View
0
Download
0
Category
Preview:
Citation preview
21-22 April 2015Hotel Okura, Amsterdam
Keynote Session
Contingent Workforce Management and the 21st Century
Speaker:
Bryan Peña, VP, Contingent Workforce Strategies & Research, Staffing Industry Analysts
TUESDAY 09:00-10:15 HEIAN
21-22 April 2015Hotel Okura, Amsterdam
21-22 APRIL 2015 Hotel Okura, Amsterdam21-22 APRIL 2015 Hotel Okura, Amsterdam© 2015 Crain Communications Inc. All rights reserved.
Agenda
Fundamental shift is long over due
How companies are preparing
Critical considerations
How not to get redundant
21-22 APRIL 2015 Hotel Okura, Amsterdam
©2015 by Crain Communications Inc. All rights reserved.
© 2015 Crain Communications Inc. All rights reserved.
21-22 APRIL 2015 Hotel Okura, Amsterdam
Which brings us to…
© 2015 Crain Communications Inc. All rights reserved.
21-22 APRIL 2015 Hotel Okura, Amsterdam
Large Company Focus
© 2015 Crain Communications Inc. All rights reserved.
21-22 APRIL 2015 Hotel Okura, Amsterdam
Change is the only constant….
© 2015 Crain Communications Inc. All rights reserved.
21-22 APRIL 2015 Hotel Okura, Amsterdam
Description €10-€50 million €51-€100 million Over €100 million
Mature programme 4% 12% 23%
New programme 17% 11% 19%
New to the role 8% 2% 6%
© 2015 Crain Communications Inc. All rights reserved.
21-22 APRIL 2015 Hotel Okura, Amsterdam© 2015 Crain Communications Inc. All rights reserved.
21-22 APRIL 2015 Hotel Okura, Amsterdam
What’s important?
0
20
40
60
80
100
120
140
160
180
200
Count of VMS Count of MSP Count of SOW Count of StaffingSolutions
Count of RPO
© 2015 Crain Communications Inc. All rights reserved.
21-22 APRIL 2015 Hotel Okura, Amsterdam© 2015 Crain Communications Inc. All rights reserved.
21-22 APRIL 2015 Hotel Okura, Amsterdam21-22 APRIL 2015 Hotel Okura, Amsterdam© 2015 Crain Communications Inc. All rights reserved.
Like it or not you are in this
21-22 APRIL 2015 Hotel Okura, Amsterdam
At our company we are interested in getting the very best and brightest to work here. We feel the level of person working at Microsoft creates a distinct competitive and cultural advantage;
Why on earth would I limit the way we engage them?
© 2015 Crain Communications Inc. All rights reserved.
21-22 APRIL 2015 Hotel Okura, Amsterdam
An Evolving Workforce Composition
20th Century
Workforce
Composition
Employees
Consultants
Temp Workers Temp Workers
Consultants
Employees
21st Century
Workforce
Composition
DRIVERS:
• Shrinking average employee tenure
• Expansion of types of skills/positions being filled by non-employees
• Non-employees generating intellectual property
• Globalising workforce within employee & non-employee segments
• Heightened legal risks associated with expansion of worker types and global coverage
• Rising costs of real estate & benefits (e.g. healthcare)
© 2015 Crain Communications Inc. All rights reserved.
21-22 APRIL 2015 Hotel Okura, Amsterdam
Future of Workforce Management
• Employees– Full time or part time – Apprentices, trainees, and paid interns
• Non-Employees– Temporary workers– Independent contractors or consultants/freelancers– Online workers (e.g. micro tasks, crowdsourced, etc.)– Professional services (e.g. management consultants, lawyers)– Outsourced services (e.g. security guards, maintenance)– Partners (e.g. supply chain, partnerships, joint ventures) – Formal and informal volunteers (e.g. self-service customers)– Franchisees/affiliates/associates (e.g. marketing, sales activities, etc.)– Robots/drones/cognitive computing applications
© 2015 Crain Communications Inc. All rights reserved.
21-22 APRIL 2015 Hotel Okura, Amsterdam© 2015 Crain Communications Inc. All rights reserved.
21-22 APRIL 2015 Hotel Okura, Amsterdam
US
CA
BR
SA
JP
AU
NL
IN
Source: Staffing Industry AnalystsCountries and regions are to scale
Global Staffing Market Revenue of €330 billion in 2013
CHCN
UK
FR
IT
DE
BE
© 2015 Crain Communications Inc. All rights reserved.
