Workforce Management as a How to use program …...aggregation of transactional services &...

©2015 by Crain Communications Inc. All rights reserved.Confidential Report – NOT for Distribution | ©2015 by Crain Communications Inc. All rights reserved.

Contingent Workforce Management as a Science: How to use program data to make decisions that matter. Presented by: Jason Ezratty, President, Brightfield Strategies

Bryan Peña, VP, Contingent Workforce Strategies and Research, Staffing Industry Analysts

This webinar is broadcast through your computer speakers via the audio broadcasting icon on your screen. You may adjust the sound volume by using the slide bar on the audio broadcasting icon. If you cannot access the audio, you may dial into the call by dialing 1‐650‐479‐3208 and using access code 669 572 277 . Need further assistance? Contact SIA customer service at 800‐950‐9496 or [email protected]

February 25, 201510 am PT/ 1 pm ET

Who We AreOver 1000 client organizations benefit from our international research services

• 80% of the largest 50 U.S. staffing firms and 60% of the world’s 25 largest staffing firms are corporate 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

• 80+ years of industry and advisory service experience among executive team

Confidential Report – NOT for Distribution | ©2015 by Crain Communications Inc. All rights reserved.

CWS Council Members (partial public list)

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©2015 by Crain Communications Inc. All rights reserved.

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New 2015 Dates: March 17th & 18th (Tue/Wed) Orlando, FL

April 14th & 15th (Tues/Wed) NYC, NY (Pfizer)

May 12th & 13th (Tue/Wed) Washington, DC

July 14th & 15th (Tue/Wed) Chicago, IL

Oct 6th & 7th (Tue/Wed) London, UK

Oct 21st & 22nd (Wed/Thur) Dallas, TX

Dec 8th & 9th (Tue/Wed) Northern California

Contact Member Services for more information:Phone: 800‐950‐9496orEmail: [email protected]

Mark Your Calendar 2015 Contingent Workforce Conferences

CWS Summit Europe | April 21-22 Hotel Okura, Amsterdam | cwssummiteu.com

CWS Summit Asia Pacific | July 22-23Shangri-La Hotel, Singapore | cwssummitap.com

CWS Summit North America | October 19-20CW Solutions Forum | October 21-22Omni Dallas Hotel, Dallas, TX cwsolutionsforum.com | cwssummit.com

Introduction to Brightfield Strategies Management consultancy and data services provider

specializing in global workforce strategies & analytics

Owners & stewards of the Talent Data Exchange, an aggregation of transactional services & employment data

Assist Fortune 10 – Global 2000 companies to optimize their contingent workforce program identify cost savings, efficiencies and risk mitigation opportunities contingent workforce program design & implementation strategic maturity in using talent as a competitive differentiator

Strategic alliances broadens reach & influence Staffing Industry Analysts: Top‐rated staffing industry analysis,

publication, and global events Corporate United: Horizontally focused Group Purchasing Organization

3

Todays Webinar is Sponsored by:


Our speakers today…

Bryan Peña, VP, Contingent Workforce Strategies & Research, Staffing Industry Analysts

Jason Ezratty, President, Brightfield Strategies


Polling Question

What is your greatest unanswered data question when it comes to your CW program?

A. Right RateB. Supplier MixC. Risk ManagementD. Program QualityE. Candidate QualityF. Program Cycle Time


Art vs Science:


Art Vs. Science

• Art ‐ Subjective expression or application of human creative skill and imagination– Rules of Thumb– Best Practices– Benchmarks– QBR


Art Vs. Science

• Science ‐ systematic enterprise that builds and organizes knowledge in the form of testable explanations and predictions about nature and the universe.– Processes– Systems– Experimentation– Data


Which is better?


What about the QBR?

• Fundamentally flawed– If the QBR is the only checkpoint you are missing out

– Secret is to identify and resolve root issues– Constant attention and interpretation– Information


Questions:

• What's a good time to fill number?• What is the market rate for “X”• How many suppliers should I have in my program?

