keynote session contingent workforce management and the ... · 21-22 april 2015 hotel okura,...

21-22 April 2015Hotel Okura, Amsterdam

Keynote Session

Contingent Workforce Management and the 21st Century

Speaker:

Bryan Peña, VP, Contingent Workforce Strategies & Research, Staffing Industry Analysts

TUESDAY 09:00-10:15 HEIAN

21-22 April 2015Hotel Okura, Amsterdam

21-22 APRIL 2015 Hotel Okura, Amsterdam21-22 APRIL 2015 Hotel Okura, Amsterdam© 2015 Crain Communications Inc. All rights reserved.

Agenda

Fundamental shift is long over due

How companies are preparing

Critical considerations

How not to get redundant

21-22 APRIL 2015 Hotel Okura, Amsterdam

©2015 by Crain Communications Inc. All rights reserved.

© 2015 Crain Communications Inc. All rights reserved.

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Which brings us to…



Large Company Focus



Change is the only constant….



Description €10-€50 million €51-€100 million Over €100 million

Mature programme 4% 12% 23%

New programme 17% 11% 19%

New to the role 8% 2% 6%



What’s important?

0

20

40

60

80

100

120

140

160

180

200

Count of VMS Count of MSP Count of SOW Count of StaffingSolutions

Count of RPO



Like it or not you are in this


At our company we are interested in getting the very best and brightest to work here. We feel the level of person working at Microsoft creates a distinct competitive and cultural advantage;

Why on earth would I limit the way we engage them?



An Evolving Workforce Composition

20th Century

Workforce

Composition

Employees

Consultants

Temp Workers Temp Workers

Consultants

Employees

21st Century

Workforce

Composition

DRIVERS:

• Shrinking average employee tenure

• Expansion of types of skills/positions being filled by non-employees

• Non-employees generating intellectual property

• Globalising workforce within employee & non-employee segments

• Heightened legal risks associated with expansion of worker types and global coverage

• Rising costs of real estate & benefits (e.g. healthcare)



Future of Workforce Management

• Employees– Full time or part time – Apprentices, trainees, and paid interns

• Non-Employees– Temporary workers– Independent contractors or consultants/freelancers– Online workers (e.g. micro tasks, crowdsourced, etc.)– Professional services (e.g. management consultants, lawyers)– Outsourced services (e.g. security guards, maintenance)– Partners (e.g. supply chain, partnerships, joint ventures) – Formal and informal volunteers (e.g. self-service customers)– Franchisees/affiliates/associates (e.g. marketing, sales activities, etc.)– Robots/drones/cognitive computing applications



US

CA

BR

SA

JP

AU

NL

IN

Source: Staffing Industry AnalystsCountries and regions are to scale

Global Staffing Market Revenue of €330 billion in 2013

CHCN

UK

FR

IT

DE

BE



€2.37 Trillion



Europe is Mostly a Commercial Staffing Market

Source: Staffing Industry Analysts

Professional/Commercial Temporary Staffing Mix 2013


Buyer Plans: 2014



A key source of talent….



And they never leave….

Source: 2014 SIA Buyers Survey



The Rise of the Independent Contractor

iPros increased across the EU by 45% 2004-2013*

6.2 million to 8.9 million

4 million in UK incl. 650,000 one-man companies

Growth marked in Netherlands, Poland and France

IC market in Netherlands worth €25.8bn in 2013 grew by 8% in 2014**

* Future Working: The Rise of Europe’s Independent Professionals (iPros), European Forum of Independent Professionals & Professional Contractors Group (www.ipse.co.uk); UK Labour Force Survey 2014

**Independent Contractors in the Netherlands, SIA, 02/05/15

©2014 by Crain Communications Inc. All rights reserved.© 2015 Crain Communications Inc. All rights reserved.

http://www.ipse.co.uk/


ISRAEL SPAIN

SOUTH AFRICA POLAND

GERMANY

TAIWAN

INDIA NORWAY PAKISTAN



Temp workers are about 50% more likely to be injured.

The injuries temp workers suffer temp to be more severe.

Temporary blue-collar workers in Florida were 6x more likely to be injured.



