Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

External Workforce Insights 2018: The Forces Reshaping How Work Gets Done

4,959 views

Published on

SAP Fieldglass, in collaboration with Oxford Economics, conducted a global research study examining the rapid growth of the external workforce- non-payroll workers and service providers- and its far-reaching implications for both employers and employees. External Workforce Insights 2018: The Forces Reshaping How Work Gets Done provides insights into the ways the external workforce is sourced, managed and deployed- and the business benefits that can be realized. Those who manage external labor effectively find it to be a driver of competitive advantage and those who don't risk being left behind.

View the SlideShare for an overview of how the external workforce is reshaping the way work gets done- and how it can payoff for your business. For the full report, visit https://bit.ly/2KBlsIm.

About the Research

In late 2017 and early 2018, SAP Fieldglass working in collaboration with Oxford Economics conducted an in-depth survey with 800 senior executives- one-third of them C-Suite leaders- from mid-sized to large companies in 16 industries and 14 countries plus the Nordic region of Europe. The survey focused on the use and management of an external workforce, today and in the future, and its impact on business and financial performance.

Published in: Technology
  • Be the first to comment

External Workforce Insights 2018: The Forces Reshaping How Work Gets Done

  1. 1. © 2018 SAP SE or an SAP affiliate company. All rights reserved. 1 Research study in collaboration with
  2. 2. © 2018 SAP SE or an SAP affiliate company. All rights reserved. 2 Focus your forces The rapid growth of the external workforce—the use of non-payroll workers and contracted services providers to get work done—is one of the most important business stories of our time with far reaching implications for both employers and employees.
  3. 3. © 2018 SAP SE or an SAP affiliate company. All rights reserved. 3 44%of workforce spend is on the external workforce
  4. 4. © 2018 SAP SE or an SAP affiliate company. All rights reserved. 4 Those who manage external labor effectively find it to be a driver of competitive advantage and those who don’t risk being left behind. Our research provides an unprecedented deep dive into the ways the external workforce is sourced, managed, and deployed, and how it can pay off for a business.
  5. 5. © 2018 SAP SE or an SAP affiliate company. All rights reserved. 5 We identified four key forces transforming how work gets done. The multi-channel workforce is on the rise It’s about the core Cost is not the whole story Visibility is everything
  6. 6. © 2018 SAP SE or an SAP affiliate company. All rights reserved. 6 Generate momentum 6 Force One The multi-channel workforce is on the rise
  7. 7. © 2018 SAP SE or an SAP affiliate company. All rights reserved. 7 Companies are using the multi-channel workforce to get work done.
  8. 8. © 2018 SAP SE or an SAP affiliate company. All rights reserved. 8 The expected growth of these channels suggests an ongoing demand for external workers. Channels used to access external talent today, and expected in three years: Respondents could select all that apply Today In three years Service providers Source ourselves On-demand online marketplaces for freelancers Staffing agencies Alumni 50% 72% 48% 75% 38% 74% 35% 78% 9% 30%
  9. 9. © 2018 SAP SE or an SAP affiliate company. All rights reserved. 9 Only 19% of executives stated that they strongly agree that their organization has a talent strategy that encompasses employees and the external workforce despite the latter comprising nearly half of their workforce spend. Talent strategy is increasingly dependent upon sourcing strategy.
  10. 10. © 2018 SAP SE or an SAP affiliate company. All rights reserved. 10© 2018 SAP SE or an SAP affiliate company. All rights reserved. Ensure critical mass 10 Force Two It’s about the core
  11. 11. © 2018 SAP SE or an SAP affiliate company. All rights reserved. 11 Say they would be unable to conduct business as usual without an external workforce Say their external workers are critical to operating at full capacity and meeting market demands 46% 65% The external workforce has become essential to core operations. It provides a rich well of talent and is increasingly critical to business strategy. “Agree” and “Strongly agree” responses
  12. 12. © 2018 SAP SE or an SAP affiliate company. All rights reserved. 12 The external workforce is critical for sourcing hard-to-find skills. The importance of external workers in sourcing skills that are in scarce supply: “Important”’ and “Extremely important” responses Digital skills and other specialized capabilities can make or break a business in the global economy, so meeting the demand for talent at the right time, right rate, right quality, and right place is essential. Today In three years 73% 91%
  13. 13. © 2018 SAP SE or an SAP affiliate company. All rights reserved. 13 Challenges in accessing specialized skills such as AI and machine learning, data science and industry-specific expertise is the #1 market trend for the fastest-growing companies.
  14. 14. © 2018 SAP SE or an SAP affiliate company. All rights reserved. 14 Accelerate value 14 Force Three Cost is not the whole story
  15. 15. © 2018 SAP SE or an SAP affiliate company. All rights reserved. 15 Controlling costs is no longer the principal driver for using an external workforce.
  16. 16. © 2018 SAP SE or an SAP affiliate company. All rights reserved. 16 While cost is still an important factor, the external workforce is now seen as essential to improving business performance. “Important” and “Extremely important” responses How important is the external workforce in meeting the following business goals? 68% 66% 65% 64% 62% 60% 54% Developing or improving products and services Increasing speed to market Operating at full capacity/meeting market demands Increasing organizational agility Achieving sustainability goals/shrinking our carbon footprint Managing costs Reducing risk
  17. 17. © 2018 SAP SE or an SAP affiliate company. All rights reserved. 17© 2018 SAP SE or an SAP affiliate company. All rights reserved. Expand your line of sight 17 Force Four Visibility is everything
