The Future of Workforce Management and Buyer Perspectives

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1 The Future of Workforce Management and Buyer Perspectives Bryan T. Peña, CCWP Vice President, Contingent Workforce Strategies and Research

2 What is the future of work? 2015 by Crain Communications Inc. All rights reserved.

3 Fact! Less of This MORE of This 2015 by Crain Communications Inc. All rights reserved.

4 2015 by Crain Communications Inc. All rights reserved.

5 2015 Crain Communications Inc. All rights reserved.

6 At our company we are interested in getting the very best and brightest to work here. We feel the level of person working at Microsoft creates a distinct competitive and cultural advantage; Why on earth would I limit the way we engage them? HR Executive, Microsoft 2015 Crain Communications Inc. All rights reserved.

7 Who We Are Staffing Industry Analysts is the global advisor on contingent work, nearly 1000 client organizations benefit from our international research services Over 80% of the worlds largest staffing firms are members Over 70 buyers of contingent labor are members of our CWS Council, representing over $100 billion in annual contingent workforce spend Customers in more than 80 countries Founded in 1989 Acquired by Crain Communications ($200M media conglomerate) in 2008 Headquartered in Mountain View, California and London, England 2015 by Crain Communications Inc. All rights reserved.

8 Workforce Solutions Ecosystem Source: Staffing Industry Analysts

9 Workforce Solutions Ecosystem Source: Staffing Industry Analysts

10 Workforce Solutions Ecosystem Source: Staffing Industry Analysts

11 Our Clients Provide us with a Global Perspective Staffing Firms Solution Providers MSP, FMS, VMS Suppliers to Staffing Firms Investment Banks & Consulting Firms

12 Future of Workforce Management Employees Full time or part time Apprentices, trainees, and paid interns Non-Employees Temporary workers Independent contractors or consultants/freelancers Online workers (e.g. micro tasks, crowdsourced, etc.) Professional services (e.g. management consultants, lawyers) Outsourced services (e.g. security guards, maintenance) Partners (e.g. supply chain, partnerships, joint ventures) Formal and informal volunteers (e.g. self-service customers) Franchisees/affiliates/associates (e.g. marketing, sales activities, etc.) Robots/drones/cognitive computing applications 2015 Crain Communications Inc. All rights reserved.

13 Projected Contingent Share of Workforce Source: Staffing Industry Analysts Contingent Workforce Managers Survey 2014

14 Global Staffing Market Revenue of 304bn in 2013 Countries and regions are to scale NL CA UK BE US IE FR DE CH CN IT JP IN BR SA AU Source: Staffing Industry Analysts

15 Staffing Market Growth Forecasts Country Ireland +7% +5% Germany +6% +7% France -0.5% +2% Netherlands +7% +12% UK +9% +7% Europe +8% +9% South Africa +17% +16% Japan +9% +9% USA +6% +6% Australia +2% +2% Brazil -1% +2% Canada +4% -2% Global +6% +7% Source: Staffing Industry Analysts

16 Staffing Market Growth Forecasts Country Ireland +7% +5% Germany +6% +7% France -0.5% +2% Netherlands +7% +12% UK +9% +7% Europe +8% +9% South Africa +17% +16% Japan +9% +9% USA +6% +6% Australia +2% +2% Brazil -1% +2% Canada +4% -2% Global +6% +7% Source: Staffing Industry Analysts

17 Our Clients Provide us with a Global Perspective Staffing Firms Solution Providers MSP, FMS, VMS Suppliers to Staffing Firms Investment Banks & Consulting Firms Buyers of Staffing Services

18 CWS Council Members (partial public list) 2015 by Crain Communications Inc. All rights reserved.

19 Buyer Perspectives

20 Contingent Workforce Programme Maturity Model 2015 Crain Communications Inc. All rights reserved.

21 Who s in charge? Does it matter? 2015 by Crain Communications Inc. All rights reserved.

22 2014 European Buyers Survey 2015 by Crain Communications Inc. All rights reserved.

23 2015 by Crain Communications Inc. All rights reserved.

24 2015 Crain Communications Inc. All rights reserved.

25 2015 by Crain Communications Inc. All rights reserved.

26 To make a change Crain Communications Inc. All rights reserved.

27 Sourcing Model Definition A Sourcing Model : The method by which a company identifies, selects, receives, and pays for contingent workers and related services. Companies may employ more than one sourcing model within a contingent workforce programme Crain Communications Inc. All rights reserved.

28 Minimize supplier and contract risk Job descriptions and rates Enterprise buy in Understand buying habits Volume leverage Bill rate savings Identify opportunities for process improvement 2015 Crain Communications Inc. All rights reserved.

29 Decentralized Several suppliers Procurement done on an ad-hoc basis Management done internally Managed Service Provider (MSP) Contingent workforce spend under management One contact point Direct cost savings Master on bill Vendor rate/usage One supplier Customized SLA s (possibly and managing 2nd and Preferred process 3rd tier suppliers) suppliers Non-compliant spend One point of Selective elimination set of contact suppliers selected Total cost of ownership Direct cost savings Contracts in place savings on bill rate and usage Service level agreements (SLA s) in place Customized SLA s and process Leverage VMS Technology Job descriptions and rate Performance analytics Optimise Supply Base Automate CW Processes Complex Pricing Schemes 2015 Crain Communications Inc. All rights reserved.

