SAPPHIRE 2009 Bill Yoh Yoh, CEO and President Trends in the Workforce – Decentralization Prohibits...

SAPPHIRE 2009

Bill YohYoh, CEO and President

Trends in the Workforce – Decentralization Prohibits Agile Decision Making

• Enabling Technologies– Leveraging HCM and SAP Workforce Strategies

• 2009 Workforce Trends Study: Reality of Total Workforce Control

• Responding:– Analysis of Benchmark Data– Comprehensive Control

Agenda

SAPPHIRE Booth # 314

Day and Zimmermann’s Commitment

to Workforce Strategies

Peter Cappelli

“Decentralized processes defeat the natural advantages of talent development…”~ Peter Cappelli*

“Decentralized processes defeat the natural advantages of talent development…”~ Peter Cappelli*

HCM Involvement

360-Degree View of SAP Vice Chairman

Anthony BoscoCIO, Day & Zimmermann• ASUG Member since 1999• ASUG Board Member since 2007• Day & Zimmermann associate for 30 years


Day & Zimmermann Milestones –

SAP ERP HCMAPRIL 2000: Implemented SAP R/3 v4.0(b)• One Central Instance - Complex implementation

− SAP R/3 components - FI/CO, MM, PS, SD, PA/PD, PM, Employee Self-Service, CATS

− Unique functional requirements (i.e., actual/actual, craft union payroll)

Upg

rade

d to

SAP

R/3

4.6

(c) &

m

ySAP

Bus

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ite:

- EP,

HCM

, and

Yoh

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d, 1

00%

SAP

Bas

ed

Timeline

2003 2004 2006 2007 2007 2008 2009

April

200

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in A

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ard

for Y

oh

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ange

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ith

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Day & Zimmermann LeveragesBest Practices from Value

Engineering


2009 Workforce Trends Study: Reality of Total Workforce Control

2009 Workforce Trends Study

100049%

Study RespondentsDiverse Industries

49% of our respondents are associates at Fortune 1000 firms

EducationEngineering and ConstructionHealth and Life SciencesManufacturingMedia and EntertainmentRetailServicesTechnologyTelecomTransportationUtilities

Thought Leaders


Workforce Breakdown

The average proportion of a given company’s total workforce that iscontingent is approximately 12% - with the usage range peaking as high as20%.• Between 70 and 80% of U.S. companies use some type of contingent labor,

including part-time workers• From 1995 to 2007, contingent labor in the U.S. grew approximately 149%, a

compound annual rate of 7.9%


Cost Concerns#1

concern 84% of

respondents

#1 concern

84% of respondents

Perceived Control65%

Believe they are in

control

65%Believe

they are in control

Actual Control

20%Reported control

20%Reported control

Realities of Total Workforce Control


Critical to overall workforce management


Factors Influencing Workforce Composition

Key Finding Recession: an increased impact of external factors on strategic workforce planning

Economy & Budget

Business Unit Needs 70.5%

HR Workforce Plan 11.6%

Top ConcernsEconomic conditions and budget restrictions selected as top concerns in workforce planning with a 83.7% frequency

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

83.7%


Increased Cost Controls Deliver Value

84.1%

14%

1.9%

Significant to Moderate Impact

Negligible

Insignificant

84% of all respondents noted that an increase in the ability to control and analyze cost across all categories of the workforce would have a measurable, positive financial impact to the firm.

Measurable Value

Key Finding Control = Operational and Cost Efficiency


Fu

ll-T

ime

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ject

Wo

rk

1099

s

0%

10%

20%

30%

40%

50%

60%

Full-Time Consultants Temp Labor Pro Temp Labor Project Work 1099s

Fu

ll-T

ime

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ject

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rk

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0%

10%

20%

30%

40%

50%

60%


Budget constraint impact on workforce

Key Finding Entire workforce will continue to contract

Percentage of respondents that expect a decrease in following categories of the workforce due to budget restrictions

Overall Workforce Reduction


Current Perceived Level of Control


Responding firms believe they are adequately monitoring overall talent planning and exercising cost control: Nearly 89% report at least some measure of control and 65% report complete or significant planning and control.

Self-Evaluation of Current Level of Comprehensive Workforce Control

Perceived Control

Key Finding

Belief that everything is controlled42.0%

23.4%

5.6%5.6%

Significant

Partial

Limited

Negligible

89%

23.4%Complete


Perceived Control

63% of firms report that an established strategic workforce plan is currently in use.

Confirmation of Confidence

Strategic Workforce Plan in

Place

No Strategic Workforce Plan

in Place 63%

37% Key Finding

Comprehensive workforce strategies are believed to exist


Perceived Control

82.2% of participating firms are at least moderately satisfied with the current execution of their strategic workforce plan.

Satisfaction…or Complacence?

18.7%

36.4%27.1%

15.9%

1.9%

Greatly Satisfied

Moderately Satisfied

Satisfied

Moderately Dissatisfied

Greatly Dissatisfied

82.2%

Key Finding

Firms: Our Workforce Plan is in place and working well


Perceived Control

Percentage Distribution of Each Workforce Category

Planning Effort

Desired Level of

Effort

10.0% 30.0% 50.0% 70.0%

Annual Expenditures

Firms report that the distribution of overall annual expense and effort, when considered by workforce category, is appropriately aligned with overall expectations.

