Third Party Data: A "Must-Have" Best Practice for Contingent Labor

Transcription

1 Third Party Data: A "Must-Have" Best Practice for Contingent Labor Capgemini Michael Khadivar Global Category Director - External Resources Procurement PeopleTicker Mike Zimmer CPO Marc Wong Chief Data Scientist sig.org/eval

2 Third Party Data: A "Must-Have" Best Practice for Contingent Labor Presenters: Michael Khadivar, Global Category Director External Resources Procurement, Capgemini Marc Wong, Chief Data Scientist, PeopleTicker Mike Zimmer, Chief Procurement Officer, PeopleTicker The People Stock Exchange.

3 Capgemini Founded: 1967, Grenoble, France as Sogeti President and CEO: Paul Hermelin Headquarters: Paris, France Employees: Over 180,000, in 44 countries Net Sales: 11.9B USD(FY2015) Capgemini is a global leader in consulting, technology and outsourcing services. Together with its clients, Capgemini creates and delivers business, technology and digital solutions that fit their needs, enabling them to achieve innovation and competitiveness.

4 PeopleTicker About Us PeopleTicker provides real-time labor rate information for hourly and salary employees in 160 countries utilizing a data as a service model which is available to clients on a subscription basis. This software is offered to end user clients and can be integrated into a variety of third party applications including Applicant Tracking, Workforce Analytics, VMS/MSP, RPO, and HCM applications. Client List (partial) Key Industry Partners 4 4 PeopleTicker, LLC. peopleticker.com (561)

5 Agenda How a Supplier becomes a Partner Experience Levels, Pay Rates vs. Bill Rates Using Analytics to identify opportunities Market Myths Dispelled Capgemini Program Overview Capgemini Results PeopleTicker, LLC. peopleticker.com (561)

6 How a Supplier becomes a Partner: enabling a supplier to prioritize your business I m an agency recruiter. Typically I have to submit a certain number of candidates per day. I make commissions on my candidates who are placed. I m a staffing agency Account Manager. Typically my recruiters have to place a certain number of candidates to hit revenue targets. I work with customers to bring in more opportunities. Staffing Agency The Staffing Agency must align delivery capacity with opportunities (Requisitions or reqs ) daily. If a branch has 10 recruiters that will each submit 2 candidates in a day. 20 candidates will be submitted. The agency will triage the day s delivery alignment based on factors like: Take-Away The supplier must turn people into bill Rates. 3 rd party data enables the buyer and the supplier to be on the same page regarding How Much? The more the supplier is enabled to find the right candidate (qualified enough to get the job) the more likely the recruiter will find success. This effects Potential to Close decisions. PeopleTicker, LLC. peopleticker.com (561) The markup contains the Gross Profit for the agency. The lower the GP, the longer the duration should be to entice the supplier. Shorter duration mean less time to make profit This effects the Deal Value decisions. Potential to close the business Deal Value (Hourly Gross profit * estimated billable hours) SLA Requirements Acumen of the subject matter Suppliers can more readily hit SLA metrics and achieve greater success for their clients who have leveraged 3 rd -party data to align recruiting expectations. This effects the SLA Requirements decision. While a supplier may assign a recruiter to SLA reqs, if other decision criteria are not met, the req may be given minimum effort. Recruiters within a Staffing Agency are often aligned to opportunities by skill. Java Developer reqs may go to recruiters with experience recruiting these candidates. Recruiters familiar with the subject matter they are recruiting for find better candidates more quickly. 6

7 Pizza and Experience levels: Slicing up the Market Customer: I d like a pizza. Waiter: Wonderful, We only have one size. How many slices would you like? 8 or 16? Customer: Better make it 8. I don t think I can eat 16. Take-Away 8 slices 16 slices While no direct symmetry exists for aligning skill levels and years of experience a correlation does exists between higher rates and higher expectations in terms of skill capability. PeopleTicker, LLC. peopleticker.com (561) Leveraging a third party data source provides a not only the pizza, but also presents a consistent number of slices. 7

8 How a Person becomes a Bill Rate I get paid a wage rate or pay rate. I m looking for a new gig. I have been talking to lots of recruiters. I negotiate with each of them and do the best I can for myself. $44.36 $51.22 $47.33 $54.66 Supplier 1 will pay me $54.66 Supplier 2 will pay me $51.22 Supplier 3 will pay me $47.33 Supplier 4 will pay me $44.36 M a r k u p Bill Rates $81.00 $85.00 $80.00 $75.00 $69.00 $70.00 $54.00 $65.00 $68.00 $71.00 $58.00 $72.00 $59.00 Take-Away Pay rates play a large role in determining retention risk, quality of resource, and time to fill metrics. Market data benchmarking produces a pay rate range. Defining this range enables your recruiters to target the right level of resources for the job. PeopleTicker, LLC. peopleticker.com (561) Multiple suppliers will be chasing the same candidate, for different customers. Understanding market pay rates enables your suppliers to prioritize you as a customer. Markups vary depending on, margin goals, location, type of labor, insurances, volume of business, rate structure of buyer etc. Defining appropriate markups is critical to right pricing. The same candidate can be submitted by one supplier to many buyers, all with differing bill rates. The same candidate can be submitted by different suppliers to buyers with different pay rates and bill rates. 8

