Beyond Savings – Measuring What Matters
Upcoming SlideShare
Loading in...5
×
 

Beyond Savings – Measuring What Matters

on

  • 538 views

Bryan Peña...

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.

Statistics

Views

Total Views
538
Views on SlideShare
525
Embed Views
13

Actions

Likes
0
Downloads
5
Comments
0

1 Embed 13

http://www.beeline.com 13

Accessibility

Categories

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

Beyond Savings – Measuring What Matters Beyond Savings – Measuring What Matters Presentation Transcript

  • 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.  
  • 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.  
  • Who  is  this  guy?   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  • About  Us   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  • Products/Services   ©2011  by  Crain  Communica1ons  Inc.  All  Irights  ights  reserved.   ©2010  by  Crain  Communica1ons   nc.  All  r 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  Crain  Communica1ons  Inc.  All  rights  reserved.  
  • Western  Europe/Global  CWS  Council  Members   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  • ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  • State  of  the  Buyer  Community   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  • ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  • DefiniQon:   •  Con$ngent  Work  -­‐  Used  to  describe  work  arrangements  that  differ  from  regular/ permanent,  direct  wage  and  salary  employment.  Con?ngent  workers  most  o@en  include   temporary  employees  provided  by  an  outside  staffing  agency  and  independent   contractors/consultants.  Con?ngent  workers  may  also  include  temporary  workers  from   an  internal  pool,  and  others  (such  as  summer  interns)  employed  directly  by  an   organiza?on  for  an  inten?onally  limited  ?me  period.  They  do  not  include  work  done  by   consul?ng  firms  or  by  part-­‐?me  regular  employees,  and  are  primarily  dis?nguished  by   an  explicitly  defined  tenure.  Self-­‐employed  individuals  should  only  be  defined  as   con?ngent  workers  if  they  provide  themselves  as  contract  labor  to  other  organiza?ons.   Otherwise,  they  should  not  be  included  in  the  con?ngent  workforce,  because  they  may   have  stable  occupa?ons  or  careers  that  are  clearly  not  condi?onal.  Workers  in   Professional  Employer  Organiza?on  (see  defini?on)  arrangements  are  not  con?ngent   workers,  because  the  rela?onship  is  by  defini?on  ongoing.  Outsourcing  also  falls  outside   of  the  con?ngent  work  defini?on,  because  it  defines  a  vendor-­‐supplier  rela?onship,  not   an  employer-­‐worker  rela?onship   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  • 2011  Defini$on   Con$ngent  Work:    Anyone  who  is  not  an   employee……   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  • How  do  Companies  Manage?   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  • 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.  
  • 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.  
  • 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.  
  • 2010  VMS/MSP  LANDSCAPE  HIGHLIGHTS   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  • 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.  
  • 2009  Total  MSP  vs  VMS  Spend  Under  Management  Comparison   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  • VMS  Spend  under  Management   ©2011  by  Crain  Communica1ons  Inc.  All  Irights  ights  reserved.   ©2010  by  Crain  Communica1ons   nc.  All  r reserved.  
  • ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  • MSP  Spend  under  Management   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  • ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  • 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.  
  • Culture  counts…   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  • BY  PERCENTAGE  WHICH  TARGET  GROUP  DOES  YOUR  COMPANIES  CORE  VALUE  PROPOSITION  MOST  APPEAL  TO?   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  • Some  new  trends…..   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  • Key  Metric  Areas  •  Quality  •  Efficiency  •  Cost  •  Risk   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  • 1,000  monkeys  typing  for  1,000  years……..   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  • Savings  are  real……..at  first….   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  • 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.  
  • What  makes  the  “perfect  metric”   ©2011  by  Crain  Communica1ons  Inc.  All  Irights  ights  reserved.   ©2011  by  Crain  Communica1ons   nc.  All  r reserved.  
  • But  lets  get  serious…..   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  • What  separates  the  good  from  the  bad?   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  • 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.  
  • 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.  
  • NPS  survey  from  2010   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  • ©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%   0.00%   0   1   2   3   4   5   6   7   8   9   10   Buyer   Staffing  Firm   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  • Net  Promoter  Score  by  Industry   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  • VMS  –Internally  Developed  vs.  Commercially  available   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  • Buyer  Experience  by  Program  Type   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  • Provider  Experience  by  Line  of  Business   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  • NPS  Buyers  vs.  Suppliers   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  • Which  is  more  important?     ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  • 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.  
  • 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.  
  • Scajer  Plots  of  Provider  Scores   ©2011  by  Crain  Communica1ons  Inc.  All  Irights  ights  reserved.   ©2011  by  Crain  Communica1ons   nc.  All  r reserved.  
  • NPS  scores  for  all  VMS  Providers  with  more  than  5  Buyer  responses   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  • NPS  scores  for  all    MSP  Providers  with  more  than  10  Buyer  responses  ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  • NPS  scores  for  all  VMS  Providers  with  more  than  10  responses  as  provided  by  Staffing  Firms   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  • NPS  scores  for  all  MSP  Providers  with  more  than  10  Staffing  Firm  responses   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  • 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.  
  • 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.  
  • 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.  
  • 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.  
  • Not Necessarily ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.  
  • 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.  
  • 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.  
  • 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.  
  • Ques1ons  &  Remarks?  Bryan  Pena  VP,  Con1ngent  Workforce  Strategies  and  Research  650-­‐390-­‐6188  bpena@staffingindustry.com   ©2011  by  Crain  Communica1ons  Inc.  All  rights  reserved.