Innovations and Best Practices in Global Workforce Procurement

Hays Talent Solutions

Kimball NorupSVP, Head of Growth Americas

Cori McKee – WhippleVP, Sales & Solutions

INNOVATIONS & BEST PRACTICE IN GLOBAL WORKFORCE PROCUREMENTINSIGHTS FOR PROCUREMENT PROFESSIONALS

SIG Global Executive Summit

March 2018

HAYS TALENT SOLUTIONS

FOUR MEGA TRENDS

MSP EVOLUTION

TALENT FORWARD STRATEGY

DIRECT SOURCING

TOTAL TALENT VISIBILITY AND SOW OVERSIGHT

TECHNOLOGY ENABLED SERVICES

CONCLUSION

AGENDA

HAYS TALENT SOLUTIONS

BUSINESS OVERVIEWPOWERING THE WORLD OF WORK, INTELLIGENTLY

Our 10,000 expert

employees deliver

services from 250

offices across 33 markets

Global Expertise

We operate

seven integrated

international

sourcing centres

Flexible, Scalable

Investing over

£60m in CRM and

integrated tech

and owning a

multi-lingual,

multi-currency VMS

company managing

3.2billion spend

Technology

We have 24 years of experience in

providing outsourced

(RPO/MSP)

solutions to our

clients. Managing

35,000 Contractors

working in MSP

programs

Experience

Our ‘Talent Forward’ approach

delivers the right talent at the

right time at a fair price.

We offer clients:

• MSP

• RPO

• Direct Sourcing

• CMO

• SOW

• VMS

Solutions

GLOBAL MSP/RPO

CLIENTS

120+

MSP/RPO EMPLOYEES

WORLDWIDE

1,462

SUPPLIER PARTNERS

1,000+

MSP MANAGED SPEND

$3.9billion+

HAYS TALENT SOLUTIONS

FOUR MEGA TRENDS

MSP EVOLUTION

TALENT FORWARD STRATEGY

DIRECT SOURCING

TOTAL TALENT VISIBILITY AND SOW OVERSIGHT

TECHNOLOGY ENABLED SERVICES

CONCLUSION

FOUR MEGA TRENDS

FOUR MEGA TRENDS SHAPING THE WORLD OF WORK

• Technology is transforming

how people work, and

impacting how clients and

candidates engage and

interact

• Digitalization of both supply

and demand creates vast

quantities of data to be

analyzed and put to use

Emergence of new, and

evolving, technologies

• 77% of global employers

reported skills shortages

• Businesses increasingly

need flexibility, which the

contingent workforce

delivers

• Want access to skilled

labor when, and where,

they need it

Skills shortages and

businesses’ demands

for flexibility

• Most professional

recruitment around the world

is still done by in-house HR

teams

• More organizations are

embracing the outsourced

specialist recruitment model

• Significant growth in

centralized procurement

Structural market

growth and evolving

client demands

Hays has identified four mega trends which are likely to influence the future shape and direction

of the world of work and therefore how we manage our business and develop our strategy.

• Many factors driving the

growth of the flexible

workforce

• ‘Job for life’ is giving way to

‘portfolio career’

• Flexible work, and

interesting project

assignments are motivators

for many

• Legislative changes

beginning to happen

More, and varied ways

of building a career

HAYS TALENT SOLUTIONS

FOUR MEGA TRENDS

MSP EVOLUTION

TALENT FORWARD STRATEGY

DIRECT SOURCING

TOTAL TALENT VISIBILITY AND SOW OVERSIGHT

TECHNOLOGY ENABLED SERVICES

CONCLUSION

MSP EVOLUTION

THE TRADITIONAL MSP MODEL

Client work to

be done

Hiring

Managers

Inside Company

Program

Sponsors

HR

Procurement

Talent Acq.

‘Suppliers’

Talent

Outside Company

Staffing

SOW

Solutions

Intermediaries

MSP/RPO

VMS

IC/Payroll

EVOLUTION OF MSP1st GENERATION PROGRAMS

1

Set suppliers list

2

Define mandatory

compliance

3

Implement VMS

4

Get visibility over

recruited workforce

5

Control & approve all

net new temp hiring

6

Payroll provider

7

Watch and review

the data

EVOLUTION OF MSP 2nd GENERATION PROGRAMS

1

Supplier reduction

2

Tiered suppliers

3

Implement rate card

4

Max margins

5

Rebates & tenure

discounts

EVOLUTION OF MSP 3.0

1

Workforce planning

2

SOW

3

Self-sourcing

4

Direct sourcing

5

Alumni programs

6

Extended Talent

Supply Chain

Contingent workforce as a

strategic competitive advantage

7

Total Talent

Management

HAYS TALENT SOLUTIONS

FOUR MEGA TRENDS

MSP EVOLUTION

TALENT FORWARD STRATEGY

DIRECT SOURCING

TOTAL TALENT VISIBILITY AND SOW OVERSIGHT

TECHNOLOGY ENABLED SERVICES

CONCLUSION

TALENT FORWARD STRATEGY

WE BELIEVE

MSP clients want the best talent, at the right place, at the

right time, for a fair price, regardless of worker classification,

or source.

