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Moving Your Contingent Workforce Program from Tactical to Strategic
The document outlines strategies for transforming contingent workforce programs from tactical to strategic management, emphasizing program maturity and the need for diagnosis of current issues. It discusses various aspects of contingent workforce management, including the use of technology, compliance, cost savings, and process improvements. Additionally, it provides guidance on creating a strategic roadmap for effective implementation and management of these programs.
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Moving Your Contingent Workforce Program from Tactical to Strategic
- 1. © PeopleFluent 2014 Presentedby John Moore, CCWP John.moore@peoplefluent.com www.peoplefluent.com PeopleFluent Moving Your Contingent Workforce Program from Tactical to Strategic
- 2. © 2014 PeopleFluent •Leader Human Capital Management • In over 5,200 organizations • 214 countries and territories • 80% of the Fortune 100 • 170 VMS customers • $7B managed spend About PeopleFluent
- 3. © 2014 PeopleFluent •CW program maturity • Diagnosing where you are • Strategies to address issues • Building a program roadmap • Identifying cost savings Agenda
- 4. © 2014 PeopleFluent CWProgram Maturity Ad hoc Manual No process No SLAs Too many suppliers Not enough suppliers Not repeatable Tactical Automated Transactional Process Focus on efficiency Supplier rationalization Focus on cost Focus on hourly workers Managed Integrated High use of metrics Focus on compliance Focus on quality Suppliers are rotated Program SLAs Services Procurement* Strategic Embedded Business Focus Enterprise SLAs Analytics Total Visibility Total Workforce QUALITY – COST SAVINGS – EFFICIENCY – COMPLIANCE
- 5. © 2014 PeopleFluent CWProgram Maturity Paths Ad hoc Tactical Managed Strategic VMS IMPLEMENTATION SOW EXPANSION INTEGRATION WORKFORCE MANAGEMENT TIME
- 6. © 2014 PeopleFluent •Skillset • Technology • Process • Finance • Staffing industry • Market prices • Procurement • Contracts • Excellent people skills CW Program Management
- 7. © 2014 PeopleFluent •Identify the issues • You might already know some of them • Survey • Executives • Hiring managers • Suppliers • Functional areas Diagnosing Your Program QUALITY – COST SAVINGS – EFFICIENCY – COMPLIANCE
- 8. © 2014 PeopleFluent •First, look outside of the technology • Organizational structure • Lack of support • Executives • Business managers • Hiring managers • Functional areas • Entrenched suppliers Diagnosing Your Program QUALITY – COST SAVINGS – EFFICIENCY – COMPLIANCE
- 9. © 2014 PeopleFluent DiagnosingYour Program Issue Cause Possible Solutions Candidate Quality Suppliers Scorecards Rationalization Candidate Quality Non-specific requisitions Detailed templates Hiring mangers don’t use the VMS Too difficult Training Hiring mangers don’t use the VMS Takes too long Workflow Hiring mangers don’t use the VMS No internal policy Executive, management support Create an Issue Log
- 10. © 2014 PeopleFluent RequisitionManagement • Templates • Workflow • Approval Offboard & Evaluate • Facilities & Logistics • Notifications • Worker Evaluation Source • Vendor Distribution • Rate card Billing and Invoice • Consolidated invoice • Adjustments • Financial Integrations Payment Management • Time, Expense • Approvals/ notifications Compliance/Onboarding • Facilities & Logistics • Compliance Items • Electronic Notifications Engage • Cost Allocations • Tenure Control • Budget Management Select • Qualification • Candidate Ranking • Interview Scheduling • DNR / Duplicate Screening Analytics Program Workflow
- 11. © 2014 PeopleFluent DiagnosingIssues Quality of Candidates Supplier Training Scorecards / SLAs Rationalization Requisition Training the HMs Build templates Screening Who’s responsible? Adjust the process
- 12. © 2014 PeopleFluent DiagnosingIssues Efficiency System Integrations Workflow Notifications Process Exceptions End-to-end Common Training Hiring managers Suppliers A B
- 13. © 2014 PeopleFluent DiagnosingIssues Compliance System Notifications Reporting Workflow stops? Process Policies Who’s responsible? Auditing Training Functional areas Suppliers
- 14. © 2014 PeopleFluent DiagnosingIssues Cost Savings System Rate card Markups Market rates Supplier Scorecards Contracts Comparison rate data Process Negotiation Exceptions Pre-identified
- 15. © 2014 PeopleFluent CostSavings Areas Category Detail Benchmark rate cost savings Compares a defined benchmark rate / mark-up vs. the actual engaged rate / mark-up over a defined period of time to show the reduction Negotiated Savings • Requisition-by-requisition negotiated rate savings • Conversion savings / discounts (i.e., right hire savings) • Volume discounts based on ascending spend thresholds • Prompt pay / early pay discounts • Tenure discounts • Payrolling savings • Renegotiations • Rebates to client • Reduced OT rates • Decreased per diems
