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HOW TO REDUCE RECRUITMENT COSTS 

It’s an all too familiar conversation; we’re cutting your budget. It can feel like you’re constantly being asked to do more but spend less. Outsourcing your recruitment enables you to tap into resourcing expertises and economies of scale that would otherwise be impossible. From knowing what method will get you the best return to reduce wasted spend to automation increasing efficiencies, outsourcing can help you to drive value from your recruitment process.

Dedicated resource to meet budget needsMany think the biggest savings are achieved when you first implement your outsourcing solution, but that doesn’t have to be the case. Procurement and HR teams are always pushing to be more effective, so when it comes to reviewing your existing supplier it can pay to see what a fresh approach could offer.

The result
By providing a dedicated resource team, based offsite in one of our local Hays offices, supported by compliance, audit, analytics and 3SS support from our shared service centre we managed to reduce a public sector client’s costs by 50% compared to their previous provider.

Recruiting across Administrative and Clerical, Finance, Housing and Planning, HR, IT, Legal, Manual Labour, Management, Marketing, Procurement, Social and Healthcare (Qualified), Social and Healthcare (Unqualified), Trades and Engineers our neutral vendor MSP is based on a fixed price charge, which thanks to our efficient approach is also lower than their previous supplier offered.

Monthly reports, supported by quarterly reviews, allow the client to track the service performance and their savings constantly, to allow for service evolution and identification of where further savings can be made.


Reducing costs with redeploymentRedundancy, a word that spreads fear into the heart of a business. As one of the most traumatic events an employee may experience it’s often one of the worst jobs HR teams have to manage particularly if it’s just seen as a cost saving exercise. However, the negative effects can be reduced by sensitive handling of redundant employees and those remaining. Effective redeployment is just one such method that can help ease the impact. However, it can be a tricky situation to handle with so much to focus on in addition to your day to day. Sometimes having someone one step removed can ease the process, which is why when the HR team for one of our largest banking clients were faced with the requirement to manage the redeployment of their existing employees who were at threat of redundancy, they turned to Hays.

Our team conducted an in-depth review of the existing resourcing process within the bank and remapped this to incorporate pro-active redeployment. Once an employee was identified who was at threat of redundancy they were interviewed to establish their skills, preferences, desired location and current package. They were then added to an internal talent pool, which meant they would be contacted before external talent about suitable roles.

The result
We kept in touch with each individual, ensuring regular communication, providing advice, guidance and coaching to ease the transition. Over 24 months we redeployed 1,800 people, with the last 65 redeployments providing savings of £2 million in redundancy costs.


Master vendor to maximise valueEnsuring one of the leading global cities keeps moving is no mean feat, keeping the costs down while keeping it all moving is part of the territory. In a bid to help do this a local government body decided to consolidate their recruitment in a master vendor arrangement, with a view to significantly reducing their expenditure, whilst ensuring a transparent and seamless process and reducing the strain on in-house staff.

Following a competitive tender exercise they appointed Hays as their chosen partner to consolidate all their permanent and temporary recruitment conducted via external providers.

Initially they conducted separate tenders for Professional, Administrative and IT disciplines. However, they soon realised that even greater value for money could be achieved by appointing Hays as the service provider for all three skill set groups, responsible for all temporary recruitment and external permanent recruitment campaigns not delivered in-house, managing £70 million in contingent worker spend per year.

This includes an on-site team of staff, integrated with the local government organisation. Responsible for ensuring their HR processes are followed, these integrated team members manage all line manager relationships to ensure accuracy, timeliness and quality of candidates in the recruitment process flow contact to maintain a consistently high quality of hire outcome.

The result
This has led to a direct source rate of 95%, in addition to a three day turnaround for submissions from application.

Most importantly costs savings have been significant, delivering in excess of £4 million in year one.


Talent pooling to create cash reservoirsMany a first time MSP buyer has turned to us to help them manage their increasing contractor spend, seeking visibility, control, reduced risk, better quality candidates and of course cost savings. An Australian energy pioneer found themselves in this very situation due to an expanding contractor population.

They appointed Hays as responsible for end to end management of direct and third party supplier sourcing, on-boarding and payrolling of all temporary staff nationwide, covering all temporary engagements across all HR owned business units including professional, technical and clerical roles, both office and field based.

At go-live, the temporary workforce was 180 strong, and has reached 550 at its peak. To deliver against the 24 hour response time and reduce costs Hays ensured they developed and managed talent pools for the gas producer by:
• Identifying candidates with relevant skills and cultural alignment
• Social Media initiatives
• Leveraging candidates from permanent recruitment campaigns and career sites
• Pre-screening candidates to ensure they meet skill set and cultural requirements
• Ensuring regular contact with the talent pool, providing an opportunity to update candidate records

The result
Cost savings of approximately $1.8 million achieved during the initial transfer of contractors alone.


A direct source of savings
Multiple suppliers, non-compliance, poor rate card transparency, inconsistent contingent worker experience and varying levels of hiring manager capability, it’s not a surprise many large corporations turn to MSP to improve visibility and control of their contingent workforce. Particularly considering the impact on cost.

Seeking to gain a better control a leading personal banking firm turn to Hays Talent Solutions. The solution? An enhanced Managed Service Provision (MSP) which included dedicated sourcing via delivery teams in multiple locations, a Contractor Management Office (CMO), in addition to our Vendor Management System (VMS) 3 Story Software (3SS).

The result
With full ‘Procure to Pay’ lifecycle management responsibilities we reduced the number of contingent workers sourced via third parties to less than 10%.

Overseeing direct sourcing, third party supplier management, compliance, delivery and management of the VMS, on-boarding, induction, payroll and off boarding, we delivered them annual savings of 7.5% of spend under management, despite a 30% increase in contingent headcount, as well as delivering benefits such as raising compliance levels from 50 to 100%.


Consolidating suppliers to reduce costsIt’s easy to do, the more you buy of something, the more aware of different suppliers that can meet your needs you become, opening up whole new worlds of supply. So it’s understandable that as one of the world's leading suppliers of mail and logistics services, with over 500,000 employees in more than 200 countries and territories, that you could easily end up with a pretty large number of recruitment suppliers.

However, it was causing the logistics and communications giant a problem. High administrative costs, a lack of transparency and consequently often excessively high direct and indirect costs.

In a bid to streamline their business processes and reduce their annual expenditure they decided that around 150 existing non-strategic suppliers, as well as new vendors, were to be bundled, organised, coordinated, ordered and billed via a Managed Service Provider.

The result
Through the bundling of non-strategic IT and management services the number of suppliers has been reduced and long-term stability achieved. Plus the German based mail and logistics group enjoys faster access to specialists when it comes to the procurement of services, as well as a better overview of current developments in the market, as monthly reporting delivered by Hays encompasses all the necessary facts and information identifying further optimisation and savings.

The Head of Department Services, Germany said: Due to measures introduced in cooperation with Hays we have already realised significant cost and efficiency savings. Together with Hays we are seeking more and more opportunities for optimisation and continually investigating whether and where we can establish our business in other countries and product groups.

Contact us to discuss how we could help you to reduce your costs

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