Contingent Workforce

Supplier Forum

2017-18 half yearly update

28 February 2018

Welcome

2

Gabi Bywater

Director Category Management Human Services – NSW Procurement

3

Agenda

• Contingent Workforce Strategy Update & Achievements

• Whole of Government Spend

• Contractor Central Performance

• Scheme / Supplier Performance

• Insurance Updates

• Supplier Logos

• Q & A

The Contractor Central Model

4

Contractor Central

Managed Service Providers (MSP)

Panel of providers responsible for delivering

efficiencies by implementing agreed cost saving

strategies and process improvements

Vendor Management System (VMS)

Whole of government SaaS platform to support

the management of the contingent workforce

and in-scope SOW engagements

Contingent Workforce

Pre-Qualification Scheme (SCM0007)

A panel of contingent labour suppliers established through a pre-qualification Scheme

Statement of Work (SOW)

Pre-Qualification Schemes or Panels

Selected whole of government or cluster specific

supplier arrangements established through a

Scheme or panel contract

5

Contingent Workforce Strategy Update

Contractor Central

Pre-Qualification Scheme(s)

A panel of suppliers established through a

pre-qualification Scheme for Contingent

Workforce or Statement of Work

Vendor Management System (VMS)

Whole of government SaaS platform to

support the management of the contingent workforce

Managed Service Providers (MSP)

Panel of providers responsible for

delivering efficiencies by implementing

agreed cost saving strategies and process

improvements

Payroll Providers

A panel of payroll providers to assist in building a NSW Govt

specific pool of

contingent workers

6

Achievements

Contractor Central Success

• $1bn through the VMS since November 2014

• Spend in the VMS is growing fast

• FY17/18 - 50% of the total reported spend has been via the VMS

• 290 suppliers transacting across 10 instances of Contractor Central

Contractor Central Implementation

• Most NSW Government clusters have implemented Contractor Central

• DPC have started their implementation

Spend under management

• FY17/18: $764m to end January

• 2018 projected to exceed $1.4bn

• Significant savings for both suppliers and clusters

Contractor Central Model Extended

• SCM0007 has been extended to 2028

• VMS RFT award

• Expansion of existing MSP panel

7

Contingent Workforce Strategy Roadmap

Education DFSI

FACS

Contractor Central Live Coming Soon FY18/19

Health Industry

Aug

2015

Nov

2015

July

2016

Justice

Nov

2016

Nov

2016

Environment

Nov

2016

ACT Govt

Apr

2017

Sydney Water

Aug

2017

TAFE

Oct

2017

icare

DPC

Jun

2018

Mar

2018

Transport

2018/19

Treasury

TBC

Nov

2014

8

NSW Government Spend by Cluster

NSW Government Spend by Category

9

A Administration11.55%

B Finance6.49%

C Specialist18.93%

D Industrial2.19%

E Professional4.10%

F Technical1.51%

G ICT Network and Equipment

2.31%

H ICT Management, Implementation and

Support31.87%

I ICT Applications, Database and Systems

15.93% J Transport3.82%

K Education0.53%

L Other0.58%

M NSW State Emergency Services

0.05%

N Home Care Service0.14%

SPEND PER CATEGORYJUL 2017 - DEC 2017

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NSW Government Spend by Top 20 Suppliers

HAYS SPECIALIST RECRUITMENT (AUSTRALIA)

PTY LIMITED13.01%

RANDSTAD PTY LIMITED8.08%

TALENT INTERNATIONAL (NSW) PTY LTD

6.30%

PEOPLEBANK AUSTRALIA LTD4.60%

CHARTERHOUSE RECRUITMENT PTY LTD

3.95%

CHANDLER MACLEOD GROUP LIMITED

3.91%

QUAY APPOINTMENTS PTY. LTD. 3.68%

The Trustee for CLICKS RECRUIT (AUSTRALIA) UNIT

TRUST 2.70% FINITE GROUP APAC PTY LTD 2.62%

MICHAEL PAGE INTERNATIONAL (AUSTRALIA)

