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© PeopleFluent 2014
Presented by John Moore, [email protected]
PeopleFluent
Moving Your Contingent Workforce Program from Tactical to Strategic
© 2014 PeopleFluent
• Leader Human Capital Management• In over 5,200 organizations• 214 countries and territories• 80% of the Fortune 100• 170 VMS customers• $7B managed spend
About PeopleFluent
© 2014 PeopleFluent
• CW program maturity• Diagnosing where you are• Strategies to address issues• Building a program roadmap• Identifying cost savings
Agenda
© 2014 PeopleFluent
CW Program Maturity
Ad hocManualNo processNo SLAsToo many suppliersNot enough suppliersNot repeatable
TacticalAutomatedTransactionalProcess Focus on efficiencySupplier rationalizationFocus on costFocus on hourly workers
Managed
IntegratedHigh use of metricsFocus on complianceFocus on qualitySuppliers are rotatedProgram SLAsServices Procurement*
Strategic
EmbeddedBusiness FocusEnterprise SLAsAnalyticsTotal VisibilityTotal Workforce
QUALITY – COST SAVINGS – EFFICIENCY – COMPLIANCE
© 2014 PeopleFluent
CW Program Maturity Paths
Ad hoc
Tactical
Managed
Strategic
VMS IMPLEMENTATION
SOW
EXPANSION
INTEGRATION
WORKFORCE MANAGEMENT
TIME
© 2014 PeopleFluent
• Skillset• Technology• Process• Finance• Staffing industry• Market prices• Procurement• Contracts• Excellent people skills
CW Program Management
© 2014 PeopleFluent
• Identify the issues• You might already know some of them• Survey• Executives• Hiring managers• Suppliers• Functional areas
Diagnosing Your Program
QUALITY – COST SAVINGS – EFFICIENCY – COMPLIANCE
© 2014 PeopleFluent
• First, look outside of the technology• Organizational structure• Lack of support• Executives• Business managers• Hiring managers• Functional areas
• Entrenched suppliers
Diagnosing Your Program
QUALITY – COST SAVINGS – EFFICIENCY – COMPLIANCE
© 2014 PeopleFluent
Diagnosing Your Program
Issue Cause Possible Solutions
Candidate Quality Suppliers ScorecardsRationalization
Candidate Quality Non-specific requisitions Detailed templates
Hiring mangers don’t use the VMS
Too difficult Training
Hiring mangers don’t use the VMS
Takes too long Workflow
Hiring mangers don’t use the VMS
No internal policy Executive, management support
Create an Issue Log
© 2014 PeopleFluent
Requisition Management• Templates• Workflow• Approval
Offboard & Evaluate• Facilities & Logistics• Notifications• Worker Evaluation
Source• Vendor Distribution• Rate card
Billing and Invoice• Consolidated invoice• Adjustments• Financial Integrations
Payment Management• Time, Expense• Approvals/ notifications Compliance/Onboarding
• Facilities & Logistics• Compliance Items• Electronic Notifications
Engage• Cost Allocations• Tenure Control• Budget Management
Select• Qualification• Candidate Ranking• Interview Scheduling• DNR / Duplicate
Screening
Analytics
Program Workflow
© 2014 PeopleFluent
Diagnosing Issues
Quality of Candidates
SupplierTraining
Scorecards / SLAs
Rationalization
RequisitionTraining the HMs
Build templates
Screening Who’s responsible?Adjust the process
© 2014 PeopleFluent
Diagnosing Issues
Efficiency
SystemIntegrations
Workflow
Notifications
ProcessExceptions
End-to-end
Common
Training Hiring managersSuppliers
A
B
© 2014 PeopleFluent
Diagnosing Issues
Compliance
SystemNotifications
Reporting
Workflow stops?
ProcessPolicies
Who’s responsible?
