Beeline	  User	  Conference	  2011	                              Tuesday,	  May	  24th,	  2011	  	                        ...
Agenda/what	  we	  are	  going	  to	  cover:	       •  Who	  is	  this	  guy?	       •  State	  of	  the	  buyer	  communi...
Who	  is	  this	  guy?	                                  ©2011	  by	  Crain	  Communica1ons	  Inc.	  All	  rights	  reserv...
About	  Us	                    ©2011	  by	  Crain	  Communica1ons	  Inc.	  All	  rights	  reserved.	  
Products/Services	   ©2011	  by	  Crain	  Communica1ons	  Inc.	  All	  Irights	  ights	  reserved.	                      ©...
Services	  Categories	                               ©2011	  by	  Crain	  Communica1ons	  Inc.	  All	  rights	  reserved.	  
CWS	  COUNCIL	                       ©2011	  by	  Crain	  Communica1ons	  Inc.	  All	  rights	  reserved.	  
North	  American	  CWS	  Council	  Members	  (parQal	  list)	                                                  ©2011	  by	...
Western	  Europe/Global	  CWS	  Council	  Members	                                         ©2011	  by	  Crain	  Communica1...
©2011	  by	  Crain	  Communica1ons	  Inc.	  All	  rights	  reserved.	  
State	  of	  the	  Buyer	  Community	                                                 ©2011	  by	  Crain	  Communica1ons	 ...
©2011	  by	  Crain	  Communica1ons	  Inc.	  All	  rights	  reserved.	  
DefiniQon:	     •  Con$ngent	  Work	  -­‐	  Used	  to	  describe	  work	  arrangements	  that	  differ	  from	  regular/    ...
2011	  Defini$on	     Con$ngent	  Work:	  	  Anyone	  who	  is	  not	  an	       employee……	                               ...
How	  do	  Companies	  Manage?	                                          ©2011	  by	  Crain	  Communica1ons	  Inc.	  All	 ...
EvoluQon	  of	  ConQngent	  Labor	  Management	                                                                           ...
More	  Sophisticated	  Buyers	  Primarily	  How	  ya	  like	  me…….	                                                      ...
Trends	  in	  various	  management	  strategies	  over	  1me	                           Percent	  of	  large	  buyers	  us...
2010	  VMS/MSP	  LANDSCAPE	  HIGHLIGHTS	                                     ©2011	  by	  Crain	  Communica1ons	  Inc.	  A...
VMS/MSP	  Market	  Size	  2009	   •  Approx	  $66	  billion	  spend	  under	  management	      –  20%	  of	  global	  temp...
2009	  Total	  MSP	  vs	  VMS	  Spend	  Under	  Management	  Comparison	                                                  ...
VMS	  Spend	  under	  Management	                                       ©2011	  by	  Crain	  Communica1ons	  Inc.	  All	  ...
©2011	  by	  Crain	  Communica1ons	  Inc.	  All	  rights	  reserved.	  
MSP	  Spend	  under	  Management	                                            ©2011	  by	  Crain	  Communica1ons	  Inc.	  A...
©2011	  by	  Crain	  Communica1ons	  Inc.	  All	  rights	  reserved.	  
The	  field	  is	  going	  to	  get	  crowded	                                                                             ...
Culture	  counts…	                           ©2011	  by	  Crain	  Communica1ons	  Inc.	  All	  rights	  reserved.	  
BY	  PERCENTAGE	  WHICH	  TARGET	  GROUP	  DOES	  YOUR	  COMPANIES	  CORE	  VALUE	  PROPOSITION	  MOST	  APPEAL	  TO?	    ...
Some	  new	  trends…..	                                 ©2011	  by	  Crain	  Communica1ons	  Inc.	  All	  rights	  reserve...
Key	  Metric	  Areas	  •  Quality	  •  Efficiency	  •  Cost	  •  Risk	                               ©2011	  by	  Crain	  Co...
1,000	  monkeys	  typing	  for	  1,000	  years……..	                                                  ©2011	  by	  Crain	  ...
Savings	  are	  real……..at	  first….	                                               ©2011	  by	  Crain	  Communica1ons	  In...