30 One size doesn t always need to fit all Crain Communications Inc. All rights reserved.

31 Focus on cost savings is not sustainable Crain Communications Inc. All rights reserved.

32 Europe is ahead of U.S.A Crain Communications Inc. All rights reserved.

33 RPO and MSP Convergence? RPO: Outsourcing Of Permanent Hiring MSP: Outsourcing Of Temporary Hiring Total Talent Management Source: Staffing Industry Analysts 2015 Crain Communications Inc. All rights reserved.

34 Manage CW and FTE talent holistically Expand definition of CW Focus on CW candidate experience and engagement Employer branding Enterprise approach Labour arbitrage Focus on value add Hand over to HR 2015 Crain Communications Inc. All rights reserved.

35 2015 Crain Communications Inc. All rights reserved.

36 Total Talent Management Integrates Traditional Talent Employment and Non Employee Labour Talent Acquisition Modes Traditional employees Managed By: HR Recruiters, Direct Hire, RPO Talent strategy and business alignment Metrics and Analytics Workforce Planning Compensation/Benefits Learning and Development Career and performance management Contingent Temps, IC, SOW & Internal stretch Agencies, MSP/VMS, Direct IC Outsourced services Consulting & Outsourcing Firms Managed By: HR and Procurement Managed By: Procurement Source: Staffing Industry Analysts 2015 Crain Communications Inc. All rights reserved.

37 Total Talent Management Continuum Suppressed Employee-Focused Activities Siloed Management of Employee and Non-Employee Activities Integrated Management of Employee and Non-Employee Activities Employee Only Employee Centric Reactive Talent Co-existence Proactive Talent Co-existence Reactive Talent Integration Proactive Talent Integration Level 1 Level 2 Level 3 Level 4 Level 5 Level 6 Source: Staffing Industry Analysts 2015 Crain Communications Inc. All rights reserved.

38 What does Competitive Advantage Mean? Competitive advantage is a business concept describing attributes that allows an organisation to outperform its competitors. These attributes may include unique access and relationship to highly skilled personnel, unique costing methods or superior efficiency Crain Communications Inc. All rights reserved.

39 2015 Crain Communications Inc. All rights reserved. Highest evolution of CW program Executive sponsorship and strategy All labour categories are uncer one roof Employer branding and candidate experience creates an aspirational employment brand Value of programme can be tied to profitability Quality over Quantity Full HR OR Operations ownership

40 Critical Point Total Talent Management Total workforce spend under management CW as a Strategic Competitive Advantage CW talent as business differentiator Decentralized Several suppliers Procurement done on an ad-hoc basis Management done internally Preferred suppliers Selective set of suppliers selected Contracts in place Service level agreements (SLA s) in place Master Vendor One supplier (possibly managing 2nd and 3rd tier suppliers) One point of contact Direct cost savings on bill rate and usage Customized SLA s and process Managed Service Provider (MSP) Contingent workforce spend under management One contact point Direct cost savings on bill rate/usage Customized SLA s and process Non-compliant spend elimination Total cost of ownership savings Complete workforce visibility Direct cost savings on bill rate and usage Customized SLA s and process Non-compliant spend elimination Increased total cost of ownership savings Additional productivity and process savings High degree of value added services Management strategies move beyond tactical considerations into strategic ones Combination of multiple CW models to solve complex business problems. Technology crosses multiple platforms in the enterprise Risks managed on a total enterprise basis with big picture focus on risks of action and inaction 2015 Crain Communications Inc. All rights reserved.

41 Contingent Workforce Programme Maturity Model 2015 Crain Communications Inc. All rights reserved.

42 Contingent Buyer Priorities Which of the following are currently in place in your organisation? Approved supplier list VMS Consolidating staffing suppliers MSP Supplier tiering Global management (contingent work) SOW HRO Strategy planning (incl. contingent work) RPO Direct sourcing Trying new suppliers Master supplier 0% 20% 40% 60% 80% 100% In place today Source: Staffing Industry Analysts Contingent Workforce Managers Survey 2014

43 Contingent Buyer Priorities Which of the following are currently in place in your organisation, or are likely to be seriously explored within two years? Approved supplier list VMS Consolidating staffing suppliers MSP Supplier tiering Global management (contingent work) SOW HRO Strategy planning (incl. contingent work) RPO Direct sourcing Trying new suppliers Master supplier 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% In place today Exploring in two years No plans Source: Staffing Industry Analysts Contingent Workforce Managers Survey 2014

44 Netherlands by Crain Communications Inc. All rights reserved.

45 To be Strategic and get a seat at the table Develop Acute organisational IQ Drive Transformational organisational Change Deliver Organisational Value Beyond Price Reductions and Process Efficiency Become THE Recognized Source for Market Information Develop an Eye for Identifying Risk in Advance Design and Organize for High Performance Surround yourself with A players Engage Stakeholders Where They Live Seek Discretionary Effort don t be happy with Malicious Compliance Develop Strategy at the Enterprise Level and Execute Ideate, Identify, Communicate, Execute, Maintain Be Relevant and Visible Outside Your Four Walls Pursue Innovation and Demand Same Best Practices are for the other guys Focus on becoming effective as opposed to efficient Adoption, Adoption, Adoption 2015 Crain Communications Inc. All rights reserved.

46 2015 Crain Communications Inc. All rights reserved. Questions

47 Thank you! Bryan Peña, CCWP Vice President, Contingent Workforce Strategies and Research Phone: Crain Communications Inc. All rights reserved.

48 REGISTER for Remaining 2015 Classes October Dallas, TX 6-7 October London, UK 8-9 December Northern CA ONGOING Online Certification class or training

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