AS 29, Provisions, Contingent Liabilities and Contingent ...
Integrating Contingent Labour into Strategic Workforce ......Changes in markets, products, services,...
Transcript of Integrating Contingent Labour into Strategic Workforce ......Changes in markets, products, services,...
© 2012 Crain Communications Inc
Integrating Contingent Labour into Strategic Workforce PlanningModerator: Barry Asin, President, Staffing Industry Analysts
Panellists:
• Mary B Young, DBA, Principal Researcher, Human Capital,The Conference Board
•Roger Clements, Commercial Director, Advantage xPO
Wednesday, 16 May | 09:45 | Nine Kings D
Concurrent Session: Advanced Practitioner Track
© 2012 Crain Communications Inc
Workforce Planning Seldom Incorporates Contingent Labour
© 2012 Crain Communications Inc
Workforce Planning Seldom Incorporates Contingent Labour
© 2012 Crain Communications Inc
Workforce Planning Seldom Incorporates Contingent Labour
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Strategic Workforce Planning:Highlights from Conference Board Research
Dr. Mary Young
Principal Researcher
The Conference Board
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Overview
Strategic Workforce Planning (SWP) in Action The Intersection of SWP and Contingent
Staffing Company examples Where Are Companies Today?
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Strategic Workforce Planning connects HR strategy and practices to business strategy to ensure the company has the right people in the right place at the right time and at the right cost.
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Business Strategy
HR Practices
SWPHR
Strategy
SWP Provides a Formal, Systematic Process for Connecting Business Strategy with HR Strategy and HR Practices
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Operational Workforce Planning
Projected Demand
- Projected SupplyGap Plan
Projected Demand
- Projected Supply--------------------------
Gap Plan
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Enhancements to Workforce Planning: Analytics
Projected Demand
- Projected Supply--------------------------
Gap Plan
FinanceEngineeringOperations Research
Workforce Analytics
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Age Profile of Workforce: Company vs. RegionCompany’s Average Retirement Age = 60.4
Key: Diamond markers indicate the average age of 3M employees by specific area.
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Enhancements to Workforce Planning: Scenarios
Projected Demand
- Projected Supply--------------------------
Gap Plan
Strategic Planning, Budgeting
Modeling Alternatives, Forecasting
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Scenario Planning at UBS (China)
Scenario A: Based on our current business plan, here’s the workforce plan that ensures we will have the talent needed to execute that plan.
Scenario B: In a bull market, how will business plan change? How would workforce plans need to change? What is the financial benchmark indicating we’ve moved from A to B?
Scenario C: In a bear market, how will our workforce plans need to change? What is the financial benchmark indicating we’ve moved from A to C?
Source: Mary Young, Strategic Workforce Planning in Global Organizations, The Conference Board, 2010
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Enhancements to Workforce Planning: Segmentation
Projected Demand
- Projected Supply--------------------------
Gap Plan
Marketing
Workforce or Role Segmentation
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Enhancements to Workforce Planning: Segmentation
Projected Demand
- Projected Supply--------------------------
Gap Plan
Marketing
Workforce or Role Segmentation
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Workforce Segmentation: Corning
TALENT SEGMENT AND VALUE
StrategicCritical to driving long-term competitive
advantage, with specialized skills or knowledge
CoreThe “Engine of the Enterprise”, unique to the company
and core to delivering on its products and/or services
RequisiteCannot do without, but whose value could be delivered
through alternative staffing strategies(other than full-time headcount)
Non-Core Talent whose skill sets no longer align with
the company’s strategic direction
Build
Protect
Streamline/ Outsource
Redirect
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at im
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Operational vs. Strategic Workforce Planning
Operational Purpose: Forecast short-term
headcount
Focus on detail & precision
Output: headcount & staffing plans
Planning period: 6 mos. – 2 yrs.
Built on one set of assumptions (single scenario)
Strategic
Purpose: Produce information & insights to support strategic business decisions
Focus: Dialogue w/ senior execs re− Business strategy − Workforce implications− ID critical roles, skills
Integrated with business and budget planning
Output: “directional” numbers
Longer planning period: 2-5 yrs.
