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

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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.

This SlideShare surfaces priorities and opportunities of senior executives and their use of the external workforce in major markets across the globe, with highlights from Europe. It provides an overview of:
• Which European countries are leading the way in external workforce management
• How the external workforce is sourced, managed, and deployed in Europe
• Why the external workforce should be on the C-suite agenda

Visit externalworkforce.fieldglass.com/europe for the full report.

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—30% of them in Europe—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.

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Europe Highlights - 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 in collaboration with Global results with highlights from Europe
  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 labour 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 All channels for sourcing external workers show growth in 3 years. A standout: the digital channel. Growth of the use of on-demand, online marketplaces for freelancers Today In 3 years 35% Global 38% 74% 50% 83% 47% 90% 55% 90% 45% 61% 40% 67% 27% 50% 57% 87% 23% 61% Belgium France Germany Italy Netherlands Nordics Spain UK
  9. 9. © 2018 SAP SE or an SAP affiliate company. All rights reserved. 9 Only 19% of executives on average, globally, stated that they strongly agree that their organisation 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 Our organisation has a talent strategy that encompasses employees and the external workforce. 35% Global 19% 20% 13% 19% 13% 27% 20% 20% 16% Belgium France Germany Italy Netherlands Nordics Spain UK “Strongly agree” responses
  11. 11. © 2018 SAP SE or an SAP affiliate company. All rights reserved. 11© 2018 SAP SE or an SAP affiliate company. All rights reserved. Ensure critical mass 11 Force Two It’s about the core
  12. 12. © 2018 SAP SE or an SAP affiliate company. All rights reserved. 12 We would be unable to conduct business as usual without an external workforce. 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 35% Global 46% 37% 33% 45% 39% 67% 53% 43% 45% Belgium France Germany Italy Netherlands Nordics Spain UK
  13. 13. © 2018 SAP SE or an SAP affiliate company. All rights reserved. 13 Today In 3 years 35% Global 73% 91% 70% 87% 83% 97% 77% 87% 81% 94% 73% 97% 63% 83% 80% 93% 68% 87% Belgium France Germany Italy Netherlands Nordics Spain UK “Important”’ and “Extremely important” responses The importance of external workers in sourcing skills that are in scarce supply: Digital skills and other specialised capabilities can make or break a business so meeting the demand for talent is essential.
  14. 14. © 2018 SAP SE or an SAP affiliate company. All rights reserved. 14 Challenges in accessing specialised skills such as AI and machine learning, data science and industry-specific expertise is the #1 market trend for the fastest-growing companies.
  15. 15. © 2018 SAP SE or an SAP affiliate company. All rights reserved. 15 Accelerate value 15 Force Three Cost is not the whole story
  16. 16. © 2018 SAP SE or an SAP affiliate company. All rights reserved. 16 Controlling costs is no longer the principal driver for using an external workforce.
  17. 17. © 2018 SAP SE or an SAP affiliate company. All rights reserved. 17 While cost is still an important factor, the external workforce is now seen as essential to improving business performance. “Important” and “Extremely important” responses – global results 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 organisational agility Achieving sustainability goals/shrinking our carbon footprint Managing costs Reducing risk
  18. 18. © 2018 SAP SE or an SAP affiliate company. All rights reserved. 18 “Important” and “Extremely important” responses How important is the external workforce in developing or improving products and services? 35% Global 68% 67% 83% 77% 77% 57% 63% 63% 61% Belgium France Germany Italy Netherlands Nordics Spain UK
  19. 19. © 2018 SAP SE or an SAP affiliate company. All rights reserved. 19 “Important” and “Extremely important” responses How important is the external workforce to increasing speed to market? 35% Global 66% 63% 70% 77% 74% 50% 57% 57% 68% Belgium France Germany Italy Netherlands Nordics Spain UK
  20. 20. © 2018 SAP SE or an SAP affiliate company. All rights reserved. 20 “Important” and “Extremely important” responses How important is the external workforce to managing costs? 35% Global 60% 63% 57% 74% 65% 50% 57% 60% 77% Belgium France Germany Italy Netherlands Nordics Spain UK
