Dallas sma corner stonebussolution_4.21.10


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Dallas sma corner stonebussolution_4.21.10

  1. 1. April 21, 2010 Proactive Staffing Strategies for 2010 Managing A Contingent Workforce
  2. 2. Session Goals <ul><li>Enable you to walk away from this session with something of value for you and/or your organization </li></ul><ul><li>Appeal to a broad audience – Will Focus on Key Points </li></ul><ul><li>1 more hour of re-certification complete! </li></ul><ul><li>Allow some time for Q&A at the end </li></ul>
  3. 3. Session Overview <ul><li>Overview of the Contract Labor Market </li></ul><ul><li>Trends </li></ul><ul><li>Traditional Processes </li></ul><ul><li>Centralized Process Management & Category Models </li></ul><ul><li>Key Metrics </li></ul><ul><li>Technology in the Contract Labor Market </li></ul><ul><li>Co-employment </li></ul><ul><li>How to Get Started </li></ul><ul><li>Wrap-up and Q&A </li></ul>
  4. 4. Defining the Contingent Workforce Market <ul><li>“ Contract Labor” is often referred to as.… </li></ul><ul><li>Contingent Labor </li></ul><ul><li>Temp Labor </li></ul><ul><li>Outside Labor </li></ul><ul><li>Temp to Hire </li></ul><ul><li>Consulting </li></ul><ul><li>Agency recruiting </li></ul><ul><li>3 rd party </li></ul><ul><li>Independent Contractors </li></ul><ul><li>1099’s </li></ul>
  5. 5. How are 3 rd party “Services” defined? Any type of work being performed by a non-employee that generates productivity and value for the organization How Performed – On-site, Off-site, with or without client direction How Delivered – T&E, Fixed Fee, Milestone or Deliverable based, Outsourced Typical Categories – Consulting, Contractors, Marketing, Legal, Print, Independents Today’s discussion is focused on the more traditional services spend (i.e. T&E)
  6. 6. Uses of Contingent Labor <ul><li>Contract Labor is used for… </li></ul><ul><li>Seasonal variations in labor needs </li></ul><ul><li>Finding Niche skills </li></ul><ul><li>Hard to find skills </li></ul><ul><li>Temporary projects </li></ul><ul><li>Minimizing the impact of “regular” employees on </li></ul><ul><li>the payroll and long-term costs </li></ul><ul><li>Special projects </li></ul><ul><li>Engaging talent quickly </li></ul><ul><ul><ul><li>And now trending towards more strategic </li></ul></ul></ul>
  7. 7. <ul><li>Blue Collar & Light Industrial (T&M) </li></ul><ul><li>White Collar Professional (T&M) </li></ul><ul><li>Independent Contractors/1099’s </li></ul><ul><li>Call/Contact Center representatives (T&M, by contact, by resolution, etc.) </li></ul><ul><li>Outsourced projects (off-shore, near-shore, and on-shore) </li></ul><ul><li>Managed Deliverables or Fixed Fee </li></ul><ul><li>Other type Services such as marketing, print, legal, etc. </li></ul>Contingent Workforce Categories
  8. 8. 80% of the $200B U.S. Global Contract Labor Market is in Seven Key Geographies with the US and UK Consuming Over 50% of the Spend <ul><ul><li>US </li></ul></ul><ul><ul><li>38% </li></ul></ul><ul><ul><li>UK </li></ul></ul><ul><ul><li>16% </li></ul></ul><ul><ul><li>France 9% </li></ul></ul><ul><li>Source – Bear Stearns </li></ul><ul><ul><li>Belgium </li></ul></ul><ul><ul><li>1% </li></ul></ul><ul><ul><li>Canada </li></ul></ul><ul><ul><li>2% </li></ul></ul><ul><ul><li>Spain </li></ul></ul><ul><ul><li>2% </li></ul></ul><ul><ul><li>Italy 2% </li></ul></ul><ul><ul><li>Netherlands 3% </li></ul></ul><ul><ul><li>ROW 9% </li></ul></ul><ul><ul><li>Other Europe 3% </li></ul></ul><ul><ul><li>Germany 3% </li></ul></ul><ul><ul><li>Australia 7% </li></ul></ul>
  9. 9. Primary CWM Categories
