hays talent solutions -...

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

Kimball Norup

SVP, Head of Growth Americas

Cori McKee

VP, Sales & Solutions

HAYS TALENT SOLUTIONS

FOUR MEGA TRENDS

MSP EVOLUTION

TALENT FORWARD STRATEGY

DIRECT SOURCING

TOTAL TALENT VISIBILITY AND SOW OVERSIGHT

TECHNOLOGY ENABLED SERVICES

CONCLUSION

AGENDA


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+


FOUR MEGA TRENDS

MSP EVOLUTION


DIRECT SOURCING



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


FOUR MEGA TRENDS

MSP EVOLUTION


DIRECT SOURCING



CONCLUSION

MSP EVOLUTION

THE MSP MODEL

Client work to

be done

Hiring

Managers

Inside Company

Program

Sponsors

HR

Procurement

Talent Acq.

‘Suppliers’

Talent

Outside Company

Staffing

SOW

Solutions

Marketplaces

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


FOUR MEGA TRENDS

MSP EVOLUTION


DIRECT SOURCING



CONCLUSION


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 enabling

better access to talent.

Open communicationHelping proven 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 - Account management, MI and reporting, statements of work, VMS technology

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


FOUR MEGA TRENDS

MSP EVOLUTION


DIRECT SOURCING



CONCLUSION

DIRECT SOURCING

Direct Sourcing can significantly reduce

your costs, improve talent quality, and

increase “time to productivity”. However,

you also need to invest in the right

People, Technology and Digital

Attraction to realize the benefits.

High impact / Unique roles

Who – Management

Where – emerging markets / multi site

Attraction – dedicated search / specialist vendors

High impact / Repeat roles

Who – Sales

Where – Single / limited site(s)

Attraction – Networking, talent pools and direct approach

Lower impact / Unique roles

Who – Reception, Janitorial,

Where – Disparate / multiple locations

Attraction – one off search / Local vendor network

Lower impact / Repeat roles

Who – Representatives, Agents and depot

Where – Single / limited site(s)

Attraction – Integrated marketing campaigns

19Frequency of hire type

“Imp

act” o

f hire

s

Most suited to talent pool / campaign hiringMost suited to individual search or vendor hire

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 LIKECURRENT STATE EXAMPLE

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Yr0

Agency

Markup

of

45%

$72,500,000 total Temp spend

$50,000,000 paid

to Agency workers

$22,500,000

Agency markup

Assumptions:

• 500 contractors

• $50/hour pay rate

• 2,000 hours/yr

• % = markup (includes profit, overhead, and

worker statutory costs)

WHAT GOOD LOOKS LIKEPOTENTIAL COST SAVINGS

$6,500,000

Direct Source

Total Savings of $2,500,0000%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Yr1

40%

Direct Source

32.5%

markup

60%

agency spend

45%

markup

$70,000,000 total Temp spend

$30,000,000 paid to

Agency workers

$13,500,000

Agency

$20,000,000 paid to

Direct workers

PLANTHE PROCESS

Understand the

businessMap the “As Is”

Design the “To Be”

strategy and plan

Know the talentDevelop EVP

messaging Implement

Track, progress, manage & improve

AWARENESS

FIND

ATTRACTENGAGEMENT, AWARENESS & ACQUISITION

Long term

Increased the breadth of

potential candidates aware of

the brand

One way communication

E.g.. Online banners, ambient

and print media advertising

ENGAGE

Medium term

Increased the depth of

relationships with potential

candidates

Two way communication

E.g.. Talent communities/social

media/networking and events

Ongoing

Aim to build trust over time

Two way multiple channel

communication

E.g.. Content based marketing,

talent communities

ACQUIRE

Short term

Achieve increased number of

individual candidate relationships

One and two way

communication

E.g.. Referral/direct approach/

job board

Elastic/Boolean/

X-ray searching

AI

Gamefication

PR/Editorial

Advertorial

Career Sites

Job Boards/

aggregators

Content / video

Networking

Offline

Partnerships

Sponsorship

Freelancer

Market places

Social Media

Market Mapping

Influencers /

Reviewers

Internal/Referral

Brand Advertising /

Out of home

E-nurturing /

marketing automation

Alumni Pay Per Click

AWARENESS, FIND, ENGAGE & ACQUIRESOURCING CHANNELS

AWARENESS, FIND AND ENGAGE & ACQUIREWHAT DOES BEST IN CLASS LOOK LIKE

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Traditional Best in Class

Awareness Find Engage Acquisition


FOUR MEGA TRENDS

MSP EVOLUTION


DIRECT SOURCING



CONCLUSION


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 MANAGEMENT MODELTHE FIVE STAGES OF OUR SOW MANAGEMENT LIFECYCLE

• 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


FOUR MEGA TRENDS

MSP EVOLUTION


DIRECT SOURCING



CONCLUSION


CONNECTIVITY

DATA

SCIENCE

MACHINE

LEARNING

AI

ALGORITHMS

CLIENT

INSIGHT

TALENT

VIEWER

WiP

SYSTEM

SOCIAL

POST

REF

EXCHANGE

HUB

https://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&ved=0ahUKEwjlupXip6TVAhUGVxQKHU1ECM0QjRwIBw&url=http://www.siia.net/archive/codies/2015/winners_detail.asp?nID=178&psig=AFQjCNF4LEhqmbFhstbeIdX1ogAWde4WEg&ust=1501067883920658

HAYS

DATA

3RD PARTY

DATA

SOURCES

STRATEGIC

DATA

PARTNERS

Enhanced

Shortlisting

Productivity tools

Increased response speed

Approachability scoring

Enhanced

Marketing

Automated comms at scale

Personalised engagement

Behaviour-based targeting

MARKETING

INSIGHTS

DATA

SCIENCE

DATA SCIENCE IS AT OUR COREIMPROVING OPERATIONAL SYSTEMS & MARKETING

36

THE SCIENCE OF SOURCINGUNLOCKING THE POWER OF DATA

Which channels deliver the best

candidates?

How are our job board postings

performing? Vs. the wider market?

How is our content performing across e-

mail/web/social?

What is the ROI from our investment?

CHANNEL PERFORMANCE

What is the quality and fit of incoming

applications?

What is the state of the current talent pool

(volume, quality, skills, fit to roles,

availability, engagement levels?)

What are the key motivators for a move?

What are the behaviors/action/signals that

pre-empt a move?

CANDIDATE BEHAVIOR

What job titles/skills are requested and

when?

What markets are growing or declining

and why?

Are there emerging employment

markets?

What is happening with salaries for

particular skill sets?

SKILLS DEMAND

Automated actions/alerts triggered by events, personalisation to drive engagement, insight driving workflow,

investment and behaviors, lower dependence on external sources

ALTERNATE SOURCING

37

VMS

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

Marketplace

Social / WebVMS


FOUR MEGA TRENDS

MSP EVOLUTION


DIRECT SOURCING



CONCLUSIONCONCLUSION

THANK YOU

haystalentsolutions.com

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Hays Talent Solutions

Kimball Norup

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Cori McKee – Whipple

[email protected]

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