21-22 APRIL 2015 Hotel Okura, Amsterdam
€2.37 Trillion
© 2015 Crain Communications Inc. All rights reserved.
21-22 APRIL 2015 Hotel Okura, Amsterdam
Europe is Mostly a Commercial Staffing Market
Source: Staffing Industry Analysts
Professional/Commercial Temporary Staffing Mix 2013
21-22 APRIL 2015 Hotel Okura, Amsterdam
Buyer Plans: 2014
© 2015 Crain Communications Inc. All rights reserved.
21-22 APRIL 2015 Hotel Okura, Amsterdam
A key source of talent….
© 2015 Crain Communications Inc. All rights reserved.
21-22 APRIL 2015 Hotel Okura, Amsterdam
And they never leave….
Source: 2014 SIA Buyers Survey
© 2015 Crain Communications Inc. All rights reserved.
21-22 APRIL 2015 Hotel Okura, Amsterdam
The Rise of the Independent Contractor
iPros increased across the EU by 45% 2004-2013*
6.2 million to 8.9 million
4 million in UK incl. 650,000 one-man companies
Growth marked in Netherlands, Poland and France
IC market in Netherlands worth €25.8bn in 2013 grew by 8% in 2014**
* Future Working: The Rise of Europe’s Independent Professionals (iPros), European Forum of Independent Professionals & Professional Contractors Group (www.ipse.co.uk); UK Labour Force Survey 2014
**Independent Contractors in the Netherlands, SIA, 02/05/15
©2014 by Crain Communications Inc. All rights reserved.© 2015 Crain Communications Inc. All rights reserved.
21-22 APRIL 2015 Hotel Okura, Amsterdam
ISRAEL SPAIN
SOUTH AFRICA POLAND
GERMANY
TAIWAN
INDIA NORWAY PAKISTAN
© 2015 Crain Communications Inc. All rights reserved.
21-22 APRIL 2015 Hotel Okura, Amsterdam
Temp workers are about 50% more likely to be injured.
The injuries temp workers suffer temp to be more severe.
Temporary blue-collar workers in Florida were 6x more likely to be injured.
© 2015 Crain Communications Inc. All rights reserved.
21-22 APRIL 2015 Hotel Okura, Amsterdam
21-22 APRIL 2015 Hotel Okura, Amsterdam
Before we get started…..
© 2015 Crain Communications Inc. All rights reserved.
21-22 APRIL 2015 Hotel Okura, Amsterdam
Not to be confused…
Applicant Tracking System (ATS) - A software application that enables the electronic handling of corporate recruitment needs. Most incorporate a company website, enabling companies to post jobs onto their own website, as a way to attract candidates. The ATS solutions store these candidate data inside a database to enable effective searching, filtering and routing of applications.
Enterprise Resource Planning (ERP) — Integrates internal and external management information across an entire organisation, embracing finance/accounting, manufacturing, sales and service, customers, and HR, etc. ERP systems automate this activity by way of an integrated software application in order to facilitate the flow of information between internal business functions as well as external connections to outside stakeholders..
© 2015 Crain Communications Inc. All rights reserved.
21-22 APRIL 2015 Hotel Okura, Amsterdam
VMS Options
Own VMS- Proprietary in-house built technology
Third-party VMS- Either directly from a VMS Vendor or via an MSP that
utilizes a VMS
Other Technology- Existing Infrastructure(s) that provide VMS like functionality
but not robust enough to be classified as a VMS
No Technology- Paper, pdfs- Spreadsheets
© 2015 Crain Communications Inc. All rights reserved.
21-22 APRIL 2015 Hotel Okura, Amsterdam
VMS Technology is getting more advanced.
© 2015 Crain Communications Inc. All rights reserved.
21-22 APRIL 2015 Hotel Okura, Amsterdam
Next generation?
Online Staffing - An online platform (Human Cloud) model that enables specific hirers and specific (typically contingent) workers to enter into, complete and transact work arrangements. It is the oldest “human cloud” model (arising in the early 2000s). there are more than 60 different kinds of businesses in this segment, which accounted for about $1 billion in global billings in 2012).
