Winning The Modern Day Talent Wars: How Top Enterprises Are Building An On- Demand Workforce
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1 Sponsored by: Winning The Modern Day Talent Wars: How Top Enterprises Are Building An On- Demand Workforce Presented by: Dawn McCartney Director, Contingent Workforce Strategies & Research Staffing Industry Analysts Jeff Wald President & Co-Founder Work Market September 30, am PT/ 1 pm ET This webinar is broadcast through your computer speakers via the audio broadcaslng icon on your screen. You may adjust the sound volume by using the slide bar on the audio broadcaslng icon. You may dial into the call by dialing and using access code Need other assistance? Please contact SIA customer service at or memberservices@staffingindustry.com 2015 by Crain Communica2ons Inc. All rights reserved..
2 Please note: This webinar is broadcast through your computer speakers via the audio broadcas2ng icon on your screen. You may adjust the sound volume by using the slide bar on the audio broadcas2ng icon. You may dial into the call by dialing and using access code Need other assistance? Please contact SIA customer service at or Within 48 hours aqer the webinar, the slides for this presenta2on, the replay and relevant links to research will be ed to you. CWS Council members may access the research via these links; non- member auendees interested in the research should contact for assistance with gevng membership by Crain Communica2ons Inc. All rights reserved.
3 Audio Listen through your computer by turning on your speakers aqer you log into the event. Sound will be coming through this icon: Do not close this audio broadcast box. To increase the volume of sound coming through your computer speakers adjust the sound bar on the audio Broadcast box shown above. If you con2nue to have trouble, please submit your need for assistance in the Q&A sec2on. Q&A icon QuesLons? QuesLons may be submi\ed at any Lme during the presentalon. To submit a queslon: Click on the Ques2on Mark icon (?) on the floa2ng toolbar (as shown at the right). This will open the Q&A window on your system only. Type your ques2on into the small dialog box and click the Send BuUon. Dial in access code by Crain Communica2ons Inc. All rights reserved.
4 Thank you to our sponsor 2015 by Crain Communica2ons Inc. All rights reserved.
5 Who We Are Staffing Industry Analysts is the global advisor on conlngent work. Our staffing firm membership is composed of many of the largest regional, U.S. and global staffing firms in addi2on to representa2ves from all parts of the con2ngent workforce industry. Our CWS Council membership represents over $100 billion in annual con2ngent workforce spend. We are a trusted advisor providing objec2ve research within the con2ngent workforce ecosystem. Founded in 1989 Acquired by Crain Communica2ons ($200M media conglomerate) in 2008, headquarters in Mountain View, California and London, England Comprehensive and vast industry and advisory service experience among execu2ve, advisory and research team 2015 by Crain Communica2ons Inc. All rights reserved.
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9 Our speakers today Dawn McCartney Director, Contingent Workforce Strategies & Research Staffing Industry Analysts Jeff Wald President & Co-Founder Work Market 2015 by Crain Communica2ons Inc. All rights reserved.
10 Winning The Modern Day Talent Wars: How Top Enterprises Are Building An On-Demand Workforce
11 Today s Agenda The World of Work By The Numbers Contingent Workforce Management Today The Rise of Freelance Management Systems (FMS) The Modern-Day Talent Management Equation The Benefits of An On-Demand Workforce Misclassification In The Freelance Era FMS Use Case: Yahoo! Media Getting Started With An On-Demand Workforce
12 The World of Work...By The Numbers 63% of CEOs said availability of skills was a key concern (PwC) $300 billion spent worldwide of contingent labor (Accenture) 83% of execs planning to increase their use of contractors (SAP/ Oxford) 30% non-employee labor growth in next 2 years (Randstad) Nearly 60% of all contingent labor is unaccounted for (Ardent Partners)
13 More than 53 million Americans are doing some degree of independent work That s 34% of the TOTAL workforce. Freelancers Union 2014
14 Contingent Workforce Technolog y Freelance Management Systems (FMS) complement Human Capital Management (HCM) suites & Vendor Management Systems (VMS) HCM solves talent management for W-2 employees VMS addresses SOW and contingent work engagements FMS supplies a platform that manages freelance, contract and consultant workstream from end-toend Source: Staffing Industry Analysts
15 Contingent Workforce Manageme nt Today Source: Staffing Industry Analysts
16 The Rise of Freelance Manageme nt Systems Current procurement and HR processes (legacy workforce) not well equipped to handle complexities of independent work Emergence of Freelance Management Systems (FMS) allowing enterprises to better find, manage & pay their on-demand workforce FMS technology typically follows continuous 6-step workflow
17 Awareness and use of freelance management systems (FMS) Awareness and use of freelance management systems (FMS) Percent of buyers familiar with FMS Percent of buyers using or considering FMS Not familiar, 44% [SERIES NAME], [VALUE] Familiar, 56% Currently use, 6% N=177 N=177 Confiden2al Report NOT for Distribu2on 2015 by Crain Communica2ons Inc. All rights reserved. 17
