contingent workforce policies that stick€¦ · wednesday 14 december 2016 15:00 gmt time (london,...

Contingent Workforce Policies That Stick

©2016 by Crain Communications Inc. All rights reserved.

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Presented by your Staffing Industry Analysts CWM Team

Bryan Pena CCWP, SVP, Contingent Workforce Strategies Peter Reagan, CCWP, Director, CWS and Research (EMEA, APAC & LATAM)Dawn McCartney, CCWP, Director, CWS and ResearchStephen Clancy, CCWP, Director, CWS, Knowledge & Research

Wednesday 14 December 201615:00 GMT Time (London, GMT)

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• Our members comprise many of the largest regional, U.S. and global staffing firms in addition to representatives from all parts of the workforce industry.

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Today’s speakers…

Bryan Peňa, CCWPSVP, Contingent Workforce Strategies

Stephen Clancy, CCWPDirector, CWS Knowledge & Research

Dawn McCartney, CCWPDirector , CWS and Research

Peter Reagan, CCWPDirector, CWS and Research (EMEA, APAC & LATAM)


Questions


ELEMENTS OF A SUCCESSFUL POLICY

RISKRisks in CW are very real….


Methodology

• Risk Management Framework

– Four-step process.

• Risk Assessment Matrix

– Assessing impact and probability of risk occurring; and

– Determining strategies in response to risks.

• Risk Readiness Assessment Tool

– Template form to record process steps; data; and actions.


Definitions: Worker Classification

• Statement of Work (SOW) consultant: A consultant who

performs work under a legal agreement that captures the work activities and deliverables to be supplied.

• Independent contractors: A self-employed individual performing services

for a company under contract.

• Leased employees: Individual workers assigned to clients by an

organisation that employs them or assumes responsibility as an employer for the length of the assignment.

• Temporary Agency Worker: An individual engaged by a staffing company

and supplied to work for an organisation with the expectation that the work will be for a short or fixed period.


Risk Categories

• Strategic

• Operations

• Compliance/Legal

• Reporting

• Safeguarding resources

• Personal


Global Legal Risks

Tax liability

Employee benefits

Employment rights: holiday, overtime, leave

Discrimination

Health and safety

Workers compensation

Data protection

Licensing & regulation

Immigration

Bribery and corruption

Intellectual property rights


Data Privacy and Cross-Border Transfers

EU-US Privacy Shield

EU General Data Protection Regulation 2018

Russian Data Localisation Law 2015

Japan Amendment to the Protection on Personal Information Act 2015

Canada Digital Privacy Act 2015

Turkey Law on Data Protection 2016

China Draft Cybersecurity Law


EU-U.S. Privacy Shield

From Aug.1, 2016 U.S. organizations to register with DoCand be subject to investigatory and enforcement powers of FTC and DoT or other statutory body

Self-certify annually commitment to the Privacy Principles:

– Notice

– Choice

– Data Integrity and Purpose Limitation

– Accountability for onward transfer

– Recourse, enforcement and liability

‒ Access

‒ Security


EU General Data Protection Regulation 2018


Policy


Policy Defined:

A high-level overall plan embracing the general goals and acceptable procedures


What is the problem with most polices?

• Poor compliance

• Lack of scope clarity

• Poor value proposition

• Organizational dissonance– Overreach

• Lack of incentives– Value proposition

• Inflexibility

• Too much flexibility

• Business Purpose!


Mandates are nice but…….


Beyond Compliance


Beyond Compliance

Policy Confidence


What is Policy Confidence?

A determination of the sustainability and probability of success of a the key policy value to the organization.


Elements of Policy Confidence

• Problem Identification

– What is the problem and why is it a problem?

• Problem solution

– Can it be solved and addressed in a business appropriate manner?

• Solution Empowerment

– Are you empowered to implement these changes and address the inevitable program friction? If not who would be?

• Solution Sustainability

– Will your organization digest the policy and play by the rules?

• Solution Worth?

– Is the solution worth the effort and political capital?


WHAT IS IT ALL ABOUT?

©2016 by Crain Communications Inc. All rights reserved.

A

You want to be hereYou are here

A B

PLAN OF ATTACK


The Contingent Workforce Optimization Roadmap


Designing an Effective Contingent Workforce Program Improvement/Change

• Understand the best approach to implement the improvement/change – not a one size fits all

• Identify the ROI drivers associated with the change

• Provide As-Is State (without change)

• Provide Desired State (post change)

• Build a strong business case to support the change


QECR FRAMEWORK – KEY AREAS TO FOCUS CHANGE AROUND


Metrics to consider/review• Quality

– Talent

• Percentage of assignments that engagement managers would rehire the contingent worker as a contingent worker if able

• Percentage of assignments terminated by engagement manager prior to scheduled end date due to performance

– Supplier/Partner

• Percentage of submittals resulting in engagements

• Percentage of assignments onboarded after engagement manager request date – late start

– CW Program Operation

• Engagement manager NPS score of CW program services and operations

• Contingent worker NPS score of CW program services and operations


Metrics to consider/review cont.

