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    Webinar ags abg_contingent_workforcemanagement_102011 (2) Webinar ags abg_contingent_workforcemanagement_102011 (2) Presentation Transcript

    • The Role of MSPs in Contingent Workforce ManagementChristopher J. DwyerSenior Research AnalystAberdeen GroupOctober 20, 2011
    • Agenda Introduction and Research Background Contemporary Contingent Workforce Management The Role of MSPs Recommendations for Action
    • Speaker Introduction Christopher Dwyer, Senior Research Analyst,  Aberdeen Group Christopher Dwyer is a senior research analyst in  Aberdeens Global Supply Management practice. He has  extensive writing, editing and research experience, and has  authored over 120 research studies and documents over his  nearly six‐year tenure with Aberdeen. He is considered a  thought leader in the complex category management  research space, and has spent the last four years leading  Aberdeen’s research on contingent labor, expense  management and strategic meetings management.  Christopher has also co‐led Aberdeen’s coverage of e‐ payables (accounts payable) and greater procure‐to‐pay  topics, such as strategic sourcing, spend analysis and  contract lifecycle management.
    • Speaker Introduction Tony Lupone, Program Director,  Allegis Group Services Tony Lupone has more than 12 years experience in the  staffing and workforce management solution industry. In  his current role as Program Director, Tony directs the MSP  solution design, implementation and program management  for large scale workforce management programs. Tony  provides insight to executive level management on program  operations and enhancements and has the ability to solve  problems and present conceptual information to all levels  of internal and external stakeholders
    • Human Capital Solutions Experts Recent Accolades• 70 current programs; 57 MSP, 13 RPO General Motors• Global Footprint; servicing 19 countries Supplier of the Year, 2002 and 2010• SAS 70 Type II audit performed annually Microsoft Global Premier Vendor, 2011• Over $2.5B in MSP spend under contract Diversity Excellence, 2010 • Founded in 1983 • $6.4B revenue, 2010 • 110 consecutive quarters of profitability Parent Company • $600M+ in working capital
    • Speaker Introduction Daryl Zapoticzny, Vice President,  Global Talent Acquisition Team ‐ AOL Daryl is the Vice President of AOLs Global Talent Acquisition  team, leading global staffing strategy and operations for AOLs  employee and contingent workforce. Over the past 24 months  Daryl has led the effort to centralize AOL’s staff augmentation  vendors under an MSP and he is currently streamlining AOL’s  freelancer and statement of work labor processes. Daryl has 12  years experience in staffing and process management, 8 years  with AOL. Previously Daryl worked for a staffing solution provider. Daryl holds a B.A. in English from James Madison University in  Virginia. He is the recipient of the 2011 Dr. J.P. London Award for  Ethics presented by the HR Leadership Council of Greater  Washington. 
    • Speaker Introduction Jon Kesman, Global Director, Reed Elsevier Jon Kesman is the Global Category Director for Professional  Services and Labor within the Global Procurement  Organization at Reed Elsevier. Reed Elsevier is a world  leading provider of professional information and online  workflow solutions in the Science, Medical, Legal, Risk  Information and Analytics, and Business sectors. In this role,  Jon is responsible for developing and delivering category  strategies for some of the most critical areas of spend for  Reed Elsevier, including Consulting Services, Contingent  Labor, Independent Contractors and Legal Services. Prior to joining Reed Elsevier Jon held procurement roles in  the sourcing and category management of professional  services and contingent labor with Accenture, ICG  Commerce, Blue Cross Blue Shield of Michigan and IBM.
