Extending the Value of e-Procurement to Contingency Staffing Elaine Taylor Principal Contingency Workforce Management Solutions

Definitions Contingent Worker = Clerical/admin temps through agencies Professional-level contractors through agencies Independent contractors “misclassification of employees”

Contingent Workforce Vendor Programs Manage cost and leverage spend Mitigate potential corporate liabilities Insure the best possible customer service

Today’s 3 topics Why Contingent Workforce Management is important to your company Elements of a successful Contingent Workforce Vendor Program Case study

Why it’s important $63 billion industry 21,000 staffing agencies numerous other purveyors of products and services $95 million – class-action suit against Microsoft $3 - $4 billion annually – uncollected tax revenues

4 Steps to Success Design a contingent workforce program Select vendors Select e-procurement tool Measure results and modify as necessary

Step 1: Program Design Define goals: Analyze state of the union Ensure compliance with all applicable laws and regulations Control costs and leverage spend Identify and support best business practices Deliver consistently high-quality service to your end user Analyze state of the union

Step 1: Program Design, (cont’d) Identify stakeholders Human Resources Corporate Counsel Procurement Contracts Administration Internal Audit/Compliance Corporate Security Chief Financial Officer User community – i.e., managers, admins, etc. Map business processes/best practices of each

Step 1: Program Design, (cont’d) Five key areas: Product Volume & diversity Customer service Administration Track and measure results

Step 1: Program Design, (cont’d) Select a model Vendor on Premise Preferred Vendor Network

Step 2: Select an e-Procurement System Build your own Purchase & install a customizable software package Choose a third-party, web-hosted, configurable tool

Step 3: Select Vendors Determine quantity & types of job requirements Outline processes vendors must manage Requisitions, intellectual property agreements, background checks/bonding, time-tracking and authorization, invoicing, reporting Establish pricing model Solicit vendor RFIs Keep the stakes high

E-Procurement Systems - What to Look For Diana Jovin President CascadeWorks, Inc.

Real World Results Significantly reduced potential liabilities by: complying with all state/federal laws and regulations protecting intellectual properties receiving warranties and indemnifications from vendors Developed rate management policy that allowed company to acquire requisite quantity and caliber of workers reduced vendor margins by as much as 40% established aggressive volume discount program

Real World Results Automated 80% of manual and tactical tasks (time card tracking, spend authorizations, approval routing) allowing managers to focus on more strategic functions Reduced “maverick” hires by more than 75% Instituted much-improved expenditure and projections tracking ROI - savings estimated in the millions

Contingent workforce management + E-Procurement processes and systems The Wave of the Future Contingent workforce management + E-Procurement processes and systems