This special advertising section offers outsourcing case studies that may inspire other organizations to look outside their organizations for solutions.
As the employment landscape evolves, talent acquisition has become challenging for many companies to do alone, particularly when it comes to cost, scale and technology. While outsourcing holds a stigma for some, most companies are realizing the rewards.
In 2008, CIGNA, a global health-service company, looked to RPO to provide administrative support to their hiring process and assist in the regional hiring of call-center associates and claims processors at several locations. They sought a vendor partner that could provide flexible and scalable solutions that fit their organizational model as well as one that possessed the resources and infrastructure to assist in designing an improved process. After conducting a rigorous request-for-proposal process of several recruitment-solution providers, CIGNA awarded their business to The RightThing.
In order to gain a solid understanding of the company's culture and values, CIGNA brought The RightThing on-site to visit various locations and participate in extensive training and orientation. In addition, key relationship managers from The RightThing spent time in the field getting to know a representative sample of individual hiring managers to gain a better understanding of their needs and help create buy-in to the change in CIGNA's recruiting model for service centers. From there, CIGNA and The RightThing worked together to strategize and redesign their current hiring process, which historically relied heavily on temporary agency recruiters.
The Right Team
To ensure The RightThing was able to provide CIGNA with the best candidates, a team of recruiting and sourcing specialists were engaged. This team of experienced recruiters held responsibility for researching and implementing active and passive recruitment strategies to find high-quality talent. CIGNA and The RightThing then worked together to develop a delivery model that included an automated intake and screening process as well as a scalable scheduling and phone-interview team. This new method helped reduce the administrative burden on hiring managers and increased efficiency.
Once final candidates were selected, The RightThing assisted CIGNA in preparing offer letters and coordinating background checks and drug screens. Assuming the role of master vendor, The RightThing continued CIGNA's relationship with HireRight and ultimately lowered vendor cost.
With a new service-center recruiting process in place, The RightThing created a formal metrics system for hiring managers to track aggressive goals. Detailed reports and scorecards included interview requests, interview-to-hire ratios, survey results, fill rates, offer-letter completion times, rejection rates and reasons, and more.
Recognizing success, three months into the partnership, CIGNA expanded The RightThing's services to cover additional divisions. Six months in, CIGNA again expanded The RightThing's services to cover all administrative positions nationwide.
By establishing a vendor partnership and working together as a team, The RightThing has assisted CIGNA in sourcing more than 5,000 candidates, which has led to more than 900 hires. Working together to create a formalized, strategic and more efficient strategy throughout the entire hiring process enabled CIGNA to improve its interview-to-hire ratio to 2:1, reduce cycle-time from 41 days to 33 days and improve retention rates by 6 percent.
Forecasted annual savings for direct hires is $600,000, while the annual operational cost savings is $188,000.
Overall, CIGNA was able to significantly reduce its hiring costs while increasing quality and efficiency, John Kissel, director of HR Operations at CIGNA, noted.
"Our performance indicators with The RightThing focus on improvements in first-year turnover rates and performance ratings of hires," he says. "Our results, from our analytics and manager feedback, demonstrate significant improvement. The RightThing continually partners with us to further raise that bar."
Primary Business: Global health services
HR Outsourcing and Consulting Challenge: CIGNA sought to drive efficiencies in the overall hiring process as well as increase quality-of-hire and reduce cost.