It is our job as the MSP provider to enable this by providing

the proven management structure, process, and analytics.

Benefits: Managers, stakeholders, supplier partners,

and contractors are all eager and willing participants in

the program. Client gets work done.

TALENT FORWARD

TALENT FORWARD

EnablingEnabling not controlling. Build

strategic contingent workforce

programs with a focus on talent.

Open communicationHelping supplier partners to be

more successful. Client access.

Proactive feedback.

Supplier engagementSupplier partners who are informed,

excited, engaged and committed to

our clients.

VisibilityUnderstanding what is happening

through deployment of technology

and MI.

Expanded supply chainOptimize mix of traditional and

alternative talent suppliers.

Client of choiceBuild and leverage client’s

employer brand to attract and retain

talent, and enable direct sourcing.

OPERATING MODELSIX STAGE FRAMEWORK

Operational Excellence

Predicting

your future

talent

Engaging

the best

talent

Identifying

the right

people for

your business

Deploying

talent where

and when you

need it

Progressing

your

employees

Transitioning

your

employees

Plan Attract Select Recruit Retain Depart

Plan Attract Select Recruit Retain Depart

Approval workflows

Market intelligence

Budget planning

and benchmarking

Contingent workforce

diagnostics

Workforce plans

Social media strategy

Market mapping

Supply chain

management

Direct sourcing

Alternative suppliers

Competency

frameworks

Role briefings

Assessment

Self-selection

Talent Pools

Payrollee processing

Offer and contract

management

Expenses and time

management

Onboarding

Compliance

Internal mobility

programmes

Resource challenge

Worker rewards

programme

Worker rewards

programme

Contractor care

Career transition

Cost savings

Redeployment

Off–boarding

Feedback and

exit interviews

Account management MI and reporting, statements of work, VMS technology

OPERATING MODELSIX STAGE FRAMEWORK – DETAILS

HAYS TALENT SOLUTIONS

FOUR MEGA TRENDS

MSP EVOLUTION

TALENT FORWARD STRATEGY

DIRECT SOURCING

TOTAL TALENT VISIBILITY AND SOW OVERSIGHT

TECHNOLOGY ENABLED SERVICES

CONCLUSION

DIRECT SOURCING

DEFINITION: CONTINGENT RPO

Using your brand to attract contingent talent

directly to projects and assignments thereby

reducing your reliance on staffing suppliers.

Benefits: Reduced costs, improved engagement

DIRECT SOURCING

Direct Sourcing can significantly reduce your

costs, improve talent quality, and increase

“time to productivity”. However, you will need

to invest in the right People, Technology and

Digital Attraction to realize the benefits.

Most suited to Vendor Hire Most suited to Direct Hire

High impact/Unique roles

Who – Management

Where – emerging markets/multi site

Attraction – specialist vendors

High impact/Repeat roles

Who – Sales, Engineers, R&D

Where – Single/limited site(s)

Attraction – Networking and direct approach

Lower impact/Unique roles

Who – Personal assistant

Where – Disparate/multiple locations

Attraction – Local vendor network

Lower impact/Repeat roles

Who – Representatives/Agents and Admin

Where – Single/limited site(s)

Attraction – Integrated marketing campaign

Frequency of hire type

‘Im

pa

ct’

of

hir

es

THE PASSIVE JOB SEEKERA RECRUITING CHALLENGE

89% of candidates are open to new job opportunities

80% would accept a contract position

13% Actively looking

THE PASSIVE JOB SEEKERA RECRUITMENT DILEMNA

89% of candidates are open to new job opportunities

direct sourcing programs gives you

access to 76% more candidates76%

13% Actively looking

WHAT GOOD LOOKS LIKEREDUCING AGENCY RELIANCE OVER TIME

Being selective

will allow you to

demonstrate

success to justify

further investment.

Retain vendors for

niche or specialist

roles only.

