Contingent Staffing Models

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1 General Presentation Contingent Staffing Models Ton Mulders, Director Strategic Solutions Europe, Staffing Industry Analysts

2 RPO MSP? HRO Which acronym serves me best? MV PSL VOP ROI SOW VMS CWS ERP BPO TCO ATS TBO PEO SSC

3 Know what I mean?

4 CWP or CWS CW = Contingent Workforce = Flexible or Non-Regular Workforce - Other than regular, permanent, direct wage & salary employment - Agency workers (Temps) & Non-Agency workers (e.g. Freelancers) P = Programme or S = Strategy: - The (structured) way an employer organised its need for CW to optimise return on investment (ROI): cost, efficiency, quality, risk. - CWP or CWS may consist of multiple Sourcing Models, depending on skill types, geographies, internal sourcing maturity

5 Groups of Acronyms Referring to Sourcing Models ~ Competition : ASL, PSL, Sole Source, MV, MSP, RPO, HRO, BPO ~ Pricing : TCO, rate cards, mark-up, shared saving, reverse auction ~ Vendor integration : Outsourcing, VoP, On-site, SSC Referring to Software ~ VMS, ATS, ERP Referring to Service providers ~ Temporary staffing, Payroll, Leasing, Vendor Management, Umbrella, PEO

6 How come? 1,1 Trillion euro (203 Mio Agency Work) ROI opportunities

7 CW Supply Chain Client Competitive Advantage ROI CW User Competitor + Risk + Quality + Efficiency + Cost CW Agency

8 CW Supply Chain Client Competitive Advantage ROI CW User Competitor + Risk + Quality + Efficiency + Cost reduction MV APS / PSL + ICT Agency staffing agencies CW Agency Sourcing Model Software Service Provider

9 CW Supply Chain Client Competitive Advantage ROI CW User HRO / BPO + Competitor ERP + Risk RPO + ATS new players + Quality MSP + VMS + Efficiency + Cost MV APS / PSL + ICT Agency staffing agencies CW Agency Sourcing Model Software Service Provider

10 New players in CW Supply Chain STAFFING COMPANIES PAYROLL SERVICES EXECUTIVE SEARCH SOFTWARE CW Supply Chain PROCUREMENT NEW PURE-PLAY HRO / BPO CONSULTANTS

11 Higher ROI more complex to get Multiple Providers Single point of contact Transfer Pricing Margin/ Spend % / Fee Supplier / Buyer funded Double entry! Multiple Disciplines COO operations HR human resources CPO procurement CIO technology CFO financial

12 Integration & Combination of Services Integration = Hybrids ~ Staffing Agency + Vendor Manager + own software ~ Vendor Manager + own software Combination = Neutral ~ Vendor neutral (no staffing or at choice) ~ Technology neutral (no software or at choice) Pro s and Con s ~ Single point of Contact vs Switching Cost

13 ROI opportunity Risk - Efficiency - Quality - Cost Decentralise d No programme Evolution of CW Sourcing Models Approved Supplier List Limited # of suppliers overall Tiered Vendor models Preferred Suppliers List Limited # of suppliers for skillsets and regions Master Vendor Main supplier as single point of contact, managing subvendors Managed Services Provider Non-supplying Vendor Manager, with software covering multiple CW skills and regions Recruitment Process Outsourcing Manages vendors and processes related to permanent recruitment and increasinglycontingent labour Human Resource Outsourcing Client/Provider Partnership including the outsourcing of entire HR functions Business Process Outsourcing Client/Provider Partnership including the outsourcing of entire nonproduct related business functions Entering Contingent Workforce Supply Chain in Europe (indicative)

14 ROI opportunity Risk - Efficiency - Quality - Cost Decentralize d No programme Approved Supplier List Limited # of suppliers overall Supporting Software Tiered Vendor models Preferred Suppliers List Limited # of suppliers for skillsets and regions Master Vendor Main supplier as single point of contact, managing subvendors Managed Services Provider Vendor Management System Non-supplying Vendor Manager, with software covering multiple CW skills and regions Recruitment Process Outsourcing Applicant Tracking System Manages vendors and processes related to permanent recruitment and increasinglycontingent labour Human Resource Outsourcing Client/Provider Partnership including the outsourcing of entire HR functions Business Process Outsourcing Enterprise Resource Planning Client/Provider Partnership including the outsourcing of entire nonproduct related business functions Entering Contingent Workforce Supply Chain in Europe (indicative)

15 ROI opportunity Risk - Efficiency - Quality - Cost Decentralize d No programme Approved Supplier List Limited # of suppliers overall Vendor / Client Integration Tiered Vendor models Preferred Suppliers List Limited # of suppliers for skillsets and regions Master Vendor Main supplier as single point of contact, managing subvendors Managed Services Provider Non-supplying Vendor Manager, with software covering multiple CW skills and regions Recruitment Process Outsourcing Manages vendors and processes related to permanent recruitment and increasinglycontingent labour Human Resource Outsourcing Client/Provider Partnership including the outsourcing of entire HR functions off shoring Business Process Outsourcing Client/Provider Partnership including the outsourcing of entire nonproduct related business functions Entering Contingent Workforce Supply Chain in Europe (indicative)

16 The Best CW Programme? A programme that works! Execution is strategy. Tom Peters

17 Feasibility Drivers Company Scope Market (De)centralised Decision Structure Sourcing experience CW Programme (Inter)national Skills Services Size Gross margin Vendor presence Consolidation Legal

18 ROI opportunity Value add < Risk < Efficiency < Quality < Control < Cost low Simple Decentral No programme 1985 Sourcing Models: Pro s & Con s Approved Supplier List Limited # of suppliers overall Tiered Vendor models Preferred Suppliers List Limited # of suppliers for and skillsets and regions ROI potential Master Vendor (+ hybrid) Main supplier as single point of contact, managing subvendors Managed Services Provider (+ hybrid) Implementation Non-supplying Vendor Manager, with software and incl. broaders scope of Contingent Labour Recruitment Process Outsourcing Manages vendors and processes related to permanent recruitment and increasinglycontingent labour When introduced to source Contingent Workforce Human Resource Outsourcing Client/Agency Partnership expands to include the outsourcing of entire HR functions Business Process Outsourcing high complex operational Impact strategic business unit Decision level corporate easy Multi national Client/Agency Partnership expands to include the outsourcing of entire nonproduct related business functions difficult isolated Approach integrated single Disciplines involved multi

19 Most advanced model not simply the best Contingent Workforce Optimisation Roadmap

20 Hybrid Programme regional Source: Brightfield Technologies

21 Hybrid Programme regional (example) Company MSP vendor neutral MV PSL VMS UK Ireland USA Australia Netherlands Belgium Germany Australia France Spain Italy Japan

22 Hybrid Programme Skills & Services (example) Company MV RPO HRO VMS ATS ERP Light Industrial Cleric/Adm Professionals & Permanent Recruitment Training Payrolling Employee benefits

23 Step by Step

24 Summary Natural supply chain development Distinguish acronym groups Most advanced not neccesarily the best Execution is strategy Consider Hybrid & Step-by-step Learn from others but develop your own programme

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