1. PeopleFluent
Moving Your Contingent Workforce Program from Tactical to Strategic
Presented by John Moore, CCWP

2. About PeopleFluent Leader Human Capital Management
In over 5,200 organizations
214 countries and territories
80% of the Fortune 100
170 VMS customers
$7B managed spend

3. Agenda CW program maturity Diagnosing where you are
Strategies to address issues
Building a program roadmap
Identifying cost savings

4. CW Program Maturity Ad hoc Tactical Managed Strategic
Manual
No process
No SLAs
Too many suppliers
Not enough suppliers
Not repeatable
Tactical
Automated
Transactional
Process
Focus on efficiency
Supplier rationalization
Focus on cost
Focus on hourly workers
Managed
Integrated
High use of metrics
Focus on compliance
Focus on quality
Suppliers are rotated
Program SLAs
Services Procurement*
Strategic
Embedded
Business Focus
Enterprise SLAs
Analytics
Total Visibility
Total Workforce
Common Characteristics –
Tactical –
Managed- integrated with other system
Strategic- contributes to business decisions, includes all worker types. Most straddle between Tactical and Managed.
QUALITY – COST SAVINGS – EFFICIENCY – COMPLIANCE

5. CW Program Maturity Paths
Strategic
WORKFORCE MANAGEMENT
EXPANSION
SOW
Managed
INTEGRATION
Tactical
VMS IMPLEMENTATION
Ad hoc
TIME

6. CW Program Management Skillset Technology Process Finance
Staffing industry
Market prices
Procurement
Contracts
Excellent people skills

7. Diagnosing Your Program
Identify the issues
You might already know some of them
Survey
Executives
Hiring managers
Suppliers
Functional areas
QUALITY – COST SAVINGS – EFFICIENCY – COMPLIANCE

8. Diagnosing Your Program
First, look outside of the technology
Organizational structure
Lack of support
Executives
Business managers
Hiring managers
Functional areas
Entrenched suppliers
QUALITY – COST SAVINGS – EFFICIENCY – COMPLIANCE

9. Diagnosing Your Program
Create an Issue Log
Issue
Cause
Possible Solutions
Candidate Quality
Suppliers
Scorecards
Rationalization
Non-specific requisitions
Detailed templates
Hiring mangers don’t use the VMS
Too difficult
Training
Takes too long
Workflow
No internal policy
Executive, management support

10. Program Workflow Analytics Requisition Management Templates
Approval
Offboard & Evaluate
Facilities & Logistics
Notifications
Worker Evaluation
Source
Vendor Distribution
Rate card
Analytics
Billing and Invoice
Consolidated invoice
Adjustments
Financial Integrations
Select
Qualification
Candidate Ranking
Interview Scheduling
DNR / Duplicate Screening
Payment Management
Time, Expense
Approvals/ notifications
Engage
Cost Allocations
Tenure Control
Budget Management
Compliance/Onboarding
Facilities & Logistics
Compliance Items
Electronic Notifications

11. Diagnosing Issues Quality of Candidates Supplier Training
Scorecards / SLAs
Rationalization
Requisition
Training the HMs
Build templates
Screening
Adjust the process
Who’s responsible?

12. System Process Training Diagnosing Issues A B Efficiency Integrations
Workflow
Notifications
Process
Exceptions
End-to-end
Common
Training
Suppliers
Hiring managers A B

13. System Process Training Diagnosing Issues
Compliance
System
Notifications
Reporting
Workflow stops?
Process
Policies
Who’s responsible?
Auditing
Training
Suppliers
Functional areas
Goes beyond external- drug screening and background check
Look at internal processes that prevent things from moving forward- documentation and who is responsible as well as auditing

14. System Supplier Process Diagnosing Issues Busiest part of a VMS
Cost Savings
System
Rate card
Markups
Market rates
Supplier
Scorecards
Contracts
Comparison rate data
Process
Pre-identified
Exceptions
Negotiation
Busiest part of a VMS
How to determine cost savings- rate cards need to be updated on a regular basis
All suppliers should provide market rate cards per role. Look at the supplier rate cards to ensure placement and cost relevance and cost savings
Which is better? Market rates change all the time so hard to build a current rate card. A markup prevents a supplier to push the rate down and allows for even footing. VMS allows for a competitive system and bill rate. How to benchmark outside of your suppliers? MSP will provide that data as well as a VMS may have access to scrubbed data across different geographies. The final negotiation is where you can realize cost savings by reduced hourly rate.

