Scout helps banking giant curb their search-firm spend

As one of the world’s top 10 banking companies, this financial giant employs more than 200,000 people globally and offers a range of banking, investment, financial and risk management services.

Situation

Although the bank was no stranger to third-party recruiters, it lacked a streamlined process for using them. Having to manage over 200 different search firms with no centralized system to do so–and to reimburse each one individually–created logistical headaches and a serious administrative burden. In short, the banking leader needed to streamline the process and tighten its financial belt when it came to using third-party recruiters.

To add to the challenge, the company needed to fill 150 requisitions and 2,500 positions across 18 different locations in the U.S. They wanted to improve their fill rate but didn’t have a centralized way for their TA team and third-party recruiters to forecast and share hiring timelines and targets.

Goals

  • Centralize contract management to create a more efficient process and improve compliance.
  • Streamline the hiring process to bring transparency, measurability and manageability within their ATS.
  • Reduce the cost of using third-party search firms without sacrificing candidate quality or time to fill.
  • Streamline the payment of third-party search firms.

Achievements

Scout’s direct-hire solution helped this Fortune 500 company save costs, streamline the contract management process and improve fill rates. Ultimately, with Scout on board, this banking company reduced third-party search firm fees by more than $9 million in just three and a half years by testing fees and letting the competition drive savings and by identifying duplicate candidates in their ATS. Through this partnership they:

  • Centralized compliance by consolidating all search firms into one contract with the same terms and conditions.
  • Brought the third-party search-firm hiring process into their existing permanent hiring process within their ATS at no cost.
  • Gained objective, AI-driven performance ratings of recruiters, allowing them to strategically manage their providers and employees.
  • Increased access to highly-rated specialty search firms in the Scout marketplace, without having to source new talent providers themselves.
  • Reduced admin burden on Accounts Payable by consolidating all search firms into one invoice paid by Scout.
  • Gained insight into where the highest concentration of active talent for specific roles reside so they can target their efforts.
  • Created recruitment strategies, including adding specialized vendors by location, to support the needs of their various regions.
  • Benefitted from marketplace recruiters with a successful history of matching skills in specific geos.
  • Tested fees to determine what it took to get the marketplace to produce the right volume and quality of candidates.
  • Implemented two-way communication, transparency, reporting and accountability
  • Developed and tracked progress against hiring and spend forecasts.
  • Gained an added advantage of all third-party search firm spend being counted as diverse supplier spend because Scout is an MBE-certified provider. This helped offset the declining diverse supplier spend in other areas of the company.