RPO & StaffingTalent Acquisition

RPO CASE STUDY: RPO’s Chemical Reaction

Cutting costs with a standardized recruitment solution, Hexion met its company-wide goals after a period of transition

by Jackie Peery, HR Manager, Hexion Chemicals and Laura Eaton, VP, RES

In 2004, Borden Chemical, Inc. (now known as Hexion Specialty Chemicals, Inc. since its June 1, 2005 merger) recognized a need to develop a standardized, salaried recruiting process to increase efficiency and lower costs across its U.S. operations. Borden not only needed a partner to help create and administer such a process but also one firm that could reduce internal administrative burden and recruit many tough-to-fill positions through an outsourcing approach.

In 2005, Recruitment Enhancement Services (RES) and Borden Chemicals, Inc. formed a partnership to create a recruitment solution to fit the company’s needs. Borden Chemical estimated that recruiting assistance would be needed to fill 60 requisitions annually. In addition, Borden would need RES to step in and take over part of the administrative burden associated with each new requisition such as the posting of new requisitions and preparation of offer packets.

Borden also saw the potential for the number of annual requisitions to increase beyond 60. Because of this forethought, RES and Borden put together a flexible recruiting structure that would allow for increases in requisition load as well as recruiting and administrative staff to help compensate for the added workload.

Borden and RES discussed the need to roll out all of the new recruiting strategies through a phased approach. Because the standardized processes would be new to the entire company, it was clear that there would be a learning curve to understanding and utilizing the new model. It was decided that it would be best to implement a strategy that would meet the company’s immediate needs and then present additional enhancements in a time line that would meet additional needs.

After an initial assessment of Borden’s recruitment process, the following strategy was implemented to meet the company’s immediate needs.

Primary components of the recruitment process outsourcing solution are:

  • RES to assign a relationship manager and recruiter to manage Borden’s recruiting needs and process. This primary group is referred to as the Borden Talent Team. If requisition loads increased past the initial 60 requisitions, additional RES headcount could be added as necessary;
  • Development of a standardized, salaried recruitment process for all U.S. locations;
  • Provide training on new salaried recruitment process to HR and hiring managers;
  • Development of a recruitment marketing strategy by job group to include Internet advertising, strategic sourcing, recruiter networking, and employee referrals;
  • Implementation and roll-out of RES’s, RES’s applicant tracking system;
  • Creation of a web-based career site for posting all open positions and accessible to internal associates as well as interested external candidates;
  • Requisition tracking and reporting of all U.S positions; and
  • Development of corporate branding to build employer recognition.

In addition to the primary components listed above, the Borden Talent Team also maintained the following administrative tasks at the outset:

  • Interview scheduling that included making travel arrangements, preparing candidates for interview logistics, assisting candidates with travel reimbursements, and preparing interview packets for the hiring team;
  • Third-party vendor management for background verifications and preferred recruiting vendors;
  • Offer-packet generation;
  • Providing ongoing recruitment marketing; and
  • End-user and candidate support and training for all locations.

Additional enhancements to be added to the RPO solution included:

  • Phased implementation of web-based internal mobility system, employee referral program, and eventually some global integration;
  • Hourly recruiting across the U.S;
  • Quality-of-hire reporting to determine quality and retention of employees hired through the new recruiting process;

Increased corporate brand awareness through an enhanced careers Web site and advertising in relevant arenas.

The decision to outsource recruiting has greatly improved Hexion’s time-to-fill, cost- per-hire, and overall recruiting practices. In June 2005, Borden Chemical, Inc. went through a merger and acquisition with three companies to become Hexion Specialty Chemicals, Inc. As a result of the recruiting process that Borden and RES had put in place earlier that year, Hexion was able to roll out the new process company-wide to help save time and money. In 2005, Hexion’s time- to-fill improved 61 percent, and the cost-per-hire dropped 47 percent.

Today, Hexion and RES continue to work together to develop new ways to improve recruiting processes, and we continue to expand our relationship to possibly include global recruiting. 

Tags: RPO & Staffing, Talent Acquisition

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