Discounts	  are	  great…..	                                     Results are based on findings of our 2009 Contingent Buyer...
What	  makes	  the	  “perfect	  metric”	                                                    ©2011	  by	  Crain	  Communica...
But	  lets	  get	  serious…..	                                         ©2011	  by	  Crain	  Communica1ons	  Inc.	  All	  r...
What	  separates	  the	  good	  from	  the	  bad?	                                                     ©2011	  by	  Crain	...
The	  UlQmate	  QuesQon	    •  How	  likely	  is	  it	  that	  you	  would	  recommend	       this	  VMS	  firm	  to	  a	  ...
How	  will	  data	  be	  analyzed?	  Survey	  Scoring	     •  SIA	  will	  do	  analysis	     •  Promoters	  minus	  Detra...
NPS	  survey	  from	  2010	                                      ©2011	  by	  Crain	  Communica1ons	  Inc.	  All	  rights	...
©2011	  by	  Crain	  Communica1ons	  Inc.	  All	  rights	  reserved.	  
©2011	  by	  Crain	  Communica1ons	  Inc.	  All	  rights	  reserved.	  
VMS	  NPS	  RaQng	  DistribuQon	  by	  Number	  and	  Audience	  30.00%	  25.00%	  20.00%	  15.00%	  10.00%	   5.00%	   0....
Net	  Promoter	  Score	  by	  Industry	                                                   ©2011	  by	  Crain	  Communica1o...
VMS	  –Internally	  Developed	  vs.	  Commercially	  available	                                                           ...
Buyer	  Experience	  by	  Program	  Type	                                                     ©2011	  by	  Crain	  Communi...
Provider	  Experience	  by	  Line	  of	  Business	                                                               ©2011	  b...
NPS	  Buyers	  vs.	  Suppliers	                                          ©2011	  by	  Crain	  Communica1ons	  Inc.	  All	 ...
Which	  is	  more	  important?	  	                                          ©2011	  by	  Crain	  Communica1ons	  Inc.	  Al...
MSP	  Company	  do	  have	  some	  successes	                                        Buyer	     Staffing	                 ...
VMS……eh….	                                                                 Buyer	          Staffing	                      ...
Scajer	  Plots	  of	  Provider	  Scores	                                                    ©2011	  by	  Crain	  Communica...
NPS	  scores	  for	  all	  VMS	  Providers	  with	  more	  than	  5	  Buyer	  responses	                  ©2011	  by	  Cra...
NPS	  scores	  for	  all	  	  MSP	  Providers	  with	  more	  than	  10	  Buyer	  responses	  ©2011	  by	  Crain	  Communi...
NPS	  scores	  for	  all	  VMS	  Providers	  with	  more	  than	  10	  responses	  as	  provided	  by	  Staffing	  Firms	   ...
NPS	  scores	  for	  all	  MSP	  Providers	  with	  more	  than	  10	  Staffing	  Firm	  responses	                         ...
Comments	  Overall	     Dislike	                           Like	     •  Slow	  Payment	                •  Direct	  Contact...
This	  is	  NOT	  Beeline…….	  “It	  is	  the	  worst	  MSP	  I	  have	  encountered	  in	  my	  10+	  years	  in	  the	  ...
EvoluQon	  of	  ConQngent	  Labor	  Management	     Most MNCs are now Level III or IV                                     ...
Percent of Buyers Primarily Using Selected Supplier         Management, as a Function of Buyer CW Spend100%               ...
Not Necessarily                  ©2011	  by	  Crain	  Communica1ons	  Inc.	  All	  rights	  reserved.	  
In	  closing	       •  The	  field	  of	  CW	  management	  is	  ever	          evolving	       •  CW	  managers	  are	  co...
2011	  Risk	  Forum	  &	  WE	  CWS	  Summit	  	         •  June	  20-­‐21,	  2011	         •  Hotel	  Okura,	  The	  Nethe...
2011	  CWS	  Summit	       	  	       	       •  October	  4-­‐5,	  2011	       •  Red	  Rock	  Resort,	  Las	  Vegas	    ...
