The Future of Workforce Management and Buyer Perspectives · The Future of Workforce Management and Buyer Perspectives. ... •Bill rate savings ... Staffing Industry Analysts –Contingent

Bryan T. Peña, CCWP

Vice President, Contingent Workforce Strategies and [email protected]

The Future of Workforce Management and Buyer

Perspectives

What is the future of work?

©2015 by Crain Communications Inc. All rights reserved.


Fact!

Less of This

MORE of This


© 2015 Crain Communications Inc. All rights reserved.

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?


HR Executive, Microsoft

Who We Are• Staffing Industry Analysts is the global advisor on

contingent work, nearly 1000 client organizations benefit from our international research services

– Over 80% of the worlds largest staffing firms are members

– Over 70 buyers of contingent labor are members of our CWS Council, representing over $100 billion in annual contingent workforce spend

– Customers in more than 80 countries

• Founded in 1989

– Acquired by Crain Communications ($200M media conglomerate) in 2008

– Headquartered in Mountain View, California and London, England


Workforce Solutions Ecosystem

Source: Staffing Industry Analysts





Our Clients Provide us with a Global Perspective

• Staffing Firms

• Solution Providers – MSP, FMS, VMS

• Suppliers to Staffing Firms

• Investment Banks & Consulting Firms

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


Projected Contingent Share of Workforce

Source: Staffing Industry Analysts – Contingent Workforce Managers Survey 2014

US

CA

BR

SA

JP

AU

NL

IN


CHCN

UK

FR

IT

DE

BE

Global Staffing Market Revenue of €304bn in 2013Countries and regions are to scale

IE

Country 2014 2015

Ireland +7% +5%

Germany +6% +7%

France -0.5% +2%

Netherlands +7% +12%

UK +9% +7%

Europe +8% +9%

South Africa +17% +16%

Japan +9% +9%

USA +6% +6%

Australia +2% +2%

Brazil -1% +2%

Canada +4% -2%

Global +6% +7%


Staffing Market Growth Forecasts

Country 2014 2015

Ireland +7% +5%

Germany +6% +7%

France -0.5% +2%

Netherlands +7% +12%

UK +9% +7%

Europe +8% +9%

South Africa +17% +16%

Japan +9% +9%

USA +6% +6%

Australia +2% +2%

Brazil -1% +2%

Canada +4% -2%

Global +6% +7%


Staffing Market Growth Forecasts

Our Clients Provide us with a Global Perspective

• Staffing Firms

• Solution Providers – MSP, FMS, VMS

• Suppliers to Staffing Firms

• Investment Banks & Consulting Firms

• Buyers of Staffing Services


CWS Council Members (partial public list)

http://by.optimost.com/go/243-3498/a00o02g06g24a9h0zp2vl3e42/

http://by.optimost.com/go/243-3498/a00o02g06g24a9h0zp2vl3e42/

http://www.ibm.com/us/en/

http://www.ibm.com/us/en/

http://www.shell.us/

http://www.shell.us/

http://www.corning.com/index.aspx

http://www.corning.com/index.aspx

https://www.pnc.com/webapp/unsec/Gateway.do?siteArea=/PNC/Home/Gateway

https://www.pnc.com/webapp/unsec/Gateway.do?siteArea=/PNC/Home/Gateway

http://www.google.com/imgres?imgurl=http://simplybeingmommy.com/wp-content/uploads/2009/09/mcdonalds-logo.jpg&imgrefurl=http://simplybeingmommy.com/2009/09/17/mcdonalds-you-can-do-better-than-that/&h=693&w=900&sz=66&tbnid=LWEff2642QOEpM:&tbnh=112&tbnw=146&prev=/images?q=mcdonalds+logo&zoom=1&hl=en&usg=__Kdk9y0F_vWwk_DBp0VTt_m0JC6w=&sa=X&ei=FGt9TLbnNISKlwegjrGvCg&ved=0CBgQ9QEwAQ

http://www.google.com/imgres?imgurl=http://simplybeingmommy.com/wp-content/uploads/2009/09/mcdonalds-logo.jpg&imgrefurl=http://simplybeingmommy.com/2009/09/17/mcdonalds-you-can-do-better-than-that/&h=693&w=900&sz=66&tbnid=LWEff2642QOEpM:&tbnh=112&tbnw=146&prev=/images?q=mcdonalds+logo&zoom=1&hl=en&usg=__Kdk9y0F_vWwk_DBp0VTt_m0JC6w=&sa=X&ei=FGt9TLbnNISKlwegjrGvCg&ved=0CBgQ9QEwAQ

http://www.dell.com/content/default.aspx?c=us&cs=04&l=en&s=gen

http://www.dell.com/content/default.aspx?c=us&cs=04&l=en&s=gen

http://www.lilly.com/

http://www.lilly.com/

Buyer Perspectives


Contingent Workforce Programme Maturity Model

Who’s in charge?


Does it matter?


2014 European Buyers Survey




To make a change……….


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.


• 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


• 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


Preferred suppliers• Selective set of

suppliers selected

• Contracts in place

• Service level agreements (SLA’s) in place


One size doesn’t always need to fit all…..


Focus on cost savings is not sustainable…..


Europe is ahead of U.S.A… …..


RPO and MSP Convergence?

RPO:

Outsourcing

Of

Permanent

Hiring

Total Talent

ManagementSource: Staffing Industry Analysts

MSP:

Outsourcing

Of

Temporary

Hiring


• 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



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



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



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.


• 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


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



Managed Service Provider (MSP)• Contingent

workforce spend under management

• One contact point

• Direct cost savings on bill rate/usage



• Total cost of ownership savings

Total Talent Management • Total workforce

spend under management

• Complete workforce visibility




• 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



Contingent Workforce Programme Maturity Model

Which of the following are currently in place in your organisation?

Contingent Buyer Priorities

0% 20% 40% 60% 80% 100%

Master supplier

Trying new suppliers

Direct sourcing

RPO

Strategy planning (incl. contingent work)

HRO

SOW

Global management (contingent work)

Supplier tiering

MSP

Consolidating staffing suppliers

VMS

Approved supplier list

In place today


Which of the following are currently in place in your organisation, or are likely to be seriously explored within two years?

Contingent Buyer Priorities

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Master supplier

Trying new suppliers

Direct sourcing

RPO

Strategy planning (incl. contingent work)

HRO

SOW

Global management (contingent work)

Supplier tiering

MSP

Consolidating staffing suppliers

VMS

Approved supplier list

In place today Exploring in two years No plans


Netherlands-


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

• Focus on becoming effective as opposed to efficient

• Adoption, Adoption, Adoption


Questions


Thank you!

Bryan Peña, CCWPVice President, Contingent Workforce Strategies and ResearchPhone: +1.650.390.6188

Email: [email protected]


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The Future of Workforce Management and Buyer Perspectives · The Future of Workforce Management and Buyer Perspectives. ... •Bill rate savings ... Staffing Industry Analysts –Contingent