Auditing
Training Functional areasSuppliers
© 2014 PeopleFluent
Diagnosing Issues
Cost Savings
SystemRate card
Markups
Market rates
SupplierScorecards
Contracts
Comparison rate data
ProcessNegotiationExceptionsPre-identified
© 2014 PeopleFluent
Cost Savings AreasCategory Detail
Benchmark rate cost savings
Compares a defined benchmark rate / mark-up vs. the actual engaged rate / mark-up over a defined period of time to show the reduction
Negotiated Savings • Requisition-by-requisition negotiated rate savings • Conversion savings / discounts (i.e., right hire savings)• Volume discounts based on ascending spend thresholds• Prompt pay / early pay discounts• Tenure discounts• Payrolling savings• Renegotiations • Rebates to client• Reduced OT rates• Decreased per diems
© 2014 PeopleFluent
Cost Savings AreasCategory Detail
Hard Cost Savings • Tangible bottom line reductions • Saved money from budgets • Target reduced supplier count per category and region• Capture rogue spend due to lack of global visibility• Automate financial approvals / provide governance• Rationalize job descriptions to establish rate cards
• Total cost management• Pay rate band usage• Combination mark-up and bill rates• True market comparison
• Normalize rates based on third party benchmarking• Introduce competition though supplier neutrality / manage
bid processMetrics • Track cost savings (clearly defined and standardized)
• Improve processes (measurable cost reductions)
© 2014 PeopleFluent
Cost Savings AreasCategory Detail
Reduced SG&A expenses
• Operational efficiencies improved (decreased costs to manage contingent labor)
Decreased cost of ownership
• Shared Managed Services / VMS allow managers to focus on your business• Consolidated invoice
© 2014 PeopleFluent
Soft Cost Savings AreasCategory Detail
Mitigate Risk • Mitigate risk through co-employment management • Reduce financial exposure due to worker misclassification;
manage on a per country basis• Track licensing and certifications for expirations• Establish tenure rules across various worker types and in
accordance with local regulations• Reduce invoicing / payment errors• Periodic audits to identify risks and opportunities for
corrective action Administrative Cost Savings
• Invoice processing• PO processing• Payment processing• Time savings (e.g., invoice processing time) • AP invoice audit savings based on the avoidance or credits
on overpayments to supplier
© 2014 PeopleFluent
Soft Cost Savings AreasCategory Detail
Process Improvements
• Cycle time improvements• Candidate quality improvements• Reduced reporting administration• Consolidated invoice and payment process• Elimination of invoice errors
Soft Cost Avoidance Savings
• Reduce cycle time to fill• Outsource process (invoice / payment, contracts admin,
onboarding) to free procurement, AP resources• MSP or SMS governance programs reduce HR, legal and
procurement resources• Comprehensive reporting to drive continuous program
improvement
© 2014 PeopleFluent
Diagnosing Issues
Other Areas
Program Adoption
© 2014 PeopleFluent
• A roadmap is a process to aid in integrating business and technology
• A dynamic plan• It describes where you want to be and how
you are going to get there
The Strategic Roadmap
© 2014 PeopleFluent
• Characteristics• Goals• Timelines• Actionable steps• Interdependencies• Alternate routes
Creating Your Roadmap
© 2014 PeopleFluent
• Goals need to be• Specific• Measurable• Realistic• Time-bound
• “Expand VMS to capture 90 percent of Admin category within corporate by end of year.”
Creating Your Roadmap
© 2014 PeopleFluent
• How to Begin• High-level sponsor with a vision• Leadership support• Identification of stakeholders• Analyze gaps• Set goals• Build a plan
Creating Your Roadmap
© 2014 PeopleFluent
• Identify who you need• IT• Procurement• Human Resources• Legal• Business managers• Functional managers• Executives• VMS/MSP/SMS
(optional)
Creating Your Roadmap
© 2014 PeopleFluent
Discovery
Business Objectives
Functional Needs
Business Processes
Improvements
Drivers
Governance
Recommendations
Targets
Guidelines
Initiatives
Organizational
Functional
Communication
Process
Technology
Execution
Prioritize
Set Timelines
Create Projects
Creating Your Roadmap
© 2014 PeopleFluent
Creating Your Roadmap
© 2014 PeopleFluent
• Put the issues, solutions and roadmap into a business case
• Present to the stakeholder committee• Work the roadmap• Rebrand and relaunch• Start the road show
Begin Your Journey