wtg ags how future proof is your workforce webinar 27th feb2013

How future proof is your workforce…?February 27th, 2013

www.allegisgroupservices.com

IntroductionRonald 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


Agenda


1. Simplified Labour Market Model2. Global Trends Affecting the Workforce3. Major Workforce Trends4. Growing Usage of Contingent Labour5. HR or Procurement?6. Final Thoughts

Simplified Labour Market Model

LabourProductivity

Production(GDP)

Labour Years(full-time jobs)

Part-timeFactor

Jobs

DEMAND

SUPPLY


LabourProductivity

Production(GDP)


Part-timeFactor

Jobs

Population

Share of15-65 years

Population 15-65 years

Degree ofParticipation

LabourForce

DEMAND

SUPPLY


LabourProductivity

Production(GDP)


Part-timeFactor

Jobs

Population

Share of15-65 years

Population 15-65 years

Degree ofParticipation

LabourForce

DEMAND

SUPPLY

Vacancies Non-workingJobseekers

Future Outlook

Global Business TrendsGLOBALISATION

DEMOGRAPHICS

TECHNOLOGY


Global Business TrendsGLOBALISATION DEMOGRAPHICS TECHNOLOGY

• Economic Crisis• Consumer Confidence• Cost Reductions - Lay offs• Merger & Acquisitions

• New Generation(s)• Immigrations• Work-Life Balance• Social Responsibility

• Communication• Knowledge• Company Policy • Access to Talent


Global Business TrendsGLOBALISATION DEMOGRAPHICS TECHNOLOGY

• Economic Crisis• Consumer Confidence• Cost Reductions - Lay offs• Merger & Acquisitions

• New generation(s)• Immigrations• Work-life balance• Social Responsibility

• Communication• Knowledge• Company Policy • Access to Talent

‘Usual ‘ Business Pressure• Active Cost Management• Productivity – Knowledge Workers• Global Talent Competition• Cultural Alignment with Business

‘Crisis‘ Pressure• Employee Engagement• Employer Brand (Lay-offs)• Continuous Change – Different Skills• More Pressure to Reduce Human Cost


GDP Outlook in %

Workforce Trend (1)“POPULATION ON THE MOVE”

Change Drivers

Change Drivers

1. Global Power Shift2. Aging Population

3. TechnologyInnovations

Growth ofEmergingMarkets

UncertainGlobal

Economy

DisruptiveTechnologyInnovation

GovernmentMarketReforms

MajorDemographic

Shifts

Migrationof Knowledge

Workers

Cross-border Migration

+42%

ChangeMigrationPatterns

Unemployment in developed markets

Source: World Economic Forum

Workforce Trend (2)

Source: Global BCG/WFPMA report ‘Creating People Advantage’

Poll Question 1What is your organisation doing

with 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 planningsome time ago

Workforce Trend (3)“INCREASING USAGE OF CONTINGENT LABOUR”

Workforce Build Up

Contingent Workforce (CW) Trends

8% *

Light Industrial

ContingentPerm Employees

25% *

Information Technology


18% *

Financial Services


30% *

Automotive


* indicative percentages based on AGS estimations in 2010


Types of Contingent Workers

Temporary / AgencyWorkers

ProfessionalWorkers

Projects Statement of

Work

Graduates / Interns

Independent Contractors

Free-Lancers

ContingentWorkers

PermanentEmployees


CW Maturity Model

I II III IV V

DECENTRALIZED

MASTER VENDOR

CLIENT MANAGEDPREFERRED

SUPPLIERPROGRAM

MANAGED SERVICE PROVIDER (MSP)

TOTAL TALENT ACQUISTION

MANAGEMENT

LOW

HIGH

MATURITY OF THE MARKET

GLOBAL CONTROL OF MSP or TTAM

VI

LEVE

L OF

COM

PLEX

ITY

Several suppliers Procurement done on

an ad-hoc basis Management done

internally

One supplier (possibly managing second and third tier suppliers)

One point of contact Direct cost savings on

bill rate and Volume Customized SLAs and

process

Client resources tactically engaged

Selective set of suppliers selected

Contracts in place SLAs in place May or may not involve

automation

Managing all contract workforce spend

One point of contact for suppliers and contractors and hiring managers

Direct cost savings on bill rate and usage

Integrated e tool for total process

SLAs & customized process

Total cost of ownership savings

Total workforce spend under management

Complete workforce visibility

Direct cost savings on bill rate and SOWs

Customized SLAs and process

Non-compliant spend elimination

Increased total cost of ownership savings

Additional productivity and process savings

High degree of value added services

Global spend centralized and controlled

Global workforce visibility

Customized SLAs and process

Global supply community

Increased total cost of ownership savings

Integrated e tool for total process visibility

Additional productivity and process savings

High degree of value added services

Ability to plan best mix of resource types


HR or Procurement…?

