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What Influences Contract Talent Usage?

A Spring 2011 Research Report from

Human Capital Institute and Beeline

Tuesday, May, 24 2011

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Presenters

■ Meghan McVeigh, Program Manager, Workforce Mgmt

Public Service Enterprise Group

■ Beth Perdue, Vice President, Strategic Solutions, Beeline

■ Bill Craib, Vice President , Human Capital Institute

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HCS Certification Course, V.3.0, 2010

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About this research

Spring 2011

134 respondents

One-on-one interviews with senior practitioners from •  healthcare • financial services • professional services

Analyzed by: Percentage of CT in the workforce How far in advance CT needs are projected If there is an EWCTP in place Company size

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Keeping it temporary

“Despite a surge this year in short-term hiring, many

American businesses are still skittish about making those

jobs permanent, raising concerns among workers and

some labor experts that temporary employees will

become a larger, more entrenched part of the work

force.” Motoko Rich, NY Times, Dec. 2010

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Use of Contract Talent increased during the recession...

■  Overall, 75% agreed that CT is used more during times of economic uncertainty.

■  A significantly higher percentage (87%) of those respondents with more than 5% of CT in their workforce agreed with this statement.

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Discussion Question: ■  Why does Contract Talent usage increase during times of

uncertainty?

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...and will have a sustained presence moving forward

■  What percentage of your current

workforce would you estimate to

be Contract Talent?

■  What percentage of your

workforce would you estimate to

be CT one year from now?

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Discussion Questions: ■  Is it inevitable that Contract Talent will continue to increase?

■  How does this impact the roles of the various stakeholders involved

in Contract Talent within organizations today?

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Why is Contract Talent being used more now?

“It is bringing in the technical skills necessary. It’s time to market – sometimes bringing in full-time staff takes longer. It’s a longer decisioning process. If you can bring somebody in quickly who can get your initiative or backlog done sooner, it’s a more agile

workforce that allows you to do more in a shorter period of time. So time-to-market is a big deal.”

Cynthia Moore, Co-founder

VMS Professionals

“It’s cheaper to hire contingent workers, but also more flexible for employers. If someone decides, ‘We need to be this size,’ it’s far

easier to do that with contract workers and temps."

Bill Kahnweiler Associate Professor

Department of Public Management and Policy Georgia State University

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Key Influences to Contract Talent usage: Flexibility to quickly expand workforce

Provides flexibility - able to quickly expand or contact our workforce Need specialized skill not available in our workforce Need experience that was not present in our workforce Want to reduce benefit, insurance and health insurance costs Want to reduce employment/payroll taxes Lower wage cost

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The rate of change and planning

■  Because of the constant change of

business, its expansion and

contraction, contract talent allows

organizations to flex.

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Key Influences to Contract Talent usage: Ability to access skills/experience not currently available in their workforce

Provides flexibility - able to quickly expand or contact our workforce Need specialized skill not available in our workforce Need experience that was not present in our workforce Want to reduce benefit, insurance and health insurance costs Want to reduce employment/payroll taxes Lower wage cost “We don’t need a full-time person long-term, so we bring in top contract labor, particularly when we have project activity, to cover those ebbs and flows of the workload. It is usually a

particular skill in regards to the IT world, it’s something you know you can find in the marketplace more easily and quickly than

trying to find an FTE.”

Sally Ballard Regence Group

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Discussion Question: ■  How do we make our Contract Talent programs better, even as they

get bigger?

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CT Management becoming centralized and standardized

“...in terms of being able to scale services like contract services across the organization, a Vendor Management System is critical to being able to do

that. There was a time here at H&R Block where things were more decentralized. VMS helps from a reporting standpoint so that we understand

what is our volume and how we can negotiate with our vendors to get the best prices.”

Kimberley McDonald, Director of Talent Acquisition

H&R Block

■  Increased use of Enterprise-Wide CT Programs and CT Tools such as Managed Service providers (MSP), Vendor Management Systems (VMS) and Independent Contractor Engagement Specialists (ICES) ■  Each of these tools improve

capabilities to effectively manage CT program and people

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Discussion Question: ■  What aspects of Contract Talent as a talent management strategy

have the biggest impact?

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Benefits of EWCTP & CT Tools Organizations with CT Tools

% Agree That CT Program has: The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again.

Organizations with CT Tools % Agree That CT Program has:

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Conclusion

■  Final thoughts from panel

■  Your questions

■  Look for more best practices and case studies on Contract Talent

from HCI and Beeline in our series, Contingent Workforce in the

21st Century, on www.hci.org

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Thank You. Further Questions?