Freelancer Management System(s) (FMS) — A category of contingent workforce management technology that enables enterprises to self-manage their engagements with independent contractors and freelancers. To fall within the FMS category, a solution provider must provide a complete, end-to-end technology system that can enable users in an organization to search for and find a particular worker and activate, complete and pay for the work engagement within the system.
© 2015 Crain Communications Inc. All rights reserved.
21-22 APRIL 2015 Hotel Okura, Amsterdam
FMS/VMS Comparison
Source: Staffing Industry Analysts
© 2015 Crain Communications Inc. All rights reserved.
21-22 APRIL 2015 Hotel Okura, Amsterdam
Contingent Labor Technology Platforms
Source: Staffing Industry Analysts
21-22 APRIL 2015 Hotel Okura, Amsterdam
21-22 APRIL 2015 Hotel Okura, Amsterdam
To make a change……….
© 2015 Crain Communications Inc. All rights reserved.
21-22 APRIL 2015 Hotel Okura, Amsterdam
Sourcing Model Definition
A Sourcing Model : The method by which a company identifies, selects, receives, and pays for contingent workers and related services. Companies may employ more than one sourcing model within a contingent workforce programme.
© 2015 Crain Communications Inc. All rights reserved.
21-22 APRIL 2015 Hotel Okura, Amsterdam
Sourcing Model Definitions: Doing Nothing
© 2015 Crain Communications Inc. All rights reserved.
21-22 APRIL 2015 Hotel Okura, Amsterdam
Sourcing Model Definitions: Preferred Supplier List
© 2015 Crain Communications Inc. All rights reserved.
21-22 APRIL 2015 Hotel Okura, Amsterdam
Sourcing Model Definitions: Sole Supplier
© 2015 Crain Communications Inc. All rights reserved.
21-22 APRIL 2015 Hotel Okura, Amsterdam
Sourcing Model Definitions: Master Supplier/Vendor
© 2015 Crain Communications Inc. All rights reserved.
21-22 APRIL 2015 Hotel Okura, Amsterdam
Minimize supplier and contract risk
Job descriptions and rates
Enterprise buy in
Understand buying habits
Volume leverage
Bill rate savings
Identify opportunities for process improvement
© 2015 Crain Communications Inc. All rights reserved.
21-22 APRIL 2015 Hotel Okura, Amsterdam
Sourcing Model Definitions: Managed Service Provider
© 2015 Crain Communications Inc. All rights reserved.
21-22 APRIL 2015 Hotel Okura, Amsterdam
Sourcing Model Definitions: Hybrid
© 2015 Crain Communications Inc. All rights reserved.
21-22 APRIL 2015 Hotel Okura, Amsterdam
Leverage VMS Technology
Job descriptions and rate
Performance analytics
Optimise Supply Base
Automate CW Processes
Complex Pricing Schemes
Managed Service Provider (MSP)• Contingent workforce
spend under management
• One contact point
• Direct cost savings on bill rate/usage
• Customized SLA’s and process
• Non-compliant spend elimination
• Total cost of ownership savings
Decentralized• Several suppliers
• Procurement done on an ad-hoc basis
• Management done internally
Master Vendor• One supplier
(possibly managing 2nd and 3rd tier suppliers)
• One point of contact
• Direct cost savings on bill rate and usage
• Customized SLA’s and process
Preferred suppliers• Selective set of
suppliers selected
• Contracts in place
• Service level agreements (SLA’s) in place
© 2015 Crain Communications Inc. All rights reserved.
21-22 APRIL 2015 Hotel Okura, Amsterdam
MSP by Sourcing Model
21-22 APRIL 2015 Hotel Okura, Amsterdam
Source: 2014 Buyers Survey
© 2015 Crain Communications Inc. All rights reserved.
21-22 APRIL 2015 Hotel Okura, Amsterdam
34%
66%
37%
54%
71%
88%
28%
22%
54%
40%
24%
9%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
RPO
MSP
SWP Includes CW
SOW
VMS
Approved Supplier List
In Place Within 2 Years
© 2015 Crain Communications Inc. All rights reserved.
21-22 APRIL 2015 Hotel Okura, Amsterdam
Three-year moving average trend in VMS use
Source: 2014 Contingent Buyer Survey
© 2015 Crain Communications Inc. All rights reserved.