- 16. © 2014 PeopleFluent CostSavings Areas Category Detail Hard Cost Savings • Tangible bottom line reductions • Saved money from budgets • Target reduced supplier count per category and region • Capture rogue spend due to lack of global visibility • Automate financial approvals / provide governance • Rationalize job descriptions to establish rate cards • Total cost management • Pay rate band usage • Combination mark-up and bill rates • True market comparison • Normalize rates based on third party benchmarking • Introduce competition though supplier neutrality / manage bid process Metrics • Track cost savings (clearly defined and standardized) • Improve processes (measurable cost reductions)
- 17. © 2014 PeopleFluent CostSavings Areas Category Detail Reduced SG&A expenses • Operational efficiencies improved (decreased costs to manage contingent labor) Decreased cost of ownership • Shared Managed Services / VMS allow managers to focus on your business • Consolidated invoice
- 18. © 2014 PeopleFluent SoftCost Savings Areas Category Detail Mitigate Risk • Mitigate risk through co-employment management • Reduce financial exposure due to worker misclassification; manage on a per country basis • Track licensing and certifications for expirations • Establish tenure rules across various worker types and in accordance with local regulations • Reduce invoicing / payment errors • Periodic audits to identify risks and opportunities for corrective action Administrative Cost Savings • Invoice processing • PO processing • Payment processing • Time savings (e.g., invoice processing time) • AP invoice audit savings based on the avoidance or credits on overpayments to supplier
- 19. © 2014 PeopleFluent SoftCost Savings Areas Category Detail Process Improvements • Cycle time improvements • Candidate quality improvements • Reduced reporting administration • Consolidated invoice and payment process • Elimination of invoice errors Soft Cost Avoidance Savings • Reduce cycle time to fill • Outsource process (invoice / payment, contracts admin, onboarding) to free procurement, AP resources • MSP or SMS governance programs reduce HR, legal and procurement resources • Comprehensive reporting to drive continuous program improvement
- 20. © 2014 PeopleFluent DiagnosingIssues Other Areas Program Adoption Training Management awareness Communication Change Management Executive support Stakeholder committee Entrenched suppliers
- 21. © 2014 PeopleFluent •A roadmap is a process to aid in integrating business and technology • A dynamic plan • It describes where you want to be and how you are going to get there The Strategic Roadmap
- 22. © 2014 PeopleFluent •Characteristics • Goals • Timelines • Actionable steps • Interdependencies • Alternate routes Creating Your Roadmap
- 23. © 2014 PeopleFluent •Goals need to be • Specific • Measurable • Realistic • Time-bound • “Expand VMS to capture 90 percent of Admin category within corporate by end of year.” Creating Your Roadmap
- 24. © 2014 PeopleFluent •How to Begin • High-level sponsor with a vision • Leadership support • Identification of stakeholders • Analyze gaps • Set goals • Build a plan Creating Your Roadmap
- 25. © 2014 PeopleFluent •Identify who you need • IT • Procurement • Human Resources • Legal • Business managers • Functional managers • Executives • VMS/MSP/SMS (optional) CW PM IT Procurement HR LegalBusiness Leaders Functional Managers Executive Creating Your Roadmap
- 26. © 2014 PeopleFluent Discovery BusinessObjectives Functional Needs Business Processes Improvements Drivers Governance Recommendations Targets Guidelines Initiatives Organizational Functional Communication Process Technology Execution Prioritize Set Timelines Create Projects Creating Your Roadmap
- 27. © 2014 PeopleFluent CreatingYour Roadmap
- 28. © 2014 PeopleFluent •Put the issues, solutions and roadmap into a business case • Present to the stakeholder committee • Work the roadmap • Rebrand and relaunch • Start the road show Begin Your Journey
- 29. © 2014 PeopleFluent ContactMe John Moore, CCWP John.moore@peoplefluent.com Thank You
Editor's Notes
- #5 Common Characteristics – Tactical – Managed- integrated with other system Strategic- contributes to business decisions, includes all worker types. Most straddle between Tactical and Managed.
- #14 Goes beyond external- drug screening and background check Look at internal processes that prevent things from moving forward- documentation and who is responsible as well as auditing
- #15 Busiest part of a VMS How to determine cost savings- rate cards need to be updated on a regular basis All suppliers should provide market rate cards per role. Look at the supplier rate cards to ensure placement and cost relevance and cost savings Which is better? Market rates change all the time so hard to build a current rate card. A markup prevents a supplier to push the rate down and allows for even footing. VMS allows for a competitive system and bill rate. How to benchmark outside of your suppliers? MSP will provide that data as well as a VMS may have access to scrubbed data across different geographies. The final negotiation is where you can realize cost savings by reduced hourly rate.