1.
Managing the
Total Workforce
Global perspectives on
contingent workforce practices
Presenter: Alex Hagan
Founder and CEO,Kienco
@alexhagan

2.
“It’s not about the money, money, money”
Jessie J, “Price Tag”

3.
 50% of the Fortune 100 workforce will be contingent workers by 2020,
according to Staffing Industry Analysts
 62% of executives surveyed by the Economist Intelligence Unit’s “Global
Firms in 2020” survey expect to see a growing proportion of contingent
workers
 55% of global executives surveyed as a part of Deloitte’s Talent Edge 2020
study plan to increase the use of contract and/or part-time labor over the
next year
 34% of the 2,000 US Companies surveyed by McKinsey & Company’s 2011
jobs survey expected to see an increase in contract and/or temp workers in
the next 5 years. 90% of the respondents were responsible for hiring in their
organisations.

4.
40.2
96.7
87.2
95.5
61.9
82.9
86.9
84.7
79.7
89.4
80.8
73.1
67.9
62.6
97.4
89.9
82.8
75.6
68.0
10.6
5.5
30.8
4.5
2.1
2.3
14.3
6.9
9.3
11.7
16.5
25.4
5.9
7.3
17.3
13.9
49.2
7.3
7.4
12.6
11.0
12.9
6.0
3.7
9.9
15.1
15.5
12.0
4.2
9.9
7.1
18.1
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Agriculture, forestry and fishing
Mining
Manufacturing
Electricity, gas, water and waste services
Construction
Wholesale trade
Retail trade
Accommodation and food services
Transport, postal and warehousing
Information media and telecommunications
Financial and insurance services
Rental, hiring and real estate services
Professional, scientific and technical services
Administrative and support services
Public administration and safety
Education and training
Health care and social assistance
Arts and recreation services
Other services
% Employees % Independent Contractors % Other Business Operators

5.
61.9
77.7
74.6
88.0
91.3
87.7
86.8
82.7
9.3
12.2
17.7
6.4
5.1
4.0
10.0
12.6
28.8
10.1
7.7
5.5
3.6
8.2
3.2
4.7
0.0 20.0 40.0 60.0 80.0 100.0 120.0
Managers
Professionals
Technicians and trades workers
Community and personal service workers
Clerical and sdministrative workers
Sales workers
Machinery operators and drivers
Labourers
% Employees % Independent Contractors % Other Business Operators

6.
Australia
Agency Workers – 2.8%
Independent Contractors – 8.5%
Other Business Operators – 9.0%
vs
USA
Agency Workers – 1-2%
Independent Contractors – 7%
Self-Employed & Other – 8-9%

7.
• To hedge bets in the face of uncertain workforce demand
• To respond to fluctuating or time-limited demand (such as seasonal work
or a new product launch)
• To add capability in order to execute very quickly (assuming time-to-
productivity is minimal)
• To reduce costs (by avoiding the fixed costs that employees entail)
• To “try before you buy”
• To obtain skills and experience for a fixed period while transferring that
expertise to employees
• To access talent that isn’t available as a direct employee
• To address global talent shortages

8.
Disaggregation of Work
Globalisation / Remote Workforce
Technology
“On Demand” Workforce
Gamification

9.
"No matter who you are, most of the
smartest people work for someone else”
Bill Joy, Sun Microsystems co-founder

10.
Onboarding
Performance
Retention
Development
Training
Safety
Deployment
Engagement
Knowledge Management
Employment Brand
Reference Checking
Professional Standards
Capacity Planning
…But often are not integrated into HR initiatives for

11.
“Although it may seem like the company is saving
money — because you don’t have to provide
temporary workers with medical coverage or paid
vacation time — the revolving door of new hires
encourages low quality work, inconsistent productivity
and wastes useful resources on training.”
“Temps who had not paid attention in training were
now training new temps.”
– An open letter to Jeff Bezos, CEO of Amazon.com

12.
Contingent workers have “work arrangements that
differ from regular/permanent, direct wage and salary
employment. Contingent work and workers are
primarily distinguished by having an explicitly defined
or limited tenure.”
Temp Employees
Independent Consultants & Contractors
SOW Consultants
Interns
Freelancers
Seasonal Workers
Crowdsourced Workers
“Supertemps”

13.
Contingent Workers are more productive than employees
Contingent Workers are more motivated than employes
Contingent Workers are happier than employees
Contingent Workers are cheaper than employees
Contingent Workers are less productive than employees
Contingent Workers are less motivated than employes
Contingent Workers are not as happy as employees
Contingent Workers are more expensive than employees
studies show:
…and other studies show:

14.
Nominally Low-Skilled Occupations
that aren’t core business. Often
includes things like call centre work,
assembly line production, catering
and cleaning services.
High-skilled and socially important
occupations such as nursing and
teaching where coverage is a critical
issue. Often Agency Temps to
supplement internal workforce.
Common for engineering and software
specialists, HR specialists, film
production crews, artists. Usually
highly specific skills that are required
on a short-medium term basis.
Non recession-proof fields that are
highly skilled, traditionally full-time
employment that are in oversupply,
causing a high reliance on short-term
contracting. (Architects, Lawyers)

15.
“It used to be that only cheap foreign
manual labour was easily available; now
cheap foreign genius is easily available”
Thomas Friedman, New York Times Columnist

16.
“products that are in low demand or
have low sales volume can collectively
make up a market share that rivals or
exceeds the relatively few current
bestsellers and blockbusters,but only if
the distribution channel is large
enough.”