Comparisons are difficult…..• Technology – VMS /no VMS• Provider mix• Program governance model• Type of talent• Hiring requirements• Background check• Job descriptions• Commercial terms• Location

• Special skill types• Approval process• Onboarding requirements• Hiring manager behavior• Tenure of role• Competitors in the region• Local employment prospects• You name it….

…………if not impossible

"If a man does not keep pace with his companions, perhaps it is because he hears a different drummer. Let him step to the music which he hears, however measured or far away."

Henry David Thoreau, 1854

Focus on you.

An effective analysis strategy will:1. Be program specific2. Align with your organization’s strategic

direction and culture 3. Be practical and easy to understand and use 4. Include a collaborative process for setting

goals and reviewing performance based on two‐way communication

5. Monitor and measure results (what) and behaviors (how)

6. Include both positive feedback for a job well done and constructive feedback when improvement is needed

7. Provide opportunities for improving performance

8. Ensure that the program support the strategic direction of the organization

9. Establish clear communication between the

parties about what they are expected to accomplish

10. Provide constructive and continuous feedback on performance

11. Identify and recognize program accomplishments

12. Identify areas of poor performance and establish plans for improving performance

13. Support program staff in achieving their work and career goals by identifying training needs and development opportunities

14. Support administrative decision‐making15. Provide legal documentation to

demonstrate due diligence for legal challenges

The QECR Framework

Confidential and Proprietary. ©2012 by Crain Communications Inc All rights reserved

• Quality

• Efficiency

• Cost

• Risk

POPULAR PROCESS IMPROVEMENT DISCIPLINES:

• Six Sigma• TPS• TQM• Triz• Kaizan• ……

Confidential and Proprietary. ©2012 by Crain Communications Inc. All rights reserved.

To get started….you must know….

• What is your companies business strategy and where does your program contribute or diminish?

• What were/are the expectations of management? What were they sold?

• What are the expectations of both Internal and external end clients and are they being met/exceeded?

• Where are there obvious process deviations?• Inputs? Outputs? What types of data are available?• What are the fundamental problems you are trying to solve?

Why?


Why is the MSP Job about Firefighting?


How Many Teeth Does a Horse Have?

SCIENCE: Smarts Can’t Replace Counting.


Problem Solving Begins with Understanding the Problem more Deeply

how?

why?

…can I accelerate my fill rates?

…are my fill rates taking so long?


To Get to Why, We Need to Understand the Where…

where?Dimensions & filters worth exploring:

Process Segment: Req creation, approval, posting, submission retrieval, negotiation, completionProcess Model: Number of permitted submissions, leveraging VMS candidate tools, interviewingProcess Actor: MSP Rep, Requisitioner, ApproverTalent Source: Competitive Bid, Payroll, Master Supplier, DirectSupplierSkill Category/Job TitleLocationBusiness Unit/DivisionAssignment Duration

…indicates what data to include and not include


The Path to Victory is Not Always the Simplest Path, Unfortunately

Data is better thanmetrics…and prior to understanding how metrics relate to yourprogram you need to intimately understand your data


Score, What Is It Good For?

Satisfaction Scores Should Be Tallied, Not Averaged

1 2 3 4 5 1 2 3 4 5


BEWARE OF STRAIGHT LINES

SCATTERPLOT: Birdseye View of Program Economics at Assignment Level


SCATTERPLOT: Same Talent, Different Day, Different Pay


SCATTERPLOT: Same Talent, Different Day, Different Price


SCATTERPLOT: When Excessive Competition Creates Market Inefficiency


Hypothesis Testing: Don’t Just Guess, Take Educated Guesses, and Test Them

Statistical significance is more strict than your gut


SCATTERPLOT: Market Rates aren’t Points but Broad Bands


COLOR CORRESPONDS TO SUPPLIERS

Sleuthing for Causes of Bill Rate Variance: The Supplier Hypothesis


Sleuthing for Causes of Bill Rate Variance: Imprecise Articulation of Need

Front-end Java Java/Oracle Mobile Apps SQL Server

.NET C# Hadoop Data Scientist SAP ABAP WordPress

Test Scripting Report Developer Application Support Integration Specialist

Spe

cies

:So

ftwar

e D

evel

oper

Rating Description of Characteristics

5 ExactMatch on Job Title, Job Description & Qualifications

4 ExactMatch on Job Title & Job Description, Similar QualificationsQualifications may be missing 1‐5 specified qualifications (required certifications a must) but has majority