  10. 10. The Market is Evolving <ul><li>90% of all companies use staffing services </li></ul><ul><li>70%+ of the workers in this industry are working “full-time” </li></ul><ul><li>The global market is now over $200B in revenues </li></ul><ul><li>The staffing market is growing at a rate of 10+% per year! </li></ul><ul><li>The professional services/staffing job market is at the top of </li></ul><ul><li>the list for new job growth </li></ul><ul><li>No clear market leader yet, services expansion, and more </li></ul><ul><li>globalization. </li></ul>
  11. 11. The Supply Side of the Market <ul><li>Allows for greater skill training in a shorter period of time </li></ul><ul><li>Compensation better aligned with skills and the market </li></ul><ul><li>Mitigate the political factors of a “full-time” job </li></ul><ul><li>Flexible working arrangements </li></ul><ul><li>Provides a work option for those unemployed from “full-time” jobs </li></ul><ul><li>Allows for a trial period with the organization before making a long term </li></ul><ul><li>commitment </li></ul>Dan Pink – Free Agent Nation Dan Miller – 48 Days to the Work You Love
  12. 12. How are Contingent Workers Viewed in US Organizations? <ul><li>Manpower survey 6 months ago…..41,000 companies surveyed worldwide: </li></ul><ul><li>84% of US companies surveyed said they assimilate </li></ul><ul><li>contingent workers just like they do regular FT workers </li></ul><ul><li>48% of US companies surveyed said that the contingent </li></ul><ul><li>worker was key to the overall workforce strategy of the </li></ul><ul><li>company </li></ul>
  13. 13. What do Business Leaders Think about Contingent Workers? “ The truth is that this surge in temporary workers is not only good news for the economy, it's the future of the 21st century labor market.” “ Permanent Employment is cooked….” Tom Peters Jody Miller, Wall Street Journal – Nov. 30, 2009
  14. 14. Top 10 Industries & Expected Growth through 2016
  15. 15. Why Use Contingent Workers?
  16. 17. Emerging Trends in the Industry <ul><li>Increased usage of contingent workers to meet labor needs </li></ul><ul><li>Convergence of ATS and VMS technology </li></ul><ul><li>Consortium Purchasing </li></ul><ul><li>eAuctions </li></ul><ul><li>VMS/MSP Providers </li></ul><ul><li>HR and Procurement BPO Providers </li></ul><ul><li>Dis-intermediate the Supply Chain </li></ul><ul><li>Off-Shoring </li></ul>
  17. 18. Traditional Contingent Labor Buying Process <ul><li>Not Centralized </li></ul><ul><li>Disparate Processes, if any </li></ul><ul><li>Unleveraged Contracts with no Buying Power </li></ul><ul><li>Lack of Technology Enablement </li></ul><ul><li>No Objectivity in Contractor Selection </li></ul><ul><li>Unmanaged/Undetermined Workforce Strategy </li></ul><ul><li>No Performance Tracking or Measurement </li></ul><ul><li>No Clearly Defined SOW or Deliverable </li></ul>
  18. 19. Inefficiencies and Unleveraged Buying Challenges <ul><li>No Demand Channel </li></ul><ul><li>No standard buying policy </li></ul><ul><li>Rogue spending </li></ul><ul><li>No Catalog data to leverage </li></ul><ul><li>Lack of workforce mgt policy </li></ul>Governance <ul><li>No MSA for protection </li></ul><ul><li>Lack of leveraged pricing </li></ul><ul><li>No SLA requirements </li></ul>Supplier Program Process <ul><li>Complex buying </li></ul><ul><li>Lack of technology enablement </li></ul><ul><li>Inability to fill roles timely </li></ul><ul><li>Costs to manage internally </li></ul><ul><li>Inability to track spend trends </li></ul><ul><li>Inability to connect buyers/sellers </li></ul><ul><li>Lack of electronic AP processing </li></ul><ul><li>Inability to do T&E audits </li></ul><ul><li>Inability to get relevant and timely data </li></ul>Technology