17.
"The Web allows people to show what they can do, regardless of their
education and credentials. It allows groups to form and work together
easily outside of a company context... And these more informal
organizations are much less constrained by geography; talented people
can live anywhere and shouldn’t have to move to contribute.“
It seems so much riskier to take a flier on someone you don’t know,
just because that person has a degree from a good school.

18.
• Masters degree in solid state physics and
mechanical engineering, working towards a PDh in
Hydrogen Energy.
• Author and co-author of nine academic articles and
16 presentation on international conferences.
• Participant in four international science research
projects with collaborators from Canada, USA,
Russia.
• Interested in the interaction between hydrogen and
zirconium based intermetallids and developing
hydrogen accumulators.
• 5 star rating from 4 clients across 7 jobs. 100%
Recommend, 100% would re-hire, 75% have rehired
In the global, online
talent market, social
proof replaces
reference checks

19.
• Made out of a coat and 2 ping pong balls
• Has appeared in 36 Movies
• Talk show host
• Author of three books
• Has a star on the Hollywood Walk of Fame
• Holds an Honorary Doctorate of Amphibious Letters
from Southampton College
• Records birthday greeting videos in his spare time –
1,066 recorded so far with a 99% Satisfaction Rate
1,066 Reference
checks have already
been done

20.
Integrating data about “traditional” employees and contingent workers into a common
framework enables companies to:
• Gain a more holistic understanding of how they use talent today
• Model the projected impacts of different staffing options (buy/build/borrow)
• Determine the optimum balance between the contingent and “permanent” employee
segments
• Customize the mix in different locations, functions, roles or work streams
• Project the changing mix over the product or project lifecycle
• Better information on external supply
• Integrating demand planning into workforce mix
• Rich environment scanning and scenario planning
• Reduce time to productivity of contingent workers
• Understand total cost, attrition, performance, etc across different sectors

21.
• Removed 9% variance between contractor and
employee injury rates by pre-qualifying all contingent
workers
• Saved 5% of contingent costs by taking a strategic
approach to contingent engagement
• Reduced supervisor contingent workforce
management time from 35% to 15%

22.
• Removed FTE caps, which managers were working
around by hiring contingent workers, even if this
wasn’t the best option
• Had data on only 30% of the non-FTE workforce
• Security gaps, such as the former CW who liked the
email account
• Created a decision framework for when to engage
contingent workers by type, including considerations
like ramp-up time, type of work, length of
engagement, and cultural fit.

23.
• Duration of Work
• Type of Work (how strategic is the work? How difficult
to find the skills?)
• Knowledge Retention (how unique is the knowledge,
and how critical to retain?)
• Transition Costs (how significant?)
Recommendation on whether to hire an employee, or to
use contingent workforce

24.
This decision should always be made strategically, not reactively – you may need a decision
framework tailored to your organisation to do this
Strategic use of contingent work requires an understanding of the entire workforce today, and
external supply into the future
Partner with people who know where the talent is
Understand your workforce supply and demand curve
Don’t treat Contingent Workers as a homogenous group – they are more heterogenous than your
employees
Be aware of the “Long Tail” of talent
Take advice from Jessie J

25.
ISRAEL SPAIN
SOUTH AFRICA POLAND
GERMANY
TAIWAN
INDIA NORWAY PAKISTAN
Source: Staffing Industry Analysts’ Daily News

26.
AUSTRALIA

27.
Unique Relationship to Risk and Reward (2 sides to this coin)
“Casualisation of the Workforce”
Possible Structural inequalities for SOME contingent workers – younger
workers, female workers, and minorities are proportionally more highly
represented in contingent work

28.
“Workers describe a miserable existence, long hours, pitiful pay
and abuse if deadlines aren't met. In some of the worst cases
there is even violence and threats of jail”
- Four Corners, 25th June 2013
A factory owner in China said that it would “...be nearly impossible
for a foreign company to determine if one of its suppliers was
complying with labour and safety standards”
- Australian Financial Review, 20th August 2013
"It's price, price, price, price, price and profit“
– Australian Financial Review, 20th August 2013
Although it may be cheaper to subcontract work, the practise can
create “long complex supply chains [that] can allow poor and often
illegal labor practices to exist in legitimate industries”
- Institute for Human Rights and Business

29.
Reference Checking
Professional Standards
Safety Standards
Cultural Fit
Capacity Planning
Labor Market Conditions

30.
Lack of experience in both Contingent Workforce Management and Strategic Workforce Planning
Siloed approach – HR for Employees, Procurement for the Contingent Workforce
Sketchy Information
The Difficulty of Scaling Globally
Functional Silos

31.
Dr. Mary Young leads The Conference Board’s
program of research on Strategic Workforce
Planning (SWP). Trained in organizational
behavior and organizational development,
she has studied strategic workforce
planning‘s emergence and evolution as a
business process in more than 70 companies.
Dr Young generously provided research and assistance for this presentation.
Many of the case studies within are taken from her research “Managing the Total Workforce:
Bringing Contingent Labor inside the Strategic Workforce Planning Tent”, April 2013
http://www.conference-board.org/topics/publicationdetail.cfm?publicationid=2473&topicid=40&subtopicid=150