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October 8‐9, 2014 | The Mirage Hotel & Casino | Las Vegas
Concurrent Session – StrategyDesign it Right: Popular Contingent Workforce Program Models, their Pros, Cons
Moderator: Subadhra Sriram, Editor & Publisher, Media Products,Staffing Industry Analysts
Panelists: Peggy O’Neill, Director, Staffing ‐ Contingent Workforce, Disney Matthew Rodger, Managing Director, Contingent Workforce Solutions, Alexander Mann Solutions Carolyn Volovsek, Manager, HR Programs Corporate Human Resources, Fiserv
WED, OCT 8 4:30 PM MIRAGE EVENTS CENTER C1
Sponsored by:
October 8‐9, 2014 | The Mirage Hotel & Casino | Las Vegas
DIGITAL SURVEYS
Don’t forget to rate thissession as you exit.
Design it Right: Popular Contingent Workforce Program Models, their Pros, Cons
October 8‐9, 2014 | The Mirage Hotel & Casino | Las Vegas
Designing A Program
Caveat: One Size DoesNot Fit All
October 8‐9, 2014 | The Mirage Hotel & Casino | Las Vegas
Master SupplierHybrid Vendor Neutral
Most‐Used Terms When It Comes to CW Program Models
October 8‐9, 2014 | The Mirage Hotel & Casino | Las Vegas
Managed Service Program
A Managed Service Program is the coordinated management of a company’s contingent workforce and associated suppliers for the betterment of the company’s operations across four key dimensions: quality, efficiency, cost and risk.
October 8‐9, 2014 | The Mirage Hotel & Casino | Las Vegas
A Managed Service Program can be administered by either a client’s employees or outsourced to a third‐party provider (or both). When outsourced to a third party, the company is often referred to as a Managed Service Provider.
Managed Service Provider
October 8‐9, 2014 | The Mirage Hotel & Casino | Las Vegas
Master supplier – focus is recruiting services Vendor‐neutral, competitive bidding MSP – focus is supply‐chain management services Hybrid programs – focus is recruiting services and supply chain management services
Common Managed Service Program Models
October 8‐9, 2014 | The Mirage Hotel & Casino | Las Vegas
A master supplier assumes overall responsibility for providing a client with temporary workers. All requisitions/orders usually go first to the master supplier either to be filled or distributed to sub‐contract suppliers. Scope of service typically includes program office, on‐site/ “vendor on premise,” rate intelligence, invoicing and accounting, electronic requisitioning and time keeping, back‐office support, on/offboarding, headcount and accrual reporting, sub‐tier/associate vendor management, and recruitment services.
Master Supplier
October 8‐9, 2014 | The Mirage Hotel & Casino | Las Vegas
Vendor‐Neutral, Competitive Bidding Managed Service Program All staffing suppliers are given an equal opportunity to fill each order without the MSP giving preference to a specific supplier. Suppliers are selected for each order based on the same criteria as defined by client policy. If the managed service program is administered by a third‐party provider, that provider often is restricted from filling its own orders or deciding which orders are routed to any supplier
October 8‐9, 2014 | The Mirage Hotel & Casino | Las Vegas
The Vendor‐Neutral MSP
October 8‐9, 2014 | The Mirage Hotel & Casino | Las Vegas
Hybrid Program
A hybrid MSP is the blending of different sourcing model attributes to manage a contingent workforce program. This model may differ by skill or geography. For example, one provider may act as the master supplier for light industrial positions while suppliers may compete for IT positions using a vendor‐neutral model across a number of different vendors. (Given that a vendor‐neutral solution has the ability to cast a wide net for critical skills, we see a higher prevalence of vendor‐neutral in IT.)
