Concurrent Session Strategy Design it Right: Popular Contingent Workforce Program Models, their Pros, Cons

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1 WED, OCT 8 4:30 PM MIRAGE EVENTS CENTER C1 Concurrent Session Strategy Design it Right: Popular Contingent Workforce Program Models, their Pros, Cons Moderator: Subadhra Sriram, Editor & Publisher, Media Products, Staffing Industry Analysts Panelists: Peggy O Neill, Director, Staffing Contingent Workforce, Disney Matthew Rodger, Managing Director, Contingent Workforce Solutions, Alexander Mann Solutions Carolyn Volovsek, Manager, HR Programs Corporate Human Resources, Fiserv Sponsored by: October 8 9, 2014 The Mirage Hotel & Casino Las Vegas

2 DIGITAL SURVEYS Design it Right: Popular Contingent Workforce Program Models, their Pros, Cons Don t forget to rate this session as you exit. October 8 9, 2014 The Mirage Hotel & Casino Las Vegas

3 Designing A Program Caveat: One Size Does Not Fit All October 8 9, 2014 The Mirage Hotel & Casino Las Vegas

4 Most Used Terms When It Comes to CW Program Models Master Supplier Hybrid Vendor Neutral October 8 9, 2014 The Mirage Hotel & Casino Las Vegas

5 Managed Service Program A Managed Service Program is the coordinated management of a company s contingent workforce and associated suppliers for the betterment of the company s operations across four key dimensions: quality, efficiency, cost and risk. October 8 9, 2014 The Mirage Hotel & Casino Las Vegas

6 Managed Service Provider A Managed Service Program can be administered by either a client s employees or outsourced to a third party provider (or both). When outsourced to a third party, the company is often referred to as a Managed Service Provider. October 8 9, 2014 The Mirage Hotel & Casino Las Vegas

7 Common Managed Service Program Models Master supplier focus is recruiting services Vendor neutral, competitive bidding MSP focus is supply chain management services Hybrid programs focus is recruiting services and supply chain management services October 8 9, 2014 The Mirage Hotel & Casino Las Vegas

8 Master Supplier A master supplier assumes overall responsibility for providing a client with temporary workers. All requisitions/orders usually go first to the master supplier either to be filled or distributed to sub contract suppliers. Scope of service typically includes program office, on site/ vendor on premise, rate intelligence, invoicing and accounting, electronic requisitioning and time keeping, back office support, on/offboarding, headcount and accrual reporting, sub tier/associate vendor management, and recruitment services. October 8 9, 2014 The Mirage Hotel & Casino Las Vegas

9 Vendor Neutral, Competitive Bidding Managed Service Program All staffing suppliers are given an equal opportunity to fill each order without the MSP giving preference to a specific supplier. Suppliers are selected for each order based on the same criteria as defined by client policy. If the managed service program is administered by a third party provider, that provider often is restricted from filling its own orders or deciding which orders are routed to any supplier October 8 9, 2014 The Mirage Hotel & Casino Las Vegas

10 The Vendor Neutral MSP October 8 9, 2014 The Mirage Hotel & Casino Las Vegas

11 Hybrid Program A hybrid MSP is the blending of different sourcing model attributes to manage a contingent workforce program. This model may differ by skill or geography. For example, one provider may act as the master supplier for light industrial positions while suppliers may compete for IT positions using a vendor neutral model across a number of different vendors. (Given that a vendor neutral solution has the ability to cast a wide net for critical skills, we see a higher prevalence of vendor neutral in IT.) October 8 9, 2014 The Mirage Hotel & Casino Las Vegas

12 Sourcing Model Traits to Consider When Designing a Managed Service Program Rate elasticity how rates vary per requisition/order Competitiveness number of suppliers and the distribution of requisitions/orders Vendor integration degree to which external resources are used to administer the program October 8 9, 2014 The Mirage Hotel & Casino Las Vegas

13 Sourcing Model Decisions Should Be Evaluated Per Skill and Location Different sourcing models for different skills (e.g. master supplier for clerical) Different sourcing models for different locations (e.g. master supplier in U.K.) Situational flexibility (e.g. urgent bulk staffing) Hybrid teams (e.g. third party managed service provider and internal client recruiters) October 8 9, 2014 The Mirage Hotel & Casino Las Vegas

14 14 Overview Contingent Workforce Management (CWM) Center of Expertise (COE) October 8 9, 2014 The Mirage Hotel & Casino Las Vegas

