TalentWoo, the real estate industry’s first and only niche recruitment process outsourcing (RPO) service, is proud to announce its 2014 yearly results from its partnership with a large publicly traded REIT. With our client’s continued engagement with TalentWoo’s outsourcing service, the executive team has experienced consistent results in their recruiting process, leading to cost savings and increased satisfaction rates.
In 2014, the real estate company launched a total of 411 approved requisitions on the internal RPO’s job advertising and applicant tracking software platform. As of January 22, 2015, 352 requisitions were filled and closed, and 30 were still active. The company hired a total of 477 employees in 2014, with 282 hires from internal RPO, 166 hires from the internal HR department, and 29 from external recruiting agencies. The recruiting cost ratio (RCR) for internal RPO hires on the platform for 2014 was 8.1%, compared to an industry standard spend of 12.9% and an external agency RCR spend of 20%.
In terms of trends and insights, the rental company decreased its overall hiring by 25% in 2014 compared to the prior year. With the addition of a dedicated RPO provider in Q2-2013, expensive hiring from external recruiting agencies decreased by 78%, down from 126 hires in 2012 to 28 hires in 2014. Based on 2014 total salary figures, the rental company realized $597,131 in cost savings compared to the national average recruiting cost ratio (RCR) of 12.9% and realized $1,476,211 in cost savings compared to an external agency RCR of 20%.
While the company’s property management and construction department hiring remained relatively flat on a year-over-year basis, maintenance and call center hiring increased dramatically from 9 hires in 2013 to 94 hires in 2014. Corporate hires also increased by 40% in 2014. In 2014, there were 320 total terminations, yielding a turnover rate of 42%. At the current turnover rate, the rental company has an ongoing monthly staffing need of approximately 27 hires, excluding growth. The overall recruiting cost ratio (RCR) has varied over the last 5 quarters between 7 and 9%, directly proportional to the number of hires being made, proving internal RPO to be an effective solution for volume hiring.
In 2014, it took 39 days to advertise approved requisitions, screen, test, interview, onboard, and have candidates start employment with the rental company. This is 27% faster than the time it took the average RPO customer – 53.8 days. Additionally, 92% of hiring managers rated their overall satisfaction with the internal RPO process in 2014 as “Very Good” or “Good,” with an average score of 9.0 out of 10. The internal RPO team has been working with HR in 2014 to transition the entire hiring process to the SilkRoad Recruiter module in January 2015.
The company Recruiting Cost Ratio for 2014 was 37% lower than the national average and 60% lower than external agency fees, which implies $597,131 in cost savings, compared to the national average RCR of 12.9%, and $1,476,211 in cost savings, compared to external agency RCR of 20%. The single-family rental company hired a total of 477 employees in 2014, with varying numbers across different departments.
TalentWoo is proud to continue to be a part of the rental company’s recruitment process in the coming years.