15. Cost Savings Areas Category Detail Benchmark rate cost savings
Compares a defined benchmark rate / mark-up vs. the actual engaged rate / mark-up over a defined period of time to show the reduction
Negotiated Savings
Requisition-by-requisition negotiated rate savings
Conversion savings / discounts (i.e., right hire savings)
Volume discounts based on ascending spend thresholds
Prompt pay / early pay discounts
Tenure discounts
Payrolling savings
Renegotiations
Rebates to client
Reduced OT rates
Decreased per diems

16. Cost Savings Areas Category Detail Hard Cost Savings
Tangible bottom line reductions
Saved money from budgets
Target reduced supplier count per category and region
Capture rogue spend due to lack of global visibility
Automate financial approvals / provide governance
Rationalize job descriptions to establish rate cards
Total cost management
Pay rate band usage
Combination mark-up and bill rates
True market comparison
Normalize rates based on third party benchmarking
Introduce competition though supplier neutrality / manage bid process
Metrics
Track cost savings (clearly defined and standardized)
Improve processes (measurable cost reductions)

17. Cost Savings Areas Category Detail Reduced SG&A expenses
Operational efficiencies improved (decreased costs to manage contingent labor)
Decreased cost of ownership
Shared Managed Services / VMS allow managers to focus on your business
Consolidated invoice

18. Soft Cost Savings Areas
Category
Detail
Mitigate Risk
Mitigate risk through co-employment management
Reduce financial exposure due to worker misclassification; manage on a per country basis
Track licensing and certifications for expirations
Establish tenure rules across various worker types and in accordance with local regulations
Reduce invoicing / payment errors
Periodic audits to identify risks and opportunities for corrective action
Administrative Cost Savings
Invoice processing
PO processing
Payment processing
Time savings (e.g., invoice processing time)
AP invoice audit savings based on the avoidance or credits on overpayments to supplier

19. Soft Cost Savings Areas
Category
Detail
Process Improvements
Cycle time improvements
Candidate quality improvements
Reduced reporting administration
Consolidated invoice and payment process
Elimination of invoice errors
Soft Cost Avoidance Savings
Reduce cycle time to fill
Outsource process (invoice / payment, contracts admin, onboarding) to free procurement, AP resources
MSP or SMS governance programs reduce HR, legal and procurement resources
Comprehensive reporting to drive continuous program improvement

20. Diagnosing Issues Program Adoption Other Areas Training
Management awareness
Communication
Change Management
Executive support
Stakeholder committee
Entrenched suppliers

21. The Strategic Roadmap
A roadmap is a process to aid in integrating business and technology
A dynamic plan
It describes where you want to be and how you are going to get there

22. Creating Your Roadmap Characteristics Goals Timelines Actionable steps
Interdependencies
Alternate routes

23. Creating Your Roadmap Goals need to be
Specific
Measurable
Realistic
Time-bound
“Expand VMS to capture 90 percent of Admin category within corporate by end of year.”

24. Creating Your Roadmap How to Begin High-level sponsor with a vision
Leadership support
Identification of stakeholders
Analyze gaps
Set goals
Build a plan

25. Creating Your Roadmap Identify who you need IT Procurement
Human Resources
Legal
Business managers
Functional managers
Executives
VMS/MSP/SMS (optional)
CW PM IT
Procurement HR
Legal
Business Leaders
Functional Managers
Executive

26. Creating Your Roadmap Discovery Business Objectives Functional Needs
Business Processes
Improvements
Drivers
Governance
Recommendations
Targets
Guidelines
Initiatives
Organizational
Functional
Communication
Process
Technology
Execution
Prioritize
Set Timelines
Create Projects

27. Creating Your Roadmap

28. Begin Your Journey
Put the issues, solutions and roadmap into a business case
Present to the stakeholder committee
Work the roadmap
Rebrand and relaunch
Start the road show

29. Thank You
Contact Me John Moore, CCWP