Release cash Reduce cost Manage risk Improve ROI

T: +44 (0)20 7605 1600 E: info@4cassociates.com W: www.4cassociates.com

An update examining recent developments in the market for HRservices, for people working in HR or managing HR costs

HR Newsletter September2012

Large technology players are increasing theirpresence in the HR management field

The world of HR solutions has undergone somedramatic changes in the past few months and moreare on the way.

Oracle Corp. purchased HR software company TaleoCorp. for $1.9 bn, SAP acquired employeeperformance management company SuccessFactors for$3.4bn and, most recently, IBM agreed to acquireKenexa, a HR software manager, for $1.3bn.

Why the rise in acquisitions? Large enterprise softwarefirms are looking to modernise their offer by makingcloud-based services available to their clients. Thistechnology looks set to replace the previous modelbased on selling software licences. The shift to a cloudbased offering is not exclusive to the HR management

space and is likely to take place in other businesssectors.

This new direction could benefit organisations withstrong relationships with key technology companies,and enable them to leverage their existing contractsto obtain better service. On the other hand HRprofessionals need to remain cautious as the decisionmaking power could gradually shift towards theircolleagues in IT. There is little doubt that HR teamshave already identified the benefits of working closelywith IT but now, more than ever, is the time tostrengthen these relationships.

Acquisitions in 2012

Release cash Reduce cost Manage risk Improve ROI

T: +44 (0)20 7605 1600 E: info@4cassociates.com W: www.4cassociates.com

4C Associates has the insight, technology andexperience to drive rapid profit improvement.We offer specialist consulting, technology andmanaged services to transform your costs. Weapply industry and functional expertise to deliverexceptional benefits.

Our team works with leading organisations across arange of cost categories including Direct Materials,Services, Marketing, IT, HR, Logistics, SupplyChain, Property and FM. We apply deep practicalknowledge, combined with process and changeskills, to deliver reduced costs and increased profits.

To discuss how we can transform your costs pleasecontact us at:

Tel: 0207 605 1600Web: www.4cassociates.comEmail: Petra.urhofer@4cassociates.com

HR and Marketing to work together to make themost out of Social Recruitment.

When asked for his advice on using Social Media forrecruitment, Vasco Castro, Head of Research &Consulting at Potentialpark Communications, said;“Do not abandon your social media presence. Makesure you pick the right channel and keep up theengagement”. At a time when the number of peopleinteracting through social media outlets continues toincrease this is sound advice.

The difficulty for HR professionals is often selectingthe most effective channel. Given the number ofplatforms in existence, from industry giants LinkedInand Twitter to emerging platforms including Pinterestand Google +, HR can greatly benefit from workingwith marketing to develop a tailored strategy. Usingtheir knowledge of online advertising, Search EngineOptimisation and monitoring abilities, marketingprofessionals can provide valuable support to their HRcolleagues.

Choosing the Correct Payment Method for yourRecruitment Process Outsourcing Provider

When selecting an RPO provider, it is essential toensure that the correct payment model is instilled ifthe business is to reach its goals. Three paymentmethods exist: Cost plus, Blended and Transactional.Given the current economic outlook, 4C expects thepricing model to continue to move towards atransactional basis as clients seek to limit spendingwhen recruitment levels are low.

Regardless of the payment method being used, bestpractice dictates the insertion of a minimum revenueclause in favour of the RPO provider. This will enableorganisations to build long-term, sustainablerelationships with their RPO providers and should beinserted if not already in place.

Darren Morris, Asia Pacific Programme Director atHudson RPO, recently said; “In an RPO situation trustis earned. It is difficult for trust to be given in animplementation where there is often no existingrelationship”.

In 4C’s experience showing that you value yourrelationship with a provider by guaranteeing aminimum payment is paramount for a successfulcollaboration. The last thing you want is for your RPOprovider to find itself in a loss-making contract.

In the words of Gwyn Burr, Customer Service andColleague Director at Sainsbury's; "We are focusing onskill sets, rather than people moving within specialistdepartments [...]It is about how to ensure colleaguesare absolutely aligned to the bigger strategic growthplans."

4C Associates believe that this collaboration is key, asit enables procurement to focus on cost andemphasise ROI. For example, procurement coulddecide to increase advertising spending on a websitewhich attracts higher quality recruits. The sooner HR,marketing and procurement get together to discuss asocial media strategy, the sooner the business willreap the benefits.