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How a Variable Workforce Model Drives

Cost Savings and Business Flexibility

The X Factor:

Monsanto

Molly MartinProcurement Category Manager – HR

TalentWave

Cori McKeeVP Business Solutions

sig.org/summit

The X Factor: How a variable workforce model drives cost savings

and business flexibility

SIG 2017 Global Executive Summit

Cori McKee, VP Business Solutions, TalentWave

Molly Martin, Procurement Category Manager - HR, Monsanto

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About TalentWave

The most experienced vendor-neutral provider of independent workforce engagement solutions: • Over 80 enterprise clients• More than 5,000 contractors engaged weekly• Extensive MSP and VMS partnerships

The iConnect® platform seamlessly delivers: • Independent contractor compliance• Agent-of-record IC engagement services• Employer-of-record professional payroll services• Vendor qualification• Sub-vendor engagement• Talent re-engagement• Global and advisory services

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About Monsanto

Monsanto is committed to bringing a broad range of solutions to help nourish our growing world. • Fortune 500 Company• HQ: St. Louis, MO

Products: • Agricultural and vegetable seeds• Plant biotechnology traits• Crop protection chemicals • Agriculture biologicals• Data science

Globally: • 20,000+ employees• 353 facilities in 69 countries United States:• 10,000+ employees• 125 facilities in 33 states

Agenda for today

• Today’s complicated talent environment

• Enterprise talent management

• Potential sources of talent

• Talent supply/demand modeling

• Developing a strategy

• Case study

• A few success factors

• Q&A

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Polling question 1

Does your organization use a mixof traditional and contingent workers to

get work done?

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Polling question 2

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Is the contingent portion of your workforce growing? Stable? Declining?

Polling question 3

Does Procurement drive the process? Alone? In partnership with HR?

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Change is the only constant

93%All job growth in past 5 years due

to contractor/temp roles

70%businesses expected to grow their

contingent workforces

Approaching 50/50by 2020, or sooner, depending on

economic conditionsContingent

workers

U.S. workforce

40%

60%

Traditional workers

Sources: BLS, Staffing Industry Analysts, Jobenomics U.S. Contingent

Workforce Report

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Workers choosing independence

Sources: RFS, a group combined of Stanford University and Y Combinator alumni, and Freelancers Union and Upwork

82%Millennials who say they are optimistic

about freelancing as a career path

50%Freelancers who wouldn’t stop

freelancing for any amount of money

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Sourcing independent workers

Then…

Traditionally

sourced from

staffing suppliers

Now…

More than ever,

companies are

deploying a

direct sourcing

strategy11

So, what’s the solution?

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Enterprise talent management

A holistic view of your entire workforce—

ensures the right workers are available, in

the right place, at the right time

maximum business flexibility

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Finding the right mix…

Traditional Workers vs. Flexible Workers

• The “million-dollar” question!

• Hard to answer, unique for each company

• Constantly in flux

• Many factors…

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The Total Workforce

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FLEXIBLE WORKERS

Enterprise Talent Demand CurveDriven by business needs, economic conditions

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Where do you draw the line?Where and when to use flexible workers

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Understaffed organizationTalent scarcity and longer time to productivity

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Overstaffed organizationReduced flexibility and high fixed-cost labor

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Balanced organizationUltimate flexibility and cost savings

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Matching the rightworkers to the work

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Non-Core

Work

Core

Work

Internal IP X

External IP O ?

(Employee)

(Consulting)(IC)

(Temp, Freelancer)

Flexible workers

Traditional workers

Define who should do the work

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Where the rubbermeets the road…

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1. Map your current organization structure—including all non-

employee, and outsourced resources.

2. Clearly define all the work being done across the

organization, and who currently performs it.

• Think in terms of output and deliverables, not just job

descriptions

3. Define the skills/experience required for each role:

• Core vs non-core, Internal-IP vs external-IP

• Consider: Strategic/Tactical, Variable/Steady workload

4. Establish the optimal workers required to do the work:

• Employee

• Consultant

• Independent Contractor

• Temp/Freelancer

Create your own talent strategy (1/3)

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5. Estimate number of workers you need to staff

current/projected workloads within the framework defined

above. Think about the cushion your business needs.

6. Process re-engineering – Some considerations:

• Does all the work still need to be done?

• Can it be done more efficiently?

• Can any of it be outsourced?

• Can it be packaged differently (“projectized”)?

• Ideal org structure?

7. Based on your unique business, decide on appropriate mix

of FTE vs flexible workers by category

• Role, department, group, project

• Use decision matrix as guide25

Create your own talent strategy (2/3)

8. Discovery: Identify who you already have. Ask:

• Do you have the right people on the bus?

• Are they in the right seats?

• Where are the gaps today? Anticipated in future?

9. Sourcing: Identify the suppliers of talent you need.

• How will you find and attract new workers?

• Can you be a “client of choice” for independent workers?

• Internal vs external recruiting?

• Direct sourcing vs 3rd party suppliers?

• What will the working relationship be between workers

and the organization?

10. Rinse and repeat!

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Create your own talent strategy (3/3)

Client case study

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Teamwork works!

HR and Procurementare better together!

working in silosSTOP

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Flexible workers: 10-50% of

total headcount (FTE & flexible)

Some guidelines…

• Temporary: 50-80% of flexible

workforce

• Freelancer: 5-10% of flexible

workforce

• Independent contractor:

10-40% of flexible workforce

• Consulting: 5-10% of flexible

workforce

• Each business is unique! There is

no right answer…

Strike a balance

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Risk, reward and thedouble-edged sword

“Engaging independent

contractors is not inherently

illegal, and legitimate

independent contractors are

an important part of our

economy.”

—David Weil, DOL’s Wage

and Hour Division Administrator

The IRS, DOL and state agencies

ramping up enforcement, stating

46% of U.S. workers are

misclassified

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Create a talent community

Web-based population of known talent

with specialized skills, who are interested in

working for you again

Who are they? Independent contractors,

consultants, freelancers, retirees, interns

and “silver medalists”

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Q&A

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Cori McKee

VP Business Solutions

cmckee@talentwave.com

303.808.4676

Molly Martin

Procurement Category

Manager - HR

molly.a.martin@monsanto.com

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The X Factor: How a Variable Workforce Model Drives Cost

Savings and Business Flexibility

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Cori McKee

VP Business Solutions

cmckee@talentwave.com

303.808.4676

Molly Martin

Procurement Category

Manager - HR

molly.a.martin@monsanto.com