No business function operates in a silo and procurement is no exception. Internal relationships are key to delivering strategic and savings objectives. However, many procurement professionals find it tricky to know where to start.

It’s especially difficult when it’s the first time an organisation is exploring how to build a business case for their recruitment needs.

We conducted a survey to benchmark HR Services Procurement Best Practice. By identifying the best approaches for procuring outsourced recruitment resource, we can help other organisations to build a business case.

In this blog, I'll explain key observations from our best practice benchmarking survey, and translate our findings into tips for your own HR business case.

How to build a business case for outsourced recruitment services

Building a strong business case for outsourcing the hiring process requires an awareness of a number of factors including:

• Different needs of decision makers.
• The current state of resourcing and the talent market.
• Capability and importance benchmarks.

The following key stages should stand you in good stead to gain engagement with your outsourced recruitment business plan.

Gather different perspectives to prevent obstacles when measuring ROI in recruitment

Possibly the biggest single mistake when considering a Managed Service Programme (MSP) is not fully understanding the different needs and expectations, as well as the current state of resourcing across the diverse array of stakeholders who will only receive the services once they go live.

When building a business case for MSP, focus on combining needs, wants, and priorities. These elements form an integral part of the Hays consulting toolkit. We then consider a phased approach to meet everyone’s requirements.

Failing to complete this planning stage often results in a generic specification. Ultimately, a lack of understanding results in services that don’t address the niche requirements for more complex areas. In the long term, a loose or unclear business case can create barriers in the adoption of services.

By working together, we can maximise value for money. Collaboration also allows us to deliver an enhanced level of business benefit that drives ROI faster.

Analyse your data to estimate spend and usage

Costs are often a central component of any business case - especially when trying to measure ROI in recruitment. For those seeking an MSP service for the first time, you must calculate your existing recruitment strategy costs first. You’ll require access to operational, as well as spend data, and this exercise often involves painstaking analysis of spend reports, as well as classifying spend by knowledge of supplier names and ‘gut feel’.

But this doesn’t account for miscoded spend items, or those deliberately hidden. Working with an MSP provider under an NDA can make the heavy lifting and data analysis on spend far easier.

Estimating spend and usage also involves understanding the population size of the non-permanent workforce. By gathering essential data, we can ensure we aren’t wasting recruitment efforts or driving up cost per hire. We can also move forward by making informed decisions on allowing your MSP more controls.

Bring your managed services champion into discussions from the outset

There is nothing worse than a soft launch of a new spend management programme, without an appropriate mandate, or at the very least, strong stakeholder engagement. My experience of operating MSP programmes around the world demonstrates as much.

Your business case for outsourced services must include a clear communication and rollout strategy, that includes information on:

• The current situation, or why we need to engage an outsourced recruitment provider.
• The benefits we will gain from outsourced support.
• The stakeholders who are engaged with the project.

Without these elements, the effort of a new MSP rollout is often unsuccessful. Maximising the immediate benefits of an MSP and achieving the long-term return on investment can only occur with internal support.

How can a high-level internal champion impact the outcome?

The presence of an internal champion makes a significant difference to new recruitment strategies. Engage with stakeholders who are prepared to add their political weight to the adoption of the programmes.

With the support of internal champions you can:

• Remove resistance to change.
• Promote enthusiasm for your employer brand.
• Reinforce the benefits of positive candidate experiences.

Our studies show that organisations realise the full benefits of outsourced recruitment four times faster with a good internal champion in place.

Structure your approach to deliver sustainable, long-term change

Your approach to building a business case for outsources recruitment is key. My advice for ensuring business buy-in, and ultimately success, is simple:

• Get senior engagement from the outset to sponsor the changes required by the programme.
• Canvass different perspectives from across all of your non-permanent workforce users. This will help to ensure you understand their needs.

A well-scoped programme will deliver significant benefit to most organisations. Successfully setting up the early stages can be crucial. A well-articulated business case at an early stage can make the difference between short-term tactical gain and long-term sustainable change.

How Hays can help

Using benchmark findings from our service recruitment survey, we are able to engage more fully with buyers and end users. In doing so, we can apply relevant learnings to improve the design and procurement of our services - all of which are essential for building a strong business case.

If you need support in building a business case for recruitment process outsourcing, our workforce experts can talk you through the benefits.

Learn more on securing business engagement for MSP

• Frequently asked questions about MSPs
• Your strategic guide for managing contingent talent
• How to achieve total talent management

Or if you have any questions on how to build a business case for MSP, get in touch.