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The true cost of the recovery
STORMS MAKE
TREES TAKE
DEEPER
ROOTS
“
“
To do
whatever it
takes
to defend
economic
stability
“ “
70
60
50
40
30
20
10
0
Oct Nov Dec Jan Feb Mar Apr
20092008
700
600
500
400
300
200
100
0
2009 2010 2011 2012 2013
FORECAST UK
ECONOMIC
GROWTH IN 2014 2.9%
% OF EMPLOYERS
WHO PLAN TO
INCREASE THE
NUMBER OF PERM
EMPLOYEES
75%In next 3
mon...
Seasonally adjusted vacancies
Source: ONS
600k
550k
500k
450k
400k
0
2009 2010 2012 Q1-142011 2013
INCREASE INLIFE
EXPECTANCY
2012-2037
5 years
%OFUK
WORKING
POPULATION
OVER50
33%
INCREASE IN%OF
EARLY60YEARS
OLDSEMPLOYED
...
25% OF CEOs SAY THEY WERE
UNABLE TO PURSUE A MARKET
OPPORTUNITY OR HAVE HAD TO
CANCEL OR DELAY A STRATEGIC
INITIATIVE BECA...
33% OF CEOs ARE CONCERNED
THAT SKILLS SHORTAGES WILL IMPACT
THEIR COMPANY’S ABILITY TO
INNOVATE EFFECTIVELY
“ “
56% OF FS CEOs SEE THE LIMITED
AVAILABILITY OF SKILLS AS A THREAT
TO GROWTH, MORE THAN ANY OTHER
BUSINESS ISSUE
“ “
47% OF HR RESPONDENTS SAID
FINDING TALENT IS THEIR #1
BUSINESS CONCERN
“ “
%UK
COMPANIES
THATOFFER
APPRENTICES
HIPS
15%
9TH GRADE ENTRANTS 100,000
GRADUATES 68,000
COLLEGE ENTRANTS 40,000
DEGREE QU...
11
10
9
8
7
6
2009 2010 2012 Q1-142011 2013
UN-EMPLOYMENT RATE (%)
D1 S1D2 S2
Increase in
demand
Decrease in
supply
PRICE INCREASE IF
ONLY DEMAND OR
ONLY SUPPLY
ALTERED
PRICE INCREASE IF
BO...
WORKFORCE AGILITY
PAY-RATE MANAGEMENT
EXTENSION MANAGEMENT
SUPPLIER ENGAGEMENT
DIRECT SOURCING
HOW TO
MINIMISE
THE IMPACT
WORKFORCE
AGILITY
BLENDED WORKFORCE – A ‘TALENT’
FAD….
….. OR THE GREATEST OPPORTUNITY
WE HAVE HAD TO HELP SHAPE AND
DELIVER COMPANY STRATEG...
HR
In-house or
RPO
Procurement
Line or
MSP/MV/NV/hybrid
Line
PSL or
Direct
Perm
Full–time
Part-time
Apprenticeships
Contin...
WHAT ARE THE BUSINESSES’
STRATEGIC TALENT NEEDS?
WHAT GAPS DO WE HAVE INTERNALLY
AND EXTERNALLY?
CREATE A SOLUTION
A STARTER FOR 10
PAY RATE
BENCHMARKING
2013 2014
£575
£500
£64
£56
MARGIN
PAY
OUR BUYING
HABITS
OBJECTIVE
VALUE
OUR BUYING
HABITS
SUBJECTIVE
VALUE
COST SUBJECTIVE
VALUE
MULTIPLE DATA
SOURCES
ONLINE
INDUSTRY
BODIES
MARKET
SURVEYSLEGACY
DATA
INDEPENDENT
VALIDATION
REAL
TIME
MODEL COMPARISON
28 Decentralised
Multiple, relevant
data sources
Independent validation
Real time
MODEL COMPARISON
52 Neutral Vend
Multiple, relevant
data sources
Real time
Independent validation
15 Master Vend
Real time
Independent validation
15 Master Vend
Multiple, relevant
data sources
MODEL COMPARISON
MODEL COMPARISON
COST OFSUPPLY
SUBSUPPLIERENGAGEMENT +-
A STARTER FOR 10
EXTENSION
MANAGEMENT
GETTING THE PAY
RIGHT
1,000 contractors
650 hires / new transactions
1,300 extensions
TWICE THE
OPPORTUNITY
Q1
CONTRIBUTIONTOBUSINESSEMPLOYEES CONTRIBUTION
Vs. REQUIREMENT
Q2 Q3 Q4 Q1 Q2 Q3 Q4
A STARTER FOR 10
SUPPLIER
MANAGEMENT
SUPPLIER RELATIONSHIP MANAGEMENT AS
THE SYSTEMATIC MANAGEMENT OF SUPPLIER
RELATIONSHIPS TO OPTIMIZE VALUE
THROUGH COST RED...
