8/13/2015 Themodeldilemma:Howshouldyoumanageyourprogram?

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CWS3.0:August5,2015

Themodeldilemma:Howshouldyoumanageyourprogram?

August5,2015

Whendevelopingacontingentworkforceprogramorreevaluatingyourcurrentprogram,oneofthefirstdecisionsyouwillneedtomakeiswhethertomanageyourCWprograminternallyorengagetheservicesofamanagedserviceprovider(MSP)insomecapacity.Therearemanyevolvingmodelstobeconsidered.Thistwopartseriesdiscussesseveraloptionsforsupportmodelsaswellashowindustryleadersdeterminetheappropriatemodelfortheircompanies.

Herearethevariousmanagementoptionsthesearticleswillcover:

InternallymanagedCWprogramInsourcedprogrammanagementoffice(PMO)InsourcedPMOwithtacticalservicesfromaMSP

OutsourcedCWprogramVendorneutralMSPMastersupplier/vendorHybridprogram

8/13/2015 Themodeldilemma:Howshouldyoumanageyourprogram?

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AlternatemodelsStrategicpartnerCWprogram:Totaltalentacquisitionmanagement

First,letsreviewwhatacontingentworkforceprogramisanddoes.

ACWmanagementprogramisthecoordinatedmanagementofacompanyscontingentworkforceandassociatedsuppliersforthebettermentofthecompanysoperationsacrossfourkeydimensions:Quality,Efficiency,CostandRisk.Theprogramcanbeadministeredbyeitherthecompanysemployeesorbeoutsourcedtoathirdpartyprovider,referredtoasanMSP.TheprimaryresponsibilitiesofaCWprogramare:

Requisition,evaluationandselection(recruitment)processOversightofalloperationalprocesses(i.e.,onboarding,timekeeping,invoicemanagement,changemanagement,offboarding)Oversightofstaffingsupplierratecompetitivenessandcompliancewithclientrateranges(ifapplicable)Consolidatedinvoicing&paymenttostaffingsuppliersIssuemanagementandresolutionSupplierperformanceandcompliancemanagementPolicyenforcementWorkerqualitymanagementProgramreporting&planningOngoingendusertraining(bothsuppliersandinternalusers)

Internalprogrammanagementmodels

AclientledPMOtakesonprimaryresponsibilityformanaginganInsourcedprogrammanagementoffice(PMO)

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organizationsprogram.ThePMOiswithintheclientspremisesandistypicallymanagedbythepurchasing/globalsourcingorHRorganization.Theclientbuildsaninternalteamtohandlealloftheprogramresponsibilities.

AllstaffingsuppliersaregivenanequalopportunitytofillcontingentjobrequisitionswithouttheconcernofanMSPassociatedwithastaffingfirmhavingvisibilitytotheircandidates.TheCWprogramisinherentlyvendorneutralandcanmanagemultiplesuppliersforcompetitivebiddingandalsoincorporatemastersuppliersforspecificlaborcategories.

PROS CONS

PMOisfamiliarwithcompanycultureEnhancedcompanydataprivacyandconfidentialityReuseofexistingHR/procurementworkforcemanagementskillsandexpertiseGreaterflexibilitywithprogramscopeofservice,keyperformanceindicators(KPIs)andservicelevelagreements(SLAs)Abletomaintaindirectownershipofsupplybaseforcontingenttalent.Higherlevelsofengagementwithseniorstakeholders.

LessaccesstoindustryleadingpracticesthananexternalMSPLackofmarketknowledge:Countryrequirements,marketrates,contingentworkforcelegalissuesandbestpracticesLackofaccesstoMSPprojectteams,suchassuppliermanagement,reportingandscorecarding,Implementations,andallbackendaccountingfunctions.LackofexperiencewithVMS.PotentiallylimitedVMSimplementationexperience

8/13/2015 Themodeldilemma:Howshouldyoumanageyourprogram?

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BetterintegrationopportunitiesfortechnologyInternalresourceshaveaccesstobothclientandVMSsystemsBetteropportunitiestocreateastrategicinhousesolutionactingasacompetitiveadvantageDirectcontrolofprogramservicesandinitiatives

NotasmuchleveragewiththeVMSCostforclientrunprogram,includingglobalcosts.Abilitytohaveresourcesinallneededgloballocations.Challengetoflexprogramresourceneedswithvolumechanges.

ThisiswhenaclientrunPMOmanagesstrategicinitiativesofCWprogramandoutsourcesthetacticalservicessuchas:requisitionmanagement,onboarding,offboarding,reporting,invoicecreationandreconciliation,andassignmentmanagementtoathirdpartyMSP.

InsourcedPMOwithtacticalservicesfromanMSP

ClientisincontrolofstrategybutdoesntneedtocarryoverheadfortacticalortransactionalworkLessinternaloverheadisutilizedthananinsourcedPMOMaintaindirectrelationshipswithsuppliers

PROS CONS

ReuseofexistingHR/procurementworkforcemanagementskillsandexpertiseAbletomaintaindirectownershipofsupplybase

LackofvisibilitytomultipleprogramsandsolutionsthatclientsareusinginthemarketplaceLackofmarketknowledge:Countryrequirements,

8/13/2015 Themodeldilemma:Howshouldyoumanageyourprogram?

