Resourcing Transformation at a Major Financial Services Company
The client’s challenge
The resourcing function at a multinational financial services and insurance company was coming under increasing pressure to embrace outsourcing to reduce costs and enhance quality. The business had a decentralised resourcing function organised by location. The function was staffed by recruiters largely providing an administrative service that was not delivering the direct hiring capability, quality of service or ‘value-add’ that the business required.
The challenges for the team intensified as the business was facing extremely demanding and mission critical hiring challenges around actuarial recruitment driven by the impending Solvency ll legislation. There was a lack of confidence within the business, and the resourcing function, about meeting these challenges.
The business needed a partner to strategically review the recruitment function that was based across five sites and managing c.2000 hires per annum. Capita was appointed to evaluate and benchmark the performance, capacity, efficiency, capability and skills of the existing recruiting function. At the same time our client needed a detailed analysis of the perception of the recruiting function’s ability to respond to the needs of the business as viewed across a diverse set of business stakeholders. The output of this discovery phase informed a detailed set of prioritised recommendations for change and improvement.
We were engaged to improve both the fiscal performance and the service quality of the team, and to explore the operational and financial opportunities presented by outsourcing as an option. The brief also included the design and delivery of a new target operating model for the resourcing function.
The project was aligned to broader business goals of shared services outsourcing and cost reduction through the development of a credible direct hiring capability. Enhancing service levels to the business was a key driver across shared services, and meeting the staffing challenges related to Solvency ll was at the core of the organisation’s ability to meet regulatory requirements.
Blending advisory consultancy with business transformation, we defined and delivered the technology and tools required to support the new model design and delivery, managed the redundancy programme that resulted from the transformation, realigned and retrained the new permanent recruitment team, and established a new performance and reward framework.
The project began with a fully documented analysis of current structure and outsourcing opportunities. We used performance data benchmarking to inform service design, whilst the insight gained through utilising our diagnostic approach to evaluate perception ensured a fully 360° perspective was considered within our recommendations for change.
We then proposed a target operating model supported by a fully costed proposed organisational structure and cost variance model. We incorporated plans for people, outsourcing procurement, implementation, technology development and redundancy. Looking to the new operating model, we proposed a future internal and external performance framework, a new permanent PSL structure and commercial model, a full set of detailed ‘to be’ process, and RACI maps.
We managed the business as usual environment during the transition and implementation of the new operating model including the selection, procurement, negotiation and implementation of a new outsource service.
Working in conjunction with our client’s operational teams, we provided a hands-on approach to managing the BAU environment, whilst agreeing a pragmatic approach to the delivery of immediate and longer term aspirations, all which led to the delivery of tangible business transformation.
Over a period of 15 months we restructured and realigned the recruitment team, reducing head count by 40%. We procured and implemented a 3 year, £100m contingent worker outsource service and reconstructed the permanent PSL with significantly reduced terms and a new performance management framework.
Our data informed decision making created a broad belief in the potential outcomes of the project, winning buy-in from around the business. Direct hiring cost was reduced by over 300%, recruiter productivity increased by 55%, agency reliance fell by 65%, and the team increased internal customer satisfaction by 35%.
A practical, open and inclusive approach, supported by a documented and proven methodology, created on-going and increasing client trust that led to the success of the project. A carefully constructed, clear and concise communication strategy increased support and commitment to the transformation organisation-wide.
The team that was built successfully met the challenges of Solvency ll recruitment, and the new operating model led by mobile, skills focussed resourcing teams, remains in place to day, as does the outsource arrangement.
The project has resulted in on-going cost reduction and service improvements led by a highly skilled and motivated recruitment function. Cost reduction has been in excess of pre-project set goals, and the resourcing team, staffed by subject matter experts, is delivering true value-add recruiting services to the business.