Integrating Contingent Labour into Strategic Workforce ......Changes in markets, products, services, technology, ... UNC Health Systems ... Certificate SWP Academy certificate from

© 2012 Crain Communications Inc

Integrating Contingent Labour into Strategic Workforce PlanningModerator: Barry Asin, President, Staffing Industry Analysts

Panellists:

• Mary B Young, DBA, Principal Researcher, Human Capital,The Conference Board

•Roger Clements, Commercial Director, Advantage xPO

Wednesday, 16 May | 09:45 | Nine Kings D

Concurrent Session: Advanced Practitioner Track


Workforce Planning Seldom Incorporates Contingent Labour





www.conferenceboard.org© 2011 The Conference Board, Inc. |5

Strategic Workforce Planning:Highlights from Conference Board Research

Dr. Mary Young

Principal Researcher

The Conference Board


Overview

Strategic Workforce Planning (SWP) in Action The Intersection of SWP and Contingent

Staffing Company examples Where Are Companies Today?


Strategic Workforce Planning connects HR strategy and practices to business strategy to ensure the company has the right people in the right place at the right time and at the right cost.


Business Strategy

HR Practices

SWPHR

Strategy

SWP Provides a Formal, Systematic Process for Connecting Business Strategy with HR Strategy and HR Practices


Operational Workforce Planning

Projected Demand

- Projected SupplyGap Plan

Projected Demand

- Projected Supply--------------------------

Gap Plan


Enhancements to Workforce Planning: Analytics

Projected Demand


Gap Plan

FinanceEngineeringOperations Research

Workforce Analytics


Age Profile of Workforce: Company vs. RegionCompany’s Average Retirement Age = 60.4

Key: Diamond markers indicate the average age of 3M employees by specific area.


Enhancements to Workforce Planning: Scenarios

Projected Demand


Gap Plan

Strategic Planning, Budgeting

Modeling Alternatives, Forecasting


Scenario Planning at UBS (China)

Scenario A: Based on our current business plan, here’s the workforce plan that ensures we will have the talent needed to execute that plan.

Scenario B: In a bull market, how will business plan change? How would workforce plans need to change? What is the financial benchmark indicating we’ve moved from A to B?

Scenario C: In a bear market, how will our workforce plans need to change? What is the financial benchmark indicating we’ve moved from A to C?

Source: Mary Young, Strategic Workforce Planning in Global Organizations, The Conference Board, 2010


Enhancements to Workforce Planning: Segmentation

Projected Demand


Gap Plan

Marketing

Workforce or Role Segmentation


Enhancements to Workforce Planning: Segmentation

Projected Demand


Gap Plan

Marketing

Workforce or Role Segmentation


Workforce Segmentation: Corning

TALENT SEGMENT AND VALUE

StrategicCritical to driving long-term competitive

advantage, with specialized skills or knowledge

CoreThe “Engine of the Enterprise”, unique to the company

and core to delivering on its products and/or services

RequisiteCannot do without, but whose value could be delivered

through alternative staffing strategies(other than full-time headcount)

Non-Core Talent whose skill sets no longer align with

the company’s strategic direction

Build

Protect

Streamline/ Outsource

Redirect

Rol

es th

at im

pact

th

e st

rate

gyR

oles

impa

cted

by

the

stra

tegy


Operational vs. Strategic Workforce Planning

Operational Purpose: Forecast short-term

headcount

Focus on detail & precision

Output: headcount & staffing plans

Planning period: 6 mos. – 2 yrs.

Built on one set of assumptions (single scenario)

Strategic

Purpose: Produce information & insights to support strategic business decisions

Focus: Dialogue w/ senior execs re− Business strategy − Workforce implications− ID critical roles, skills

Integrated with business and budget planning

Output: “directional” numbers

Longer planning period: 2-5 yrs.

Multiple scenarios considered


Why Operational Workforce Planning Isn’t Enough

Uncertainty about the future 3-5 years from now Talent scarcity necessitates longer term strategy Changes in markets, products, services, technology, etc.

create different talent demand (skills, knowledge, locations, jobs, numbers, etc.)

Organizations that can respond rapidly and effectively to change have a competitive advantage over others. Assess risks, opportunities, costs

Optimize their use of talent


Business Strategy

HR Practices

SWP

HR Strategy

As SWP gains credibility and matures, it can become an input to Business Strategy, as well as an integrating process that drives HR Strategy and HR Practices

SWP


The Pay-Off from SWP? Company Can…

Evaluate business scenarios based on more robust models Manage human capital risk Drive business results Prioritize human capital investments Leverage talent across lines of business and geographies Make smarter decisions to buy, build, borrow, or redeploy talent


The Intersection of SWP and Contingent Labor Strategies


By Linking SWP and Contingent Staffing Strategies, Companies Can…

Weigh the trade-off between short-term cost and longer-term capability requirements

Capture total labor costs Manage contingent workforce as a visible component of their

workforce strategy, talent scenarios, etc. Develop a governance process and decision tools to help leaders

make optimal labor choices in the face of uncertainties


Company Examples


Staffing Industry Analysts Contingent Workforce Action Matrix

Source: Staffing Industry Analysts, www.staffingindustry.com


Global Company’s Decision Tool: To Own or Rent Talent?

