Third Party Data - SIGsig.org/docs2/WS05_Third_Party_Data_A_Must-Have_Best... · 2016-10-17 ·...

A "Must-Have" Best Practice for

Contingent Labor

Third Party Data:

Capgemini

Michael KhadivarGlobal Category Director - External Resources

Procurement

PeopleTicker

Mike ZimmerCPO

Marc WongChief Data Scientist

sig.org/eval

Third Party Data: A "Must-Have" Best Practice for Contingent Labor

The People Stock Exchange.

Presenters:

Michael Khadivar, Global Category Director External Resources Procurement, Capgemini

Marc Wong, Chief Data Scientist, PeopleTicker

Mike Zimmer, Chief Procurement Officer, PeopleTicker

Founded: 1967, Grenoble, France as Sogeti

President and CEO: Paul Hermelin

Headquarters: Paris, France

Employees: Over 180,000, in 44 countries

Net Sales: €11.9B USD(FY2015)

Capgemini

Capgemini is a global leader in consulting, technology and outsourcing services. Together with its clients, Capgemini creates and delivers business, technology and digital solutions that fit their needs, enabling them to achieve innovation and competitiveness.

PeopleTicker, LLC. | peopleticker.com | (561) 278-8383

4

Client List (partial)

PeopleTicker provides real-time labor rate information for hourly and salary employees in 160 countries utilizing a “data as a service model” which is available to clients on a subscription basis. This software is offered to end user clients and can be integrated into a variety of third party applications including Applicant Tracking, Workforce Analytics, VMS/MSP, RPO, and HCM applications.

PeopleTicker – About Us

Key Industry Partners

4

http://peopleticker.com


Agenda

How a Supplier becomes a Partner

Experience Levels, Pay Rates vs. Bill Rates

Using Analytics to identify opportunities

Market Myths Dispelled

Capgemini – Program Overview

Capgemini – Results

5



• The supplier must turn people into bill Rates.

• 3rd –party data enables the buyer and the supplier to be on the same page regarding “How Much?”

• The more the supplier is enabled to find the right candidate (qualified enough to get the job) the more likely the recruiter will find success.

• This effects Potential to Close decisions.

• The markup contains the Gross Profit for the agency.

• The lower the GP, the longer the duration should be to entice the supplier.

• Shorter duration mean less time to make profit

• This effects the Deal Value decisions.

• Suppliers can more readily hit SLA metrics and achieve greater success for their clients who have leveraged 3rd-party data to align recruiting expectations.

• This effects the SLA Requirements decision. While a supplier may assign a recruiter to SLA reqs, if other decision criteria are not met, the req may be given minimum effort.

• Recruiters within a Staffing Agency are often aligned to opportunities by skill.

• Java Developer reqs may go to recruiters with experience recruiting these candidates.

• Recruiters familiar with the subject matter they are recruiting for find better candidates more quickly.

Take-Away

How a Supplier becomes a Partner: enabling a supplier to prioritize your business

6

“I’m an agency recruiter. Typically I have to submit a certain number of candidates per day. I make commissions on my candidates who are placed.”

“I’m a staffing agency Account Manager. Typically my recruiters have to place a certain number of candidates to hit revenue targets. I work with customers to bring in more opportunities.” Staffing Agency

The Staffing Agency must align delivery capacity with opportunities (Requisitions or “reqs”) daily.If a branch has 10 recruiters that will each submit 2 candidates in a day. 20 candidates will be submitted.

The agency will triage the day’s delivery alignment based on factors like:

• Potential to close the business• Deal Value (Hourly Gross profit * estimated

billable hours)• SLA Requirements• Acumen of the subject matter



• While no direct symmetry exists for aligning skill levels and years of experience a correlation does exists between higher rates and higher expectations in terms of skill capability.

Take-Away

Pizza and Experience levels: Slicing up the Market

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Customer: I’d like a pizza.

Waiter: Wonderful, We only have one size. How many slices would you like? 8 or 16?

Customer: Better make it 8. I don’t think I can eat 16.

8 slices 16 slices

• Leveraging a third party data source provides a not only the pizza, but also presents a consistent number of slices.



I get paid a “wage rate” or “pay rate”.

• Pay rates play a large role in determining retention risk, quality of resource, and time to fill metrics.

Supplier 1 will pay me

$54.66


$51.22Supplier 3 will pay me

$47.33


$44.36

“I‘m looking for a new gig. I have been talking to lots of recruiters. I negotiate with each of them and do the best I can for myself.”

$44.36

$47.33

$51.22

$54.66

• Market data benchmarking produces a pay rate range.

• Defining this range enables your recruiters to target the right level of resources for the job.

• Multiple suppliers will be chasing the same candidate, for different customers.

• Understanding market pay rates enables your suppliers to prioritize you as a customer.

M

a

r

k

u

p

$85.00

$68.00$65.00

$75.00

$54.00

$71.00

$69.00 $70.00

$72.00

$81.00

$80.00

$59.00

$58.00

• Markups vary depending on, margin goals, location, type of labor, insurances, volume of business, rate structure of buyer etc.

• Defining appropriate markups is critical to right pricing.

Bill Rates

• The same candidate can be submitted by one supplier to many buyers, all with differing bill rates.

• The same candidate can be submitted by different suppliers to buyers with different pay rates and bill rates.

