Concurrent Session Strategy Design it Right: Popular Contingent Workforce Program Models, their Pros, Cons

(1)

Concurrent

Session

–

Strategy

Design

it

Right:

Contingent

Workforce

Program

Models,

their

Pros,

Cons

Moderator: Subadhra Sriram, Editor & Publisher, Media Products,

Staffing Industry Analysts

Panelists:



Peggy O’Neill, Director, Staffing ‐ Contingent Workforce, Disney



Matthew Rodger, Managing Director, Contingent Workforce Solutions,

Alexander Mann Solutions



Carolyn Volovsek, Manager, HR Programs Corporate Human Resources,

Fiserv

(2)

DIGITAL

SURVEYS

Don’t

forget

to

rate

this

session

as

you

exit.

Design it Right: Popular Contingent Workforce

(3)

Designing

A

Program

Caveat:

One Size

Does

(4)

Master

Supplier

Hybrid

Vendor

Neutral

Most

‐

Used

Terms

When

It

Comes

to

CW

(5)

Managed

Service

Program



A Managed Service Program is the

coordinated management of a

company’s contingent workforce and

associated suppliers for the betterment

of the company’s operations across

four key dimensions: quality, efficiency,

(6)



A Managed Service Program can be administered by either a client’s

employees or outsourced to a third‐party provider (or both). When

outsourced to a third party, the company is often referred to as a

Managed Service Provider.

(7)



Master supplier – focus is recruiting services



Vendor‐neutral, competitive bidding MSP – focus is supply‐chain

management services



Hybrid programs – focus is recruiting services and supply chain

management services

(8)



A master supplier assumes overall responsibility for providing a client

with temporary workers.



All requisitions/orders usually go first to the master supplier either to

be filled or distributed to sub‐contract suppliers.



Scope of service typically includes program office, on‐site/ “vendor on

premise,” rate intelligence, invoicing and accounting, electronic

requisitioning and time keeping, back‐office support, on/offboarding,

headcount and accrual reporting, sub‐tier/associate vendor

management, and recruitment services.

(9)

Vendor

‐

Neutral,

Competitive

Bidding

Managed

Service

Program



All staffing suppliers are given an equal opportunity to fill each order

without the MSP giving preference to a specific supplier.



Suppliers are selected for each order based on the same criteria as

defined by client policy.



If the managed service program is administered by a third‐party

provider, that provider often is restricted from filling its own orders or

(10)

The

Vendor

‐

Neutral

(11)

Hybrid

Program



A hybrid MSP is the blending of different sourcing model attributes to

manage a contingent workforce program. This model may differ by skill

or geography.



For example, one provider may act as the master supplier for light

industrial positions while suppliers may compete for IT positions using a

vendor‐neutral model across a number of different vendors. (Given that

a vendor‐neutral solution has the ability to cast a wide net for critical

(12)

Sourcing

Model

Traits

to

Consider

When

Designing

a

Managed

Service

Program



Rate elasticity ‐ how rates vary per requisition/order



Competitiveness ‐ number of suppliers and the distribution of

requisitions/orders



Vendor integration ‐ degree to which external resources are used to

(13)



Different sourcing models for different skills (e.g. master supplier

for clerical)



Different sourcing models for different locations (e.g. master

supplier in U.K.)



Situational flexibility (e.g. urgent bulk staffing)



Hybrid teams (e.g. third‐party managed service provider and

internal client recruiters)

Sourcing

Model

Decisions

Should

Be

Evaluated

(14)

Overview

Contingent

Workforce

Management

(CWM)

Center

of

Expertise

(COE)

(15)

15

Total Workforce Accounted For

Total Workforce Total Workforce

Employees

Staffing

Employees

Staffing

Contingent

Workforce*

CWM / S&P

Contingent

Workforce*

CWM / S&P

(16)

