wtg ags how future proof is your workforce webinar 27th feb2013
TRANSCRIPT
How future proof is your workforce…?February 27th, 2013
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IntroductionRonald Kreugel – Director, Business Development• Over 18 years experience in global staffing and recruitment industry• Helping customers to design, build and deliver workforce solutions• Since late 1990’s involved in MSP, RPO, VMS (before buzzwords)
About Allegis Group Services:• World’s 4th largest provider of Staffing and HR services• Leading provider of global Human Capital Solutions• Specialists in Managed Services, RPO and HR Advisory Services
www.allegisgroupservices.com
Agenda
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1. Simplified Labour Market Model2. Global Trends Affecting the Workforce3. Major Workforce Trends4. Growing Usage of Contingent Labour5. HR or Procurement?6. Final Thoughts
Simplified Labour Market Model
LabourProductivity
Production(GDP)
Labour Years(full-time jobs)
Part-timeFactor
Jobs
DEMAND
SUPPLY
Simplified Labour Market Model
LabourProductivity
Production(GDP)
Labour Years(full-time jobs)
Part-timeFactor
Jobs
Population
Share of15-65 years
Population 15-65 years
Degree ofParticipation
LabourForce
DEMAND
SUPPLY
Simplified Labour Market Model
LabourProductivity
Production(GDP)
Labour Years(full-time jobs)
Part-timeFactor
Jobs
Population
Share of15-65 years
Population 15-65 years
Degree ofParticipation
LabourForce
DEMAND
SUPPLY
Vacancies Non-workingJobseekers
Future Outlook
Global Business TrendsGLOBALISATION
DEMOGRAPHICS
TECHNOLOGY
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Global Business TrendsGLOBALISATION DEMOGRAPHICS TECHNOLOGY
• Economic Crisis• Consumer Confidence• Cost Reductions - Lay offs• Merger & Acquisitions
• New Generation(s)• Immigrations• Work-Life Balance• Social Responsibility
• Communication• Knowledge• Company Policy • Access to Talent
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Global Business TrendsGLOBALISATION DEMOGRAPHICS TECHNOLOGY
• Economic Crisis• Consumer Confidence• Cost Reductions - Lay offs• Merger & Acquisitions
• New generation(s)• Immigrations• Work-life balance• Social Responsibility
• Communication• Knowledge• Company Policy • Access to Talent
‘Usual ‘ Business Pressure• Active Cost Management• Productivity – Knowledge Workers• Global Talent Competition• Cultural Alignment with Business
‘Crisis‘ Pressure• Employee Engagement• Employer Brand (Lay-offs)• Continuous Change – Different Skills• More Pressure to Reduce Human Cost
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GDP Outlook in %
Workforce Trend (1)“POPULATION ON THE MOVE”
Change Drivers
Change Drivers
1. Global Power Shift2. Aging Population
3. TechnologyInnovations
Growth ofEmergingMarkets
UncertainGlobal
Economy
DisruptiveTechnologyInnovation
GovernmentMarketReforms
MajorDemographic
Shifts
Migrationof Knowledge
Workers
Cross-border Migration
+42%
ChangeMigrationPatterns
Unemployment in developed markets
Source: World Economic Forum
Workforce Trend (2)
Source: Global BCG/WFPMA report ‘Creating People Advantage’
Poll Question 1What is your organisation doing
with regards to strategic workforce planning?
