Jonathan Brown explains how Freshfields Bruckhaus Deringer became the first magic circle firm to outsource its recruitment following its 2007 restructuring programme

Sourcing high quality candidates has never been more important. Whatever its size, if a firm cannot attract the best talent then its ability to compete will be severely compromised. In an effort to ensure its hiring processes are as efficient as possible, Freshfields Bruckhaus Deringer appointed Alexander Mann Solutions (AMS) to implement changes that would reduce costs and strengthen the business.

Freshfields' decision to seek a recruitment process outsourcing partner followed the firm's 2007 restructuring programme. These changes required rationalisation of recruitment costs, particularly for business services staff, and for greater efficiency throughout the process.

Previously, the firm's recruitment was managed internally by the human resources (HR) department. This meant recruitment expertise was dissipated across the organisation, which was sometimes inefficient and reduced the time spent on key HR issues such as talent development.

Freshfields employs more than 700 lawyers in London, as well as a significant number of business services staff to support the smooth running of the firm, so the HR team was understandably cautious about outsourcing all of its recruitment (excluding trainees). However, following an in-depth supplier review, the team was convinced that AMS could make hiring processes more cost-effective while maintaining the 'high-touch' strategy that is essential when recruiting fee earners. The deal made Freshfields the first magic circle law firm to outsource its recruitment.

By examining the firm's business processes, the cost of recruitment and the effectiveness of previous strategies, some key areas for improvement were identified. Consultants were placed at Freshfields' offices to support recruitment of fee earning and business services staff. One of the first changes the team made was the implementation of an applicant tracking system to monitor the resourcing needs of the organisation, the flow of applications through the system and to ensure excellent communication throughout the hiring process.

A management information system was introduced to provide the HR team with a full understanding of the recruitment process. This included reporting on the best sources of candidates, the ratio of line manager interviews to offers, and the total time spent on hiring. A survey of line managers and candidates involved in the hiring process was also carried out to help track the applicant experience and identify any areas where improvements could be made.

A key focus in maximising cost-effectiveness was the introduction of direct hiring strategies. An effective direct hiring policy enables companies to target the best candidates without the costs incurred when using recruitment agencies. The direct hiring initiatives put in place included advertising in new channels, utilising a wider range of job boards, setting up channels to network with prospective candidates and a dedicated head hunter for fee earners and business staff. The Freshfields website was also revised to enable prospective employees to apply online, something which had previously not been possible.

Since the online recruitment system went live, application numbers have risen from 300 to 1,200 a month. Crucially, the firm has the capacity to deal with this four-fold increase quickly and efficiently. Levels of direct hiring have also increased dramatically: from 9% to over 60% for business services staff, and an increase of 50% for fee earners, resulting in significant cost savings.

These direct hiring strategies also enable the recruitment team to make the most of Freshfields' employer brand by actively networking with the brightest candidates. The proactive approach to recruitment widens the pool of talent available to the firm, greatly increasing the likelihood of being able to find the right person for any given role.

Freshfields still uses traditional recruitment agencies. In fact, the onsite presence of a dedicated AMS team has helped improve
its relationships with these agencies. With AMS providing a central hub of recruitment expertise, feedback can be provided to agencies extremely quickly, which can be crucial in a competitive candidate market.

Although AMS has succeeded in fulfilling the initial brief set by Freshfields, the relationship between the two businesses is still developing. Freshfields is always seeking the best talent from all over the world and recruitment process outsourcing gives it a crucial edge when recruiting for London roles internationally. This will be key to strengthening its workforce in 2009 and ensuring the business is well-placed to succeed, whatever the economic conditions.

Jonathan Brown is head of client services at Alexander Mann Solutions.