Keys to MCRPO Success: Well-Defined Metrics

As employers continue to deal with an ongoing talent shortage that shows no signs of letting up, an increasing number of companies have recognized the benefits of looking beyond their regional and national borders to find qualified talent. And there is a growing trend among employers to use the same outsourcing specialist to conduct recruiting activities in each country they wish to find talent.

While more companies have embraced multi-country recruitment process outsourcing (MCRPO), these engagements have produced mixed success. As this nascent market continues to grow, both employers and MCRPO providers need to use well-defined metrics as a basis for defining desired outcomes and measuring the provider’s performance and the program’s success. When the right metrics are in place, the MCRPO buyer and provider can also build a stronger relationship that enables both sides to collaborate effectively and hire the right people.

The benefits of using metrics throughout the MCRPO engagement are highlighted in Everest Group’s “Multi-Country RPO: Service Delivery Model and Best Practices” report, which shows that 78 percent of companies with structured metrics are satisfied with their MCRPO relationship, while 80 percent of those without metrics are dissatisfied. These statistics are no coincidence; when metrics are communicated up front and included in the initial service level agreement, both parties can be in full alignment right from the start, leading to more positive outcomes.

But which metrics should be used? Hard numbers, such as time to hire, new hire retention rates and the number in the talent pool are obviously important in gauging the success of MCRPO. Also crucial are perception-based metrics — for instance, satisfaction levels for managers, candidates and new hires — that demonstrate the impact of MCRPO operations on the hiring processes. Also consider and measure the sources or channels used to hire, so the organization can build the continued business case for MCRPO.

MCRPO metrics are also necessary to ensure targeted outcomes are met — and that the provider understands the penalties and remedial actions required when they are missed. Different targets are needed to account for the heterogeneous talent market in multiple countries and the resulting variations in service delivery; metrics should be employed to capture detailed information for each location. If uniform metrics are used to measure targets, this can set up unrealistic expectations of the provider in areas of lower hiring volume.

It’s no accident that those companies that measure success experience positive outcomes. The right metrics are necessary to measure results of the engagement and ensure continued success. While the organization should use metrics to measure the provider’s performance, the provider should also play its part by supplying regular reports and status updates. When both parties work together to evaluate and measure results, they can continuously improve their relationship and ensure that the right talent is sourced, hired and developed to meet the organization’s goals.

Rebecca Callahan
Rebecca Callahan is Rebecca Callahan, Group President, Professional Solutions, Randstad. She can be reached at rebeccacallahan (at) sourcerightsolutions (dot) com.

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