Managing Contingent Labour

Transcription

1 Managing Contingent Labour Presentation Title Nicole Morton HCM Practice Lead, Plaut SPEAKER NAME Mark Job Title, Dyson Organisation HCM Solution Architect, MMG

2 2 Main Message. Managing contingent labour needs clear definition, processes and governance But before you even start ensure there is clear ownership Know who your contingent labour are and what you need to do with them.the solution is the easy bit

3 3 What We ll Cover Considerations and Pre-requisites Clear ownership and governance Clear communications Terminology and Definitions Critical Success Factors Business Requirements Process System design Learnings and Challenges Questions Key Points to Take Home

4 Introduction & Overview A contingent workforce is a provisional group of workers who work for an organization on a non-permanent basis (Wikipedia) Businesses rely on contingent labour to fill skill gaps, specialist requirements and resourcing requirements in a timely manner According to Workforce 2020, a study conducted by Oxford Economics and sponsored by SAP, 83% of executives indicate they re increasingly using contingent workers at any time, on an ongoing basis. MMG: Headcount (April 2015) 20,650 contractors (inflated due to construction project in Peru) 4,505 employees 2,233 contractors currently on SAP 4

5 Considerations and Pre-requisites

6 Pre-requisites Critical to have clear ownership and governance Who owns this? HR, Procurement, Finance What are the clear business requirements? Reporting Cost, People and Time Systems and site access Cost 6

7 Terminology and Definition Critical to have an agreed terminology and definition Consultants, Contractors, Freelancers.. Key points of definition How engaged? Individual or organisation? How paid? Type of work System and physical access requirements 7

8 Business Requirements

9 Business Requirements End to end view of requirements who performs data entry? Physical and system access requirements Other system integration requirements Safety Learning Performance Reporting requirements Time entry and payment requirement 9

10 10 Business Processes Workforce Planning: Rostering, Maintenance and Projects Sourcing: Vendor selection and management Purchasing: SOW, Purchase orders People Management: Personnel Data, Identity Mgmt., Training Work Execution: Maintenance and Projects, handovers Contracts and Payables: Milestone Mgmt., Services Invoicing Site and System Access: People tracking and system access Health and Safety: Exposure hours, risk assessment

11 11 The MMG Experience Do they need be recorded in our system? Budgeted vs Non-Budgeted? Do they hold a position in the org structure or ad-hoc (bucket position?) Do they require IT access? (participation in processes) Counted in headcount? Part of Personnel Cost Planning? Compliance? Training records What is the minimum data required for Contractors? How do we measure success? Audit, governance, headcount?

12 12 Contractor Administration MMG Category Description Type of Position in Org Structure IT Access Required? Rules Personnel Cost Planning Reason Contractor Contractors engaged on a temporary basis to backfill a position. Employee YES - Position (SAP Work Profile) Included in Headcount YES Staff Replacement Contractors engaged to carry out specific tasks. Contractor YES - Position (SAP Work Profile) Included in Headcount YES Staff Supplement (FTE) Service Contractor Contractors engaged to work for temporary periods. Not part of the establishment. Contractors responsible for the delivery of specific scope of work. Service Contractor (work profile) Service Contractor (no work profile) Yes - Position assigned to a SAP Work Profile NO - Position not assigned to SAP generic Work Profile Contractor Definition Contractor Definition NO Staff Supplement (Project) Labour Hire Fixed Recurring Outsourced Offsite NO Job Service or Extended

13 What worked? Contractors included in IT Provisioning (IDM) SAP Mass Hire Tool (used for contractor hire) Bucket positions (generic positions linked to Managers) 13

14 Bucket positions (manager association) 14

15 15 Mass Hiring Tool (Contractor Mass Hire) Used to upload the contractor data in bulk Enter contractor details into the mass hiring spread sheet using the delivered template.

16 What didn t work? Not enough communication and clarity around the definition of in-scope contractors (revised after 6 months). Business preparation and training was not detailed enough to on-board and separate process contractors efficiently. Buy-In from stakeholders (WIFM) Stakeholder understanding of The problem we are trying to solve. 16

17 Learnings and Challenges

18 Learnings and Challenges Ownership Governance Communications and Change management Training and Compliance Procurement or Human Resources? (see ownership) Managing a decentralised process (Change Management) Integration (across processes), downstream systems Cost of maintaining contractor records (Cost vs Benefit) 18

19 Key Points to Take Home Identify an owner Be clear on requirements Be clear on communication Be able to answer all the questions before you start 19

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21 E: M: linkedin.com/in/nicolemorton/ E: M: linkedin.com/in/markdyson/