9 Using Analytics to Identify Opportunities PeopleTicker, LLC. peopleticker.com (561)

10 Using Analytics to Identify Opportunities Using Analytics to Identify Opportunities PeopleTicker, LLC. peopleticker.com (561)

11 Market Myths Bill Rates are Market Rates If buyers know pay rates they can negotiate more effectively. Experience Levels are standardized Organizations have differing expectations for their junior to more senior roles. In addition, those companies who have been benchmarking with Bill Rates to define experience level based compensation are missing the key component. Natural language Processing and Machine Learning are silver bullets for compensation analysis. Natural language Processing (NLP) is a field, not a technology. It encompasses a varied collection of matching and analysis algorithms attempting to define sentiment, meaning, and other considerations. Machine Learning (ML), like NLP technologies, identify patterns in data. Over time, some patterns that have actual value can be identified and then the model is trained over long periods of time. PeopleTicker, LLC. peopleticker.com (561)

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13 Capgemini Contingent Labor Overview Global Contingent Spend 750m* Number of contingent workers Number of Suppliers 2500 for ER Primary categories IT, Financial, Program Management Ratecards managed by each country lead Variations in Job Titles and Descriptions for each country *Figures based on 2015 data

14 SubCo Staffing Center (SSC) Overall Principles Welcome to Subco Staffing Center One Single Point of Contact managing the end-to-end External Subs Management. Part of the overall People Supply Chain process. P2P, T&E management and reporting. Competitive Process for each Flex Resource. Automation of the process via Vendor Management System (VMS), in integration with the Group Requisitions & Assignment system (R2).

15 BU / Market Units SubCo Staffing Center as part of the People Supply Chain SUBCO STAFFING CENTER Practice Staffing Partners Suppliers / Freelancers 1 Vendor Management 2 Candidate sourcing 3 Transaction Management 4 Payment & Reporting o The Subco Staffing Center is the single point of contact for any subs sourcing. o The VMS tool is the enabler to manage efficiently such resourcing process.

16 Challenges Vendor rates could not be validated against market. Rates Benchmark - Internal vs. External. Rate cards. Supporting Project RFPs, how could we measure the data we received? Lack of smart negotiation.

17 Rate and Benchmarking Tool PeopleTicker Day-to-day negotiation savings based on Average submission rate: 4.28M Day-to-day negotiation savings using People Ticker: 4.86M Corporate Initiative to rollout PeopleTicker globally.

18 Summary Increased savings by 584K representing a 12% increase in what was reported in PT has allowed us to provide a upto-date Ratecard to the business. PeopleTicker delivers benchmarks for labor market pay, bill, and markup rates in real time, customized to location. Using PT has helped us deliver project oppty such as Vendor consolidation

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20 PeopleTicker Summary PeopleTicker, LLC. peopleticker.com (561)

21 Speakers Michael Khadivar, Global Category Director External Resources Procurement Capgemini Michael has been working for Capgemini for 17+ years. He currently manages a global category procurement team responsible for IT Contractors, Professional Services (HR Services, Legal, Recruitment) in USA, Canada, Latin America, Central America, and Australia. He has complete ownership for Purchasing strategies to support these regions. His previous experience includes managing the entire global staffing efforts for several countries including India, Poland, China, UK, Germany, Brazil and North America. Marc Wong, Chief Data Scientist PeopleTicker, LLC. mwong@peopleticker.com Marc brings over 20 years of staffing domain experience including software engineering as well as leading development teams at the executive level for vendor management systems, timesheet and payroll systems, procurement systems, recruiting auctions, shared savings programs, and compensation benchmarking platforms. In addition, Marc has founded and lead specialty focused delivery teams on a national level for ERP practices,.net practices, and government contractors setting rates and negotiating with buyers as well as candidates and sub-suppliers. Mike Zimmer Chief Procurement Officer PeopleTicker, LLC. mzimmer@peopleticker.com Mike Zimmer brings a diverse background in human capital management, salary benchmarking, and high technology to PeopleTicker where he currently leads procurement. Mike is primarily responsible for consulting with procurement leaders regarding best practices in managing labor spend including: market rate analysis, vendor selection, and negotiation strategies. PeopleTicker, LLC. peopleticker.com (561)

22 Contingent Labor Spend category, why is it so challenging? Regulations and Risk Workers have many options for roles and agency representation Different Tax obligations for different types of worker engagements Staffing agencies, project houses, employers of record, and professional services fees vary Scale of effort Lack of third party data for benchmarking PeopleTicker, LLC. peopleticker.com (561)

23 How do I know what Price to Pay for a Resource? Pay Rate Range Markup Bill Rate Range Determine market pay rate range for this type of worker. Determine appropriate markup for this type of worker, supplier and location. Pay rate range plus markup define the buy rate range target. PeopleTicker, LLC. peopleticker.com (561)

24 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 (#WS05) COMPLETE & SUBMIT EVAL

25 Workshop # 5 Third Party Data: A "Must-Have" Best Practice for Contingent Labor Speakers: PeopleTicker Mike Zimmer mzimmer@peopleticker.com PeopleTicker Marc Wong mwong@peopleticker.com Capgemini Michael Khadivar michael.khadivar@capgemini.com Download the App: bit.ly/sigfall16 Tweet: #SIGfall16

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