Enterprise Independent Contractor Programs:

Transcription

1 Enterprise Independent Contractor Programs: Beyond Compliance Cisco Carey Pugh Senior Compliance Manager MBO Partners Bob Lucas Senior Vice President sig.org/eval

2 Enterprise Independent Workforce Programs: Beyond Compliance Carey Pugh Senior Compliance Manager, Cisco Bob Lucas Senior Vice President, MBO Partners

3 3 Outline Cisco Overview MBO Partners Overview Independent Workforce Trends Characteristics of a Successful Program Case Study Cisco

4 4 Intelligent Connections at the Heart of Cisco Internet of Everything Immersive Experiences Digitize the World Connecting: Networked Economy Digitize Interactions (Business & Social) People Process Connectivity Digitize Access to Information Web Browser Search Digitize Business Process E-commerce Digital Supply Chain Collaboration Social Mobility Cloud Video Data Things Intelligent Connections

5 5 MBO Partners Fast Facts A trusted guide for independent workers and the companies that engage them, we leverage our experience and our passion as the country moves toward the future of work Largest, most experienced 60+ enterprise programs 98% client retention Served 55,000+ independents Proprietary technologies State of Independence research reports MSP and VMS Partnerships

6 6 Polling Question How does your enterprise currently manage independent worker risk? A. Internal compliance department/specialist B. Staffing company C. Other third party engagement specialist D. We do not use independent workers

7 7 Independent Workforce Trends

8 8 Understanding the Independent Worker

9 9 Understanding the Independent Worker

10 10 Increasing Compliance Layers Memorandum of Understanding with 11 states, IRS, DOL 2012 federal budget includes $23M for Misclassification Initiative Louisiana signs MOU DOL FLSA suits reach all-time high in 2012 IRS re-starts Questionable Employment Tax Practices program Iowa signs MOU Solicitor of Labor indicates that misclassified labor is one of agency s top priorities California Senate Bill 459 goes into effect Executive order adds compliance requirements for federal contractors Affordable Care Act goes into effect NY JETF Audit 12,000 Audits 133K Misclassified Workers Payroll Fraud Prevention Act of 2014 introduced in Congress New York signs MOU Payroll Fraud Prevention Act of 2013 introduced in U.S. Senate California AB-1897 passed Wyoming signs MOU Alabama signs MOU New Hampshire and Massachusetts sign MOU Wisconsin signs MOU Idaho signs MOU 2016 Fed Budget focuses on IC misclassification Florida signs MOU CA finds Uber driver to be employee Rhode Island signs MOU Alaska signs MOU (25 th state) Texas signs MOU DOL Directive Dr. Weil Administrator s Interpretation No

11 11 A Central Conflict The growth of workforce independence continues to clash with escalating regulatory changes creating a perfect storm of confusion and frustration among workers, companies, and government.

12 12 Characteristics of a Successful Program

13 13 INTENT WEAK STRONG Program Success Factors Intent C-level mandate and buy-in Clear policy No backdoors Standardized processes Culture receptive to change Engaged Program Manager Incent Client-funded Short payment terms Ease of use Proactive communications Culture facilitates new project access Industry-standard insurance requirements Forced Acceptance Death by 1,000 Cuts WEAK Critical Action Zone INCENT Clear Messaging and Sustained Adoption Viral Growth STRONG

14 14 Reaching for the Ideal Program 1. Executive or Legal sponsor Provides stamp of approval for program/policy 2. Well-publicized corporate policy Explains rationale and process for engaging ICs 3. Dedicated program lead Ensures program reaches steady state (12-24 mo. assignment) 4. Qualified ICs engage in program Better risk management, reporting, and decision making 5. Client uses technology Enables seamless billing/acceptance of deliverables 6. Client pays the program fee Reduces escalations 7. Leverage technology to competitively bid assignments Tap previously used ICs for better quality and cost control 8. Annual review of client AP data Ensures back doors are closed

15 15 Direct Sourcing Work intermediation platforms processed $10B known platforms Broader access to independent talent Shorter time to fill Eliminates intermediary costs Most lack a compliance component

16 Beyond Compliance: A Client of Choice 16

17 17 Polling Question Does your current independent worker program account for more than compliance? A. Yes, quite a bit B. Somewhat, but I identified areas for improvement C. No, it really just covers the compliance aspect D. We do not use independent workers

18 Case Study: Cisco

19 19 Cisco C-Worker Profile 18 countries in scope Require 3rd party subk & screening if <10 workers 4k suppliers enrolled in program Multi-billion dollar spend Cisco maintains ownership of supply base/ pays supplier directly

20 20 Triggers for Re-evaluation Savings potential Expanded analytics and dashboard White glove service and customer excellence Best in class provider Global expansion Opportunities Enhanced technical capabilities for stakeholders and consultants

21 21 Selection Criteria Industry Standards Value Add Service Offerings Cisco Culture Technology

22 22 C-Worker Services Vision Transform the Contingent Labor Value Chain for Cisco Employees and Consultants enabling an agile, open marketplace. Customer Experience Simplification Performance Management Process Digitization New Business Models Right Resource at the Right Time at the Right Value

23 Savings Opportunities 23

24 Thank You! MBO Partners Sunrise Valley Drive, Suite 300 Herndon, VA mbopartners.com Carey Pugh Bob Lucas

25 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 (#S07) COMPLETE & SUBMIT EVAL

26 Session #07 Enterprise Independent Contractor Programs: Beyond Compliance Carey Pugh Cisco Bob Lucas MBO Partners Download the App: bit.ly/sigorlando Tweet: #SIGspring16

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