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
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 14Internal
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…
Copyright © 2016 - Ardent Partners Ltd.
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
Copyright © 2016 - Ardent Partners Ltd.
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
Copyright © 2016 - Ardent Partners Ltd.
22
Best-in-Class CWM Performance
Copyright © 2016 - Ardent Partners Ltd.
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
Copyright © 2016 - Ardent Partners Ltd.
24
Core CWM Capabilities, Best-in-Class vs. All Others
Copyright © 2016 - Ardent Partners Ltd.
25
The Best-in-Class Reliance on “Big Data”
Copyright © 2016 - Ardent Partners Ltd.
Moderated Discussion:
Four Program Success Areas
Success Area #1: Globalization
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 28Internal
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
Copyright © 2016 - Ardent Partners Ltd.
Success Area #2: SOW and Services
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 31Internal
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
Copyright © 2016 - Ardent Partners Ltd.
33
SOW/Services Management: The Best-in-Class Way
Copyright © 2016 - Ardent Partners Ltd.
Success Area #3: The Practical
Approach Towards Total Workforce
Management
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 35Internal
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?
Copyright © 2016 - Ardent Partners Ltd.
Success Area #4: Keeping Pace with
the Evolution of Technology
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 38Internal
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
Copyright © 2016 - Ardent Partners Ltd.
Q&A