Our client, a mid-sized automotive supplier and manufacturer, was experiencing a variety of talent acquisition challenges. They were competing for talent with much larger tier-1 automotive organizations who had better recognized employment brands in a marketplace with the lowest unemployment rate in decades. Further complicating their dilemma was the short supply of talent in many of their target hiring areas: engineering, IT, supply chain, quality management and finance.
These factors, combined with the talent acquisition team's lack of strategy, structure, technology and meaningful reporting drove our client to rely on expensive and inefficient third-party recruitment agencies. Another major challenge was our client’s multiple manufacturing plant environment where hiring was decentralized, processes were inefficient, dedicated internal recruitment resources were lacking and recruiting methodology was undefined. The client’s talent acquisition model lacked consistency, transparency and compliance across their organization. In short, the client knew they needed a change in direction and expert help.
It became apparent that the client needed immediate assistance, as well as a long-term strategic talent acquisition solution. DZConneX (DZX) was able to provide both. While conducting the formal program implementation, DZX began providing immediate recruitment support for some key locations. DZX was able to drive needed activity on critical roles prior to a full program implementation. This “Quick Start” approach allowed us to gain valuable insight and build working relationships with key stakeholders, further facilitating a seamless and effective program launch.
Post-implementation, a consistent and compliant talent acquisition process was instituted – one enabled with a proprietary technology stack. Technology was focused on creating better distribution of job advertisements through artificial intelligence (AI) and machine learning, as well as passive identification and engagement of targeted talent pools. For the first time, the client had real-time performance reporting on talent acquisition efforts, driving better decision-making and communication with client stakeholders.
Finally, we focused on the talent side of the equation and provided talent for the program with a dedicated Delivery Team who possessed the appropriate functional and industry experience. DZX collaborated with the client to improve brand messaging in order to attract top talent. A stronger brand impression was successfully created by repurposing and enhancing marketing materials for the talent acquisition process.
DZX’s rigorous customer integration process helped ensure a quick program adoption. Within 6 months, our customized RPO model helped drive significant quality improvements, while reducing recruiting expenses which resulted in an immediate improved ROI. Client talent acquisition costs were 50% less during the first year of our program largely due to the elimination of third-party agency fees along with faster hiring of qualified talent.
The newly adopted processes and integrated suite of recruitment technologies resulted in noticeable improvements. First, sourcing tools drove marked increases in overall qualified candidate traffic. Optimization of the career page and other process enhancements meant that fewer candidates voluntarily exited the interview and selection process. Finally, more efficient and effective utilization of technology lead to an enhancement of the overall candidate experience.
DZX also performed above program target KPI’s. We demonstrated a strong understanding of the client’s total talent needs, as demonstrated by the submittal to selection scores. Time-to-fill measures for open positions were reduced by more than 40%, to approximately 45 days. Additionally, client satisfaction scores exceeded targeted standards. Client HR representatives spent less time focused on talent acquisition, allowing more time to focus on strategic business objectives.
Industry Fast Facts
Bureau of Labor Statistics
- 3.5% unemployment rate - lowest rate in 50 years
- 1.6 million more new jobs than those unemployed
- Demand for engineers in automotive sector forecasted to grow at 9% per year through 2026 (one of the most difficult-to-fill positions)
- Over 1 million employed in the total automotive sector
- Accounts for more than 1/3 of U.S. employment
- Mid-market revenue forecasted to grow by 4.9% during next 12 months
The auto industry is undoubtedly a driving force in the U.S. economy. The $953 billion industry makes up close to 3.5% of America’s GDP and employs over 1 million workers across the country. The industry also relies heavily on middle market manufacturing companies to supply materials and parts. Every single state is impacted by the automobile industry.
Mid-Market manufacturing plays a crucial role to the auto industry as well as to the economy. Mid-Market manufacturing accounts for more than one-third of U.S. employment and equates to about 40% of the total GDP. Our client was not only competing with other Mid-Market companies for the same talent, but also with large tier 1 automotive suppliers.
So, how does a mid-sized automotive supplier and manufacturer stand out among much larger organizations who have recognizable brand names, especially when there’s a short supply of talent in the target hiring areas including engineering, IT, supply chain, quality management and finance? Additionally, this client had a decentralized talent acquisition process with undefined recruiting methods, and they lacked committed recruitment resources and tools. That’s where DZX's Recruitment Process Outsourcing (RPO) team stepped in.
Taking The Wheel
It was clear that the client needed both an immediate and a long-term total talent solution. Long-term, the client’s current model lacked consistency, transparency and compliance across their organization and would need to be updated. Short-term, the client needed to fill critical roles immediately, but there was a limited market supply of candidates. DZX was able to deliver both a short-term and long-term solution. DZX began to create a solution for the client immediately. First, the RPO team provided support while working through the implementation process. Target areas were chosen for key locations with the client’s input based on the critical talent acquisition needs.
DZX quickly established an innovative, consultative RPO model. We reviewed and recommended technology, and we implemented talent acquisition improvements that streamlined and added structure to cumbersome processes. A high-touch candidate and hiring manager experience were delivered. We also provided complete talent acquisition support led by dedicated RPO teams possessing strong functional and industry expertise and trained in behavioral-based interviewing techniques. The teams instituted an effective passive sourcing strategy, filtered the applicant flow, screened candidates for appropriate fit, and developed talent communities for hard-to-fill positions.
After the program’s launch, DZX reassessed deliverables and identified additional opportunities to improve the talent acquisition process. Client training aligned to the client’s culture, videos and program guides were added. In addition, we provided the client’s HR Team with tools like automated reference checks, while working together to effectively train hiring managers.
Since client integration is not complete with one step, we defined an ongoing strategy during implementation, and then continued to identify additional process improvements after initial program launch.
For the first time, a consistent and compliant talent acquisition process was instituted with improved technology. The client was now able to access better ways to distribute job advertisements, engage with target candidates and had improved reporting through DZX's proprietary technology stack. Our customized RPO model resulted in significant improvements. The interview-to-hire ratio beat expectations and industry standards. Time-to-fill was reduced by more than 40% meaning less time required for talent acquisition and more time for business strategy. Because of the elimination of third-party agencies and a faster time-to-fill open job requisitions, hiring costs were reduced by 50%. The overall RPO program implementation was a success due to DZX's solution.