By Elliot H. Clark
Because of our HRO Today Bakerâs Dozen customer satisfaction survey franchise, many companies will seek us out forÂ advice on further interpretation of the data or for help leveraging it in a procurement process. One of my most vividÂ memories of working with a practitioner on vendor selection was from one of worldâs largest banks on a large RPOÂ deal. One of the vendors bidding on the RPO contract was already delivering MSP services to the organization andÂ felt certain they would win. The two met at the HRO Today Forum in Las Vegas about seven years ago. The client hadÂ several meetings at the Forum with prospective RPO firms and first eliminated the provider holding the MSP dealÂ because they âdidnât want to put too many eggs in one basket.â Today that mentality seems silly. Now, the trend in HRÂ and procurement is to look for companies that can provide a more comprehensive solution setânot less.
Indeed, the emergence of total workforce solutionsâthe combining of RPO and MSP services to subsume permanentÂ and contingent hiringâis only one example of this phenomenon. At the Forum mentioned above, the head of HRÂ operations for a big box retailer in the electronics industry was touting that her group managed 73 vendors includingÂ multiple RPO, MSP, background screening, relocation, and learning outsourcing providers. I remember wonderingÂ how they could celebrate what, frankly, sounded like an inefficient mess. But that same phrase about putting eggs inÂ baskets was used. Imagine how inefficient a dairy farm would be if they shipped only one egg per outbound truck?
The truth is that HR has gotten more sophisticated, as have provider service offerings. Today, we have entered theÂ era of the âtrusted partner.â As I talk to both providers and CHROs, they indicate that in healthy partnerships, HRÂ approaches providers and asks for help solving a problem. That problem may involve hiring, leadership development,Â technology implementation, or all of the above. Todayâs providers need to be able to offer such broad-based solutionsÂ because increasingly, HR seems to be moving toward, yes, yet another clichÃ©d phrase, seeking âone throat to chokeâ toÂ accomplish a strategic objective.
This makes sense. If you hire poorly, people will leave sooner. If you have poor leadership or mistreat existing workers,Â negative reviews on social media sites will make hiring much harder. If you have poor compensation and benefits orÂ weak diversity programs, you will be mired in lawsuits about equity or behavior. As complex as HR is, its purpose isÂ really one thing: hiring and retaining the most talented and productive workforce an organization can afford withinÂ its budgetary parameters. That sentence is based on comments from several Fortune 500 CEOs I spoke with about theirÂ corporate responsibility programs during the years we owned CR Magazine (we divested that title last year). I alwaysÂ managed to sneak a few HR questions in the discussion of the company and one of them was what the CEO wantedÂ from HR.
If HR can be summarized that simply, fine, but the achievement of that goal is an incredibly complicated maze ofÂ interconnected programs and policies. The providers who can offer a supermarket approach that addresses multipleÂ dimensions of complex problems will be the winners in the future of HR services. So next time you are in a bid meeting,Â ask a question providers love to hear: âWhat else you got?â Because the ability to partner on multiple fronts will makeÂ HR more efficient, the providers more accountable, and, we hope, the workforce more talented and engaged with theÂ mission and success of the employer.