1. We are not doing anything at this moment
2. We are thinking about strategic workforce planning
3. We have launched an initiative, but still early days
4. We have started with strategic workforce planningsome time ago
Workforce Trend (3)“INCREASING USAGE OF CONTINGENT LABOUR”
Workforce Build Up
Workforce Build Up
Contingent Workforce (CW) Trends
8% *
Light Industrial
ContingentPerm Employees
25% *
Information Technology
ContingentPerm Employees
18% *
Financial Services
ContingentPerm Employees
30% *
Automotive
ContingentPerm Employees
* indicative percentages based on AGS estimations in 2010
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Types of Contingent Workers
Temporary / AgencyWorkers
ProfessionalWorkers
Projects Statement of
Work
Graduates / Interns
Independent Contractors
Free-Lancers
ContingentWorkers
PermanentEmployees
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CW Maturity Model
I II III IV V
DECENTRALIZED
MASTER VENDOR
CLIENT MANAGEDPREFERRED
SUPPLIERPROGRAM
MANAGED SERVICE PROVIDER (MSP)
TOTAL TALENT ACQUISTION
MANAGEMENT
LOW
HIGH
MATURITY OF THE MARKET
GLOBAL CONTROL OF MSP or TTAM
VI
LEVE
L OF
COM
PLEX
ITY
Several suppliers Procurement done on
an ad-hoc basis Management done
internally
One supplier (possibly managing second and third tier suppliers)
One point of contact Direct cost savings on
bill rate and Volume Customized SLAs and
process
Client resources tactically engaged
Selective set of suppliers selected
Contracts in place SLAs in place May or may not involve
automation
Managing all contract workforce spend
One point of contact for suppliers and contractors and hiring managers
Direct cost savings on bill rate and usage
Integrated e tool for total process
SLAs & customized process
Total cost of ownership savings
Total workforce spend under management
Complete workforce visibility
Direct cost savings on bill rate and SOWs
Customized SLAs and process
Non-compliant spend elimination
Increased total cost of ownership savings
Additional productivity and process savings
High degree of value added services
Global spend centralized and controlled
Global workforce visibility
Customized SLAs and process
Global supply community
Increased total cost of ownership savings
Integrated e tool for total process visibility
Additional productivity and process savings
High degree of value added services
Ability to plan best mix of resource types
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HR or Procurement…?
Human Resources (HR) Procurement (NPR)
• Focus on permanent hires/ employees
• ‘Policy’ makers
• Keeping ‘temps’ at arms- length from employees
• Mitigating co-employment risks
• Focus on indirect spend on ‘external’ resources
• Cost control and spend optimization
• Managing contracts with staffing services suppliers
• Minimize compliance risks
Poll Question 2Who is responsible for managing the
contingent workforce within your organisation?
1. Procurement
2. Human Resources
3. Business / Hiring Managers
4. A combination of the above
Changing Role of HR
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Changing Role of HR
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Changing Role of HR
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Future Proof Workforce
Key Elements of Workforce Management
Strategic WorkforcePlanning
Total TalentAcquisition
EmployeeDevelopment
PerformanceManagement
SuccessionPlanning
What are the goals of the organisation and the objectives you expect your people to deliver? Do you have the people to accomplish this?
Where and how will you get the talent to fill the gaps you identified in planning?
How do you train and prepare your people so they will be successful?
Are your people successful and are they accomplishing the goals you set for them?
Do you have a plan for key people and roles?
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Questions & Answers
Let us answer your questions!
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Thank you!
