what key metrics can improve your contingent process
DESCRIPTION
Measuring the success of your Contingent Workforce operation depends on having lead, lag, qualitative, and quantitative metrics; all aligned to your business drivers. Santos has achieved this, and in this session Chris Wood, HR Manager at Santos shared their key metrics, as well as how these have helped make the Santos function successful.TRANSCRIPT
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