Ques1ons	  &	  Remarks?	  Bryan	  Pena	  VP,	  Con1ngent	  Workforce	  Strategies	  and	  Research	  650-­‐390-­‐6188	  bp...
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Beyond Savings – Measuring What Matters

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Bryan Peña
VP, Contingent Workforce Strategies and Research Staffing Industry Analysts

During this session we will be reviewing what strategies and techniques you can use to maximize program success and ensure long term hiring manager satisfaction. In addition to savings strategies and performance ratios we will provide some up to the moment insight from our latest research initiatives.

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Beyond Savings – Measuring What Matters

  1. 1. Beeline  User  Conference  2011   Tuesday,  May  24th,  2011          Bryan  Peña,    Vice  President,  Con1ngent  Workforce  Strategies  and  Research  bpena@staffingindustry.com     ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  2. 2. Agenda/what  we  are  going  to  cover:   •  Who  is  this  guy?   •  State  of  the  buyer  community   –  MSP/VMS  Evolu1on   •  Review  of  NPS  survey  from  2010   –   What  is  important  with  buyers   •  Future?   •  Q&A   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  3. 3. Who  is  this  guy?   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  4. 4. About  Us   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  5. 5. Products/Services   ©2011  by  Crain  Communica1ons  Inc.  All  Irights  ights  reserved.   ©2010  by  Crain  Communica1ons   nc.  All  r reserved.  
  6. 6. Services  Categories   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  7. 7. CWS  COUNCIL   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  8. 8. North  American  CWS  Council  Members  (parQal  list)   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  9. 9. Western  Europe/Global  CWS  Council  Members   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  10. 10. ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  11. 11. State  of  the  Buyer  Community   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  12. 12. ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  13. 13. DefiniQon:   •  Con$ngent  Work  -­‐  Used  to  describe  work  arrangements  that  differ  from  regular/ permanent,  direct  wage  and  salary  employment.  Con?ngent  workers  most  o@en  include   temporary  employees  provided  by  an  outside  staffing  agency  and  independent   contractors/consultants.  Con?ngent  workers  may  also  include  temporary  workers  from   an  internal  pool,  and  others  (such  as  summer  interns)  employed  directly  by  an   organiza?on  for  an  inten?onally  limited  ?me  period.  They  do  not  include  work  done  by   consul?ng  firms  or  by  part-­‐?me  regular  employees,  and  are  primarily  dis?nguished  by   an  explicitly  defined  tenure.  Self-­‐employed  individuals  should  only  be  defined  as   con?ngent  workers  if  they  provide  themselves  as  contract  labor  to  other  organiza?ons.   Otherwise,  they  should  not  be  included  in  the  con?ngent  workforce,  because  they  may   have  stable  occupa?ons  or  careers  that  are  clearly  not  condi?onal.  Workers  in   Professional  Employer  Organiza?on  (see  defini?on)  arrangements  are  not  con?ngent   workers,  because  the  rela?onship  is  by  defini?on  ongoing.  Outsourcing  also  falls  outside   of  the  con?ngent  work  defini?on,  because  it  defines  a  vendor-­‐supplier  rela?onship,  not   an  employer-­‐worker  rela?onship   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  14. 14. 2011  Defini$on   Con$ngent  Work:    Anyone  who  is  not  an   employee……   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  15. 15. How  do  Companies  Manage?   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  16. 