How a Person becomes a Bill Rate

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Take-Away


PeopleTicker, LLC. | peopleticker.com | (561) 278-8383 9

Using Analytics to Identify Opportunities


PeopleTicker, LLC. | peopleticker.com | (561) 278-8383 10

Using Analytics to Identify OpportunitiesUsing Analytics to Identify Opportunities



Bill Rates are Market Rates

If buyers know pay rates they can negotiate more effectively.

Natural language Processing and Machine Learning are silver bullets for

compensation analysis.

Natural language Processing (NLP) is a field, not a technology. It encompasses a varied

collection of matching and analysis algorithms attempting to define sentiment, meaning, and

other considerations.

Machine Learning (ML) , like NLP technologies, identify patterns in data. Over time, some patterns that have actual value

can be identified and then the model is trained over long periods of time.

Experience Levels are standardized

Organizations have differing expectations for their junior to more senior roles. In

addition, those companies who have been benchmarking with Bill Rates to define

experience level based compensation are missing the key component.

Market Myths


Capgemini Contingent Labor Overview

• Global Contingent Spend – € 750m*

• Number of contingent workers – 6000+

• Number of Suppliers – 2500 for ER

• Primary categories – IT, Financial, Program Management

• Ratecards managed by each country lead

• Variations in Job Titles and Descriptions for each country

*Figures based on 2015 data

SubCo Staffing Center (SSC)– Overall Principles

Welcome to Subco Staffing Center

One Single Point of Contact managing the end-to-end External Subs Management.

Part of the overall People Supply Chain process.

P2P, T&E management and reporting.

Competitive Process for each Flex Resource.

Automation of the process via Vendor Management System (VMS), in integration with the Group Requisitions & Assignment system (R2).

SubCo Staffing Center as part of the People Supply Chain

Vendor Management1

Candidate sourcing2

Transaction Management3

Payment & Reporting4

SUBCO STAFFING CENTER

Practice Staffing Partners Suppliers / Freelancers

BU

/ M

arke

t U

nit

s

o The Subco Staffing Center is the single point of contact for any subs sourcing.

o The VMS tool is the enabler to manage efficiently such resourcing process.

Challenges

• Vendor rates could not be validated against market.

• Rates Benchmark - Internal vs. External.

• Rate cards.

• Supporting Project RFPs, how could we measure the data we received?

• Lack of smart negotiation.

Rate and Benchmarking Tool – PeopleTicker

Day-to-day negotiation savings based on Average submission rate: 4.28M €

Day-to-day negotiation savings using People Ticker: 4.86M €

Corporate Initiative to rollout PeopleTicker globally.

Summary

PeopleTicker delivers benchmarks for labor market pay, bill, and markup rates in real time, customized to

location.

Increased savings by 584K€

representing a 12% increase in

what was reported in 2015.

Using PT has helped us deliver

project oppty such as Vendor consolidation

PT has allowed us to provide a up-to-date Ratecardto the business.


PeopleTicker – Summary

http://peopleticker.com/


Speakers

Michael has been working for Capgemini for 17+ years. He currently manages a global category

procurement team responsible for IT Contractors, Professional Services (HR Services, Legal, Recruitment)

in USA, Canada, Latin America, Central America, and Australia. He has complete ownership for

Purchasing strategies to support these regions. His previous experience includes managing the entire

global staffing efforts for several countries including India, Poland, China, UK, Germany, Brazil and North

America.

Michael Khadivar, Global Category Director External Resources Procurement

Capgemini [email protected] 312-498-6647

Mike Zimmer brings a diverse background in human capital management, salary benchmarking, and high

technology to PeopleTicker where he currently leads procurement. Mike is primarily responsible for

consulting with procurement leaders regarding best practices in managing labor spend including: market

rate analysis, vendor selection, and negotiation strategies.

Marc brings over 20 years of staffing domain experience including software engineering as well as leading

development teams at the executive level for vendor management systems, timesheet and payroll systems,

procurement systems, recruiting auctions, shared savings programs, and compensation benchmarking

platforms. In addition, Marc has founded and lead specialty focused delivery teams on a national level for

ERP practices, .NET practices, and government contractors setting rates and negotiating with buyers as

well as candidates and sub-suppliers.

Mike Zimmer – Chief Procurement Officer

PeopleTicker, LLC. [email protected] 561-278-8383

Marc Wong, Chief Data Scientist

PeopleTicker, LLC. [email protected] 858-231-7364


mailto:[email protected]




Contingent Labor Spend category, why is it so challenging? • Regulations and Risk• Workers have many options for roles and agency representation• Different Tax obligations for different types of worker engagements• Staffing agencies, project houses, employers of record, and professional

services fees vary• Scale of effort• Lack of third party data for benchmarking

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How do I know what Price to Pay for a Resource?

Pay Rate Range

Determine market pay rate range for this type of worker.

Markup

Determine appropriate markup for this type of worker, supplier and location.

Bill Rate Range

Pay rate range plus markup define the buy rate range target.

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Workshop # 5

Third Party Data: A "Must-Have" Best Practice for Contingent Labor

Speakers:

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PeopleTicker Mike Zimmer [email protected]

PeopleTicker Marc Wong [email protected]

Capgemini Michael Khadivar [email protected]




Third Party Data - SIGsig.org/docs2/WS05_Third_Party_Data_A_Must-Have_Best... · 2016-10-17 ·...

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