  19. 20. Typical Components of a Managed Program Governance Technology Key Suppliers Managed Process Leveraged Contracts Market competitive rates Managed SLA’s & Audits Supplier Management Ongoing market analysis Multi-skill fulfillment eAuctions Digital Platform ERP Integration Electronic Invoicing Desktop Self-Service Reporting and Metrics Rate and Skill Catalog Resume/CV Review Budget Approval Data Intelligence Supplier Performance Policy Driven Demand Management Approval Authorizations Early Engagement Continual Education Identify New Savings Oppty. Spend Analytics Benchmarking Efforts Integrated Process Desktop Self-Service Ongoing Feedback Oversight and Management Dashboard Metrics & KPI’s Savings Methodologies
  20. 21. Key Levers <ul><li>Program Strategy – Proper & Effective Implementation of MSP Solution </li></ul><ul><li>Cost Savings </li></ul><ul><li>Process Effectiveness & Efficiency – Leverage technology when/where appropriate </li></ul><ul><li>Successful “ Just in Time ” Delivery of Contract/Temporary Resources </li></ul><ul><li>Effective Control & Management of Contractor/Temporary Resources </li></ul><ul><li>Risk Mitigation </li></ul><ul><li>Key SLA’s & KPI’s in place to ensure program effectiveness </li></ul><ul><li>Effective Supplier Management & Contract Administration </li></ul><ul><li>Reporting </li></ul><ul><li>Simplified Process </li></ul><ul><li>Program Compliance and Governance </li></ul>
  21. 22. VMS Technology Features & Benefits <ul><li>Features: </li></ul><ul><li>Single buying platform </li></ul><ul><li>Consolidates spend </li></ul><ul><li>Integrates to HRIS platform </li></ul><ul><li>Robust reporting </li></ul><ul><li>Time and Expense capture </li></ul><ul><li>Automated invoicing </li></ul><ul><li>Automates requirements distribution </li></ul><ul><li>Audit capability </li></ul><ul><li>Workforce Management </li></ul><ul><li>Contractor satisfaction survey </li></ul><ul><li>Benefits: </li></ul><ul><li>Aggregates demand </li></ul><ul><li>Leverage costs </li></ul><ul><li>Track contractors </li></ul><ul><li>Simplifies the transaction </li></ul><ul><li>Automates the process </li></ul><ul><li>Fewer administrative errors </li></ul><ul><li>Reduces the need for paper invoices </li></ul><ul><li>Cost savings </li></ul><ul><li>Cost center tracking </li></ul><ul><li>Real time view of labor spend </li></ul>
  22. 23. Key Metrics to Consider for the Contingent Workforce Category <ul><li>Key Metrics for CWM: </li></ul><ul><li>Effective Workforce Utilization </li></ul><ul><li>Risk Mitigation </li></ul><ul><li>Cost Savings </li></ul><ul><li>On-time Delivery </li></ul><ul><li>Spend Under Management </li></ul><ul><li>Contract Risk </li></ul><ul><li>Addressable Spend </li></ul><ul><li>Supplier Scorecard Metrics for CWM: </li></ul><ul><li>Fill Rate </li></ul><ul><li>Attrition/Termination Rate & Reason </li></ul><ul><li>Submit to Hire </li></ul><ul><li>Target Rate ratio </li></ul><ul><li>Contract compliance </li></ul><ul><li>Project Completion Ratio </li></ul>
  23. 24. Co-employment Risks <ul><li>Things to consider in the “co-employment” realm… </li></ul><ul><li>IRS 20 Question Test (Darden) </li></ul><ul><li>Who directs and controls the work </li></ul><ul><li>Who sets the hours of work and job assignments </li></ul><ul><li>Who provides the pay/benefits and what is the payment </li></ul><ul><li>cycle </li></ul><ul><li>Who handles work related performance issues (counseling, </li></ul><ul><li>etc.) </li></ul><ul><li>Who hires the worker and processes the employment </li></ul><ul><li>paperwork </li></ul><ul><li>What is the length of the engagement </li></ul>
  24. 25. Getting Started…….. <ul><li>Assess your overall services spend </li></ul><ul><li>Identify an executive champion </li></ul><ul><li>Engage key stakeholders (internal & external) </li></ul><ul><li>Formulate your strategy </li></ul><ul><li>Build the business case </li></ul><ul><li>Communicate the objectives </li></ul><ul><li>Execute </li></ul>
  25. 26. Q & A QUESTIONS?
  26. 27. Contact Information Steven Scott, PHR Principal Contact: Phone: 214-403-5754 cell Email: [email_address] 972-208-6850 office