16. EvoluQon  of  ConQngent  Labor  Management   HIGH 1980s – Level I 1990s – Level II & III 2000s – Level IV GLOBAL EXPANSION 2010s – Level V & VI EXPANSION INTO MANAGED ADDITIONAL SERVICE SPEND LEVEL  OF  VALUE  ADDED   PROVIDER (MSP) CATEGORIES æ Global spend CLIENT MANAGED LOW PREFERRED SUPPLIER LIST æ  SOW centralized and controlled MASTER æ Select set of æ Contingent Labor Management æ Global workforce VENDOR suppliers æ One point of æ  IC/1099 visibility DECENTRALIZED æ Standardized contact for æ  Consultants æ Customized SLAs æ A Prime Supplier Contract suppliers, and process æ  Legalæ Multiple suppliers æ One point of æ Procurement contractors and æ Country Specificæ Procurement done on contact Led hiring managers æ  Marketing Suppliers an ad-hoc basis æ Limited æ Some æ VMS Technology æ  Targeting æ  Localized VMSæ Hiring Manager Automation automation reporting, æ System & Configuration Driven æ Limited SLAs æ  Limited SLAs compliance and Program SLAs cost I II III IV V VI MATURITY  STAGES   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  17. 17. More  Sophisticated  Buyers  Primarily  How  ya  like  me…….   Manage  CW  Programs  Using  MSP  &  VMS Percent  of  Buyers  Primarily  Using  Selected  Program 33% 34% 40% 56% 59% 17% 26% 8% 13% 19% 60% 28% 42% 13% 26% 7% 9% 9% Just  getting Below Average Above Cutting started average average edge/best  i n class Manage  I nternally  W ithout  VMS Master  Staffing  Supplier Manage  I nternally  Using  VMS Managed  Service  Provider  (MSP) ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  18. 18. Trends  in  various  management  strategies  over  1me   Percent  of  large  buyers  using  this  strategy   100% 80% 60% 40% 20% 0% 2005 2006 2007 2008 2009 2010 Master  Supplier VMS Approved  Suppliers MSP Tiered  S uppliers RPO HRO ©2011  by  Crain  Communica1ons  Inc.  All  Irights  ights  reserved.   ©2011  by  Crain  Communica1ons   nc.  All  r reserved.  
  19. 19. 2010  VMS/MSP  LANDSCAPE  HIGHLIGHTS   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  20. 20. VMS/MSP  Market  Size  2009   •  Approx  $66  billion  spend  under  management   –  20%  of  global  temporary  staffing  market   –  Over  50%  of  USA  temporary  staffing  market   –  5-­‐10%  of  European  temporary  staffing  market   * Source: Staffing Industry Analysts – VMS/MSP Landscape Report 2010 ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  21. 21. 2009  Total  MSP  vs  VMS  Spend  Under  Management  Comparison   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  22. 22. VMS  Spend  under  Management   ©2011  by  Crain  Communica1ons  Inc.  All  Irights  ights  reserved.   ©2010  by  Crain  Communica1ons   nc.  All  r reserved.  
  23. 23. ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  24. 24. MSP  Spend  under  Management   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  25. 25. ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  26. 26. The  field  is  going  to  get  crowded   Implied   Likely  to   two  year   offer   change  in   Staying   Getting   w/in  2   Not  likely   number  of   in out years to  offer Total firms*Provider  of  VMS 17% 0% 19% 64% 100% 110%HRO 17% 0% 18% 64% 100% 107%RPO 24% 0% 23% 53% 100% 96%MSP 26% 0% 21% 52% 100% 78%HR  consulting 25% 0% 18% 56% 100% 73%VOP 40% 0% 25% 36% 100% 63%Master  supplier 32% 0% 20% 48% 100% 60%SOW  consulting 32% 0% 15% 53% 100% 47%IC  compliance/  payroll  processing 38% 0% 9% 52% 100% 23%*Calculation  based  on  (percent  of  firms  likely  to  offer  w/in  2  years  -­‐  firms  getting  out)/firms  staying  in.    This  calculation  should  be  treated  as  of  ordinal  value,  not  as  a  projection,  as  it  may  be  assumed  that  not  all  firms  will  follow  through  with  plans  to  add  services. ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  27. 27. Culture  counts…   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  28. 28. BY  PERCENTAGE  WHICH  TARGET  GROUP  DOES  YOUR  COMPANIES  CORE  VALUE  PROPOSITION  MOST  APPEAL  TO?   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  29. 29. Some  new  trends…..   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  30. 30. Key  Metric  Areas  •  Quality  •  Efficiency  •  Cost  •  Risk   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  31. 31. 1,000  monkeys  typing  for  1,000  years……..   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  32. 32. Savings  are  real……..at  first….   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  33. 33. Discounts  are  great…..   Results are based on findings of our 2009 Contingent Buyer Survey, conducted in September 2009, and reflect the opinions of buyer respondents from 171 large (1000+ employee) companies. ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  34. 34. What  makes  the  “perfect  metric”   ©2011  by  Crain  Communica1ons  Inc.  All  Irights  ights  reserved.   ©2011  by  Crain  Communica1ons   nc.  All  r reserved.  
