Wtg ags how future proof is your workforce webinar 27th feb2013
How future proof isyour workforce…?February 27th, 2013 www.allegisgroupservices.com
Introduction Ronald Kreugel – Director, Business Development • Over 18 years experience in global staffing and recruitment industry • Helping customers to design, build and deliver workforce solutions • Since late 1990’s involved in MSP, RPO, VMS (before buzzwords) About Allegis Group Services: • World’s 4th largest provider of Staffing and HR services • Leading provider of global Human Capital Solutions • Specialists in Managed Services, RPO and HR Advisory Services www.allegisgroupservices.com
Agenda 1. Simplified Labour Market Model 2. Global Trends Affecting the Workforce 3. Major Workforce Trends 4. Growing Usage of Contingent Labour 5. HR or Procurement? 6. Final Thoughts www.allegisgroupservices.com
Simplified Labour Market Model Part-time Factor Labour Jobs Productivity Labour Years DEMAND (full-time jobs) Production (GDP) SUPPLY
Simplified Labour Market Model Part-time Factor Labour Jobs Productivity Labour Years DEMAND (full-time jobs) Production (GDP) Population Population 15-65 years SUPPLY Share of Labour 15-65 years Force Degree of Participation
Simplified Labour Market Model Part-time Factor Labour Jobs Productivity Labour Years DEMAND (full-time jobs) Production (GDP) Vacancies Non-working Jobseekers Population Population 15-65 years SUPPLY Share of Labour 15-65 years Force Degree of Participation
Change Drivers Growth of Emerging +42% Cross-border Markets Migration Migration Uncertain of Knowledge Global Workers Economy Change Drivers Unemployment in 1. Global Power Shift 2. Aging Population developed markets 3. Technology Innovations Major Disruptive Demographic Technology Shifts Innovation Government Market Change Migration Reforms Patterns Source: World Economic Forum
Workforce Trend (2) Source: Global BCG/WFPMA report ‘Creating People Advantage’
Poll Question 1 What is your organisation doingwith regards to strategic workforce planning? 1. We are not doing anything at this moment 2. We are thinking about strategic workforce planning 3. We have launched an initiative, but still early days 4. We have started with strategic workforce planning some time ago
Workforce Trend (3) “INCREASING USAGE OF CONTINGENT LABOUR”
Types of Contingent Workers Permanent Employees Contingent WorkersTemporary / Agency Graduates / Workers Interns Professional Independent Workers Contractors Projects Free-Lancers Statement of Work www.allegisgroupservices.com
CW Maturity Model HIGH GLOBAL CONTROL OF MSP or TTAM TOTAL TALENT ACQUISTION Global spend centralized MANAGEMENT LEVEL OF COMPLEXITY and controlled MANAGED SERVICE Total workforce spend Global workforce PROVIDER (MSP) under management visibility Managing all contract Complete workforce Customized SLAs and workforce spend visibility process CLIENT MANAGED PREFERRED One point of contact for Direct cost savings on Global supply LOW SUPPLIER suppliers and bill rate and SOWs community MASTER VENDOR contractors and hiring Customized SLAs and Increased total cost of PROGRAM managers process ownership savings One supplier (possibly Client resources Direct cost savings on DECENTRALIZED Non-compliant spend Integrated e tool for total managing second and tactically engaged bill rate and usage elimination process visibility third tier suppliers) Selective set of Integrated e tool for Increased total cost of Additional productivitySeveral suppliers One point of contact suppliers selected total process ownership savings and process savingsProcurement done on Direct cost savings on Contracts in place SLAs & customized Additional productivity High degree of value an ad-hoc basis bill rate and Volume SLAs in place process and process savings added servicesManagement done Customized SLAs and May or may not involve Total cost of ownership High degree of value Ability to plan best mix internally process automation savings added services of resource types I II III IV V VI MATURITY OF THE MARKET www.allegisgroupservices.com
HR or Procurement…? Human Resources (HR) Procurement (NPR) • Focus on permanent hires/ • Focus on indirect spend on employees ‘external’ resources • ‘Policy’ makers • Cost control and spend optimization • Keeping ‘temps’ at arms- length from employees • Managing contracts with staffing services suppliers • Mitigating co-employment risks • Minimize compliance risks
Poll Question 2 Who is responsible for managing thecontingent workforce within your organisation? 1. Procurement 2. Human Resources 3. Business / Hiring Managers 4. A combination of the above
Changing Role of HR www.allegisgroupservices.com
Changing Role of HR www.allegisgroupservices.com
Changing Role of HR www.allegisgroupservices.com
Key Elements of WorkforceManagementStrategic Workforce Total Talent Employee Performance Succession Planning Acquisition Development Management Planning Do you have a plan for key people and roles? Are your people successful and are they accomplishing the goals you set for them? How do you train and prepare your people so they will be successful? Where and how will you get the talent to fill the gaps you identified in planning? What are the goals of the organisation and the objectives you expect your people to deliver? Do you have the people to accomplish this? www.allegisgroupservices.com
Questions & Answers Let us answer your questions! www.allegisgroupservices.com
Thank you!Visit our website for more info:www.allegisgroupservices.com/blog