Multiple scenarios considered
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Why Operational Workforce Planning Isn’t Enough
Uncertainty about the future 3-5 years from now Talent scarcity necessitates longer term strategy Changes in markets, products, services, technology, etc.
create different talent demand (skills, knowledge, locations, jobs, numbers, etc.)
Organizations that can respond rapidly and effectively to change have a competitive advantage over others. Assess risks, opportunities, costs
Optimize their use of talent
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Business Strategy
HR Practices
SWP
HR Strategy
As SWP gains credibility and matures, it can become an input to Business Strategy, as well as an integrating process that drives HR Strategy and HR Practices
SWP
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The Pay-Off from SWP? Company Can…
Evaluate business scenarios based on more robust models Manage human capital risk Drive business results Prioritize human capital investments Leverage talent across lines of business and geographies Make smarter decisions to buy, build, borrow, or redeploy talent
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The Intersection of SWP and Contingent Labor Strategies
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By Linking SWP and Contingent Staffing Strategies, Companies Can…
Weigh the trade-off between short-term cost and longer-term capability requirements
Capture total labor costs Manage contingent workforce as a visible component of their
workforce strategy, talent scenarios, etc. Develop a governance process and decision tools to help leaders
make optimal labor choices in the face of uncertainties
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Company Examples
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Staffing Industry Analysts Contingent Workforce Action Matrix
Source: Staffing Industry Analysts, www.staffingindustry.com
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Global Company’s Decision Tool: To Own or Rent Talent?
What is the duration of the work?
• Needed on an ongoing basis• Needed for a defined duration
What is the type of work? • Drives a strategic competitive advantage• Unique to the company, requires special
or hard-to-find skills or knowledge • Essential but could be delivered through
alternative resource types
Is the knowledge/experience gained from the work
• Critical to retain• Unique and/or critical to retain
Are the transition costs(turnover, training, etc.) acceptable to the business?
• Significant and not acceptable to the business
• Minimal and acceptable to the business
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Rio Tinto’s Contingent Workforce Risk• Safety of record of contractors versus regular employees• Contractor spend fragmentation (rate variation)
0.0
0.5
1.0
1.5
2.0
2.5
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4.0
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Rio Tinto Managed Operations 12 Month Rolling All Injury Frequency Rate for Employees and Contractors from Jan 02 to Jun 09
Total Rolling AIFR Contractor Rolling AIFR Employee Rolling AIFR
% of Spend % of Vendors # of Vendors
100% 100% 7500 +
95% 22% 1800 +
90% 13% 1100 +
85% 9% 750 +
80% 7% 550 +
Spend Fragmentation
• Fragmentation of US services spend with 7500 + active vendors in the last 12 months across Rio Tinto
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Where Are Companies Today?
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The Conference Board’s SWP Maturity Model
Dimension Early Middle Mature
Reach Pilot project(s) Enterprise wide Key supply chain partners
Planning Period 12-18 mos. 2-3 years 3-5 years+
Who Drives? HR BUs w/ HR support Senior execs
Scope All or critical jobs Selective focus on critical jobs/skills
Internal talent plus some external (contingent workers)
Prerequisites Critical businessissue that SWP can address
Integration w/ business planning, strategyCommon taxonomy of jobs/skills
Data and metrics re suppliers
Inputs Workforce data Business strategyPerformance dataExternal data
Data re external stakeholders (suppliers, contractors, JVs ,etc.)
Outputs & Outcomes
Workforce analytics, forecasts, action plans
Alternative scenarios Mid-cycle report of plan vs. actuals
Input to business strategy & planning
Communication Push: HR/SWP deliverreports to business
Pull: BUs can generate own reports, models, scenarios
Employee access to selected areas?
