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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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This webinar is broadcast through your computer speakers via the audio broadcasting icon on your screen. You may adjust the sound volume by using the slide bar on the audio broadcasting icon. You may dial into the call by dialing 650-479-3208 and using access code 667 594 385 EUROPEAN NUMER: 44-203-478-5287 Need other assistance? Please contact SIA customer service at [email protected]. The presentation will be available 48 hours after the webinar.
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CWS Council Members (partial public list)
VISA
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Your Guide to all things Council…..
Free to download from www.staffingindustry.com
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Terminology
Free to download from www.staffingindustry.com
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Who We AreStaffing Industry Analysts is the global advisor on staffing and workforce solutions
• 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.
• Our CWS Council membership represents over $100 billion in annual workforce spend.
• We are a trusted advisor providing objective research within the workforce ecosystem.
Founded in 1989
• Acquired by Crain Communications ($200M media conglomerate) in 2008, headquarters in Mountain View, California and London, England
• Comprehensive and vast industry and advisory service experience among executive, advisory and research team
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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)
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Questions
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ELEMENTS OF A SUCCESSFUL POLICY
RISKRisks in CW are very real….
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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.
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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.
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Risk Categories
• Strategic
• Operations
• Compliance/Legal
• Reporting
• Safeguarding resources
• Personal
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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
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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
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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
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EU General Data Protection Regulation 2018
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Policy
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Policy Defined:
A high-level overall plan embracing the general goals and acceptable procedures
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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!
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Mandates are nice but…….
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Beyond Compliance
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Beyond Compliance
Policy Confidence
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What is Policy Confidence?
A determination of the sustainability and probability of success of a the key policy value to the organization.
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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?
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WHAT IS IT ALL ABOUT?
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A
You want to be hereYou are here
A B
PLAN OF ATTACK
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The Contingent Workforce Optimization Roadmap
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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
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QECR FRAMEWORK – KEY AREAS TO FOCUS CHANGE AROUND
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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
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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
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COMMUNICATE, LISTEN, COMMUNICATE, LISTEN, COMMUNICATE….
VALUE
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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
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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
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Ultimately, our primaryimplementation goal
is to drive what?
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ADOPTION
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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
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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
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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!
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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
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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
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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%?
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When Cheap Becomes Expensive
Striking the right balance
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Legal contracts
• Indemnities and liabilities• Consequential losses• Supervision• Service credits• Intellectual property• Auditing requirements• The use of standard company
templates
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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
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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.
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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
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Corporate Engagement
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Consequences for buyers and suppliers
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CCWP SOW ManagementBest Practice Concepts
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SOW Management Expert Certification Class Curriculum
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NEW and READY TO GO This February!
CCWP SOW Management Expert Certification Class
Date: February 28th – March 1stLocation: Southwest Airlines, Dallas, TexasClass Length: Two DaysContent: 100 Question Exam, Participant
Guide, SOW Management Certification Reference Guide, Class Slides, etc…
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For Case Study and Panelist Opportunities
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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.
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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.
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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
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See you in 2017!