The IMP (Internal Managed Program) Advantage Case Studies from Southwest Airlines, Qualcomm and Herbalife

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1 The IMP (Internal Managed Program) Advantage Case Studies from Southwest Airlines, Qualcomm and Herbalife Brandon Moreno May 25, 2016

2 Housekeeping Items Everyone will be muted throughout the entire presentation You are welcome to ask questions at any time using the chat and/or Q&A feature We will have a brief Q&A session at the end of the presentation to make sure that we answer your questions

3 CWP Mission Statement Mission: Our mission is to foster our individual member s learning through the sharing of knowledge, best practices, experiences, lessons learned and by engaging with industry experts and thought leaders. Purpose: Our goals are to enhance the professional capabilities and skills of our individual members and to bring value to the overall contingent workforce management discipline. Who we are: CW Professionals is a Professional Association of contingent workforce and strategic sourcing professionals working in multiple industries.

4 CWP Governance Steering Committee Bay Area / Houston Janice Urban, Oracle Verdis Baldridge, Kaiser Permanente Greg Johnson, Blue Shield of CA Koenraad Lecot, Farmers Insurance Kanita Harris, Halliburton

5 CWP Benefits Networking Leveraging and sharing with your peers In-person and Online Chapter Meetings Assistance in Developing a Chapter in Your City Becoming a Steering Committee Member Events Attend our Annual Events Stay in the Know of All CW Events in your Area Knowledge Base Library of Presentations, Videos, and Recordings View Discussions from you Peers Participate/Contribute Become a Guest Speaker Become Author/Blogger/Thought Leader

6 Our Speaker Today Brandon Moreno is a distinguished HR and Talent executive with 20 years of impressive achievements leading and developing entrepreneurial and global teams (Americas, EMEA, APAC). He is a pioneer on developing and implementing leading edge contingent worker strategies and tools that connect the right talent to an organization. With deep domain knowledge in talent and innovation, change management and operational effectiveness, Brandon provides contingent worker program leadership for emerging and leading edge companies. He has an innate ability to deliver proven results to organizations seeking to create or maximize their contingent worker programs which require building out strong internal teams, creating a robust talent pipeline, enhancing the quality of hires, and generating revenue for their CW programs. Named HR Professional of the Year by San Diego Business Journal, Brandon is an active member of the Talent Acquisition Group of San Diego Board of directors. He has worked with executives, teams, and professionals from organizations such as Qualcomm, Nokia, Sony, S T Microelectronics, BAE Systems, Cardinal Health, Anakam, Herbalife and many others! Brandon Moreno President EverHive Corporation Much more than a business leader, Brandon is a respected speaker, influencer, and mentor on the subject of Human Capital Management. A certified professional coach from ipec, he is a featured thought leader on the docu-film Talent Attraction and has been a featured speaker at events including HCI Innovation Conference and Contingent Workforce Summit (CWS).

7 The End Game At the end of this call, you will: Learn methods that add value to your CW program from recognized global companies. How to optimize your current program Understand key benefits of Internally Managed Programs (IMP) Gain insight on how to generate revenue from your CW program

8 Polling Question What is the state of your current CW program? Considering options to establish program Currently using an Internal Managed Program (IMP) Currently using MSP Using hybrid model with MSP and IMP

9 Herbalife Nutrition Global nutrition company 4.1 million members worldwide Nearly 8,000 employees worldwide In over 90 countries (EMEA, APAC, Mexico, Americas) 2015 revenue - $4.5B GUINNESS WORLD RECORD Most participants in High Intensity Interval Training Workout in 24 Hours

10 The Challenge No centralized resource to capture data. Compliance related 2014 contingent spend for US temp workers alone was nearly $30M Add IC and SOW and that number more than tripled to nearly $100M for US alone APAC contingent spent for IT nearly $2M in 2014 and expected to double by 2015 No VMS Aggressive hiring demands to meet double digit growth. Centralize process to provide better visibility to metrics

11 The Mission Forge powerful relationships Influence Change Management Determine the need. Which solution suited their needs best now and had the ability to scale out? Build internal buy-in. The organization was operating with outdated tools and processes. Create wanted change. Discuss key benefits for each individual stakeholder and inherent risks of staying status-quo

12 The Results Established Program Manager to be centralized POC for all legal, SOW, and contingent workers Projected $ k revenue for program in 2016 for North America Will be expanding program into APAC and Mexico. Integrated 3 A/P systems and Kronos into VMS Established more consistent tenure policy Goal is to expand CW program to add analyst(s), sourcer, and other specialty functions (i.e., immigration).