Before we get started…..



Not to be confused…

Applicant Tracking System (ATS) - A software application that enables the electronic handling of corporate recruitment needs. Most incorporate a company website, enabling companies to post jobs onto their own website, as a way to attract candidates. The ATS solutions store these candidate data inside a database to enable effective searching, filtering and routing of applications.

Enterprise Resource Planning (ERP) — Integrates internal and external management information across an entire organisation, embracing finance/accounting, manufacturing, sales and service, customers, and HR, etc. ERP systems automate this activity by way of an integrated software application in order to facilitate the flow of information between internal business functions as well as external connections to outside stakeholders..



VMS Options

Own VMS- Proprietary in-house built technology

Third-party VMS- Either directly from a VMS Vendor or via an MSP that

utilizes a VMS

Other Technology- Existing Infrastructure(s) that provide VMS like functionality

but not robust enough to be classified as a VMS

No Technology- Paper, pdfs- Spreadsheets



VMS Technology is getting more advanced.



Next generation?

Online Staffing - An online platform (Human Cloud) model that enables specific hirers and specific (typically contingent) workers to enter into, complete and transact work arrangements. It is the oldest “human cloud” model (arising in the early 2000s). there are more than 60 different kinds of businesses in this segment, which accounted for about $1 billion in global billings in 2012).

Freelancer Management System(s) (FMS) — A category of contingent workforce management technology that enables enterprises to self-manage their engagements with independent contractors and freelancers. To fall within the FMS category, a solution provider must provide a complete, end-to-end technology system that can enable users in an organization to search for and find a particular worker and activate, complete and pay for the work engagement within the system.



FMS/VMS Comparison




Contingent Labor Technology Platforms



To make a change……….



Sourcing Model Definition

A Sourcing Model : The method by which a company identifies, selects, receives, and pays for contingent workers and related services. Companies may employ more than one sourcing model within a contingent workforce programme.



Sourcing Model Definitions: Doing Nothing



Sourcing Model Definitions: Preferred Supplier List



Sourcing Model Definitions: Sole Supplier



Sourcing Model Definitions: Master Supplier/Vendor



Minimize supplier and contract risk

Job descriptions and rates

Enterprise buy in

Understand buying habits

Volume leverage

Bill rate savings

Identify opportunities for process improvement



Sourcing Model Definitions: Managed Service Provider



Sourcing Model Definitions: Hybrid



Leverage VMS Technology

Job descriptions and rate

Performance analytics

Optimise Supply Base

Automate CW Processes

Complex Pricing Schemes

Managed Service Provider (MSP)• Contingent workforce

spend under management

• One contact point

• Direct cost savings on bill rate/usage

• Customized SLA’s and process

• Non-compliant spend elimination

• Total cost of ownership savings

Decentralized• Several suppliers

• Procurement done on an ad-hoc basis

• Management done internally

Master Vendor• One supplier

(possibly managing 2nd and 3rd tier suppliers)

• One point of contact

• Direct cost savings on bill rate and usage


Preferred suppliers• Selective set of

suppliers selected

• Contracts in place

• Service level agreements (SLA’s) in place



MSP by Sourcing Model


Source: 2014 Buyers Survey



34%

66%

37%

54%

71%

88%

28%

22%

54%

40%

24%

9%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

RPO

MSP

SWP Includes CW

SOW

VMS

Approved Supplier List

In Place Within 2 Years



Three-year moving average trend in VMS use

Source: 2014 Contingent Buyer Survey



Three-year moving average trend in MSP use

Source: 2014 Contingent Buyer Survey



One size doesn’t always need to fit all…..



2012/2013 Growth in MSP Spend by Country




And the thanks goes to….


Breadth vs. intensity: buyers' top priorities


Expanding Suppliers

Non-agency CW

Consolidating Suppliers

IC Compl iance

Preparing for HC Reform

VMS

MSP

Globally Integrating CW

Internal Customers

CW in Strategic

Planning

Control ling Costs

0%

10%

20%

30%

40%

50%

60%

70%

0% 5% 10% 15% 20% 25%

Bu

yers

' p

rio

riti

es

(mu

ltip

le c

ho

ice

)

Buyers' single top priority



Focus on cost savings is not sustainable…..



