The “Un”trendy External Workforce Program: How to Be Successful in 2016sig.org/docs2/SIG...

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The “Un”trendy External Workforce

Program: How to Be Successful in 2016

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 13Internal

Our Webinar Speakers

Tony Pittman

Director, Contingent Labor

and Consulting Strategic

Sourcing

Andrew Wright

VP of Solutions

Christopher J. Dwyer

Research Director and VP of

Operations


Today’s Agenda

• Ardent Partners’ report overview

• Moderated discussion

– The impact of globalization

– The use of SOW and services

– Total workforce management

– Technology evolution

• Q&A

The 2015-2016 Ardent Partners

Report Overview

16

The State of Contingent Workforce Management

Copyright © 2016 - Ardent Partners Ltd.

Third annual edition of the landmark research study.

Nearly 225 research participants

Insights from a variety of executives: procurement, finance, HR, operations, etc.

Best practices, market trends, programmatic guidance, and discussions regarding the “future of work.”

17

Today’s Contingent Workforce: It’s All About Talent

Copyright © 2016- Ardent Partners Ltd.

18

The CWM Industry is Changing…


95%

see non-employee talent as vital

35%

of the total workforce is contingent

18%

Have “strong” visibility into worker

footprint

19

The 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 (50%)

CWM is one of few vital programs

Total talent management as the ideal foundational program

20

How is Talent Concentrated Today?

Copyright © 2016- Ardent Partners Ltd.

21

The “Balancing Act”: Top CWM Challenges


22

Best-in-Class CWM Performance


Average Quality Index Score of 8.7

9.3% annual CWM cost savings

84% of contingent labor that is formally accounted for

82% average contractor compliance rate

23

360-Degree Contingent Workforce Management


24

Core CWM Capabilities, Best-in-Class vs. All Others


25

The Best-in-Class Reliance on “Big Data”


Moderated Discussion:

Four Program Success Areas

Success Area #1: Globalization


Globalization & Localization When Engaging Talent:

What does it take?

Regulations and common business practices that govern or impact the way external

workers can or should be engaged fall into several main buckets:

Data Privacy

• Data protection

• Resume deletion

• Candidate anonymity

• Privacy policies

• Data collection

• Discriminatory laws

• Security

Assignment

Classification

• Driven by reason code

• Conditional rules

• Renewal rules

• Assignment

maximums

Rates & Fees

• Transparency

• Allowed payment

structures

• Rate components

• Rate complexity

• Taxes

• Mark ups & MSP fees

• Bill rate vs. pay rate

model

• Per diems (lunch/meal

tickets)

• Equivalent pay rules

Invoicing

• Taxes

• VAT on split billing

rates

• Required fields

Order Requirements

• Reason codes

• Order types

• Workflow rules

• Custom fields

• Conditional rules

Engagement Rules

• Work assignments

• Manager oversight

• Data clearance

Reporting

• Reporting on custom

fields

• Government reports

29

Global CWM Program Expansion Plans


Success Area #2: SOW and Services


The Changing Landscape

Office Clerical

(e.g., Manpower, Kelly Services)

G A P

T E M P O R A R Y L A B O R S T A T E M E N T O F W O R K C O N S U L T I N G

PR

ICE

L A B O R T Y P E

Professional/IT Temps

(e.g. PeopleBank)

Project Work

(e.g., Infosys, IBM, HP)

Operational Consulting

(e.g., Deloitte)

Strategy Consulting

(e.g., McKinsey)

ComplexSimple

Low

High

- Large spend – savings

opportunities

- Lack of visibility

- No process controls

- Risk mitigation (e.g., tax, benefits)

32

SOW…The Next Frontier


33

SOW/Services Management: The Best-in-Class Way


Success Area #3: The Practical

Approach Towards Total Workforce

Management


Program Differentiators

T R A D I T I O N A L V M S C A PA B I L I T I E S

D I F F E R E N T I AT O R S

Requisition Candidate

Selection

Work Order Timesheets Statement of

Work

Invoicing Reporting

Supply Base

Management

Talent Pools/

Bench Mgmt.

Worker

Profile Tracking

Global Pay Rules Visualizer & PMM

36

Total Talent Management: the Future of CWM?


Success Area #4: Keeping Pace with

the Evolution of Technology


Typical Program Value CurveP

RO

GR

AM

VA

LU

E

T I M E

Launch

Acceleration

Stabilization

Sustained value

Plateauing value

Diminishing value

39

The Evolution of Contingent Workforce Technology


Thank you. Contact information:

Andrew Wright

[email protected]

mailto:[email protected]

The “Un”trendy External Workforce Program: How to Be Successful in 2016sig.org/docs2/SIG...

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