Recruitment
A Scanmarket Savings Snapshot on Service Agreements
eAuction on Recruitment generated savings of 62%.
Challenge
Our client had used the same agency for recruitment for a long time - the services included recruitment of permanent, temporary and contractor positions within a Head Office, Retail Shops and a Contact Centre. They now looked for a, potentially new, agency to secure a new 3 year contract agreement. Previous spend was £1,200,000 a year and included service provided for locations all across the United Kingdom. Internal stakeholders were very reluctant to switch agency - so procurement had to prove the potential savings were high and that switching would not compromise service. The recruitment category heavily relies on a good relationship with the agency to get the best employees.
Solution
Scanmarket facilitated a data collection exercise - All requirements were captured and included in the tender documents. The tender was split into sub-parts to enhance competition:
- Permanent recruitment
- Temporary staff for contact center
- Recruitment of General and Deputy Manager positions
58 suppliers were contacted and a total of 29 suppliers were pre-qualified for the eAuction based on a thorough RFP.
Result
Our client received 1,110 bids in 50 minutes and achieved an average 62% savings on the 3 sub-parts of the eAuction amounting to £744,000 saved every year.