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.