33% 33% 33%

27%

50%

66% 40% 17%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Yr0 End of Yr1 End of Yr2

Agency Agency Agency

Payrollee Payrollee Payrollee

Direct

Direct

WHAT GOOD LOOKS LIKEPOTENTIAL COST SAVINGS

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Yr0

Incremental

Agency

Markup

of

25%Dir

ect

500 Contractors

$50/hour

$12,500,000 in Agency markup

Assumptions:

• 2,000 hours/year

• % = incremental markup, above worker burden

(pay rate and statutory costs)

WHAT GOOD LOOKS LIKEPOTENTIAL COST SAVINGS

500 Contractors

$50/hour

$7,500,000 Agency

$2,500,000

Direct Source

Total Savings of $2,500,000 [20%]0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Yr1

40%

Direct Source

12.5%

Incremental markup

60%

agency spend

25%

incremental markup

BRANDING/

AWARENESSFIND

ENGAGE

SOURCING STRATEGYAWARENESS, ENGAGEMENT & ACQUISITION

ACQUIRE

AWARENESS, ENGAGEMENT & ACQUISITIONSOURCING CHANNELS

Awareness Find Engage Acquire

Content based

marketing

Universities and

Schools

PR and

Editorial Strategy

Professional

Associations

and Bodies

EVP/Employer

Branding

‘Client of Choice’

Offline

Job Boards

Networking Internal/Referral

Market Mapping

Data Mining

AI Shortlisting

Elastic/Boolean/

X-ray searching

Talent Communities

Social Media

Corporate Career

Sites

ENGAGEMENT, AWARENESS & ACQUISITIONWHAT DOES BEST IN CLASS LOOK LIKE

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Traditional Best in Class

Awareness Engagement Acquisition

HAYS TALENT SOLUTIONS

FOUR MEGA TRENDS

MSP EVOLUTION

TALENT FORWARD STRATEGY

DIRECT SOURCING

TOTAL TALENT VISIBILITY AND SOW OVERSIGHT

TECHNOLOGY ENABLED SERVICES

CONCLUSION

TOTAL TALENT VISIBILITY AND SOW OVERSIGHT

STRATEGIC WORKFORCE ENGAGEMENTCURRENT STATE

Internal

Resource engaged under the direction and control

of employees

Engaged under contracts of employment or contracts

for services

Subject to strict governance around background checks

External

Resource engaged under the direction and control

of service provider

Engaged under a Statement of Work, either T&M or outcome based

Background checks assumed completed by vendor

Permanent Temporary Staff Aug Services SOW Capital ProjectsFTC Contract T&M SOW Consulting

Talent Acquisition

MSP Vendor Tactical Vendors Solutions Vendors

Strategic Vendors

TOTAL TALENT MANAGEMENTVISION FOR THE FUTURE?

Permanent Temporary Staff Aug Services SOW Capital ProjectsFTC Contract T&M SOW Consulting

Typical scope of Total Talent Management Services

Typical scope of MSP services including services procurement

Strategic/Tactical Procurement

Internal

Centralized delivery operating within policy/guideline led risk frameworks.

Strategic Workforce Planning led approach to Total Talent Management

Scope of non-permanent resourcing extended to include services engagements to avoid ‘inflating and squeezing’ the balloon

SOW PROGRAM MANAGEMENT THE FIVE STAGES OF OUR SOW MANAGEMENT LIFECYCLE

SOW

Engagement

NON-PERMANENT WORKFORCETECHNOLOGY STACK – FUNCTIONALITY

RFX

Evaluate

Contract

Manage deliverables

Payment request

Invoice

Project reviews

measure & improve

Operational

entry point

Operational

entry point

• Extend VMS controls across all non-

employee workforce

• Onboarding services (logical/physical

access/compliance)

• Asset management services

• Extension/Off-boarding services

• Supplier/spend analysis – Phase 2

priorities jointly determined

• Contractual amends as required to

enable Phase 2

• Focus on realignment of directly

engaged services workers via MSP

• Criticality Analysis of identified

population to determine whether to

migrate at extension or to

• Increased rate controls implemented

across migrated worker population –

cost savings reported to agreed

parameters

• Business/Operations engaged around

migration of tactical spend

• Tactical suppliers identified

• Business change programme initiated

• Contractual amends as required to

enable service types to be contracted

compliantly

• Tactical suppliers migrated in small

groups (100 workers per phase)