• Efficiency (Process Tracking)

– Candidate Submittal to interview

– Timecard Submittal to approval

• Cost

– Rates – rate card variation

– Tools – VMS, procurement systems, etc.

– Program Office Support – internal and external

• Risk

– Talent (co-employment, classification)

– Systems – access control and catastrophe back-up


COMMUNICATE, LISTEN, COMMUNICATE, LISTEN, COMMUNICATE….

VALUE


Communicating CW Program Values

• Know your audiences

• Craft message, method and frequency of communication

• Leverage internal communication channels

– Departmental meetings

– Desk drops

– Engagement manager orientation and onboarding

– Company events

– Marketing/communications


READY, SET…TIME FOR CHANGE

• Design appropriate training program

in-person, online, etc.

• Train internal and external resources

stakeholders, employees, suppliers, contingent workers

• Review program change checklist and send “go live” announcement

make sure all stakeholders being impacted are informed

• Go –live and showcase value proposition

be sure to continuously inform internally and externally of success and stakeholder adoption


Ultimately, our primaryimplementation goal

is to drive what?


ADOPTION


WHAT DO YOU NEED TO REMEMBER?

Understand the impact of payment terms

• The push from 30 to 45 – 60 – 90 –120 days

• Pay when paid clauses• Cash flow• Red flags


Understand the gross margin breakdown

• What goes into the bill rate?• What is your profit?• Profit on placements finances

all other operations• MSP & VMS Fees

Markup

Pay Rate

Statutory

Expenses

Gross Margin

Gross Margin

Operating Expenses + Profit

Statutory Expenses

Direct Pay to Worker


Beware of pay rate cards

• Are they valid?• Are they used?• The market rate is what the

market rate is?• Bid low(ish) to get on the list!


Data data data…

• Specifics and difficulty to collate and report

• The cost of manual reporting• Is the data actionable?• Does it have value?

• Data overload (CWS3.0 Nov 16): Tracking the right data to improve performance


The need for good communication for optimal understanding of business needs

• Poor job specs• True needs lost in transit• Empathy with the cost-of-sale


Right price Vs Discounts discounts discounts• Tenure discounts• Volume discounts• Payroll• Sourcing channel discounts• Global MSP fees• Global margins• The challenge for suppliers to

separate P&Ls• Why an NPS of -24%?


When Cheap Becomes Expensive

Striking the right balance


Legal contracts

• Indemnities and liabilities• Consequential losses• Supervision• Service credits• Intellectual property• Auditing requirements• The use of standard company

templates


The impact of scope creep

• Where is the tipping-point• Where cheap becomes

expensive• Where supplier Boards

question the business • Where shareholders question

the supplier


SLAs or KPIs: Split them in your contract

Service level agreement: A document describing the minimum levels of service quality a supplier should comply with.

Key performance indicator: A set of quantifiable measures to gauge or compare performance in terms of meeting their (the buying organization) strategic and operational goals.


Regular Program Reviews

• Review SLAs & KPIs• Audit risk• Review scorecard• Rank supplier performance• Capture supplier perspective on

buyer performance• Renewed commitment to mutual

success• Document and agree action plan


Corporate Engagement


Consequences for buyers and suppliers


CCWP SOW ManagementBest Practice Concepts

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Contact Member Services for more information:Phone: 800-950-9496 Or Email: [email protected]

SIA CCWP Class @

2017 CWS Summit Europe,

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April 24th & 25th

or 2017 Online Class:The Anytime, Anywhere Class

2017 CWS Council CCWP Class

Volume Discounts are available.


Contact Member Services for more information:Phone: 800-950-9496 Or Email: [email protected] * Volume Discounts are available.

CCWP Certification Classes

February 9th & 10th Time Square, NYC Special Buyer Site

April 24th & 25th Berlin, Germany CWS Summit Europe

April Washington, DC TBD

September 13th & 14th Dallas, Texas CWS Summit US

October 11th & 12th London, England Executive Forum Europe

SOW Management Expert Certification Classes

February 28th - March 1st Dallas, Texas Southwest Airlines

May 16th & 17th Atlanta, Georgia Coca Cola/Mid Year Council Mtg.


The CWSC Support Team

Bryan PeňaSVP, Contingent Workforce StrategiesE: [email protected]: +1-650- 209-8103

Stephen ClancyDirector , CWS and ResearchE: [email protected]: +1-650- 390-6218

Dawn McCartneyDirector , CWS and ResearchE: [email protected]: +1-650- 390-6170

Peter ReaganDirector, CWS and Research (Europe, APAC & LATAM)E: [email protected]: +44 207 194 7746






See you in 2017!

contingent workforce policies that stick€¦ · wednesday 14 december 2016 15:00 gmt time (london,...

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