PTY. LIMITED 2.52%

GREYTHORN PTY LTD2.47%

PAXUS AUSTRALIA PTY LIMITED2.43%

ROBERT WALTERS PTY LTD2.29%

SPINIFEX RECRUITING PTY LTD2.14%

The trustee for Ethos Unit Trust1.89%

THE RECRUITMENT COMPANY PTY. LIMITED 1.63%

ASHDOWN CONSULTING PTY LIMITED1.44%

Total Resource Solutions (TRS) Pty Ltd1.42%

ALLEGIS GROUP AUSTRALIA PTY LTD.1.30%

ENTERPRISE IT RESOURCES PTY LTD1.29%

Others30.35%

SUPPLIER SPENDJUL 2017 - DEC 2017

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NSW Government Spend: SME vs Non-SME

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NSW Government Spend: VMS vs Non-VMS

13

Contractor Central: Spend Growth

$0

$10

$20

$30

$40

$50

$60

$70

$80

Nov14

Dec14

Jan15

Feb15

Mar1

5

Apr1

5

May15

Jun15

Jul1

5

Aug15

Sep15

Oct1

5

Nov15

Dec15

Jan16

Feb16

Mar1

6

Apr1

6

May16

Jun16

Jul1

6

Aug16

Sep16

Oct1

6

Nov16

Dec16

Jan17

Feb17

Mar1

7

Apr1

7

May17

Jun17

Jul1

7

Aug17

Sep17

Oct1

7

Nov17

Dec17

Millions

FACS

HEALTH

EDUCATION JUSTICE

DPE

DFSI

ACT

SYDNEY

WATER

TAFE

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Contractor Central: Job Posting Summary

On average every job

posting is distributed to

5 suppliers

92% of all Job Postings

result in a successful

placement

The remaining 8% is attributed to:

- a lack of candidates

- cancellations

- a lack of supplier responses

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Contractor Central: Supplier JP Cycle Time

10 Days

10 Days

9 Days

9 Days

8 Days

7 Days

6 Days

0 2 4 6 8 10 12

FACS

JUSTICE

EDUCATION

DFSI

HEALTH

ACT

ENVIRONMENT

Time from Distribution of JP to work order creation

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Contractor Central: Top 10 filled / unfilled Job

Postings

0

500

1000

1500

2000

2500

Job P

ostings

TOP Successful JPs TOP Unsuccessful JPs

Source Contractor Central

Note: Measure of the number of job postings resulting in the hire of a worker (or) failing to secure a placement with and without a supplier response

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Contractor Central: Supplier JP Response Rate

Source Contractor Central

Note: Measure of the number of invitations issued to a supplier to respond to a job posting – Generally multiple invitations are sent per job posting

Declined779 No Response

2076

Responded11043

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Supplier Reporting Performance

98% 98%

87% 84%80%

69%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17

RESPONSE PERCENTAGE

Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17

ON TIME LATE NO RESPONSE

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I don’t have any workers with NSW Government customers

• Respond NIL - Send an email to contingentlabour@finance.nsw.gov.au with the name of your company and “NIL”

All of my workers are in Contractor Central

• Respond NIL – Send an email to contingentlabour@finance.nsw.gov.au with the name of your company and “NIL”

Some workers are in Contractor Central but not all of them

• You must complete the template with only non-Contractor Central spend

All of my workers are not in Contractor Central

• You must complete the reporting template with all spend

Always follow the reporting instructions:

SCM 0007 Supplier Reporting

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SCM0007

Performance July 17 to December 17

Between July 2017 and December 2017

730 eTenders Transactions were received(including profile updates)

New Application

21%

Resubmission54%

Vendor Profile Update

25%

Unsuccessful

41%

Waiting Decision

7%

Successful16%

Withdrawn36%

* Successful does not always mean a new supplier is added to the scheme. This usually indicates applications for new subcategories

4 to 6 weeks(not including profile updates)

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SCM0007 Application Processing Performance

24 days

26 days

23 days22 days

23 days

28 days

20

21

22

23

24

25

26

27

28

29

30

Jul Aug Sep Oct Nov Dec

Work

ing d

ays

The NSWP standard processing times is between 20 and 30 working days to fully assess an application.