Evaluation of Current Workforce Infrastructure

Key Finding

Satisfaction of workforce control proportional to resources directed towards each segment

Workforce CategoriesFull-TimeContractorsProfessional TempConsultantsProject WorkTemp

Actual Level of Control


Actual State

While many firms discretely categorize their complete workforce, more than 49% report remedial workforce categorization or no segmentation at all.

Current Status of Overall Segmentation

Key Finding

Significant lack of segmentation among workforce categories

No Defined Categories

Full-Time / Part-Time

Multiple segments and classifications

50.9%

20.3%

28.8%

49.1%


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Business Unit / HiringManager

HR Procurement

Actual State

The business unit and corresponding hiring managers own up to 82% of the responsibility for workforce, hiring and annual expenditures.

Reality of Workforce Control by Employment Segment

Key Finding

Business units & Corresponding Hiring Managers have significant autonomy



Actual State

0.00%

25.00%

50.00%

75.00%

100.00%

InternallyManaged

ExternallyManaged

DefinedPolicies

ROI Measurable

QualityMeasureable

RiskMitigation

HiringMetrics

Outside of the full-time workforce, less than 43% of respondents report any existing methods in place to manage expense, monitor quality, mitigate risk, or measure overall investment performance.

No Established Methods in Place Beyond Full-Time Workforce



Key Finding

Poor visibility into overall investment of total labor pool

Actual State

10.1%

29.4%60.5%

CompleteControl

SignificantControlLimited to

No Control

Over 60% of respondents report limited or absolutely no control over workforce expenditures outside of the full-time employee segment.

Startling Lack of Control Beyond the Full-Time Workforce


Responding: Comprehensive Control

feedbacksource

screen

co-employment

interview

new req

candidate reviewfeedback

interview

new req

candidate review

feedback

source

screen

interview$

feedback

Current Talent Acquisition Environment

in Many Organizations

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0%

10%

20%

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40%

50%

60%


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20%

30%

40%

50%

60%


• Hiring Manager lacks insight into and control over workforce planning in decentralized environment

• Workforce reductions occur in most costly segments with higher frequency

• Business Units have the most autonomy over those segments

Integrated Talent Delivery

?



Best Practice Listing• Hiring Managers have comprehensive

recruiting self-service, including job requirement profiles for approval; approval workflows; view candidate short lists and profile and application data; and respond to questionnaires.

• Recruiting system delivers a broad range of reports and analyses specifically designed to measure the effectiveness of the recruiting process, including time-to-hire, acceptance rate and source effectiveness.

• Recruiting system complies with country legal requirements for applicant data administration.

HCM: Recruiting and Staffing

• Deployed: 45 days to 5 major locations and 30 remote locations in 2 countries

• On-boarded: 560 workers

• Control: over 24 Key Talent Suppliers

• Consolidation: collapsed entire North American spend into single process

• Cost Savings: $1.4M per year (annualized)

• Disruption to Business: None

• Metrics: Rank in the fastest quartile of firms in submittal to hire (3.97 days)

“Yoh Talent Solution’s implementation process within our organization was a non-event and greatly exceeded

expectations. We truly could not have asked for a better experience.”

Mark SteinkeVP of Recruitment, HR Operations

SAP

Process Enabled by Yoh Exchange Technology

Candidate Selection

Fulfillment & Supply Chain

Timesheets Approval Workflow

Candidate Screening Submittals

Talent RequestSAP Interactive Forms Software by Adobe

SAP Supplier Relationship ManagementSAP NetWeaver PortalSAP NetWeaver Business WarehouseSAP ERP


Enterprise Leverage and Value Creation

Hard Dollar Savings

Average supply chain cost savings of up to 15% (based on customer volume)

Impact on Key Customer Areas:

SPEED Average time-to-fill ratio reduced by 15%–20%

QUALITY A talent pool that exceeds the skill expectations of hiring managers more than 93% of the time

At one customer, over 500 Yoh consultants have transitioned over into full-time employment

PROCESS Time spent dealing with contingent labor invoices and suppliers reduced by 50%


Summary of Findings

Cost Concerns

Actual Control

Perceived Control

Global Recession•Continued impact on

workforce strategies•Continued contraction

across all workforce segments

•Costly workforce categories will contract at a slower rate

Is Perception Reality?•Do workforce plans reflect

climate?•Is execution over

workforce strategies measureable?

•Is effort to manage workforce properly aligned?

Adjust & Transform•Analysis of labor

segmentation •Empowering

autonomous influencers •Establish realistic

performance metrics


Learn More

• To learn more about today’s presentation:– Contact:

• Email: [email protected]• Don Hanson (President of Yoh Talent Solutions) at [email protected]

• Visit Yoh Talent Solutions at Booth #314:– Receive an Express Value Assessment tailored to your organization that will

uncover potential workforce cost savings – less than 5 minutes to complete– Also, stop by and you could win a Kindle 2!

Realize the same impressive benefits that some of our customers have received through Yoh Talent Solutions and the Yoh Exchange:• $7M in cost savings for one organization• Saved $3 million in soft costs• 5% cost savings realized within first year of program• Improved time approval by 48% and cut manual transactions from 5% to 0.2%

Visit us @ Booth

# 314

See a live demo of the Yoh Exchange at our Booth!

mailto:[email protected]

mailto:[email protected]

SAPPHIRE 2009 Bill Yoh Yoh, CEO and President Trends in the Workforce – Decentralization Prohibits...

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