  21. 21. © 2018 SAP SE or an SAP affiliate company. All rights reserved. 21 “Agree”’ and “Strongly agree” responses Our external workforce enables us to improve our overall financial performance. 35% Global 62% 63% 33% 55% 71% 77% 57% 63% 55% Belgium France Germany Italy Netherlands Nordics Spain UK
  22. 22. © 2018 SAP SE or an SAP affiliate company. All rights reserved. 22© 2018 SAP SE or an SAP affiliate company. All rights reserved. Expand your line of sight 22 Force Four Visibility is everything
  23. 23. © 2018 SAP SE or an SAP affiliate company. All rights reserved. 23 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.
  24. 24. © 2018 SAP SE or an SAP affiliate company. All rights reserved. 24 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.
  25. 25. © 2018 SAP SE or an SAP affiliate company. All rights reserved. 25 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
  26. 26. © 2018 SAP SE or an SAP affiliate company. All rights reserved. 26 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.
  27. 27. © 2018 SAP SE or an SAP affiliate company. All rights reserved. 27 How informed are you personally about the following details of your non-payroll workers? “Highly informed" responses – global results Pacesetters Non-Pacesetters Responsibilities Labour 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%
  28. 28. © 2018 SAP SE or an SAP affiliate company. All rights reserved. 28 How informed are you personally about the following details of services providers doing work for your organisation? 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 – global results Pacesetters Non-Pacesetters
  29. 29. © 2018 SAP SE or an SAP affiliate company. All rights reserved. 29 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.
  30. 30. © 2018 SAP SE or an SAP affiliate company. All rights reserved. 30 How challenging are the following aspects of managing your external workforce? “Really” and ”Extremely challenging" responses – global results Pacesetters Non-Pacesetters Managing digital/ cyber security Tracking resource and project quality 51% 61%40% 61% Compliance with local tax laws, labour laws, regulatory, etc. 42% 57% Inconsistencies in talent or project quality 29% 59% Finding high- quality resources at the right rate 43% 54%
  31. 31. © 2018 SAP SE or an SAP affiliate company. All rights reserved. 31 Business impact: Pacesetters stand out when it comes to realising value beyond cost control. Pacesetters reap more business value from their external workforce.
  32. 32. © 2018 SAP SE or an SAP affiliate company. All rights reserved. 32 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 – global results Pacesetters Non-Pacesetters 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 88% 59% 79% 52% 58% 46%
  33. 33. © 2018 SAP SE or an SAP affiliate company. All rights reserved. 33 The external workforce provides benefits beyond hard numbers. Many executives say the external workforce makes a positive impact on overall workforce performance and the culture of their organisation.
  34. 34. © 2018 SAP SE or an SAP affiliate company. All rights reserved. 34 The external workforce challenges our employees to do their best work. “Agree” and ”Strongly agree" responses 35% Global 61% 67% 53% 61% 74% 60% 63% 47% 48% Belgium France Germany Italy Netherlands Nordics Spain UK
  35. 35. © 2018 SAP SE or an SAP affiliate company. All rights reserved. 35 The external workforce raises the bar for our employees by bringing in new sources of skills and talent. “Agree” and ”Strongly agree" responses 35% Global 54% 27% 37% 45% 52% 73% 63% 40% 71% Belgium France Germany Italy Netherlands Nordics Spain UK
  36. 36. © 2018 SAP SE or an SAP affiliate company. All rights reserved. 36 The external workforce improves our culture by bringing in new people with different backgrounds and experiences. “Agree” and ”Strongly agree" responses 35% Global 54% 47% 40% 42% 45% 43% 63% 37% 42% Belgium France Germany Italy Netherlands Nordics Spain UK
  37. 37. © 2018 SAP SE or an SAP affiliate company. All rights reserved. 37 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 rigour you use to manage your employees be applied to your contingent workers and services providers?
  38. 38. © 2018 SAP SE or an SAP affiliate company. All rights reserved. 38 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 realised—and those that could be realised.  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 labour sources, both external and traditional. Embrace the external workforce for the skills and ideas that this talent brings and make them a part of organisational objectives and purpose.
  39. 39. © 2018 SAP SE or an SAP affiliate company. All rights reserved. 39 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 labour 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/Europe to learn more about Pacesetters and key forces driving how work gets done. About our research

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