Aviva expects ‘double-digit savings’ after outsourcing recruitment

Insurance giant Aviva expects to cut the cost of recruiting staff by at least 10% after outsourcing its entire recruitment process to a third party supplier.

Under the terms of the deal, which commenced this week, outsourcing firm Hyphen is responsible for all of Aviva’s permanent hiring in the UK, which amounts to 3,000 new recruits per year.

Aviva previously had an in-house recruitment team working as part of the HR Shared Services function, based in London, York and Norwich.

The outsourcing contract covers all skill sets and management levels excluding senior and board level hires. Hyphen, which is using an online recruitment system based on technology from Peopleclick, is also responsible for the management of all recruitment administration activities, including pre-employment screening, offer management and “on-boarding”.

Paul Awcock, head of recruitment at Aviva, told Personnel Today that Hyphen has been tasked with delivering “double digit reductions” in cost per hire.

“However, cost reduction was only one driver for outsourcing and enhancements in service delivery and technology enablement represent equally important drivers in our decision to partner with Hyphen,” he added.

Benefits will be measured using a formal governance process set against a range of key performance indicator, which include cost per hire and manager/candidate satisfaction, Awcock said.

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