October 8‐9, 2014 | The Mirage Hotel & Casino | Las Vegas
Sourcing Model Traits to Consider When Designing a Managed Service Program Rate elasticity ‐ how rates vary per requisition/order Competitiveness ‐ number of suppliers and the distribution of requisitions/orders Vendor integration ‐ degree to which external resources are used to administer the program
October 8‐9, 2014 | The Mirage Hotel & Casino | Las Vegas
Different sourcing models for different skills (e.g. master supplier for clerical) Different sourcing models for different locations (e.g. master supplier in U.K.) Situational flexibility (e.g. urgent bulk staffing) Hybrid teams (e.g. third‐party managed service provider and internal client recruiters)
Sourcing Model Decisions Should Be Evaluated Per Skill and Location
October 8‐9, 2014 | The Mirage Hotel & Casino | Las Vegas
OverviewContingent Workforce Management (CWM)
Center of Expertise (COE)
14
15
Total Workforce Accounted For
Total Workforce
Management
Total Workforce
Management
EmployeesStaffing
EmployeesStaffing
ContingentWorkforce*CWM / S&P
ContingentWorkforce*CWM / S&P
*Agency Temps, IC’s,SOW/Professional Services& Outsourced Vendors
Issues regarding process, standards and support
16
Independent Contractors
(ICs)
Independent Contractors
(ICs)
SOW / Professional
Services
SOW / Professional
Services
Outsourced Vendors
Outsourced Vendors
Staff Augmentation/Agency Temps
Staff Augmentation/Agency Temps
Streamlined process eliminates confusion
17
Independent Contractors
(ICs)
Independent Contractors
(ICs)
Professional Services
Professional Services
Outsourced Vendors
Outsourced Vendors
Staff Augmentaiton/Agency Temps
Staff Augmentaiton/Agency Temps
HR-CWM COE
S&P COE
Legal
Internal CWM: Pros & Cons
Pros Cons•Expertise on Contingent Workforce Program
•Integrated Talent Acquisition/Staffing Strategy (FTE & CW)
•Maintain Corporate Knowledge of Contingent Talent Pool
• Cost Savings
• Responsibility of developing function requires management, time and effort
• For Meeting Program Objectives• For day-to-day Administration • For Issues Management
18
Outsource (MSP): Pros & Cons
Pros Cons
•Expertise on Contingent Workforce Program Management
• Work under a Service Level Agreement
• Loss of control of CW Resource Pool
•Added Cost (additional middle man)
19
Hybrid Model
Internal MSPStaff Augmentation/Agency Temps and IC’s
External MSPStaff Augmentation/Agency Temps
Most of Enterprise is managed by internal CWM team• Maintain corporate
knowledge of contingent worker pool
• Integrated Talent Acquisition strategy between CWM and Staffing team
• Integration between CWM and Sourcing & Procurement
• Understand the ebbs and flows of departments
• Have better internal intelligence
We utilize the external MSP for the following reasons: • Timeliness• Expertise on Contingent
Workforce Management Program
20
HR – CWMHR – CWM
Enterprise Single Point of Entry System
Single Point of
EntryVMS
21
Sourcing & Procurement Sourcing &
Procurement
Independent Contractors
(ICs)
Independent Contractors
(ICs)Professional
ServicesProfessional
Services
Outsourced Vendors
Outsourced Vendors
Staff Augmentation/Agency Temps
Staff Augmentation/Agency Temps
…results in clarity of process, improved efficiency and increased accountability
Contingent Staffing at Fiserv
Carolyn VolovsekManager, HR Programs
2014 Staffing Industry Analysts CWS Summit
© 2013 Fiserv, Inc. or its affiliates.
About Fiserv
• Leading provider of financial services technology solutions to financial institutions
and businesses worldwide
• Best-in-class solutions in five strategic competencies
• Trusted by 14,500 clients
• Named to FORTUNE® magazine's World's Most Admired Companies list in the
financial data services category
© 2013 Fiserv, Inc. or its affiliates.
Fiserv’s Contingent Workforce Program Model
• Fully outsourced MSP and VMS Model• Internally managed within HR Operations with support and
partnership with Enterprise Strategic Sourcing• Prior to 2012, program was a Master Vendor Model• In 2012, renewed contract with MSP and refreshed program model
and transitioned to Hybrid Program• Master Vendor for Light Industrial locations (may differ by location)
• Built in secondary and tertiary support when needed• Vendor Neutral model for Clerical, IT/Technical, and Professional
categories• Business Group Specific Tiered Vendor lists
© 2013 Fiserv, Inc. or its affiliates.
Fully Outsourced Model Serves Fiserv Well
• Fully outsourced MSP and VMS Model
• Internally managed within HR Operations with support and
partnership with Enterprise Strategic Sourcing
• Prior to 2012, program was a Master Vendor Model
• In 2012, renewed contract with MSP and refreshed program model
and transitioned to Hybrid Program
© 2013 Fiserv, Inc. or its affiliates.
Why a Hybrid Model?
• Feedback from program stakeholders• Not a one size fits all Company• Needed to drive program compliance
© 2013 Fiserv, Inc. or its affiliates.
Benefits of a Hybrid Model
• Increased end user satisfaction• Light Industrial businesses get the support they need from a local
supplier• Businesses with IT/Technical and Professional needs get benefit of
varied supplier base • Businesses with Group Specific or Tiered vendor structures have
ability to work with specialized suppliers
© 2013 Fiserv, Inc. or its affiliates.
Challenges of a Hybrid Model
• For Master Vendor businesses
• Ensuring local contact within staffing agency is the right fit
• Putting in place secondary and tertiary support when needed
• Managing performance of primary supplier
• For Vendor Neutral businesses
• Supplier management-do we have the right mix in place?
• Quarterly supplier scorecards and rationalization
• Supplier participation
© 2013 Fiserv, Inc. or its affiliates.
Key Takeaways and Lessons Learned
• Involve your key stakeholders early
• Touch base with your key users often• Be flexible
October 8‐9, 2014 | The Mirage Hotel & Casino | Las Vegas
DIGITAL SURVEYS
Don’t forget to rate thissession as you exit.
Design it Right: Popular Contingent Workforce Program Models, their Pros, Cons