What is the duration of the work?

• Needed on an ongoing basis• Needed for a defined duration

What is the type of work? • Drives a strategic competitive advantage• Unique to the company, requires special

or hard-to-find skills or knowledge • Essential but could be delivered through

alternative resource types

Is the knowledge/experience gained from the work

• Critical to retain• Unique and/or critical to retain

Are the transition costs(turnover, training, etc.) acceptable to the business?

• Significant and not acceptable to the business

• Minimal and acceptable to the business


Rio Tinto’s Contingent Workforce Risk• Safety of record of contractors versus regular employees• Contractor spend fragmentation (rate variation)

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

12

Mo

nth

ly R

olli

ng

AIF

R p

er

20

0,0

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Ho

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Wo

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Rio Tinto Managed Operations 12 Month Rolling All Injury Frequency Rate for Employees and Contractors from Jan 02 to Jun 09

Total Rolling AIFR Contractor Rolling AIFR Employee Rolling AIFR

% of Spend % of Vendors # of Vendors

100% 100% 7500 +

95% 22% 1800 +

90% 13% 1100 +

85% 9% 750 +

80% 7% 550 +

Spend Fragmentation

• Fragmentation of US services spend with 7500 + active vendors in the last 12 months across Rio Tinto


Where Are Companies Today?


The Conference Board’s SWP Maturity Model

Dimension Early Middle Mature

Reach Pilot project(s) Enterprise wide Key supply chain partners

Planning Period 12-18 mos. 2-3 years 3-5 years+

Who Drives? HR BUs w/ HR support Senior execs

Scope All or critical jobs Selective focus on critical jobs/skills

Internal talent plus some external (contingent workers)

Prerequisites Critical businessissue that SWP can address

Integration w/ business planning, strategyCommon taxonomy of jobs/skills

Data and metrics re suppliers

Inputs Workforce data Business strategyPerformance dataExternal data

Data re external stakeholders (suppliers, contractors, JVs ,etc.)

Outputs & Outcomes

Workforce analytics, forecasts, action plans

Alternative scenarios Mid-cycle report of plan vs. actuals

Input to business strategy & planning

Communication Push: HR/SWP deliverreports to business

Pull: BUs can generate own reports, models, scenarios

Employee access to selected areas?

Source: Implementing Strategic Workforce Planning (2009), 19-25


SWP Resources from The Conference Board

Publications Strategic Workforce Planning across National Borders (June 2012) Where Do SWP Leaders Come From? (2012) Strategic Workforce Planning from Micro to Macro (2011) Broadening the Base for SWP: The Value of Cross-Functional Partnerships (2011) Engaging Business Leaders in SWP: A Guide to Effective Conversations (2011) Strategic Workforce Planning Leaders’ Bookshelf (2011) Human Capital in Review: Focus on SWO (2011+) Strategic Workforce Planning Quarterly (2009 – 2011) Managing Human Capital Risk (2011) Strategic Workforce Planning in Global Organizations (2009) Implementing Strategic Workforce Planning (2009) Gray Skies, Silver Linings: How Companies Are Forecasting, Managing and Recruiting the

Mature Workforce (2007) Strategic Workforce Planning: Forecasting Human Capital Needs to Execute Business

Strategy (2006)

Councils European Council on Strategic Workforce Planning US Council on Strategic Workforce Planning

http://www.conference-board.org/topics/subtopics.cfm?topicid=40&subtopicid=150


Strategic Workforce Planning AcademyThe Conference Board Strategic Workforce Planning Academy helps participants develop practitioner-identified competencies and refine their SWP efforts, aided by peers and seasoned strategic workforce planning leaders.

Size Up to 18 participants

Meetings 2 in-person meetings in Brussels: June 28-29; Sept. 13-14 3 interactive webcasts on member-selected topics

Expert Resources From The Conference Board:• Stacy Chapman, Program Director and Senior Fellow• Dr. Mary Young, Principal Researcher, Human Capital

Leading SWP Practitioners:• James Gallman, GE• Angela Sheffield, Applied Materials• Thorsten Dietz, Allianz• Dave Sutherland, CH2M HILL• Theresa Brett, UNC Health Systems

Peer Learning Collaborative knowledge-sharing among participating companies

Learning Coaches SWP experts serve as one-on-one coaches and mentors to participants

Certificate SWP Academy certificate from The Conference Board

For information: http://www.conference-board.org/subsites/index.cfm?id=10185

A division of Advantage Resourcing | www.advantagexpo.comConfidential & Proprietary. Not for distribution.