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forcontingenttalentOpportunitytocreatestrongerworkingrelationshipsbetweenprocurementandHR.Higherlevelsofengagementwithseniorstakeholders

marketrates,contingentworkforcelegalissuesandbestpractices.BuildinternalteamforstrategyAdditionallayersandnosinglevoiceofprogramCostconsiderationsfromprogramresourcing

OutsourcedCWprogrammodels

AnoutsourcedMSPtakesonprimaryresponsibilityformanaginganorganizationsCWprogram.TheMSPmayhaveaphysicalpresenceontheclientssite.AnMSPmayormaynotbeindependentofastaffingsupplier.IftheMSPoperatesindependentlyfromitsorganizationsstaffingarmanddoesnotsourcecandidatesfortheprogram,itisreferredtoasvendorneutral.Keypointsofthismodelare:

VendorNeutralMSP

Incorporatingmultiplesourcechannels,notjustthestaffingsuppliers,intosourcingstrategiesfortheprogram.AllstaffingsuppliersaregivenanequalopportunitytofilleachorderwithouttheMSPgivingpreferencetoaspecificsupplier.Suppliersorsourcingchannelisselectedforeachorderbasedoncriteriaasdefinedbyclientpolicy.TheMSPisrestrictedfromdecidingwhichordersareroutedtoanysupplier.

PROS CONS

8/13/2015 Themodeldilemma:Howshouldyoumanageyourprogram?

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IncorporatingsocialmediarecruitingandFreelancemanagementsystems(FMS)intothemanagementmodelCreateshighlycompetitiveprogramdynamic,generallyresultinginlowerratesandbettersupplierperformanceintheaggregate.CompetitivebiddinghelpsensuremarketratesSimplifiedbillingtocustomerGreaterchecksandbalancesDesignedtoestablishtrustingrelationshipswithsuppliersthroughagenuinesenseoffairness

Toomuchfocusonneutralitymayresultinqualityissues(ifprovidersareunabletodevelopanunderstandingofclientrequirements/culture)RelianceonaVMStorealizeasignificantbenefitfromcompetitivebiddingPotentialfortoomuchcompetitionperreq.(>5suppliers)withsupplierslessinclinedtocompeteSupplierfeeisoftenhigherinneutralmodelNeutralityoftenlessusefulinlightindustrialandotherhighvolumelowskilledoptions

Astaffingsupplierthattakesoverallresponsibilityforprovidingclientswithtemporarystaff.Inamastersupplierrelationship,typicallyallorderswillgofirsttothemastersuppliertoeitherbefilledordistributedtosecondarysuppliers.FormastersupplierMSPsolutions,notonlywillthesupplierprovideasignificantportionofthetemporarystaff,butalsomanageanorganizationsCWprogram.Keypointsofthemodelare:

Mastersupplier/vendor

Amastersupplierassumesoverallresponsibilityforprovidingaclientwithtemporaryworkers.

8/13/2015 Themodeldilemma:Howshouldyoumanageyourprogram?

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Allrequisitions/ordersgofirsttothemastersuppliertoeitherbefilled,ordistributedtosubcontractsuppliers.Scopeofservicetypicallyincludesprogramoffice,onsite(vendoronpremise)

PROS CONS

AccountabilityfromasinglesupplierHighlypredictablecost,enablingbudgetforecastingAbletoleveragevolumeforlowermarkupratesStabilizingmarkupratesenablesfocusonvariationofpayrateSimplifiedbillingProfitmarginscanaffordaccesstoadditionalservicesandsystemsatlowtonoadditionalcosttoclientVestedinterestinmutualsuccessSolidunderstandingofrecruitingrequirements

LackofcompetitionGapsinskillsandgeographiccoveragemaynegativelyimpactqualityandefficiencyLimitedvisibilityinsubcontractingrelationshipsmayincreaseratesandriskIncreasedriskassociatedwithsinglesupplierBadexperiencesormisconceptionsaboutthesupplierbyenduserarehardtoovercome

ACWprogrammanagementstrategythatinvolvesblendingthevendorneutralandmastersuppliersourcingmodels.Forexample,abuyermightengageasingleprovidertoactasthesolesupplierforitslightindustrialandclerical/administrativejobrequisitionswhilehavingmultipleprovidersbidcompetitivelyonITpositions.

Hybridprogram

8/13/2015 Themodeldilemma:Howshouldyoumanageyourprogram?

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AhybridMSPistheblendingofdifferentsourcingmodelattributestomanageacontingentworkforceprogram.Thismodelmaydifferbyskillorgeography.

Typically,ahybridprogramincludeselementsofavendorneutralandamastersupplierprogram.

PROS CONS

BetterMSPand/orstaffingpricingstaffingmarginsenableadditionalsoftware&servicesatlowtonocostCompetitivebiddingreflectsmarketratesElementsofneutralityreducedependencyonasinglestaffingsupplier,whileelementsofamastersupplierprogramallowsuppliertodevelopathoroughunderstandingofrequirementsHybridprogramsaregettingincreasingsupportfromVMSSimplifiedbillingCanencapsulatebestofbreeddesignelementsOftenamoreeffectiveglobalmodel,takingintoaccountregionalvariationsinlawsandculture

Thedistinctnatureofthedifferentservices(recruitingandmanagedservices)maynecessitateteamsfromdifferentdivisionswithinagivensupplierorganization,addingcomplexityThedrawofrecruitingandstaffingmarginscandistractfromothermanagedserviceprogramresourcesorresponsibilitiesSkepticismfromothersuppliersastoelementsofneutralityWithoutamatureprocess,competitivebiddingscenarioscanbechallenging

8/13/2015 Themodeldilemma:Howshouldyoumanageyourprogram?

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Nextweek,Illfocusonthealternativemodelsstrategicpartner(centerofexpertiseCoE)CWprogramsandtotaltalentacquisitionmanagementaswellassharesomeopinionsfromindustryleadersonhowtheyhaveapproachedmakingthisdecision.

MariaGoyerisaseniorassociatewithBrightfieldStrategies,whichconsultswithFortune500companiesoncontingentworkforcestrategyinitiatives.