Out-sourced RPO Model
AGL is one of Australia’s leading integrated energy companies and largest ASX listed owner, operator and developer of renewable energy generation in this country.
AGL has experienced rapid growth with increasing demands on People resources, both Permanent and Contingent. The out-sourced RPO model was preferred based on the business structures and challenges. AGL wanted a single provider to manage both permanent and contingent workforce under “AGL Careers Centre of Excellence.” This will significantly reduce the reliance on external agencies, providing AGL with an outsourced, yet internally housed and cost effective option for the majority of its recruitment needs. Future-step was selected as the RPO provider. Tangible savings of over $10m p.a. were identified with payback of less than 12 months.
RPO Contingent Workforce Program
Having analysed the market Future-step selected Provade to assist them in achieving their objective of gaining a systematic and centralised control of AGL’s contingent labour recruitment spend across all operating units.
Key drivers for the client were:
- Best Talent: providing a direct sourcing capability through AGL’s talent community whereby 80% of all required demand will be sourced directly. This strategy builds deep relationships with AGL talent community and potential employees.
- Reduced recruitment costs: under
- the direct sourcing model AGL will eliminate the ongoing agency margins resulting in lower people costs. Recycling of good talent also reduces sourcing and on-boarding costs.
- Visibility of spend and all transactional data in real-time to enable proactive cost management.
- Visibility of personnel on site(s) to assist in security, WHS compliance and management of intellectual property generated by contract resources.
- Delineation of contract labour requirements from true consulting
- Elimination of errors and inefficiencies
Securing contingent talent through the RPO direct sourcing model is being done through Provade. The client has multiple operating units and recruits across a large range of roles, including customer service, geologists, engineers, field & plant operators, maintenance roles and corporate professionals all with varying processes and controls and on-boarding requirements. Having a technology that manages the sourcing, on-boarding, time & attendance and billings was critical.
Main Business Results Achieved by the Program:
- Greater than 80% direct sourcing from AGL talent community
- Cost savings for Contingent Program of $10m over a 3 years period
- Decrease in manual invoice entry into Accounts Payable of 22000 invoices a year
- Standardised engagement model throughout all operating entities
- Removal of negotiations on each bid process together with standardisation of price
- A 70% improvement in Internal efficiencies through deployment of Provade
- 80% Reduction in supplier agency base
- 38% faster time to fill roles.
- Increase in quality and retention of candidates via talent community
- Manage Contractor performance to ensure best contractors engaged
- Use of Provade Analytics to measure program benefits and service level
RPO Program highlights
- · Perm & Contingent
- · 80% Direct sourcing model through talent community
- · Only 20% sourced from Agencies
- · Established AGL Careers as central service centre (Futurestep team)
- · Provade VMS used to source and manage contingent workers
- · Improved on-boarding compliance Annual Savings Achieved
- · Contingent Labour: +A$10M or (13%)
“McSweeney added that a critical component in supporting the Contingent RPO piece was the use of VMS technology. Futurestep partnered with Provade to provide an end-to-end solution supported by a powerful business intelligence-reporting engine. We have since introduced mobile capability for our recruiters and approvers that has been a big time saver. Specifically, the VMS has delivered significant process efficiencies, enforced our business rules and provided real-time reporting across all key metrics plus a single source of truth for our program benefits.” Stephen McSweeney, Talent Acquisition Manager