Whose Job is it Anyway?

Contingent Workforce

Management:

DCR Workforce

David PuttEVP

Duff HallFormer Contingent Labor Category Manager at Microsoft

sig.org/eval

Contingent Workforce Management: Whose Job is it Anyway?

SIG Summit | April 20, 2016

DCR Workforce at a Glance

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• Headquartered in Boca Raton, founded in 1995, providing VMS service since 2000• Global operations across North America, South America, Europe & Asia Pac

• Minority and Woman Owned (privately owned by co-founders)• 2014 revenues of $1B+

• Smart Track – Award winning global VMS/ Services Procurement technology• 2014 Forrester Wave report highest rated for customer satisfaction

• 300+ active suppliers• True vendor neutral. DCR is not affiliated in any way with a staffing company.

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Growing and Critical Component of Workforce

• Complex Category – Indirect Services

• Temporary Labor – Staffing companies

• ICs/Freelancers

• Consulting Firms

• Outsourced Services

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Evolution of the Non-Employee Workforce

Yesterday

Staffing-based

Low-to-mid-level talent

Light (7% in 2006, 17% in 2009) penetration within total workforce

Contingent workforce management is a low priority for most businesses

Programs founded on procurement principles

Today

On-demand talent

All levels of talent (emphasis on top-tier skillsets)

Moderate penetration (35%)

Contingent workforce management is a strategic imperative

“Blended” programs

Tomorrow

Automated, real-timed “matching” of talent to projects

All roles and talent levels

High penetration (75%)

CWM is one of few vital programs

Total talent management as the ideal foundational program

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Vendor Management System (VMS). SaaS cloud based or internally hosted applications that is the engine for managing and procuring indirect procurement services.

Basic Program Constructs

Managed Service Provider (MSP). A company that takes on primary responsibility for managing an organization’s indirect procurement services (Contingent Workers, SOW, Services, Freelancers). The service can be delivered at multiple levels from administrative to more strategic.

Program Management Office (PMO). Traditionally a group or department within an organization that manages corporate initiatives and standardizes policies/practices. For CW, the PMO will typically incorporate the activities of a MSP solution and the performance management of the entire CW Program.

Evolving to Meet Expanding Demands

• Integrates with ERP or HRIS

• Addresses complex on/off-boarding and security concerns

• Configures to various forms

• Accommodates multiple labor types

• Streamlines processes

• Takes advantage of technology advances

• Ports seamlessly across borders and oceans

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Why Should Procurement Care about Non-Employees?

• It’s a business relationship

• Integral to supply chain (supply base management / optimization)

• Frequently a “global buy”

• Effective at broad based rollout

• Legal and financial risk management

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Why Should HR Care about Non-Employees?

• Total workforce strategy and planning

• Invisible headcount

• Source for traditional FTE

• Facilities and systems access

• Focused on talent quality

• Happy talent doesn’t file claims or lawsuits

• Talent is Talent and Talent is HR’s #1 Concern

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VMS Integration

External

• Suppliers: Staffing Firms, Project Providers, Outsources, Freelancers (IC)

• Ancillary Companies: ICES, Payrollers, Background checking, Timekeeping systems

• The Talent: Contractors, Consultants, Freelancers, Ex-Employees

Internal

• Security: Systems / Facilities access, IP• ERP: Asset management, Scheduling,

Project planning• HRIS: Rate compliance, On/off-

boarding, Future hiring• Finance: Billing/Payment, Re-billing,

Budget and PO

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Best Practices in a Collaborative Organization

• Close partnership between Procurement and HR

• Engage other stakeholders (e.g. Legal, Finance)

• Common mission to CW users

Procurement

Manages MSP/VMS relationships

Overall program governance

Negotiates terms and contract lifecycle

Manages costs and liabilities

Manages staffing and project supplier relationships

Drives overall program optimization and operational efficiencies

Human Resources

Establishes policies

Ensures overall quality of talent

Provides guidance to managers

Identifies resources for future hiring

Provides regulatory oversight

Acts as brand ambassador

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Governance Team

• Led by Procurement

• Partnership with HR (Talent Acquisition)

• Additional key stakeholders include Finance, Legal, Security, IT and Business leaders

• Mission:- Drive KPIs and business intelligence

to business- Source new providers- Ensure adoption- Manage risk trade offs- Ensure appropriate models are

used- Cost management

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Microsoft Case Study

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Microsoft: Overview

Procurement led effort• Strategic sourcing of MSP/VMS Vendors• Supply base management

- RFP entire contingent labor supplybase

- Ongoing supply base management and optimization

• Contract management and governance- QBR’s and annual strategic reviews

Why managed program?• Visibility to changing talent market dynamics • Cost savings – 10% ($40M) in first year of

program• Manage Compliance

- Joint/Co-employment- IP - Systems / site access

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Microsoft: Program Gains

• Turned data into business intelligence - Developed close partnership with MSP- Jointly developed operations dashboard with

SLA’s and KPI’s- Created dashboards for each business unit

• Optimized Supply Base- Quarterly business review with EACH

supplier- Suppliers added/removed based on

performance and volume- MSP managed with Microsoft final approval

• Created competitive environment- Completely level playing field ensured all

suppliers had fair shot at business- All suppliers had equal access to hiring

managers

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Microsoft: Unique Features

• Used “Influence” model, not mandate- Ensured more grass roots / organic buy-

in- Required heavier marketing effort- Leveraged individual “super users” as

advocates- Downside – Enabled users to go around

program

• Statement of Work - Deferred initially- Perceive value for future inclusion- VMS functionality critical- Incorporating SOW volume

visibility to all non-employee workers

Addresses classification / tenure issues

- Improved treasury processes- Control on / off boarding

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Next Generation CW Program

Complete Global Reach

Automated Candidate Selection

Platform Indepen-

dence

Intuitive User

Interface

Socially

Connected

Gamification

100% Services Spend

Artificial Intelligence

Big Data

Configure vs.

Customize

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Contingent Workforce Management:

Whose Job is it Anyway?

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David Putt

EVP

DCR Workforce

703-981-1360

dave.putt@dcrworkforce.com