Human Resources (HR) Procurement (NPR)

• Focus on permanent hires/ employees

• ‘Policy’ makers

• Keeping ‘temps’ at arms- length from employees

• Mitigating co-employment risks

• Focus on indirect spend on ‘external’ resources

• Cost control and spend optimization

• Managing contracts with staffing services suppliers

• Minimize compliance risks

http://www.thestaffingstream.com/wp-content/uploads/2012/09/HR.jpg

Poll Question 2Who is responsible for managing the

contingent workforce within your organisation?

1. Procurement

2. Human Resources

3. Business / Hiring Managers

4. A combination of the above

Changing Role of HR


Future Proof Workforce

Key Elements of Workforce Management

Strategic WorkforcePlanning

Total TalentAcquisition

EmployeeDevelopment

PerformanceManagement

SuccessionPlanning

What are the goals of the organisation and the objectives you expect your people to deliver? Do you have the people to accomplish this?

Where and how will you get the talent to fill the gaps you identified in planning?

How do you train and prepare your people so they will be successful?

Are your people successful and are they accomplishing the goals you set for them?

Do you have a plan for key people and roles?


Questions & Answers

Let us answer your questions!


Thank you!

Visit our website for more info: www.allegisgroupservices.com/blog

http://www.allegisgroupservices.com/

For years HR has turned a blind eye to the non-employee workforce in a company. Even though some of the contingent workforce sits in cubicles 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 the term. I asked. Many would respond, “Well, you know… it was that Microsoft thing several years ago…“ without even knowing the cause and outcome of that huge multimillion dollar settlement. “We don’t have an issue because our contingency workers are employed through another firm.” Really? Did you know that this fact alone does not represent a true arms-length relationship? If it were not so important we could 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 that approximately 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 trend that represents the future? Probably not. The actual numbers are probably much higher. Also, most companies are unsure of what the Affordable Care Act (or Obamacare if you prefer) means in terms of healthcare regulations and rules. Staffing companies must be nimble enough to maintain their current growth and recognize the impact of compliance with new laws. With current economic conditions as they are, it makes sense that SIA (Staffing Industry Analysts) is forecasting an estimated 6% growth in the staffing industry in 2013. With regulatory, labor, and health care costs in a state of flux while politicians decide the final outcome, there will no doubt be six months or more of 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 to argue 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? If you suspect that your job could be done by a machine or outsourced, ask your doctor for a prescription for Ambien. Then when you wake up, 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 the size of your bonus) will depend on your people. If you do not know the current percentage of contractor or temporary workers in the organization, ask your human resources experts… they won’t know the answer but they can get a list from Security of how many badges have been 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 not considering that the culture involves more than the in-house full time employees. Plan for “engagement” and leave out one of the largest components 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 search because your function was outsourced. Of course, this only happens to other people, but just in case a “friend needs advice” decide what you would 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 contingent workers may be a more direct route to gainful employment. Anyone who has been unemployed for a lengthy period of time needs to broaden the scope of the search to include non-typical employment. There are people who have been making a career out of temping for years.

http://dl.dropbox.com/u/28658397/website%20links/2013/2013%20staffing%20trends.pdf

The Big Picture: Global Trends in 2012” provides a summary of survey results, showing the topics executives consider most 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 people sourcing, 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 achieve important synergies.

“Building Up Your Critical Assets: Talent and Leadership Development” discusses the importance of six key—and highly interdependent—steps in developing talent and leadership, from developing a talent strategy to creating a talent magnet culture.

“Managing People in the World’s Fastest-Growing Economies” delineates the specific skill shortages and capability gaps that plague companies operating in high-growth markets.

“Enabling Workforce Flexibility in a Two-Speed World” highlights a rising challenge facing the majority of companies in our survey: simultaneous workforce shortages in some areas and surpluses elsewhere. The chapter describes useful 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 practice across 16 key HR activities. Moreover, we also discuss what could be the most effective approach in each activity.

Employer & EmployeesEmployees gain more bargaining powerOver the past 20 or 30 years, the bond between company andemployee has weakened, even in corporate cultures where loyaltywas once prized. Fast-changing company needs and a desire to cutcosts led first to more frequent layoffs, and then to nontraditionalrelationships where the expectation was not decades of service,but only a few years.In a period of high unemployment, this new social contract isan advantage for the employer. But as the market turns, skilledemployees should benefit. They will want a better understandingof their employment options and a greater say in how work isassigned, assessed and rewarded.The employer will no longer define the workplace; rather,employees’ priorities and preferences will dictate what the futureworkplace will look like, particularly now that technology makesit easier than ever to design a variety of flexible arrangements.Companies operating in aging societies will have to craft methodsto engage or re-engage the experienced base of talent. Companiesthat fail to respond to this change and do not succeed in redefiningtheir employee value proposition will fail to attract, retain ordevelop talent effectively.

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wtg ags how future proof is your workforce webinar 27th feb2013

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