Source: Implementing Strategic Workforce Planning (2009), 19-25
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SWP Resources from The Conference Board
Publications Strategic Workforce Planning across National Borders (June 2012) Where Do SWP Leaders Come From? (2012) Strategic Workforce Planning from Micro to Macro (2011) Broadening the Base for SWP: The Value of Cross-Functional Partnerships (2011) Engaging Business Leaders in SWP: A Guide to Effective Conversations (2011) Strategic Workforce Planning Leaders’ Bookshelf (2011) Human Capital in Review: Focus on SWO (2011+) Strategic Workforce Planning Quarterly (2009 – 2011) Managing Human Capital Risk (2011) Strategic Workforce Planning in Global Organizations (2009) Implementing Strategic Workforce Planning (2009) Gray Skies, Silver Linings: How Companies Are Forecasting, Managing and Recruiting the
Mature Workforce (2007) Strategic Workforce Planning: Forecasting Human Capital Needs to Execute Business
Strategy (2006)
Councils European Council on Strategic Workforce Planning US Council on Strategic Workforce Planning
http://www.conference-board.org/topics/subtopics.cfm?topicid=40&subtopicid=150
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Strategic Workforce Planning AcademyThe Conference Board Strategic Workforce Planning Academy helps participants develop practitioner-identified competencies and refine their SWP efforts, aided by peers and seasoned strategic workforce planning leaders.
Size Up to 18 participants
Meetings 2 in-person meetings in Brussels: June 28-29; Sept. 13-14 3 interactive webcasts on member-selected topics
Expert Resources From The Conference Board:• Stacy Chapman, Program Director and Senior Fellow• Dr. Mary Young, Principal Researcher, Human Capital
Leading SWP Practitioners:• James Gallman, GE• Angela Sheffield, Applied Materials• Thorsten Dietz, Allianz• Dave Sutherland, CH2M HILL• Theresa Brett, UNC Health Systems
Peer Learning Collaborative knowledge-sharing among participating companies
Learning Coaches SWP experts serve as one-on-one coaches and mentors to participants
Certificate SWP Academy certificate from The Conference Board
For information: http://www.conference-board.org/subsites/index.cfm?id=10185
A division of Advantage Resourcing | www.advantagexpo.comConfidential & Proprietary. Not for distribution.
Advantage xPOSTRATEGIC WORKFORCE PLANNINGA Service Providers Perspective
A division of Advantage Resourcing | www.advantagexpo.comConfidential & Proprietary. Not for distribution.
Advantage xPO: Perspective ContextAdvantage xPO: Perspective Context
The Role of the Service Provider in Strategic Workforce PlanningThe Role of the Service Provider in Strategic Workforce Planning
Successful Application of Effective Workforce PlanningSuccessful Application of Effective Workforce Planning
OVERVIEW
A division of Advantage Resourcing | www.advantagexpo.comConfidential & Proprietary. Not for distribution.
ADVANTAGE xPO
Recruitment Process
OutsourcingFull cycle RPO
Partial cycle RPOProject Based or
Volume Hires
Contingent Workforce ManagementSupplier ManagementContractor ComplianceManaged Service Programme
Strategic Workforce
Management
Talent Acquisition & Management Solutions
Staffing Industry Leader• $7 billion+ Revenue • > 40 Years of Experience• 3,000+ Clients
Part of Recruit Co. The 4th largest Staffing, Recruitment Process
Outsourcing and Managed Service Company in the World
Global Footprint• 200+ US Offices• 20+ Offices in EMEA• 100+ Offices in APAC
Advantage xPO is a recognised ‘global’ market leader in the design, implementation and operational delivery of strategicstaffing solutions and workforce management programmes. Through our work we pioneer leading edge approaches tocontingent workforce management via managed service programmes (MSP) and deliver measurable process and outputimprovements in the delivery of recruitment process outsourcing (RPO).
A division of Advantage Resourcing | www.advantagexpo.comConfidential & Proprietary. Not for distribution.
DEVELOPING THE HUMAN CAPITAL PLAN
Organisational Profile
Workforce Scenarios
Current Workforce DNA
GAP AnalysisKey Issues
Internal ExternalHuman Capital
Action Plan
Sector Developments / Labour Market Developments / Competitor Activity
STRATEG
IC B
USIN
ESS AG
END
A
Organisations taking a strategic approach to workforce planning tend to follow a structured processrequiring an appreciation and input from both internal and external factors.
ORGANISATIONAL CHALLENGE
Working in partnership with HR and Commercial functions to provide planning and execution supportand to implement and manage target levels of ‘workforce balance’.Key question: ”where in this cycle can service providers provide benefit”?