  18. 18. © 2018 SAP SE or an SAP affiliate company. All rights reserved. 18 A fundamental truth of business is that you can’t manage what you don’t measure, so these new work arrangements require a new kind of management. The lack of visibility into the external workforce is a serious problem for most companies.
  19. 19. © 2018 SAP SE or an SAP affiliate company. All rights reserved. 19 How challenging are the following aspects of managing your external workforce? Finding high-quality resources at the right time and in the right place Tracking resource and project quality Managing digital/cyber security Compliance with local tax laws, labor laws, regulatory and privacy requirements Ensuring non-employees or suppliers who do not perform well are not re-engaged “Really challenging” and “Extremely challenging” responses 70% 59% 58% 55% 51%
  20. 20. © 2018 SAP SE or an SAP affiliate company. All rights reserved. 20 Learn from the Pacesetters who are leading the pack. Around one in ten companies that responded to our survey demonstrate markedly superior performance in managing and extracting value from the external workforce.
  21. 21. © 2018 SAP SE or an SAP affiliate company. All rights reserved. 21 Pacesetters are charting the way forward for others in this still evolving field. They stand out in three important ways: Visibility into the external workforce Effective management of the external workforce Business impact of these workers
  22. 22. © 2018 SAP SE or an SAP affiliate company. All rights reserved. 22 Pacesetters are much more informed on details regarding their non-payroll workers and services providers and are more likely to say that their C-level executives are informed as well. Visibility: Pacesetter executives are more in the know.
  23. 23. © 2018 SAP SE or an SAP affiliate company. All rights reserved. 23 How informed are you personally about the following details of your non-payroll workers? “Highly informed" responses Pacesetters Non-Pacesetters Responsibilities Labor rates Compliance with negotiated rates Quality of work 83% 43% 81% 46% 71% 44% 61% 43% Access to systems and confidential info 55% 33% Who they are 43% 34%
  24. 24. © 2018 SAP SE or an SAP affiliate company. All rights reserved. 24 How informed are you personally about the following details of services providers doing work for your organization? Responsibilities Who is doing the work Duration of work Quality of work 84% 49% 82% 43% 75% 46% 60% 40% Access to systems and confidential info 52% 42% “Highly informed" responses Pacesetters Non-Pacesetters
  25. 25. © 2018 SAP SE or an SAP affiliate company. All rights reserved. 25 Effective management: Pacesetters show how much other companies could benefit from more effective management. Pacesetters find it much less challenging to perform a wide range of external workforce management duties more effectively.
  26. 26. © 2018 SAP SE or an SAP affiliate company. All rights reserved. 26 How challenging are the following aspects of managing your external workforce? “Really” and ”Extremely challenging" responses Tracking resource and project quality Managing digital/ cyber security Pacesetters Non-Pacesetters Compliance with local tax laws, labor laws, regulatory, etc. Unauthorized spend 51% 61% 40% 61% 42% 57% 31% 55% Finding high- quality resources at the right rate 43% 54%
  27. 27. © 2018 SAP SE or an SAP affiliate company. All rights reserved. 27 Business impact: Pacesetters stand out when it comes to realizing value beyond cost control. Pacesetters reap more business value from their external workforce.
  28. 28. © 2018 SAP SE or an SAP affiliate company. All rights reserved. 28 Our external workforce enables us to improve our company’s overall financial/business performance and/or helps us compete in a digital world. “Agree” and “Strongly agree” responses Our external workforce enables us to improve our company’s overall financial performance Our external workforce helps us compete in a digital world Our external workforce is a key lever in enabling our business performance Pacesetters Non-Pacesetters 88% 59% 79% 52% 58% 46%
  29. 29. © 2018 SAP SE or an SAP affiliate company. All rights reserved. 29 The external workforce should be a C-suite imperative, given its size and that it enables such an impressive range of business outcomes. The external workforce: is it on your C-suite agenda? Companies should increase their visibility into the external workforce—and the total workforce—to better thrive in a digital world. These vital assets are critically undermanaged. Shouldn’t the same rigor you use to manage your employees be applied to your contingent workers and services providers?
  30. 30. © 2018 SAP SE or an SAP affiliate company. All rights reserved. 30 Take action today. Capture the full value of the workforce transformation by managing your external workforce more effectively.  Ensure your leadership has visibility into the scope, activities and quality of your external workforce, the challenges at hand, the benefits realized—and those that could be realized.  Know the true value of your external workforce, whether they are most critical to getting products to market faster, providing difficult-to-access skills, driving digital transformation efforts, or controlling costs.  Anticipate the skills you will need in the future—and those in short supply. Determine a strategy to acquire, retrain, or source these skills through the external multi-channel workforce.  Apply workforce strategies to all labor sources, both external and traditional. Embrace the external workforce for the skills and ideas that this talent brings and make them a part of organizational objectives and purpose.
  31. 31. © 2018 SAP SE or an SAP affiliate company. All rights reserved. 31 Oxford Economics conducted an in-depth telephone survey with 800 senior executives from mid-sized to large companies in 16 industries and 14 countries plus the Nordic region of Europe in late 2017 and early 2018. The survey focused on labor trends, including the use and management of an external workforce, today and in the future, and its impact on business and financial performance. Get our full report at externalworkforce.fieldglass.com See if you are a Pacesetter. About our research

×