Europe is ahead of U.S.A… …..



RPO and MSP Convergence?

RPO: OutsourcingOf Permanent Hiring

Total Talent Management


MSP: Outsourcing

Of Temporary Hiring



Manage CW and FTE talent holistically

Expand definition of CW

Focus on CW candidate experience and engagement

Employer branding Enterprise approach Labour arbitrage Focus on value add Hand over to HR



Talent strategy and business alignment

Metrics and Analytics

Workforce Planning

• Learning and Development• Career and performance management

Compensation/Benefits

Total Talent Management Integrates Traditional Talent Employment and Non Employee Labour

Traditional employees

Talent Acquisition Modes

Recruiters, Direct Hire, RPO

Managed By: HR

Outsourced services

ContingentTemps, IC, SOW & Internal stretch

Agencies, MSP/VMS, Direct IC

Consulting & Outsourcing Firms

Managed By: HR and Procurement Managed By: Procurement




Total Talent Management Continuum

EmployeeOnly

Employee Centric

Reactive Talent

Co-existence

Proactive Talent

Co-existence

Reactive Talent

Integration

Proactive Talent

Integration

SuppressedEmployee-Focused

Activities

SiloedManagement of Employee and

Non-Employee Activities

IntegratedManagement of Employee and

Non-Employee Activities

Level 1 Level 2 Level 3 Level 4 Level 5 Level 6




Getting the most out of resources..

In CW it’s called engagement….


Percentage of organizations making very big or big effort to motivate and/or engage workers, by type



What does Competitive Advantage Mean?

Competitive advantage is a business concept describing attributes that allows an organisation to outperform its competitors. These attributes may include unique access and relationship to highly skilled personnel, unique costing methods or superior efficiency.



Highest evolution of CW program

Executive sponsorship and strategy

All labour categories are uncer one roof

Employer branding and candidate experience creates an aspirational employment brand

Value of programme can be tied to profitability

Quality over Quantity Full HR OR Operations

ownership



Decentralized• Several suppliers

• Procurement done on an ad-hoc basis

• Management done internally

Master Vendor• One supplier

(possibly managing 2nd and 3rd tier suppliers)

• One point of contact



Managed Service Provider (MSP)• Contingent

workforce spend under management

• One contact point

• Direct cost savings on bill rate/usage



• Total cost of ownership savings

Total Talent Management • Total workforce

spend under management

• Complete workforce visibility




• Increased total cost of ownership savings

• Additional productivity and process savings

• High degree of value added services

CW as a Strategic Competitive Advantage

• CW talent as business differentiator

• Management strategies move beyond tactical considerations into strategic ones

• Combination of multiple CW models to solve complex business problems.

• Technology crosses multiple platforms in the enterprise

• Risks managed on a total enterprise basis with big picture focus on risks of action and inaction

Preferred suppliers• Selective set of

suppliers selected

• Contracts in place

• Service level agreements (SLA’s) in place

Critical Point



Contingent Workforce Programme Maturity Model


Buyers are changing….hopefully



To be Strategic and get a seat at the table… Develop Acute organisational IQ

Drive Transformational organisational Change

Deliver Organisational Value Beyond Price Reductions and Process Efficiency

Become THE Recognized Source for Market Information

Develop an Eye for Identifying Risk in Advance

Design and Organize for High Performance

- Surround yourself with “A” players

Engage Stakeholders Where They Live

- Seek “Discretionary Effort” don’t be happy with “Malicious Compliance”

Develop Strategy at the Enterprise Level and Execute

- Ideate, Identify, Communicate, Execute, Maintain

Be Relevant and Visible Outside Your Four Walls

Pursue Innovation and Demand Same

- “Best Practices” are for the other guys

Adoption, Adoption, Adoption



Questions



Thank you!

Bryan Peña, CCWPVice President, Contingent Workforce Strategies and ResearchPhone: +1.650.390.6188

Email: [email protected]


mailto:[email protected]

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