13 POLLING QUESTION What is your VMS structure today? Internally Managed Program (IMP) with VMS IMP without VMS MSP with VMS MSP with no VMS

14 Southwest Airlines Leading airline year over year 45 year old company 49,000 employees $19.8B in 2015 revenue 100 million passengers serviced annually 3,900 flights.. daily

15 The Challenge Consistent growth Decentralized process MSP wasn t understanding culture Lack of engagement from MSP partner Low understanding of corporate culture Inconsistent process with MSP Skyrocketing costs

16 The Mission Improve communication Reduce costs Improve retention Integrate contingent workers into culture Establish VMS Develop talent pool An IMP outperforms their MSP

17 The Results Approached as if forming business within a business Implemented VMS Established CW team Reduced hiring cycle from ~ 42 days to 21.5 days Cost savings Quality of contingent workers significantly improved Saved hiring managers an average of 40 hours per month

18 POLLING QUESTION What keeps you up most at night? Inconsistent process Managing volume How to increase value of CW program Risk/Compliance issues

19 Qualcomm 31 year old company 33,000 employees Fortune 100 best companies to work for $25B company in 2015 First chipset company to Windows phone and Windows RT 11 billion chips shipped in 2012

20 The Challenge Handle surge periods effectively Higher than wanted turnover with CW Find the right talent for building out CW team Needed to develop and build out VMS tool Lack of true vendor neutrality Manage costs more effectively

21 The Mission Keep up with HR outliers Ensure that risk was mitigated Increase compliance Staffing on demand Needed better communication Not many services can go toe to toe with an IMP

22 The Results Rock solid core CW team Better quality of hires Solid supplier base that understood culture Decreased turnover Positive communication with worker relations Quicker time to fill Reduced fees Significant ROI Happy customers Implementation can help teams focus on maintaining service levels through collaboration

23 Staff Considerations Program Manager Sourcer Recruiter Immigration Specialist Worker Relations specialist (similar to Employee Relations) Coordinator 23

24 Internal Program Benefits Summary More accountability Lower cost Improved supplier communication Reduced time to fill Lower turnover Generate revenue Better quality of candidates and service Increased hiring manager satisfaction 24

25 About EverHive At EverHive, productivity is our passion. A team of human resource (HR), information technology (IT), and procurement professionals with a business bent, we re currently the only company in the world offering major corporations (with contingent spends of $10 million-$100 million) the expertise they need to create a vision for their overall contingent worker programs. Since 1993, founder Brandon Moreno has been working with leading companies including Northrop Grumman, Sony, Cardinal Health, Herbalife, and others to bring order to the chaos that often surrounds talent attraction and contingent worker solutions. In so doing, he and his team have helped countless companies survive and thrive - in a rapidly changing people landscape. Unlike Managed Service Providers (MSPs), EverHive keeps the power where it belongs - with your own company. We work with your internal thought leaders to assess and build a sound process that fits your company, your culture, and - ultimately - your bottom line. Contact us today for a complimentary evaluation of your program at info@everhive.com visit our website at or call (800) EverHive is a certified MBE company

26 Next Event / Webinar / August 18 th Managing Supplier Diversity at Disney Speaker: Arnice Lamb Manager, Supplier Diversity The Walt Disney Company

27 Thank You! WINNER! Webinar Recording: You can find the recording of this webinar event, a copy of the presentation & a list of upcoming events here Contingent Workforce Professionals Contingent Workforce Professionals

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