The Contingent Workforce Scheme Assessment team has achieved this throughout the last 6 months

Average working days between lodgement and outcome notification, not including profile updates

22

SCM0007 Prequalified Suppliers

356

15

5

Existing Suppliers New Suppliers Suppliers Removed

371 Suppliers

SCM0007 Update of Insurance Certificates

Apology

On 23 January we issued a request to all suppliers to update any expired

certificates of currency.

This resulted in a large number of suppliers reporting that they were unable

to review and update expired WorkCover insurance certificates of currency.

The issue has been resolved and suppliers now have the ability to update

their insurance certificates.

We apologise for any inconvenience this may have caused.

SCM0007 Update of Insurance Certificates

However…

Compliance to the Scheme rules is your responsibility

eTenders will remind you by email 30 days before your certificate of currency

is due to expire

Suppliers who do not update their insurance documents will not be allowed to

receive new opportunities for work until it has been resolved

If this happens, we will write to you with the expectation this will be rectified

immediately

Failure to comply will considered a breach of the scheme rules and may

result in your removal from the scheme

SCM0007 Approved Supplier Logo

NSWP has not issued approved SCM0007 supplier logos for over 4 years

All previous logos must be removed as they are now out of date

Utilising veteran talent

EMPLOYING VETERANS IS A GOOD BUSINESS DECISION

Tax-payers have invested significantly in military personnel, whose

exceptional skills and experiences of veterans are highly transferable .

SKILLS TO MATCH YOUR NEEDS

On top of specialist trades, veterans have high value “non-technical”

skills:

• critical thinking and problem solving

• written and oral communication skills

• flexibility, agility and resilience

• leadership and teamwork

• dependability, loyalty and integrity

• coordination and accuracy

HIGHLY TRAINED, EXPERIENCED AND WORK READY

Around 1,500 personnel transition from the ADF into NSW annually. A

highly-trained, experienced and work-ready resource pool.

IPAR –Alison McIlveen, National Military Account Manager02 8272 2222, ADFtransition@ipar.com.au

Konekt –Paul Sitchon, Employment Engagement Officer0427 781 645, psitchon@konekt.com.au

APM –Carolyn Bell, State Manager02 8296 5700, carolyn.bell@apm.net.au

Tapping the veteran talent pool

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Q&A

Q. Can we speak directly to a hiring manager after receiving a job posting?

A. This is cluster specific. You should ask the relevant Contractor Central

team about how their hiring managers want to engage with you.

Q. When can I expect to receive opportunities for work?

A. Job postings are distributed to suppliers as they arise. Each Contractor

Central team is required to demonstrate that they provide suppliers as

many opportunities for work as possible.

Q. Once a supplier is prequalified, there are no guidelines or contact lists to

obtain opportunities for work. It means sitting there for hours calling

through people at sites, depots etc. How are you looking to change this?

A. We don’t provide contact lists. Suppliers should liaise with Contractor

Central.

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Sample Contractor Central Spend – Metro /

Regional

Metro South Region60%

Metro North Region33%

Hunter Region3%

Western Region2%

Northern Region1%

Southern Region1%

Regional NSW

7%

Greater Sydney

Metro

93%

Not including supplier reported data

Q. Is NSW Procurement able to release a breakdown of spend data for

regional areas of NSW?

A. We can share this preliminary chart and will review what other reporting

may be available.

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Q&A

Q. Does NSW Procurement intend on making any adjustments to the

Scheme Rules. Will there be any recalculations of margins?

A. No

Q. Workers who apply for a permanent position with a customer currently

do not attract a temp to perm fee. Can this be reviewed in the future?

A. Temporary to Permanent fees are included in the Scheme rules however

they do not apply where a position is advertised externally as these

recruitment activities are always subject to a merit selection process.

Q. What steps are taken to improve the communication between

Contractor Central and Hiring Managers with regards to feedback to

unsuccessful candidates?

A. This feedback has been received and we are working to address this

with Contractor Central. We can report that there has been a reduction of

complaints regarding this issue.