How hyphen brought rationalization and standardization to Nokia’s recruitment process.
Provider background
Part of international recruiter Spring Group plc, hyphen is a recruitment solutions provider, creating strategic advantage for its clients through a portfolio of services including recruitment process outsourcing and managed solutions. Its client base ranges from small and medium-sized enterprises to global organizations, and it operates across a broad spectrum of industries: financial services, telecommunications, IT services, defense, utilities, and the public sector.
Client background
Nokia is a leader in mobility, driving forward the transformation and growth of the converging Internet and communications industries. Nokia’s strategy is to build trusted consumer relationships by offering compelling consumer solutions that combine beautiful devices with context-enriched services.
History
Before the birth of the hyphen/Nokia partnership, recruitment at Nokia UK lacked standardization, with hiring managers responsible for the fulfilment of their own recruitment needs. In 2007, hyphen was charged with managing all permanent and contract recruitment for Nokia’s UK offices via a supply chain. In addition to this, hyphen was to manage all candidates applying for positions via Nokia.com.
When the hyphen contract was implemented two years ago, Nokia had a supply chain of more than 200 agencies. Their spend on permanent was approximately $4.54 million, and the average placement fee was 20 percent (approx. 350 hires). In response to such inconsistencies, hyphen conducted a thorough review of Nokia’s existing processes and implemented a formal supply chain rationalization program, cutting 200 agencies to 80.
Then, hyphen struck new terms with these suppliers, setting fees at around 18 percent for permanent placements and 13.5 percent for contractor placements. This initiative alone saved Nokia $450,000.
During the early part of 2008, hyphen further helped Nokia rationalize its supply chain— moving away from a preferred supplier list (PSL) in favor of a recruitment partnership approach. The partnership approach consists of 20 key suppliers, all of whom are aligned to each of five Nokia units. This approach (managed by hyphen) means that Nokia’s recruitment partners are closer to the business, reducing time and cost per hire, while improving candidate quality and overall service perception.
In 2009, this model expanded to a full, direct hire and talent acquisition model. As well as vendor management, hyphen would now be tasked with responsibility for internal mobility, international mobility, and direct recruitment. This links in with Nokia’s global ways of working, specifically with regards to its HR function, and will save roughly $1.8 million annually.
Value-Added Services
hyphen continues to add value to the contract by supporting Nokia with psychometric testing and team-building events using Myers-Briggs Type Indicators, both in the UK and Finland. hyphen also currently manages the permanent recruitment process up to the verbal offer and acceptance, but once a candidate has accepted a role, the process is passed on to Nokia. hyphen is now looking to extend the process to include on-boarding and pre-employment screening.
hyphen currently supports Nokia by attending and performing assessments. HR interviewing is now a key part of the hyphen service. The hyphen team also supports Nokia in their outplacement program, by helping those at risk with internal searches. A full recruitment audit is currently under way by the head of resourcing for Nokia.
Metrics
As part of the agreed SLA between hyphen and Nokia, the hyphen team works to the ratio of 5 CVs to 3 interviews to 1 offer. hyphen rationalized Nokia’s supply chain from 200 agencies down to 80, and more recently, down to only 20. hyphen struck new terms with suppliers, setting permanent fees at 18 percent and contractor fees at 13.5 percent, resulting in savings of $450,000. hyphen’s 2009 model reduced time to hire to 40 days, and achieved cost savings of nearly $7,600 per hire.
Continuous Improvement Measures
Management information and reporting is produced weekly and monthly. Activity in terms of CV/interview/offer ratios is also reported on, along with time-to-hire, costs, and fees. On a quarterly basis, a formal review takes place.
Strict SLAs are now in place to monitor resourcing performance, but also to manage and monitor all client and candidate experiences of the resourcing process.
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