Chris Wood – Manager Human Resources – Santos

What Key Metrics Can Improve Your Contingent Process Measuring the success of your Contingent Workforce operation

•1.0 DATA, METRICS AND A STARTING POINT

TYPICAL VISIBILITY AND CONTROL OF CONTINGENT WORKFORCE

Risk Quality Visibility

& Control Cost

1. Inconsistent Contracts

2. Unknown & Extended

Tenure

3. Inconsistent Tax &

Insurance Application

4. Variable Contractor

Compliance

a. Onboarding

b. OHS

c. Verifications

1. Inconsistent Service

a. Supplier / Individual

dependent

b. No managed SLA’s

2. Hiring Manager expectation

dependent

3. Anecdotal not Auditable

1. No Technology

2. Paper approvals

3. No accurate Reporting

4. Unknown Compliance

5. No central ownership for

contractor population

1. Variable supplier rates

2. Pay rates un-managed

3. Internal time demands

4. Paper based invoicing

5. Manual receipting

6. Variable application of

Australian awards

$

THE PROBLEM LIMITED VISIBILITY AND CONTROL OF CONTINGENT WORKFORCE

2.0 CREATING A SOLUTION MEASURED COLLABORATION

SOLUTIONS WHAT WERE THE OPTIONS

IN-HOUSE SANTOS

TEAM

MINOR

ENHANCEMENTS

TO CURRENT

CONTRACTS

DIRECT SOURCE

MANAGED SERVICE

PROVIDER

STATUS QUO

✔ ✖ ✖ ✖

1. Single point of engagement of temporary labour

2. Implementation of multi-candidate sourcing channels and development of labour talent pools

3. Rates standardisation and reduction

4. Reporting

5. Online web-based time sheeting

6. Reduced time to fill

7. Mitigation/Control of possible risks

8. Alignment and support of services through SLA’s

Increase Efficiency

Reduce Duplication

Alignment of Data

Reduce Risks Increase MIS of Workforce

Increase STO Talent

Increase STO IP Capability

Contain Labour Costs

Increase Transparency

SOLUTIONS THE MEASUREBALE PROMISE

3.0 RESULTS

DATA WE CAN NOW REVIEW AND MEASURE

•Corporate / Local Governance

•Contract Standardisation

•Tenure

•Tax & Insurance

•Onboarding / OHS / Verifications

•Co Employment risk

Compliance and Risk

•Candidate reviews

•Manager reviews

•Supplier evaluations

•Fill rate

•Service Level Adherence

•Diversity

•Contractor Conversions

Quality •Time to hire.

•Process steps

•Onboarding / Off boarding

•Headcount

•Location

•Population

•Job Family

Visibility and Control

•Benchmarked rates

•Tiered suppliers

•Spend reporting

•Cost savings

•Vendor / supplier consolidation

•Billing/invoicing

•Expenses

Cost

1. Contracts

a. Standardised

b. Managed by Hays

2. Tenure visibility & control

3. Vendor managed - taxes

4. Insurance compliance

5. 100% Compliance

a. Onboarding

b. Verification

c. OHS

1. CV:Interview:Offer ratios

a. Efficient & Effective

2. Engagement

a. Hiring Manager

b. Supplier

c. Contractors

3. Time to Hire

a. Best in class

4. Consistent service

1. VMS 3 Story Software

2. DOA approval

3. Real Time Reporting

a. Population

b. Business unit

c. Spend

d. Supplier

4. 100% visibility of

compliance

5. Controls within contract

1. Lower cost sourcing

a. Payroll / CMO

b. Direct Sourcing

c. Supplier rates

2. Internal efficiency

a. Approvals

b. Cost & Time

approval

c. Australian awards

3. Invoicing

RESULTS KEY CRITERIA

Risk Quality Visibility

& Control Cost

$

Risk Mitigating

Process &

Procedure in place

100% visibility

Best in Class

Resourcing

Metrics

Highly Satisfied

user base

100% Visibility &

Control

Dedicated Team &

Technology

Cost of Supply

Reduced by 66%

RESULTS KEY CRITERIA

Risk Quality Visibility

& Control Cost

$

4.0 DATA DRIVES ACTION INSIGHTS

•65% of population over benchmark

•$3.2m can be saved – at the maximum benchmark

•$3.8m can be saved – at the 80th percentile benchmark

CONTRACTOR PAY RATES

•Overall costs reduced 10% - now at 5% of spend

•Cost of third party suppliers reduced 38%

•Direct sourcing capability increased 150%

COSTS OF MSP SERVICES

•Average known tenure – 3.7 years

CONTRACTOR TENURE

•55% Female applications, 57% Shortlisted, 47% placed

DIVERSITY

•FORECAST MSP spend under-forecast at $75M spend over 3yrs

CONTRACTOR SPEND

•Procurement Purchase Order to MSP Employee

•Procurement PO to MSP pay rolled

•MSP Contractor to Santos Employee

CONVERSIONS TO CONTRACTOR STATUS

5.0 WHAT’S NEXT

True labour costs

Overall effectiveness

Knowledge management

Performance

Talent management

Analytics

Thankyou

Chris Wood

Manager, Human Resources

Santos