3 ExactMatch on Job Title & Job Qualifications, Similar Job DescriptionDescription may not cite all responsibilities or specify specialties

2 Similar Job Title, Job Description & Job QualificationsDescription – May not cite all responsibilities or specify specialties but has the majority

Qualifications ‐May be missing 1‐5 specified qualifications (required certifications a must)

1 Similar Job Title, Vague Job Description and/or Job QualificationsMissing description or qualifications, may not specify AOI or Specialty

Other Titles may exist but alignment not strong enough to map

44

Mapping Job Titles By Hand Can Be Tricky: Try Using a “Scale of Similarity”

45

One‐to‐One Relationships are a Luxury You May Not Find: Real‐life Example

Aggregated Comparison by Job TitleCase Study: All titles vs actual title usage tell different stories

Using Contingent Workers (“Buy”) is more expensive* than hiring an employee (“Make”) except in cases where headcount volume is largest

Comparison by Job Title:On average, Contingent Workers are $14.00/hr. (17%) more expensive than employees.

On average, for those job titles with active contingent headcount, Contingent Workers are $2.42 (3%) more expensive than employees

Comparison by Active Contingent Headcount (actual contingent usage):

*Based on difference between loaded mid-range FTE rate and the average contingent worker rate.

46

Membership‐based data aggregation & analytics service

Enables companies to:- anonymously and precisely compute the

cost of nonemployee labor- test the validity of blended, global

workforce strategies

Conformity of data associated with job titles produces reliable benchmarks beyond just rates including supply/demand

Aggregating as much of the $125 billion in contingent workforce spend known to be in VMS technologies… and then beyond to ATS & HRIS to include employee data

Big Data + Industry-wide Collaboration =The Talent Data Exchange

To Learn More About TDX and how it can help you improve cost and efficiency.

• Set up a Demo– [email protected]



SOW & Project Services ‐ are Europeans late adopters? 3/25/2015CW 2.0 Gathering expertise and solving the 3 year problem 3/26/2015

Going Global: How to expand your program internationally (include Global Readiness?) 4/16/2015

Managing Risk & Understanding Operating Models for European Programmes 4/29/2015

Setting the Bar: Best Practices for CW Engagement 5/20/2015Spend Control for Program Managers 5/27/2015Contingent Workforce Legal Update 2015 ‐ ACA and other concerns 6/24/2015

Asia/Pac Focus 7/15/2015

CW 3.0 Increasing Value in Mature CW Programs 7/22/2015Future Workforce: Next Generation Workforce Management 8/26/2015CW 1.0 Making Sense of the CW World 9/23/2015Technology Trends 9/23/2015

HR and Procurement , who runs the show? 10/28/2015

Online Labor Marketplaces 10/28/2015VMS MSP Landscape 11/19/2015In House vs Outsource, which model is right for you? 12/17/2015

Upcoming webinars…

Mark your calendars!Sign up for the 2015 calendar of webinars all at once

This year’s topics include:• Legal landscape• In-source and out sourcing models • Increasing value in mature

programs • Best practices in CW engagement

You may sign up for all or as many as you like. Be sure to accept emailinvitations to add the webinars to your calendar.

http://bit.ly/SIAByrWebinars

Mark Your Calendar 2015 Contingent Workforce Conferences

CWS Summit Europe | April 21-22 Hotel Okura, Amsterdam | cwssummiteu.com

CWS Summit Asia Pacific | July 22-23Shangri-La Hotel, Singapore | cwssummitap.com

CWS Summit North America | October 19-20CW Solutions Forum | October 21-22Omni Dallas Hotel, Dallas, TX cwsolutionsforum.com | cwssummit.com


• Copies of the slides and a link to the audio recording will be distributed to all attendees within 48 hours following the webinar

• A replay of the webinar will be available for CWS Council Members at www.staffingindustry.com

Thank You!

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