Good Stuff Happens in 1:1 Meetings: Why you need them and how to do them well
Wtg ags how future proof is your workforce webinar 27th feb2013
1. How future proof is
your workforce…?
February 27th, 2013
www.allegisgroupservices.com
2. Introduction
Ronald 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
3. Agenda
1. Simplified Labour Market Model
2. Global Trends Affecting the Workforce
3. Major Workforce Trends
4. Growing Usage of Contingent Labour
5. HR or Procurement?
6. Final Thoughts
www.allegisgroupservices.com
4. Simplified Labour Market Model
Part-time
Factor
Labour Jobs
Productivity
Labour Years DEMAND
(full-time jobs)
Production
(GDP)
SUPPLY
5. Simplified Labour Market Model
Part-time
Factor
Labour Jobs
Productivity
Labour Years DEMAND
(full-time jobs)
Production
(GDP)
Population
Population
15-65 years SUPPLY
Share of Labour
15-65 years Force
Degree of
Participation
6. Simplified Labour Market Model
Part-time
Factor
Labour Jobs
Productivity
Labour Years DEMAND
(full-time jobs)
Production
(GDP)
Vacancies Non-working
Jobseekers
Population
Population
15-65 years SUPPLY
Share of Labour
15-65 years Force
Degree of
Participation
13. Change Drivers
Growth of
Emerging
+42%
Cross-border
Markets
Migration
Migration Uncertain
of Knowledge Global
Workers Economy
Change Drivers
Unemployment in
1. Global Power Shift
2. Aging Population developed markets
3. Technology
Innovations
Major Disruptive
Demographic Technology
Shifts Innovation
Government
Market
Change
Migration
Reforms
Patterns
Source: World Economic Forum
14. Workforce Trend (2)
Source: Global BCG/WFPMA report ‘Creating People Advantage’
15. Poll Question 1
What 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 planning
some time ago
20. Types of Contingent Workers
Permanent
Employees
Contingent
Workers
Temporary / Agency Graduates /
Workers Interns
Professional Independent
Workers Contractors
Projects Free-Lancers
Statement of
Work
www.allegisgroupservices.com
21. CW Maturity Model
HIGH GLOBAL CONTROL OF
MSP or TTAM
TOTAL TALENT
ACQUISTION Global spend centralized
MANAGEMENT
LEVEL OF COMPLEXITY
and controlled
MANAGED SERVICE Total workforce spend Global workforce
PROVIDER (MSP) under management visibility
Managing all contract Complete workforce Customized SLAs and
workforce spend visibility process
CLIENT MANAGED
PREFERRED One point of contact for Direct cost savings on Global supply
LOW SUPPLIER suppliers and bill rate and SOWs community
MASTER VENDOR contractors and hiring Customized SLAs and Increased total cost of
PROGRAM
managers process ownership savings
One supplier (possibly Client resources Direct cost savings on
DECENTRALIZED Non-compliant spend Integrated e tool for total
managing second and tactically engaged bill rate and usage elimination process visibility
third tier suppliers) Selective set of Integrated e tool for Increased total cost of Additional productivity
Several suppliers One point of contact suppliers selected total process ownership savings and process savings
Procurement done on Direct cost savings on Contracts in place SLAs & customized Additional productivity High degree of value
an ad-hoc basis bill rate and Volume SLAs in place process and process savings added services
Management done Customized SLAs and May or may not involve Total cost of ownership High degree of value Ability to plan best mix
internally process automation savings added services of resource types
I II III IV V VI
MATURITY OF THE MARKET
www.allegisgroupservices.com
22. HR or Procurement…?
Human Resources (HR) Procurement (NPR)
• Focus on permanent hires/ • Focus on indirect spend on
employees ‘external’ resources
• ‘Policy’ makers • Cost control and spend
optimization
• Keeping ‘temps’ at arms-
length from employees • Managing contracts with
staffing services suppliers
• Mitigating co-employment
risks • Minimize compliance risks
23. Poll Question 2
Who 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
28. Key Elements of Workforce
Management
Strategic Workforce Total Talent Employee Performance Succession
Planning Acquisition Development Management Planning
Do you have a plan for
key people and roles?
Are your people successful and are they
accomplishing the goals you set for them?
How do you train and prepare your people so they
will be successful?
Where and how will you get the talent to fill the gaps
you identified in planning?
What are the goals of the organisation and the objectives you expect your people to
deliver? Do you have the people to accomplish this?
www.allegisgroupservices.com
29. Questions & Answers
Let us answer your questions!
www.allegisgroupservices.com
31. 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.
32. 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.
33. Employer & Employees
Employees gain more bargaining power
Over the past 20 or 30 years, the bond between company and
employee has weakened, even in corporate cultures where loyalty
was once prized. Fast-changing company needs and a desire to cut
costs led first to more frequent layoffs, and then to nontraditional
relationships where the expectation was not decades of service,
but only a few years.
In a period of high unemployment, this new social contract is
an advantage for the employer. But as the market turns, skilled
employees should benefit. They will want a better understanding
of their employment options and a greater say in how work is
assigned, assessed and rewarded.
<Picture of bad boss> The employer will no longer define the workplace; rather,
employees’ priorities and preferences will dictate what the future
workplace will look like, particularly now that technology makes
it easier than ever to design a variety of flexible arrangements.
Companies operating in aging societies will have to craft methods
to engage or re-engage the experienced base of talent. Companies
that fail to respond to this change and do not succeed in redefining
their employee value proposition will fail to attract, retain or
develop talent effectively.