Visit our website for more info: www.allegisgroupservices.com/blog
For years HR has turned a blind eye to the non-employee workforce in a company. Even though some of the contingent workforce sits in cubicles adjacent to full time regular employees, they were for the most part the outsiders. Because of the fear of something called “co-employment” conservative onboard jailhouse legal advice was passed from desk to desk without many even knowing the definition of the term. I asked. Many would respond, “Well, you know… it was that Microsoft thing several years ago…“ without even knowing the cause and outcome of that huge multimillion dollar settlement. “We don’t have an issue because our contingency workers are employed through another firm.” Really? Did you know that this fact alone does not represent a true arms-length relationship? If it were not so important we could blindly go ahead with our dream world intact and only deal with the “real” employees.A recent promotional piece from Snelling, “Trends in Staffing and Contingent Workforce Management for 2013” mentioned that approximately 16% of the average large company is a contractor or temp. This is supposedly up from 11% a few years ago, but is this a trend that represents the future? Probably not. The actual numbers are probably much higher. Also, most companies are unsure of what the Affordable Care Act (or Obamacare if you prefer) means in terms of healthcare regulations and rules. Staffing companies must be nimble enough to maintain their current growth and recognize the impact of compliance with new laws. With current economic conditions as they are, it makes sense that SIA (Staffing Industry Analysts) is forecasting an estimated 6% growth in the staffing industry in 2013. With regulatory, labor, and health care costs in a state of flux while politicians decide the final outcome, there will no doubt be six months or more of uncertainty as to the outcome.The economy seems to be recovering for the present, but so far it has been pretty much a jobless recovery. You may pick your own side to argue as to whether this is the fault of one party or the other, but when you go to bed at night are you wondering how this impacts you? If you suspect that your job could be done by a machine or outsourced, ask your doctor for a prescription for Ambien. Then when you wake up, plan for the future of your company and for your career.CEO’s – The time to live in a vacuum about the composition of your workforce is long past. The future successes of your company (and the size of your bonus) will depend on your people. If you do not know the current percentage of contractor or temporary workers in the organization, ask your human resources experts… they won’t know the answer but they can get a list from Security of how many badges have been issued to contractors.HR Leaders – How is that head in the sand working for you? When you talk about creating a positive culture in the organization, you are not considering that the culture involves more than the in-house full time employees. Plan for “engagement” and leave out one of the largest components of the real workers in your environment and you only have half of the horses pulling the wagon.Employees – Wake up and smell the coffee… and remember that Starbucks has WiFi when you are forced into an unplanned job search because your function was outsourced. Of course, this only happens to other people, but just in case a “friend needs advice” decide what you would say. It’s probably good to remember the details of your advice.Job Seekers – Are you looking for a full time job? Considering a position with a firm through one of the job shops that places contingent workers may be a more direct route to gainful employment. Anyone who has been unemployed for a lengthy period of time needs to broaden the scope of the search to include non-typical employment. There are people who have been making a career out of temping for years.
The Big Picture: Global Trends in 2012” provides a summary of survey results, showing the topics executives consider most important today and in the future—and which ones most need improvement.
“The Case for Integrated Sourcing Management” emphasizes the importance of a holistic approach to people sourcing, from people planning and employer branding to formulating a recruiting strategy and retaining employees. By integrating their sourcing activities, companies can ensure consistency across their messages and achieve important synergies.
“Building Up Your Critical Assets: Talent and Leadership Development” discusses the importance of six key—and highly interdependent—steps in developing talent and leadership, from developing a talent strategy to creating a talent magnet culture.
“Managing People in the World’s Fastest-Growing Economies” delineates the specific skill shortages and capability gaps that plague companies operating in high-growth markets.
“Enabling Workforce Flexibility in a Two-Speed World” highlights a rising challenge facing the majority of companies in our survey: simultaneous workforce shortages in some areas and surpluses elsewhere. The chapter describes useful strategies for deploying talent effectively to reconcile these imbalances.
“HR Governance: Global or Local?” looks at the three levels of HR governance that companies currently practice across 16 key HR activities. Moreover, we also discuss what could be the most effective approach in each activity.
Employer & EmployeesEmployees gain more bargaining powerOver the past 20 or 30 years, the bond between company andemployee has weakened, even in corporate cultures where loyaltywas once prized. Fast-changing company needs and a desire to cutcosts led first to more frequent layoffs, and then to nontraditionalrelationships where the expectation was not decades of service,but only a few years.In a period of high unemployment, this new social contract isan advantage for the employer. But as the market turns, skilledemployees should benefit. They will want a better understandingof their employment options and a greater say in how work isassigned, assessed and rewarded.The employer will no longer define the workplace; rather,employees’ priorities and preferences will dictate what the futureworkplace will look like, particularly now that technology makesit easier than ever to design a variety of flexible arrangements.Companies operating in aging societies will have to craft methodsto engage or re-engage the experienced base of talent. Companiesthat fail to respond to this change and do not succeed in redefiningtheir employee value proposition will fail to attract, retain ordevelop talent effectively.
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