  35. 35. But  lets  get  serious…..   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  36. 36. What  separates  the  good  from  the  bad?   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  37. 37. The  UlQmate  QuesQon   •  How  likely  is  it  that  you  would  recommend   this  VMS  firm  to  a  friend  or  colleague?   Not at all Extremely Likely Likely 0 1 2 3 4 5 6 7 8 9 10 Detractors Passives Promoters ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  38. 38. How  will  data  be  analyzed?  Survey  Scoring   •  SIA  will  do  analysis   •  Promoters  minus  Detractors  =  Net  Promoter  Score   •  NPS  =  One  simple,  easy  to  understand  number   Percentage  of     Percentage  of     Net  Promoter   Promoters   Detractors   Score   42%   28%   NPS=  14   9%   16%   NPS=  -­‐7   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  39. 39. NPS  survey  from  2010   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  40. 40. ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  41. 41. ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  42. 42. VMS  NPS  RaQng  DistribuQon  by  Number  and  Audience  30.00%  25.00%  20.00%  15.00%  10.00%   5.00%   0.00%   0   1   2   3   4   5   6   7   8   9   10   Buyer   Staffing  Firm   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  43. 43. Net  Promoter  Score  by  Industry   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  44. 44. VMS  –Internally  Developed  vs.  Commercially  available   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  45. 45. Buyer  Experience  by  Program  Type   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  46. 46. Provider  Experience  by  Line  of  Business   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  47. 47. NPS  Buyers  vs.  Suppliers   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  48. 48. Which  is  more  important?     ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  49. 49. MSP  Company  do  have  some  successes   Buyer   Staffing   MSP  Company NPS NPS Vendor  A 86% -­‐11% Vendor  B 58% -­‐74% Vendor  D 47% -­‐37% Vendor  E 46% -­‐42% Vendor  F 42% -­‐18% Vendor  G 38% -­‐57% Vendor  H 36% -­‐57% Vendor  I 31% -­‐58% Vendor  J 17% -­‐64% Vendor  K 16% -­‐73% Vendor  L 15% 14% Vendor  M 0% 9% Vendor  N 0% -­‐35% Vendor  O -­‐5% 11% Vendor  P -­‐38% -­‐68% 2010  NPS  Study  -­‐  SIA   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  50. 50. VMS……eh….   Buyer   Staffing   VMS NPS NPS Vendor  A 45% -­‐52% Vendor  B 40% -­‐52% Vendor  D 31% -­‐42% Vendor  E 26% -­‐56% Vendor  F 26% -­‐39% Vendor  G 17% -­‐16% Vendor  H 10% -­‐32% Vendor  I 9% -­‐63% Vendor  J 0% -­‐15% Vendor  K -­‐5% -­‐72% None  of  the  Above/Dont  Know -­‐26% -­‐76% Internally  Developed  V MS  Application -­‐29% Vendor  N -­‐67% -­‐43% 2010  NPS  Study  -­‐  SIA   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  51. 51. Scajer  Plots  of  Provider  Scores   ©2011  by  Crain  Communica1ons  Inc.  All  Irights  ights  reserved.   ©2011  by  Crain  Communica1ons   nc.  All  r reserved.  
