO RFx Engagements v Secure confidence that your organization is assimilation-ready for a RPO engagement… v Incorporate a strong stakeholder team and empower decision-making authority for internal SMEs v Establish a clear initiative strategy and visible/aligned decision-making criteria v Execute an efficient RFx process that produces a competitive and aligned solution that your organization can rapidly adopt sclancy@staffingindustry. com © 2012 by Crain Communications Inc. All rights reserved.