21-22 APRIL 2015 Hotel Okura, Amsterdam
Three-year moving average trend in MSP use
Source: 2014 Contingent Buyer Survey
© 2015 Crain Communications Inc. All rights reserved.
21-22 APRIL 2015 Hotel Okura, Amsterdam
One size doesn’t always need to fit all…..
© 2015 Crain Communications Inc. All rights reserved.
21-22 APRIL 2015 Hotel Okura, Amsterdam
2012/2013 Growth in MSP Spend by Country
Source: Staffing Industry Analysts
© 2015 Crain Communications Inc. All rights reserved.
21-22 APRIL 2015 Hotel Okura, Amsterdam
And the thanks goes to….
21-22 APRIL 2015 Hotel Okura, Amsterdam
Breadth vs. intensity: buyers' top priorities
Source: Staffing Industry Analysts
Expanding Suppliers
Non-agency CW
Consolidating Suppliers
IC Compl iance
Preparing for HC Reform
VMS
MSP
Globally Integrating CW
Internal Customers
CW in Strategic
Planning
Control ling Costs
0%
10%
20%
30%
40%
50%
60%
70%
0% 5% 10% 15% 20% 25%
Bu
yers
' p
rio
riti
es
(mu
ltip
le c
ho
ice
)
Buyers' single top priority
© 2015 Crain Communications Inc. All rights reserved.
21-22 APRIL 2015 Hotel Okura, Amsterdam
Focus on cost savings is not sustainable…..
© 2015 Crain Communications Inc. All rights reserved.
21-22 APRIL 2015 Hotel Okura, Amsterdam© 2015 Crain Communications Inc. All rights reserved.
21-22 APRIL 2015 Hotel Okura, Amsterdam
Europe is ahead of U.S.A… …..
© 2015 Crain Communications Inc. All rights reserved.
21-22 APRIL 2015 Hotel Okura, Amsterdam
RPO and MSP Convergence?
RPO: OutsourcingOf Permanent Hiring
Total Talent Management
Source: Staffing Industry Analysts
MSP: Outsourcing
Of Temporary Hiring
© 2015 Crain Communications Inc. All rights reserved.
21-22 APRIL 2015 Hotel Okura, Amsterdam© 2015 Crain Communications Inc. All rights reserved.
21-22 APRIL 2015 Hotel Okura, Amsterdam
Manage CW and FTE talent holistically
Expand definition of CW
Focus on CW candidate experience and engagement
Employer branding Enterprise approach Labour arbitrage Focus on value add Hand over to HR
© 2015 Crain Communications Inc. All rights reserved.
21-22 APRIL 2015 Hotel Okura, Amsterdam© 2015 Crain Communications Inc. All rights reserved.
21-22 APRIL 2015 Hotel Okura, Amsterdam
Talent strategy and business alignment
Metrics and Analytics
Workforce Planning
• Learning and Development• Career and performance management
Compensation/Benefits
Total Talent Management Integrates Traditional Talent Employment and Non Employee Labour
Traditional employees
Talent Acquisition Modes
Recruiters, Direct Hire, RPO
Managed By: HR
Outsourced services
ContingentTemps, IC, SOW & Internal stretch
Agencies, MSP/VMS, Direct IC
Consulting & Outsourcing Firms
Managed By: HR and Procurement Managed By: Procurement
Source: Staffing Industry Analysts
© 2015 Crain Communications Inc. All rights reserved.
21-22 APRIL 2015 Hotel Okura, Amsterdam
Total Talent Management Continuum
EmployeeOnly
Employee Centric
Reactive Talent
Co-existence
Proactive Talent
Co-existence
Reactive Talent
Integration
Proactive Talent
Integration
SuppressedEmployee-Focused
Activities
SiloedManagement of Employee and
Non-Employee Activities
IntegratedManagement of Employee and
Non-Employee Activities
Level 1 Level 2 Level 3 Level 4 Level 5 Level 6
Source: Staffing Industry Analysts
© 2015 Crain Communications Inc. All rights reserved.
21-22 APRIL 2015 Hotel Okura, Amsterdam21-22 APRIL 2015 Hotel Okura, Amsterdam© 2015 Crain Communications Inc. All rights reserved.
Getting the most out of resources..
In CW it’s called engagement….