For years HR has turned a blind eye to the non-employee workforce in a company. Even though some of the contingent workforce sits incubicles adjacent to full time regular employees, they were for the most part the outsiders. Because of the fear of something called “co-employment” conservative onboard jailhouse legal advice was passed from desk to desk without many even knowing the definition of theterm. I asked. Many would respond, “Well, you know… it was that Microsoft thing several years ago…“ without even knowing the cause andoutcome of that huge multimillion dollar settlement. “We don’t have an issue because our contingency workers are employed throughanother firm.” Really? Did you know that this fact alone does not represent a true arms-length relationship? If it were not so important wecould blindly go ahead with our dream world intact and only deal with the “real” employees.A recent promotional piece from Snelling, “Trends in Staffing and Contingent Workforce Management for 2013” mentioned thatapproximately 16% of the average large company is a contractor or temp. This is supposedly up from 11% a few years ago, but is this a trendthat represents the future? Probably not. The actual numbers are probably much higher. Also, most companies are unsure of what theAffordable Care Act (or Obamacare if you prefer) means in terms of healthcare regulations and rules. Staffing companies must be nimbleenough to maintain their current growth and recognize the impact of compliance with new laws. With current economic conditions as theyare, it makes sense that SIA (Staffing Industry Analysts) is forecasting an estimated 6% growth in the staffing industry in 2013. Withregulatory, labor, and health care costs in a state of flux while politicians decide the final outcome, there will no doubt be six months or moreof uncertainty as to the outcome.The economy seems to be recovering for the present, but so far it has been pretty much a jobless recovery. You may pick your own side toargue as to whether this is the fault of one party or the other, but when you go to bed at night are you wondering how this impacts you? Ifyou suspect that your job could be done by a machine or outsourced, ask your doctor for a prescription for Ambien. Then when you wakeup, plan for the future of your company and for your career.CEO’s – The time to live in a vacuum about the composition of your workforce is long past. The future successes of your company (and thesize of your bonus) will depend on your people. If you do not know the current percentage of contractor or temporary workers in theorganization, ask your human resources experts… they won’t know the answer but they can get a list from Security of how many badges havebeen issued to contractors.HR Leaders – How is that head in the sand working for you? When you talk about creating a positive culture in the organization, you are notconsidering that the culture involves more than the in-house full time employees. Plan for “engagement” and leave out one of the largestcomponents of the real workers in your environment and you only have half of the horses pulling the wagon.Employees – Wake up and smell the coffee… and remember that Starbucks has WiFi when you are forced into an unplanned job searchbecause your function was outsourced. Of course, this only happens to other people, but just in case a “friend needs advice” decide what youwould say. It’s probably good to remember the details of your advice.Job Seekers – Are you looking for a full time job? Considering a position with a firm through one of the job shops that places contingentworkers may be a more direct route to gainful employment. Anyone who has been unemployed for a lengthy period of time needs tobroaden the scope of the search to include non-typical employment. There are people who have been making a career out of temping foryears.
The Big Picture: Global Trends in 2012” provides a summary of survey results, showing the topics executives considermost important today and in the future—and which ones most need improvement.“The Case for Integrated Sourcing Management” emphasizes the importance of a holistic approach to peoplesourcing, from people planning and employer branding to formulating a recruiting strategy and retaining employees.By integrating their sourcing activities, companies can ensure consistency across their messages and achieveimportant synergies.“Building Up Your Critical Assets: Talent and Leadership Development” discusses the importance of six key—andhighly interdependent—steps in developing talent and leadership, from developing a talent strategy to creating atalent magnet culture.“Managing People in the World’s Fastest-Growing Economies” delineates the specific skill shortages and capabilitygaps that plague companies operating in high-growth markets.“Enabling Workforce Flexibility in a Two-Speed World” highlights a rising challenge facing the majority of companiesin our survey: simultaneous workforce shortages in some areas and surpluses elsewhere. The chapter describesuseful strategies for deploying talent effectively to reconcile these imbalances.“HR Governance: Global or Local?” looks at the three levels of HR governance that companies currently practiceacross 16 key HR activities. Moreover, we also discuss what could be the most effective approach in each activity.
Employer & Employees Employees gain more bargaining power Over the past 20 or 30 years, the bond between company and employee has weakened, even in corporate cultures where loyalty was once prized. Fast-changing company needs and a desire to cut costs led first to more frequent layoffs, and then to nontraditional relationships where the expectation was not decades of service, but only a few years. In a period of high unemployment, this new social contract is an advantage for the employer. But as the market turns, skilled employees should benefit. They will want a better understanding of their employment options and a greater say in how work is assigned, assessed and rewarded. <Picture of bad boss> The employer will no longer define the workplace; rather, employees’ priorities and preferences will dictate what the future workplace will look like, particularly now that technology makes it easier than ever to design a variety of flexible arrangements. Companies operating in aging societies will have to craft methods to engage or re-engage the experienced base of talent. Companies that fail to respond to this change and do not succeed in redefining their employee value proposition will fail to attract, retain or develop talent effectively.