Contingent Workforce Management:

Transcription

1 Contingent Workforce Management: Whose Job is it Anyway? DCR Workforce David Putt EVP Duff Hall Former Contingent Labor Category Manager at Microsoft sig.org/eval

2 Contingent Workforce Management: Whose Job is it Anyway? SIG Summit April 20, 2016

3 DCR Workforce at a Glance Headquartered in Boca Raton, founded in 1995, providing VMS service since 2000 Global operations across North America, South America, Europe & Asia Pac Minority and Woman Owned (privately owned by co-founders) 2014 revenues of $1B+ Smart Track Award winning global VMS/ Services Procurement technology 2014 Forrester Wave report highest rated for customer satisfaction 300+ active suppliers True vendor neutral. DCR is not affiliated in any way with a staffing company. 3

4 Growing and Critical Component of Workforce Complex Category Indirect Services Temporary Labor Staffing companies ICs/Freelancers Consulting Firms Outsourced Services 4

5 Evolution of the Non-Employee Workforce Yesterday Staffing-based Low-to-mid-level talent Light (7% in 2006, 17% in 2009) penetration within total workforce Contingent workforce management is a low priority for most businesses Programs founded on procurement principles Today On-demand talent All levels of talent (emphasis on top-tier skillsets) Moderate penetration (35%) Contingent workforce management is a strategic imperative Blended programs Tomorrow Automated, real-timed matching of talent to projects All roles and talent levels High penetration (75%) CWM is one of few vital programs Total talent management as the ideal foundational program 5

6 Basic Program Constructs Vendor Management System (VMS). SaaS cloud based or internally hosted applications that is the engine for managing and procuring indirect procurement services. Managed Service Provider (MSP). A company that takes on primary responsibility for managing an organization s indirect procurement services (Contingent Workers, SOW, Services, Freelancers). The service can be delivered at multiple levels from administrative to more strategic. Program Management Office (PMO). Traditionally a group or department within an organization that manages corporate initiatives and standardizes policies/practices. For CW, the PMO will typically incorporate the activities of a MSP solution and the performance management of the entire CW Program. 6

7 Evolving to Meet Expanding Demands Integrates with ERP or HRIS Addresses complex on/offboarding and security concerns Configures to various forms Accommodates multiple labor types Streamlines processes Takes advantage of technology advances Ports seamlessly across borders and oceans 7

8 Why Should Procurement Care about Non-Employees? It s a business relationship Integral to supply chain (supply base management / optimization) Frequently a global buy Effective at broad based rollout Legal and financial risk management 8

9 Why Should HR Care about Non-Employees? Total workforce strategy and planning Invisible headcount Source for traditional FTE Facilities and systems access Focused on talent quality Happy talent doesn t file claims or lawsuits Talent is Talent and Talent is HR s #1 Concern 9

10 VMS Integration External Suppliers: Staffing Firms, Project Providers, Outsources, Freelancers (IC) Ancillary Companies: ICES, Payrollers, Background checking, Timekeeping systems The Talent: Contractors, Consultants, Freelancers, Ex-Employees Internal Security: Systems / Facilities access, IP ERP: Asset management, Scheduling, Project planning HRIS: Rate compliance, On/offboarding, Future hiring Finance: Billing/Payment, Re-billing, Budget and PO 10

11 Best Practices in a Collaborative Organization Close partnership between Procurement and HR Engage other stakeholders (e.g. Legal, Finance) Common mission to CW users Manages MSP/VMS relationships Procurement Overall program governance Negotiates terms and contract lifecycle Manages costs and liabilities Manages staffing and project supplier relationships Drives overall program optimization and operational efficiencies Human Resources Establishes policies Ensures overall quality of talent Provides guidance to managers Identifies resources for future hiring Provides regulatory oversight Acts as brand ambassador 11

12 Governance Team Led by Procurement Partnership with HR (Talent Acquisition) Additional key stakeholders include Finance, Legal, Security, IT and Business leaders Mission: - Drive KPIs and business intelligence to business - Source new providers - Ensure adoption - Manage risk trade offs - Ensure appropriate models are used - Cost management 12

13 Microsoft Case Study 13

14 Microsoft: Overview Procurement led effort Strategic sourcing of MSP/VMS Vendors Supply base management - RFP entire contingent labor supply base - Ongoing supply base management and optimization Contract management and governance - QBR s and annual strategic reviews Why managed program? Visibility to changing talent market dynamics Cost savings 10% ($40M) in first year of program Manage Compliance - Joint/Co-employment - IP - Systems / site access 14

15 Microsoft: Program Gains Turned data into business intelligence - Developed close partnership with MSP - Jointly developed operations dashboard with SLA s and KPI s - Created dashboards for each business unit Optimized Supply Base - Quarterly business review with EACH supplier - Suppliers added/removed based on performance and volume - MSP managed with Microsoft final approval Created competitive environment - Completely level playing field ensured all suppliers had fair shot at business - All suppliers had equal access to hiring managers 15

16 Microsoft: Unique Features Used Influence model, not mandate - Ensured more grass roots / organic buyin - Required heavier marketing effort - Leveraged individual super users as advocates - Downside Enabled users to go around program Statement of Work - Deferred initially - Perceive value for future inclusion - VMS functionality critical - Incorporating SOW volume visibility to all non-employee workers Addresses classification / tenure issues - Improved treasury processes - Control on / off boarding 16

17 Next Generation CW Program Socially Connected Big Data Platform Independence Complete Global Reach Automated Candidate Selection 100% Services Spend Intuitive User Interface Configure vs. Customize Gamification Artificial Intelligence 17

18 Questions & Open Discussion

19 Evaluation How-to: Why? Your feedback drives SIG Event content By signing and submitting your evaluation, you are automatically entered into a prize drawing How? Option 1: App 1. Select Schedule 2. Select Schedule by Day 3. Select Day 4. Select Session 5. Scroll to Description 6. Click on the Evaluation link Option 2: Browser 1. Go to 2. Select Session (#S04) COMPLETE & SUBMIT EVAL

20 Session #04 Contingent Workforce Management: Whose Job is it Anyway? David Putt EVP DCR Workforce Download the App: bit.ly/sigorlando Tweet: #SIGspring16

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