21-22 APRIL 2015 Hotel Okura, Amsterdam© 2015 Crain Communications Inc. All rights reserved. 21-22 APRIL 2015 Hotel Okura, Amsterdam
Consultant
Employee Independent Contractor
Agency Employee
21-22 APRIL 2015 Hotel Okura, Amsterdam
Percentage of organizations making very big or big effort to motivate and/or engage workers, by type
© 2015 Crain Communications Inc. All rights reserved.
21-22 APRIL 2015 Hotel Okura, Amsterdam
What does Competitive Advantage Mean?
Competitive advantage is a business concept describing attributes that allows an organisation to outperform its competitors. These attributes may include unique access and relationship to highly skilled personnel, unique costing methods or superior efficiency.
© 2015 Crain Communications Inc. All rights reserved.
21-22 APRIL 2015 Hotel Okura, Amsterdam
Highest evolution of CW program
Executive sponsorship and strategy
All labour categories are uncer one roof
Employer branding and candidate experience creates an aspirational employment brand
Value of programme can be tied to profitability
Quality over Quantity Full HR OR Operations
ownership
© 2015 Crain Communications Inc. All rights reserved.
21-22 APRIL 2015 Hotel Okura, Amsterdam
Decentralized• Several suppliers
• Procurement done on an ad-hoc basis
• Management done internally
Master Vendor• One supplier
(possibly managing 2nd and 3rd tier suppliers)
• One point of contact
• Direct cost savings on bill rate and usage
• Customized SLA’s and process
Managed Service Provider (MSP)• Contingent
workforce spend under management
• One contact point
• Direct cost savings on bill rate/usage
• Customized SLA’s and process
• Non-compliant spend elimination
• Total cost of ownership savings
Total Talent Management • Total workforce
spend under management
• Complete workforce visibility
• Direct cost savings on bill rate and usage
• Customized SLA’s and process
• Non-compliant spend elimination
• Increased total cost of ownership savings
• Additional productivity and process savings
• High degree of value added services
CW as a Strategic Competitive Advantage
• CW talent as business differentiator
• Management strategies move beyond tactical considerations into strategic ones
• Combination of multiple CW models to solve complex business problems.
• Technology crosses multiple platforms in the enterprise
• Risks managed on a total enterprise basis with big picture focus on risks of action and inaction
Preferred suppliers• Selective set of
suppliers selected
• Contracts in place
• Service level agreements (SLA’s) in place
Critical Point
© 2015 Crain Communications Inc. All rights reserved.
21-22 APRIL 2015 Hotel Okura, Amsterdam© 2015 Crain Communications Inc. All rights reserved.
Contingent Workforce Programme Maturity Model
21-22 APRIL 2015 Hotel Okura, Amsterdam
Buyers are changing….hopefully
© 2015 Crain Communications Inc. All rights reserved.
21-22 APRIL 2015 Hotel Okura, Amsterdam© 2015 Crain Communications Inc. All rights reserved.
21-22 APRIL 2015 Hotel Okura, Amsterdam
To be Strategic and get a seat at the table… Develop Acute organisational IQ
Drive Transformational organisational Change
Deliver Organisational Value Beyond Price Reductions and Process Efficiency
Become THE Recognized Source for Market Information
Develop an Eye for Identifying Risk in Advance
Design and Organize for High Performance
- Surround yourself with “A” players
Engage Stakeholders Where They Live
- Seek “Discretionary Effort” don’t be happy with “Malicious Compliance”
Develop Strategy at the Enterprise Level and Execute
- Ideate, Identify, Communicate, Execute, Maintain
Be Relevant and Visible Outside Your Four Walls
Pursue Innovation and Demand Same
- “Best Practices” are for the other guys
Adoption, Adoption, Adoption
© 2015 Crain Communications Inc. All rights reserved.
21-22 APRIL 2015 Hotel Okura, Amsterdam© 2015 Crain Communications Inc. All rights reserved.
21-22 APRIL 2015 Hotel Okura, Amsterdam
Questions
© 2015 Crain Communications Inc. All rights reserved.
21-22 APRIL 2015 Hotel Okura, Amsterdam
Thank you!
Bryan Peña, CCWPVice President, Contingent Workforce Strategies and ResearchPhone: +1.650.390.6188
Email: bpena@staffingindustry.com
© 2015 Crain Communications Inc. All rights reserved.
Recommended