I AM ONLY
TALKING
ABOUT
SSRM TODAY
Whatever model you operate… one its
key objectives will be 100% fulfilment of
your contingent worker requirements
“ “
QUAL...
A STARTER FOR 10
DIRECT
SOURCING
DIRECT HIRING
TRAFFIC TO A FTSE
CORPORATE SITE IS
CAREER RELATED 40%
PERMANENT HIRES
COME FROM THE
CAREER SITE 23.4%
YET O...
A STARTER FOR 10
YOU ARE HERE
Russell Beck
russell.beck@impellam.com
07710 89 89 04
Simon Blockley
simon.blockley@guidantgroup.com
07554 45 96 64
The True Cost of Recovery
The True Cost of Recovery
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The True Cost of Recovery

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The True Cost of Recovery

  1. 1. The true cost of the recovery
  2. 2. STORMS MAKE TREES TAKE DEEPER ROOTS “ “
  3. 3. To do whatever it takes to defend economic stability “ “
  4. 4. 70 60 50 40 30 20 10 0 Oct Nov Dec Jan Feb Mar Apr 20092008
  5. 5. 700 600 500 400 300 200 100 0 2009 2010 2011 2012 2013
  6. 6. FORECAST UK ECONOMIC GROWTH IN 2014 2.9% % OF EMPLOYERS WHO PLAN TO INCREASE THE NUMBER OF PERM EMPLOYEES 75%In next 3 months % EMPLOYERS WHO PLAN TO INCREASE THE USE OF AGENCY LABOUR 48%In next 4- 12 months PERMANENT SALARY GROWTH IS AT ITS HIGHEST SINCE 2007 CONTINGENT PAY GROWTH IS AT ITS HIGHEST SINCE JULY 2013 2012 SAW THE FIRST INCREASE IN THE DIVORCE RATE SINCE 2007 REALISTIC GROWTH IN SIZE OF UK RECRUITMENT MARKET 8%annually
  7. 7. Seasonally adjusted vacancies Source: ONS 600k 550k 500k 450k 400k 0 2009 2010 2012 Q1-142011 2013
  8. 8. INCREASE INLIFE EXPECTANCY 2012-2037 5 years %OFUK WORKING POPULATION OVER50 33% INCREASE IN%OF EARLY60YEARS OLDSEMPLOYED INGERMANY, TODAYVS.2004 100%
  9. 9. 25% OF CEOs SAY THEY WERE UNABLE TO PURSUE A MARKET OPPORTUNITY OR HAVE HAD TO CANCEL OR DELAY A STRATEGIC INITIATIVE BECAUSE OF TALENT CHALLENGES “ “
  10. 10. 33% OF CEOs ARE CONCERNED THAT SKILLS SHORTAGES WILL IMPACT THEIR COMPANY’S ABILITY TO INNOVATE EFFECTIVELY “ “
  11. 11. 56% OF FS CEOs SEE THE LIMITED AVAILABILITY OF SKILLS AS A THREAT TO GROWTH, MORE THAN ANY OTHER BUSINESS ISSUE “ “
  12. 12. 47% OF HR RESPONDENTS SAID FINDING TALENT IS THEIR #1 BUSINESS CONCERN “ “
  13. 13. %UK COMPANIES THATOFFER APPRENTICES HIPS 15% 9TH GRADE ENTRANTS 100,000 GRADUATES 68,000 COLLEGE ENTRANTS 40,000 DEGREE QUALIFIED 17,000 ENGINEERS 800 MECH. ENGINEERS 125 FEMALES 5 4.3M 5,375 215 11,157
  14. 14. 11 10 9 8 7 6 2009 2010 2012 Q1-142011 2013 UN-EMPLOYMENT RATE (%)
  15. 15. D1 S1D2 S2 Increase in demand Decrease in supply PRICE INCREASE IF ONLY DEMAND OR ONLY SUPPLY ALTERED PRICE INCREASE IF BOTH DEMAND AND SUPPLY ALTER 2013 2014 £575 £500 £64 £56