Issues regarding process, standards and support Independent Contractors (ICs) Independent Contractors (ICs) SOW / Professional Services SOW / Professional Services Outsourced Vendors Outsourced Vendors Staff Augmentation/ Agency Temps Staff Augmentation/ Agency Temps

(17)

Streamlined process eliminates confusion

Independent Contractors (ICs) Independent Contractors (ICs) Professional Services Professional Services Outsourced Vendors Outsourced Vendors Staff Augmentaiton/ Agency Temps Staff Augmentaiton/ Agency Temps HR-CWM COE S&P COE

(18)

Internal CWM: Pros & Cons

Pros

_Cons

•Expertise on Contingent Workforce Program •Integrated Talent Acquisition/Staffing Strategy (FTE & CW)

•Maintain Corporate Knowledge of Contingent Talent Pool

• Responsibility of developing function requires management, time and effort

• For Meeting Program Objectives

• For day-to-day Administration

(19)

Outsource (MSP): Pros & Cons

Pros

Cons

•Expertise on Contingent Workforce Program Management

• Work under a Service Level Agreement

• Loss of control of CW Resource Pool

•Added Cost (additional middle man)

(20)

Hybrid Model

Internal MSP

Staff Augmentation/Agency Temps and IC’s

External MSP

Staff Augmentation/Agency Temps

 Most of Enterprise is managed by internal CWM team

• Maintain corporate

knowledge of contingent worker pool

• Integrated Talent Acquisition strategy between CWM and Staffing team

• Integration between CWM and Sourcing & Procurement

 We utilize the external MSP

for the following reasons: • Timeliness

• Expertise on Contingent Workforce Management Program

(21)

HR – CWM HR – CWM

Enterprise Single Point of Entry System

Single Point of Entry VMS 21 Sourcing & Sourcing & Independent Contractors (ICs) Independent Contractors (ICs) Professional Services Professional Services Outsourced Vendors Outsourced Vendors Staff Augmentation/ Agency Temps Staff Augmentation/ Agency Temps

(22)

Contingent Staffing at Fiserv

Carolyn Volovsek

Manager, HR Programs

(23)

About Fiserv

• Leading provider of financial services technology solutions to financial institutions and businesses worldwide

• Best-in-class solutions in five strategic competencies

• Trusted by 14,500 clients

• Named to FORTUNE® magazine's World's Most Admired Companies list in the financial data services category

(24)

Fiserv’s Contingent Workforce Program Model

• Fully outsourced MSP and VMS Model

• Internally managed within HR Operations with support and partnership with Enterprise Strategic Sourcing

• Prior to 2012, program was a Master Vendor Model

• In 2012, renewed contract with MSP and refreshed program model and transitioned to Hybrid Program

• Master Vendor for Light Industrial locations (may differ by location) • Built in secondary and tertiary support when needed

• Vendor Neutral model for Clerical, IT/Technical, and Professional

Fully Outsourced Model Serves Fiserv Well

• Fully outsourced MSP and VMS Model

• Internally managed within HR Operations with support and partnership with Enterprise Strategic Sourcing

• Prior to 2012, program was a Master Vendor Model

• In 2012, renewed contract with MSP and refreshed program model and transitioned to Hybrid Program

(26)

Why a Hybrid Model?

• Feedback from program stakeholders • Not a one size fits all Company

(27)

Benefits of a Hybrid Model

• Increased end user satisfaction

• Light Industrial businesses get the support they need from a local supplier

• Businesses with IT/Technical and Professional needs get benefit of varied supplier base

• Businesses with Group Specific or Tiered vendor structures have ability to work with specialized suppliers

(28)

Challenges of a Hybrid Model

• For Master Vendor businesses

• Ensuring local contact within staffing agency is the right fit • Putting in place secondary and tertiary support when needed • Managing performance of primary supplier

• For Vendor Neutral businesses

• Supplier management-do we have the right mix in place? • Quarterly supplier scorecards and rationalization