HRO Today: December 2007/January 2008

 

Thirsting for a Recruitment Solution

The Honickman Group finds recruitment costs escalate after implementing RPO, but for SVP of HR, the costs are more than repaid in business results.  

If you follow conventional wisdom about outsourcing recruitment services, then you know cost savings are a primary driver for turning to a third party. But when soft drink bottler The Honickman Group turned to an outsourced solution, it more than doubled its recruitment costs to more than $1 million.

A case of RPO gone wild? Actually, for the Mid-Atlantic bottler, whose headquarters are based in Pennsauken, NJ, the outsourcing engagement has been transformational, according to company officials. Positions are filled more quickly, vacancies that used to plague Honickman during its peak seasons are no longer left unmanned, and the quality of candidates has improved as well. Under a variety of measures, the engagement appears to be wildly successful. Still, what about that gigantic spike in recruitment costs?

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