• T&M rate card engagement via MSP

• Invoicing for tactical services via

MSP/VMS service

Visibility & Control: 0 – 6 months

Reassignment of mis-classified

workers: 6 months

Tactical SOW spend

management: 12 months +

EVOLUTION OF NON EMPLOYEE SOLUTIONSFROM CONTRACTING TO SERVICES

Cost/Risk profile

improvements

Compliance improvements

Risk/Compliance Controls

• Org design around SOW

tendering services

• Contractual amends required to consider

financial/risk transfer

• Recruitment of procurement function

initiated and completed

• Business processes including approvals,

payables mapped and agreed

• Business change programme initiated

• Pilot business area identified, engaged

and live

• Business processes validated

• Phased deployment across remaining

business areas

mapped out and executed

• Accountability for non-employee services

(Temp/Contract/Services/Freelance/

SOW (T&M), SOW (Milestone) all

provided by external supplierSOW tendering/contracting services

scoped: 12 months

SOW tendering/contracting

outsourced: 18 months

100% non-employee spend

outsourced: 24 months

EVOLUTION OF NON EMPLOYEE SOLUTIONSFROM CONTRACTING TO SERVICES

Non-Employee

procurement outsourced

Ongoing evolution

Design phase

HAYS TALENT SOLUTIONS

FOUR MEGA TRENDS

MSP EVOLUTION

TALENT FORWARD STRATEGY

DIRECT SOURCING

TOTAL TALENT VISIBILITY AND SOW OVERSIGHT

TECHNOLOGY ENABLED SERVICES

CONCLUSION

TECHNOLOGY ENABLED SERVICES

ATS

VMS

CRM FMS

ShortlistOne Touch

Formatted file

SOW

Onboarding

Pre-employment screening

Hays verify

Video interviewing

CONNECTIVITY

DATA

SCIENCE

MACHINE

LEARNING

AI

ALGORITHMS

CLIENT

INSIGHT

TALENT

VIEWER

WiP

SYSTEM

SOCIAL

POST

REF

EXCHANGE

HUB

WHAT DOES GOOD LOOK LIKESOURCING ANALYTICS

Report

Elastic Search

WIP

Talent Viewer

HeatMap

Ap

p

Hays JobSearch

Where do I look for candidates?

AI Shortlisting

What does the job description mean?

What does the job title mean?

What are the most available candidates?

What is the average salary?

Where should I advertise?

What are the market demographics?

How many CVs will I need to submit?

How many interviews will the client need?

What are the search strings that make sense?

What questions should I ask the client?

What questions should I ask the candidates?

Tale

ntlyt

ics S

kin

Which competitors are recruiting?

Is this a niche role?

What social media platform?

Output

More appropriate

sourcing techniques to

drive delivery

effectiveness and

productivity

improvement

More sophisticated and

thought provoking

conversations with our

customer base, coupled

with an ability to provide

relevant insight and

demonstrable market

intelligence to

stakeholders

Able to identify and

speak to the most

appropriate candidates

in the shortest possible

time, armed with

information that will

improve the chance of

successful fulfilment

Benefit

Benefit

Benefit

WHAT DOES GOOD LOOK LIKEMACHINE LEARNING SCREENING

DIRECT SOURCING

Social/WebATS

CRM

Big Data/Analytics

Market Intel/Heat Map

AI/Machine

Learning

Shortlisting

Parsing/Searching

Chat Bots

VMS/CRM

integration

AI/Machine

Learning

Job registration

Content

management

and behavioral

analytics

Cross system awareness

intelligent searching

CLIENT

Vendor management

Onboarding portal

Performance

Management

Dashboards

Statement of work/services

VMS functionality

Contracting options

Temp, Contractor,

Agency, T&M, Rate

Cards, SOW contracts

Freelancermarketplaces

Talent pools, competitive

bids, agile assignment

Attraction

DIRECT SOURCING: TECHNOLOGY ENABLERSENGAGING NEW FORMS OF TALENT REQUIRES DIFFERENT KIT

Compliance services

Pre-employment

Screening

Worker

Classification

Services

HAYS TALENT SOLUTIONS

FOUR MEGA TRENDS

MSP EVOLUTION

TALENT FORWARD STRATEGY

DIRECT SOURCING

TOTAL TALENT VISIBILITY AND SOW OVERSIGHT

TECHNOLOGY ENABLED SERVICES

CONCLUSIONCONCLUSION

THANK YOU

haystalentsolutions.com

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Hays Talent Solutions

Kimball Norup

kimball.norup@hays.com

Cori McKee – Whipple

cori.mckee@hays.com

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Innovations and Best Practices in Global

Workforce Procurement

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