15 Total Workforce Accounted For 15 Contingent Workforce* CWM / S&P Employees Staffing *Agency Temps, IC s, SOW/Professional Services & Outsourced Vendors Total Workforce Management

16 Issues regarding process, standards and support Staff Augmentation/ Agency Temps Independent Contractors (ICs) SOW / Professional Services Outsourced Vendors 16

17 Streamlined process eliminates confusion Staff Augmentaiton/ Agency Temps Independent Contractors (ICs) Professional Services Outsourced Vendors HR- CWM COE S&P COE Legal 17

18 Internal CWM: Pros & Cons Pros Expertise on Contingent Workforce Program Integrated Talent Acquisition/Staffing Strategy (FTE & CW) Maintain Corporate Knowledge of Contingent Talent Pool Cons Responsibility of developing function requires management, time and effort For Meeting Program Objectives For day-to-day Administration For Issues Management Cost Savings 18

19 Outsource (MSP): Pros & Cons Pros Cons Expertise on Contingent Workforce Program Management Work under a Service Level Agreement Loss of control of CW Resource Pool Added Cost (additional middle man) 19

20 Hybrid Model Internal MSP Staff Augmentation/Agency Temps and IC s Most of Enterprise is managed by internal CWM team Maintain corporate knowledge of contingent worker pool Integrated Talent Acquisition strategy between CWM and Staffing team Integration between CWM and Sourcing & Procurement Understand the ebbs and flows of departments Have better internal intelligence External MSP Staff Augmentation/Agency Temps We utilize the external MSP for the following reasons: Timeliness Expertise on Contingent Workforce Management Program 20

21 21 Enterprise Single Point of Entry System Staff Augmentation/ Agency Temps Independent Contractors (ICs) Professional Services Outsourced Vendors Single Point of Entry VMS HR CWM Sourcing & Procurement results in clarity of process, improved efficiency and increased accountability

22 Contingent Staffing at Fiserv Carolyn Volovsek Manager, HR Programs 2014 Staffing Industry Analysts CWS Summit

23 About Fiserv Leading provider of financial services technology solutions to financial institutions and businesses worldwide Best-in-class solutions in five strategic competencies Trusted by 14,500 clients Named to FORTUNE magazine's World's Most Admired Companies list in the financial data services category 2013 Fiserv, Inc. or its affiliates.

24 Fiserv s Contingent Workforce Program Model Fully outsourced MSP and VMS Model Internally managed within HR Operations with support and partnership with Enterprise Strategic Sourcing Prior to 2012, program was a Master Vendor Model In 2012, renewed contract with MSP and refreshed program model and transitioned to Hybrid Program Master Vendor for Light Industrial locations (may differ by location) Built in secondary and tertiary support when needed Vendor Neutral model for Clerical, IT/Technical, and Professional categories Business Group Specific Tiered Vendor lists 2013 Fiserv, Inc. or its affiliates.

25 Fully Outsourced Model Serves Fiserv Well Fully outsourced MSP and VMS Model Internally managed within HR Operations with support and partnership with Enterprise Strategic Sourcing Prior to 2012, program was a Master Vendor Model In 2012, renewed contract with MSP and refreshed program model and transitioned to Hybrid Program 2013 Fiserv, Inc. or its affiliates.

26 Why a Hybrid Model? Feedback from program stakeholders Not a one size fits all Company Needed to drive program compliance 2013 Fiserv, Inc. or its affiliates.

27 Benefits of a Hybrid Model Increased end user satisfaction Light Industrial businesses get the support they need from a local supplier Businesses with IT/Technical and Professional needs get benefit of varied supplier base Businesses with Group Specific or Tiered vendor structures have ability to work with specialized suppliers 2013 Fiserv, Inc. or its affiliates.

28 Challenges of a Hybrid Model For Master Vendor businesses Ensuring local contact within staffing agency is the right fit Putting in place secondary and tertiary support when needed Managing performance of primary supplier For Vendor Neutral businesses Supplier management-do we have the right mix in place? Quarterly supplier scorecards and rationalization Supplier participation 2013 Fiserv, Inc. or its affiliates.

29 Key Takeaways and Lessons Learned Involve your key stakeholders early Touch base with your key users often Be flexible 2013 Fiserv, Inc. or its affiliates.

30 DIGITAL SURVEYS Design it Right: Popular Contingent Workforce Program Models, their Pros, Cons Don t forget to rate this session as you exit. October 8 9, 2014 The Mirage Hotel & Casino Las Vegas

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