18 Does an OrganizaLon s Size Ma\er? FMS awareness and use by size of buyer Percent of buyers AWARE of FMS, by size Percent of buyers USING FMS, by size 63% 10% 47% 53% 7% 0% Small (1,000-9,999 employees) Medium (10,000-49,999 employees) Large (50,000+ employees) Small (1,000-9,999 employees) Medium (10,000-49,999 employees) Large (50,000+ employees) N=47 N=81 N=49 N=48 N=83 N=51 Confiden2al Report NOT for Distribu2on 2015 by Crain Communica2ons Inc. All rights reserved. 18
19 How is an FMS and a VMS different? VMS is for procurement of temp and SOW talent. FMS is for direct engagement with independent workers. VMS automates governance of sourcing, fulfilment and payment of requisitions FMS manages the entire workstream as well as the specific assignment lifecycle for independent contractor utilization VMS provides access to suppliers who source & often manage talent FMS provides direct access to a marketplace of independent talent to source and manage directly Source: Staffing Industry Analysts
20 Poll Question #1 Which of the following best describes how your company engages Independent Contractors and Freelancers? a) We don t use them b) We use them but they are tightly restricted c) They are engaged at hiring managers discretion d) Don t Know/ Not Sure
21 Misclassification In The Freelance Era By engaging on-demand workers in an open marketplace, they are more likely to be classified as 1099 contractors Audit trails give you the data you need to effectively track and report on compliance. FMS allows you to define your requirements around certification, insurance and screening and enforce them across groups, projects or individual assignments. Mitigate your misclassification risk by accurately tracking all workforce engagements. Limit functions allow you to set controls on risky behavior (e.g. do not allow this worker to work more than X hours in a week)
22 The Benefits of an FMS Provide flexible sourcing models to fill requisitions within minutes Align client goals to all segments of the talent spectrum Offer solutions around engaging and retaining a flexible, high-quality workforce Provide top-down visibility into cost and create spend normalization, reduce rogue spend Fits into the enterprise fabric: HCM - VMS FMS
23 Factors prevenlng greater use of FMS Factors prevenlng greater use of FMS Lack of awareness across organiza2on 48% Lack of compliance tools/co- employment risk/ic Don't need it; Sa2sfied with tradi2onal tools and 27% 26% Issues related to integra2on with incumbent MSP or Don't think it's worth the effort 16% 19% Price Doesn't offer all the skills we need Quality of workers Quality of technology 11% 10% 9% 7% N=177 Confiden2al Report NOT for Distribu2on 2015 by Crain Communica2ons Inc. All rights reserved. 23
24 Poll Question #2 Which of the following describes your current strategy towards FMS? a) Currently have an FMS system in place b) Considering within the next two years c) No plans at this time d) Unsure/Don t Know
25 Controls and Compliance Behavioral Controls Financial Controls Operational Controls - SOW w/defined deliverables - Client does not train - Unique skills, not core to client - Use own materials/ equipment - May use subcontractors - Not required to be on-site - No scheduling requirements - Milestone or deliverable payments - Carries Business Liability and other insurances - Covers own expenses - Business Risk: Responsible for profit/loss - Has made significant business investment - Markets services to public - Multiple clients - Established place of business - History of similar services for one year or more - No W-2 and 1099 in same year - Use TIN rather than SSN - incorporated - Contract states contractor relationship
26 Your Freelance Management Process Today FIND VERIFY ENGAGE MANAGE PAY RATE
27 Your Freelance Management Process Tomorrow FIND VERIFY ENGAGE MANAGE PAY RATE Marketplace Search Algorithms Campaigns Public Profiles Company Feed Background & Drug Tests Requirements Learning Management System Certs/Licenses/Insurance Talent Pools Contact Manager Bulk Tools Assignment Bundling Analytics/Dashboards Assignments Check-in/out Document & Picture Upload E-Signatures Invoices Payment Engine Payment Terms Global/Flexible Options Quantitative Feedback & Ratings Quantitative Metrics
28 Poll Question #3 Our biggest concern with using and managing freelancers is: a) Cost b) Quality c) Compliance d) Process Alignment e) User Experience
29 FMS Case Study: Yahoo! Media Challenge Using manual processes to manage hundreds of freelance bloggers, writers, etc. Volume of paperwork and time required to manage its growing workforce was becoming untenable Solution FMS best suited to address complexities of end-to-end freelance management Powerful bulk tools allowed for streamlined workflows Automated management, reporting and payment processes Results On-boarded hundreds of freelancers within 45 days Radically simplified approach to freelance management Using FMS to seamlessly scale editorial freelance workforce
30 Getting Started With An On-Demand Workforce 1. Identify Coverage Needs 2. Determine Talent Requirements 3. Implement Compliance Controls 4. Ensure Process Alignment 5. Execute and Measure
31 Dawn McCartney Director, Contingent Workforce Strategies & Research Staffing Industry Analysts Confiden2al Report NOT for Distribu2on 2015 by Crain Communica2ons Inc. All rights reserved.
32 Thank you to our sponsor 2015 by Crain Communica2ons Inc. All rights reserved.
33 Upcoming webinars CWS 2015 Recap Technology Trends- Worker Profile Management VMS MSP Landscape In House vs Outsource, which model is right for you? 10/27/ /28/ /19/ /17/ by Crain Communica2ons Inc. All rights reserved..
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