  16. 16. WORKFORCE AGILITY PAY-RATE MANAGEMENT EXTENSION MANAGEMENT SUPPLIER ENGAGEMENT DIRECT SOURCING HOW TO MINIMISE THE IMPACT
  17. 17. WORKFORCE AGILITY
  18. 18. BLENDED WORKFORCE – A ‘TALENT’ FAD…. ….. OR THE GREATEST OPPORTUNITY WE HAVE HAD TO HELP SHAPE AND DELIVER COMPANY STRATEGY? “ “
  19. 19. HR In-house or RPO Procurement Line or MSP/MV/NV/hybrid Line PSL or Direct Perm Full–time Part-time Apprenticeships Contingent Limited Company Temporary Consulting Workforce packages SoW On/Off shore Partners Consultancies
  20. 20. WHAT ARE THE BUSINESSES’ STRATEGIC TALENT NEEDS? WHAT GAPS DO WE HAVE INTERNALLY AND EXTERNALLY? CREATE A SOLUTION
  21. 21. A STARTER FOR 10
  22. 22. PAY RATE BENCHMARKING
  23. 23. 2013 2014 £575 £500 £64 £56 MARGIN PAY
  24. 24. OUR BUYING HABITS OBJECTIVE VALUE
  25. 25. OUR BUYING HABITS SUBJECTIVE VALUE
  26. 26. COST SUBJECTIVE VALUE
  27. 27. MULTIPLE DATA SOURCES ONLINE INDUSTRY BODIES MARKET SURVEYSLEGACY DATA
  28. 28. INDEPENDENT VALIDATION
  29. 29. REAL TIME
  30. 30. MODEL COMPARISON 28 Decentralised Multiple, relevant data sources Independent validation Real time
  31. 31. MODEL COMPARISON 52 Neutral Vend Multiple, relevant data sources Real time Independent validation
  32. 32. 15 Master Vend Real time Independent validation 15 Master Vend Multiple, relevant data sources MODEL COMPARISON
  33. 33. MODEL COMPARISON COST OFSUPPLY SUBSUPPLIERENGAGEMENT +-
  34. 34. A STARTER FOR 10
  35. 35. EXTENSION MANAGEMENT
  36. 36. GETTING THE PAY RIGHT 1,000 contractors 650 hires / new transactions 1,300 extensions TWICE THE OPPORTUNITY
  37. 37. Q1 CONTRIBUTIONTOBUSINESSEMPLOYEES CONTRIBUTION Vs. REQUIREMENT Q2 Q3 Q4 Q1 Q2 Q3 Q4
  38. 38. A STARTER FOR 10
  39. 39. SUPPLIER MANAGEMENT
  40. 40. SUPPLIER RELATIONSHIP MANAGEMENT AS THE SYSTEMATIC MANAGEMENT OF SUPPLIER RELATIONSHIPS TO OPTIMIZE VALUE THROUGH COST REDUCTION INNOVATION, RISK MITIGATION AND GROWTH THROUGHOUT THE RELATIONSHIP LIFE CYCLE “ “
  41. 41. I AM ONLY TALKING ABOUT SSRM TODAY
  42. 42. Whatever model you operate… one its key objectives will be 100% fulfilment of your contingent worker requirements “ “ QUALITY ISSUES SCARCITY OF MATERIALS CURRENCY &PRICE 0% 10% 20% 30% 40% 50% 60%
  43. 43. A STARTER FOR 10
  44. 44. DIRECT SOURCING
  45. 45. DIRECT HIRING TRAFFIC TO A FTSE CORPORATE SITE IS CAREER RELATED 40% PERMANENT HIRES COME FROM THE CAREER SITE 23.4% YET ONLY PERMANENT HIRES COME FROM CONTINGENT TO PERM CONVERSIONS 1.5% COST QUALITY TENURE
  46. 46. A STARTER FOR 10 YOU ARE HERE
  47. 47. Russell Beck russell.beck@impellam.com 07710 89 89 04 Simon Blockley simon.blockley@guidantgroup.com 07554 45 96 64

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