THE ROLE OF THE SERVICE PROVIDER
A division of Advantage Resourcing | www.advantagexpo.comConfidential & Proprietary. Not for distribution.
DEVELOPING THE PLAN: PARTNERSHIP WORKING
Organisational Profile
Workforce Scenarios
Current Workforce DNA
GAP AnalysisKey Issues
Internal ExternalHuman Capital
Action Plan
Sector Developments / Labour Market Developments / Competitor Activity
STRATEG
IC B
USIN
ESS AG
END
A
- Market Intelligence- Employer Brand Proposition Feedback
- Benchmarking- Projected Resource Availability
SERVICE PROVIDER
A division of Advantage Resourcing | www.advantagexpo.comConfidential & Proprietary. Not for distribution.
DEVELOPING THE PLAN: PARTNERSHIP WORKING
Organisational Profile
Workforce Scenarios
Current Workforce DNA
GAP AnalysisKey Issues
Internal ExternalHuman Capital
Action Plan
Sector Developments / Labour Market Developments / Competitor Activity
STRATEG
IC B
USIN
ESS AG
END
A
SERVICE PROVIDER- Scenario Modelling- Contingency Planning
A division of Advantage Resourcing | www.advantagexpo.comConfidential & Proprietary. Not for distribution.
DEVELOPING THE PLAN: PARTNERSHIP WORKING
Organisational Profile
Workforce Scenarios
Current Workforce DNA
GAP AnalysisKey Issues
Internal ExternalHuman Capital
Action Plan
Sector Developments / Labour Market Developments / Competitor Activity
STRATEG
IC B
USIN
ESS AG
END
A
SERVICE PROVIDER- External Resource Planning-Skills Transfer Mechanisms- Business Unit /Dep’t Skills Analysis- Capability Benchmarking
A division of Advantage Resourcing | www.advantagexpo.comConfidential & Proprietary. Not for distribution.
DEVELOPING THE PLAN: PARTNERSHIP WORKING
Organisational Profile
Workforce Scenarios
Current Workforce DNA
GAP AnalysisKey Issues
Internal ExternalHuman Capital
Action Plan
Sector Developments / Labour Market Developments / Competitor Activity
STRATEG
IC B
USIN
ESS AG
END
A
SERVICE PROVIDER- Resource Availability- Compensation Policies- Employer Brand Challenges- Geographic / Regional Issues
A division of Advantage Resourcing | www.advantagexpo.comConfidential & Proprietary. Not for distribution.
DEVELOPING THE PLAN: PARTNERSHIP WORKING
Organisational Profile
Workforce Scenarios
Current Workforce DNA
GAP AnalysisKey Issues
Internal ExternalHuman Capital
Action Plan
Sector Developments / Labour Market Developments / Competitor Activity
STRATEG
IC B
USIN
ESS AG
END
A
SERVICE PROVIDER- Strategic approach to workforce planning- Setting & management of optimum workforce balance- External Talent Attraction Campaigns- Development of talent pools / communities
A division of Advantage Resourcing | www.advantagexpo.comConfidential & Proprietary. Not for distribution.
ORGANISATION EXAMPLESLeading UK Retail Financial Services Provider
Operate as a partner for planning near term and longterm contingent resource. Focus on achieving flexibilityand dynamic workforce.Regular Seasonal Peaks of resource planned to meetbusiness cycle
Leading UK Retail Financial Services Provider
Managed Service partner delivering solution forcontingent workforce across EMEA and Asia Pacificregion.Project driven operating environment requiring strategicand tactical resource planning
Leading UK Retail Financial Services Provider
Managed Service partner delivering solution forcontingent workforce across EMEA region.
Project driven operating environment requiring strategicand tactical resource planning
© 2012 Crain Communications Inc
Integrating Contingent Labour into Strategic Workforce Planning
Moderator: Barry Asin, President, Staffing Industry Analysts
Panellists:
• Mary B Young, DBA, Principal Researcher, Human Capital,The Conference Board
•Roger Clements, Commercial Director, Advantage xPO
Wednesday, 16 May | 09:45 | Nine Kings D
Concurrent Session: Advanced Practitioner Track