    • Aberdeen’s Research Methodology Web‐based / online benchmark survey (35 to 40  questions) Analysis of data aggregate Dissection into Maturity Framework (Best‐in‐Class,  Industry Average, and Laggard) 25‐page benchmark research reports 5‐to‐7 page research derivatives Follow‐up discussions with select end‐users for quotes  and case studies
    • Aberdeen’s History of Contingent Labor Research Category Spend Management Report Series 2004: Contract  Labor (March 2004) Best Practices in Category Spend Management: Contract Labor  (October 2005) The Contract Labor Benchmark Report (August 2006) Contract Labor and Professional Services (April 2007) Contract Labor Management: Permanent Solutions for  Temporary Workers (January 2008) Contract Labor Management: Superior Workforce Strategies for  a Demanding Environment  (January 2008) Contingent Labor Management (October 2009) Contingent Labor Management: Strategies for Managing the  Complexities of the Contingent Labor Umbrella (June 2010) Contingent Labor Management: The Evolution of the  Contemporary Contingent Workforce (April 2011)
    • Agenda Introduction and Research Background Contemporary Contingent Workforce Management The Role of MSPs Recommendations for Action
    • Things to Think About 22.5% of the average company’s workforce is  considered contingent / contract (expected to reach  25% in 2012) 60% of companies stated that SOW‐based projects  and services received the most organizational  attention over the past year (more so than  independent contractors / consultants and temporary  workers) Only 14% of organizations currently have high  visibility into SOW‐based projects and services Source: AberdeenGroup
    • Top Contingent Workforce Management Challenges Organizational need to manage all facets of 44% contingent labor Increasing risks with managing independent 41% contractors, consultants and 1099 workers Low visibility into allaspects of the contingent 34% workforce Need to enhance spend control on services and 33% projects Source: AberdeenGroup
    • Top Contingent Workforce Priorities Moving Forward Create more visibility 59%into the entire talent pool Drive visibility into SOW 55% and services spending Classify contingent workers and consultants 53% properly Reduce the risks associated with 51% managing contractors Source: AberdeenGroup
    • Top Strategies for Managing Contingent Labor Improve data analytics 49% around contingent labor Automate key aspects of contingent labor 46% management Align contingent labor activities with 42% organizational goals Execute centralized planning of all contingent 34% labor subsets Source: AberdeenGroup
    • The Contingent Workforce Umbrella: Centralized Management "Classic" temporary 75% laborIndependent contractors 51%SOW-based projects and 37% services Source: AberdeenGroup
    • Agenda Introduction and Research Background Contemporary Contingent Workforce Management The Role of MSPs Recommendations for Action
    • The Best‐in‐Class Maturity Framework Definition of Mean Class Performance Maturity Class 88% of temporary workers meet goals / objectives Best-in-Class: 79% of SOW-based projects / services meet Top 20% of aggregate goals / objectives performance scorers 84% compliance to contingent labor policies 16% year-over-year contingent labor cost savings 58% of temporary workers meet goals / objectives Industry Average: 55% of SOW-based projects / services meet Middle 50% goals / objectives of aggregate performance scorers 64% compliance to contingent labor policies 7% year-over-year contingent labor cost savings 20% of temporary workers meet goals / objectives Laggard: 13% of SOW-based projects / services meet Bottom 30% goals / objectives of aggregate performance scorers 12% compliance to contingent labor policies Source: 2% year-over-year contingent labor cost Aberdeen savings Group
    • Best‐in‐Class Solution Utilization Vendor Management 80% System (VMS) 41% Managed Service 79% Provider (MSP) 37% Recruitment Process 60% Outsourcing (RPO) 27% Business intelligence 37% system 23% Source: AberdeenGroup Independent Contractor 30% Engagement Specialist Best-in-Class (ICES) 17% All Others
    • The Performance Benefits of MSP Solutions Over 15% higher frequency of temporary workers  achieving pre‐defined / communicated goals and  objectives than companies not utilizing an MSP  solution Over 10% higher cost savings on contingent labor  spending Users of MSP solutions are 45% more likely to  have high visibility into all subsets of contingent  workforce spending Source: AberdeenGroup
    • Core Contingent Workforce Management CapabilitiesProper onboarding / off- 81% boarding of all temporary workers 44% Visibility into spending 60% across all contingent labor subsets 29% Internal review process 60% for compliance 54% Clearly-classified 58% employee types 49% Metrics for tracking 46% contingent workforce MSP 16% quality NoMSP Source: AberdeenGroup
    • SOW‐Based Projects / Services Management Capabilities 63% Project expense-tracking 35% 63%Collaborative negotiations 51% 61% Competitive bidding 47% 55% Analysis / reporting 37% Supplier assessment / 55% certification reviews 49% Proactive planning and 48% budgeting 43% Source: AberdeenGroup 47% MSPReal-time project portfolio 30% No MSP
    • Agenda Introduction and Research Background Contemporary Contingent Workforce Management The Role of MSPs Recommendations for Action
    • Recommendations for Action Leverage MSP solutions to streamline, automate  and improve processes related to contingent  workforce management, as well as programs  around SOW‐based projects and services Improve analytical capabilities to derive superior  contingent workforce management intelligence Focus on processes related to SOW‐based projects  and services. Identify gaps in the program and  collaboratively work with other internal groups to  address them.
    • Q&A and Contact Information Christopher J. Dwyer Senior Research Analyst Global Supply Management, AberdeenGroup chris.dwyer@aberdeen.com 617.854.5280 For More Research, Please Visit:  www.aberdeen.com