  52. 52. NPS  scores  for  all  VMS  Providers  with  more  than  5  Buyer  responses   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  53. 53. NPS  scores  for  all    MSP  Providers  with  more  than  10  Buyer  responses  ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  54. 54. NPS  scores  for  all  VMS  Providers  with  more  than  10  responses  as  provided  by  Staffing  Firms   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  55. 55. NPS  scores  for  all  MSP  Providers  with  more  than  10  Staffing  Firm  responses   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  56. 56. Comments  Overall   Dislike   Like   •  Slow  Payment   •  Direct  Contact   •  Lack  of  Transparency   •  Easy  to  use   •  “Black  Hole”   •  They  invest  in  System   •  Arrogant  Work   •  “students  of  the   •  Flexibility   industry”   •  Proac1ve   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  57. 57. This  is  NOT  Beeline…….  “It  is  the  worst  MSP  I  have  encountered  in  my  10+  years  in  the  field.    My  peers  in  the  industry  echo  my  assessments.    I  would  do  everything  possible  to  steer  a  client  away  from  them.”   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  58. 58. EvoluQon  of  ConQngent  Labor  Management   Most MNCs are now Level III or IV HIGH 1980s – Level I ITM or ? 1990s – Level II & III 2000s – Level IV GLOBAL EXPANSION 2010s – Level V & VI EXPANSION INTO ? – Level VII MANAGED ADDITIONAL SERVICE SPEND LEVEL  OF  VALUE  ADDED   PROVIDER (MSP) CATEGORIES æ CW and Perm æ Global spend managed in on CLIENT MANAGED LOW PREFERRED SUPPLIER LIST æ  SOW centralized and controlled Cohesive Strategy æ Source of labor æ Contingent Labor æ Global workforce dependant on MASTER æ Select set of Management visibility client defined rules VENDOR suppliers æ One point of æ  IC/1099 contact for æ Customized SLAs æ contractors and DECENTRALIZED æ Standardized æ  Consultants æ A Prime Supplier suppliers, and process hiring managers Contract æ  Legal æ VMS Technologyæ Multiple suppliers æ One point of æ Procurement contractors and æ Country Specificæ Procurement done on contact Led hiring managers æ  Marketing æ Strategic Suppliers an ad-hoc basis æ Limited æ Some æ VMS Technology æ  Targeting Integration of æ  Localized VMSæ Hiring Manager Automation automation reporting, suppliers and æ System & Configuration Driven æ Limited SLAs æ  Limited SLAs compliance and FTE’s Program SLAs cost I II III IV V VI VII ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  59. 59. Percent of Buyers Primarily Using Selected Supplier Management, as a Function of Buyer CW Spend100% Manage internally using80% a VMS.60% Master Managed staffing services provider40% supplier20% Manage internally not using a VMS 0% <$10MM $10-$49.9MM $50-$99.9MM $100- $150- $500MM+ $149.9MM $499.9MM Buyer Annual Contingent Workforce Spend $10- $50- $100- $150- <$10MM $49.9MM $99.9MM $149.9MM $499.9MM $500MM+ Manage internally not using a VMS 47% 21% 19% 0% 13% 0% Master staffing supplier 21% 10% 7% 6% 7% 7% Managed services provider 11% 50% 67% 69% 47% 43% Manage internally using a VMS. 21% 19% 7% 25% 33% 50% Total 100% 100% 100% 100% 100% 100% ©2011  by  Crain  Communica1ons  Inc.  All  Irights  ights  reserved.   ©2010  by  Crain  Communica1ons   nc.  All  r reserved.  
  60. 60. Not Necessarily ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  61. 61. In  closing   •  The  field  of  CW  management  is  ever   evolving   •  CW  managers  are  coming  to  expect  more   from  their  CW  partnerships   •  Beyond  savings,  there  is  tremendous   opportunity  to  increase  adop1on   –  Pay  ajen1on  to  your  supply  chain…..   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  62. 62. 2011  Risk  Forum  &  WE  CWS  Summit     •  June  20-­‐21,  2011   •  Hotel  Okura,  The  Netherlands   •  October  5-­‐6,  2011   •  Red  Rock  Resort,  Las  Vegas   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  63. 63. 2011  CWS  Summit         •  October  4-­‐5,  2011   •  Red  Rock  Resort,  Las  Vegas    Today  you  will  learn  how  CW  Program   Managers  improve  the  performance  of  their   programs  by  using  the  right  measurement   tools.  In  addiQon,  we’ll  discuss  why  CW   process  performance  is  important.  You  can   further  your  knowledge  on  this  topic  and   more  this  fall  at  the  CWS  Summit.      Learn  more  and  sign  up  for  the  best  rates  at   www.CWSSummit.com   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  64. 64. Ques1ons  &  Remarks?  Bryan  Pena  VP,  Con1ngent  Workforce  Strategies  and  Research  650-­‐390-­‐6188  bpena@staffingindustry.com   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
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