Advantage xPOSTRATEGIC WORKFORCE PLANNINGA Service Providers Perspective


Advantage xPO: Perspective ContextAdvantage xPO: Perspective Context

The Role of the Service Provider in Strategic Workforce PlanningThe Role of the Service Provider in Strategic Workforce Planning

Successful Application of Effective Workforce PlanningSuccessful Application of Effective Workforce Planning

OVERVIEW


ADVANTAGE xPO

Recruitment Process

OutsourcingFull cycle RPO

Partial cycle RPOProject Based or

Volume Hires

Contingent Workforce ManagementSupplier ManagementContractor ComplianceManaged Service Programme

Strategic Workforce

Management

Talent Acquisition & Management Solutions

Staffing Industry Leader• $7 billion+ Revenue • > 40 Years of Experience• 3,000+ Clients

Part of Recruit Co. The 4th largest Staffing, Recruitment Process

Outsourcing and Managed Service Company in the World

Global Footprint• 200+ US Offices• 20+ Offices in EMEA• 100+ Offices in APAC

Advantage xPO is a recognised ‘global’ market leader in the design, implementation and operational delivery of strategicstaffing solutions and workforce management programmes. Through our work we pioneer leading edge approaches tocontingent workforce management via managed service programmes (MSP) and deliver measurable process and outputimprovements in the delivery of recruitment process outsourcing (RPO).


DEVELOPING THE HUMAN CAPITAL PLAN

Organisational Profile

Workforce Scenarios

Current Workforce DNA

GAP AnalysisKey Issues

Internal ExternalHuman Capital

Action Plan

Sector Developments / Labour Market Developments / Competitor Activity

STRATEG

IC B

USIN

ESS AG

END

A

Organisations taking a strategic approach to workforce planning tend to follow a structured processrequiring an appreciation and input from both internal and external factors.

ORGANISATIONAL CHALLENGE

Working in partnership with HR and Commercial functions to provide planning and execution supportand to implement and manage target levels of ‘workforce balance’.Key question: ”where in this cycle can service providers provide benefit”?

THE ROLE OF THE SERVICE PROVIDER


DEVELOPING THE PLAN: PARTNERSHIP WORKING


Workforce Scenarios




Action Plan


STRATEG

IC B

USIN

ESS AG

END

A

- Market Intelligence- Employer Brand Proposition Feedback

- Benchmarking- Projected Resource Availability

SERVICE PROVIDER




Workforce Scenarios




Action Plan


STRATEG

IC B

USIN

ESS AG

END

A

SERVICE PROVIDER- Scenario Modelling- Contingency Planning




Workforce Scenarios




Action Plan


STRATEG

IC B

USIN

ESS AG

END

A

SERVICE PROVIDER- External Resource Planning-Skills Transfer Mechanisms- Business Unit /Dep’t Skills Analysis- Capability Benchmarking




Workforce Scenarios




Action Plan


STRATEG

IC B

USIN

ESS AG

END

A

SERVICE PROVIDER- Resource Availability- Compensation Policies- Employer Brand Challenges- Geographic / Regional Issues




Workforce Scenarios




Action Plan


STRATEG

IC B

USIN

ESS AG

END

A

SERVICE PROVIDER- Strategic approach to workforce planning- Setting & management of optimum workforce balance- External Talent Attraction Campaigns- Development of talent pools / communities


ORGANISATION EXAMPLESLeading UK Retail Financial Services Provider

Operate as a partner for planning near term and longterm contingent resource. Focus on achieving flexibilityand dynamic workforce.Regular Seasonal Peaks of resource planned to meetbusiness cycle

Leading UK Retail Financial Services Provider

Managed Service partner delivering solution forcontingent workforce across EMEA and Asia Pacificregion.Project driven operating environment requiring strategicand tactical resource planning

Leading UK Retail Financial Services Provider

Managed Service partner delivering solution forcontingent workforce across EMEA region.

Project driven operating environment requiring strategicand tactical resource planning


Integrating Contingent Labour into Strategic Workforce Planning

Moderator: Barry Asin, President, Staffing Industry Analysts

Panellists:

• Mary B Young, DBA, Principal Researcher, Human Capital,The Conference Board

•Roger Clements, Commercial Director, Advantage xPO

Wednesday, 16 May | 09:45 | Nine Kings D

Concurrent Session: Advanced Practitioner Track

Documents

Integrating Contingent Labour into Strategic Workforce ......Changes in markets, products, services, technology, ... UNC Health Systems ... Certificate SWP Academy certificate from