what influences contract talent usage?
TRANSCRIPT
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What Influences Contract Talent Usage?
A Spring 2011 Research Report from
Human Capital Institute and Beeline
Tuesday, May, 24 2011
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Presenters
■ Meghan McVeigh, Program Manager, Workforce Mgmt
Public Service Enterprise Group
■ Beth Perdue, Vice President, Strategic Solutions, Beeline
■ Bill Craib, Vice President , Human Capital Institute
■
HCS Certification Course, V.3.0, 2010
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About this research
Spring 2011
134 respondents
One-on-one interviews with senior practitioners from • healthcare • financial services • professional services
Analyzed by: Percentage of CT in the workforce How far in advance CT needs are projected If there is an EWCTP in place Company size
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Keeping it temporary
“Despite a surge this year in short-term hiring, many
American businesses are still skittish about making those
jobs permanent, raising concerns among workers and
some labor experts that temporary employees will
become a larger, more entrenched part of the work
force.” Motoko Rich, NY Times, Dec. 2010
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Use of Contract Talent increased during the recession...
■ Overall, 75% agreed that CT is used more during times of economic uncertainty.
■ A significantly higher percentage (87%) of those respondents with more than 5% of CT in their workforce agreed with this statement.
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...and will have a sustained presence moving forward
■ What percentage of your current
workforce would you estimate to
be Contract Talent?
■ What percentage of your
workforce would you estimate to
be CT one year from now?
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Discussion Questions: ■ Is it inevitable that Contract Talent will continue to increase?
■ How does this impact the roles of the various stakeholders involved
in Contract Talent within organizations today?
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Why is Contract Talent being used more now?
“It is bringing in the technical skills necessary. It’s time to market – sometimes bringing in full-time staff takes longer. It’s a longer decisioning process. If you can bring somebody in quickly who can get your initiative or backlog done sooner, it’s a more agile
workforce that allows you to do more in a shorter period of time. So time-to-market is a big deal.”
Cynthia Moore, Co-founder
VMS Professionals
“It’s cheaper to hire contingent workers, but also more flexible for employers. If someone decides, ‘We need to be this size,’ it’s far
easier to do that with contract workers and temps."
Bill Kahnweiler Associate Professor
Department of Public Management and Policy Georgia State University
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Key Influences to Contract Talent usage: Flexibility to quickly expand workforce
Provides flexibility - able to quickly expand or contact our workforce Need specialized skill not available in our workforce Need experience that was not present in our workforce Want to reduce benefit, insurance and health insurance costs Want to reduce employment/payroll taxes Lower wage cost
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The rate of change and planning
■ Because of the constant change of
business, its expansion and
contraction, contract talent allows
organizations to flex.
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Key Influences to Contract Talent usage: Ability to access skills/experience not currently available in their workforce
Provides flexibility - able to quickly expand or contact our workforce Need specialized skill not available in our workforce Need experience that was not present in our workforce Want to reduce benefit, insurance and health insurance costs Want to reduce employment/payroll taxes Lower wage cost “We don’t need a full-time person long-term, so we bring in top contract labor, particularly when we have project activity, to cover those ebbs and flows of the workload. It is usually a
particular skill in regards to the IT world, it’s something you know you can find in the marketplace more easily and quickly than
trying to find an FTE.”
Sally Ballard Regence Group
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Discussion Question: ■ How do we make our Contract Talent programs better, even as they
get bigger?
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CT Management becoming centralized and standardized
“...in terms of being able to scale services like contract services across the organization, a Vendor Management System is critical to being able to do
that. There was a time here at H&R Block where things were more decentralized. VMS helps from a reporting standpoint so that we understand
what is our volume and how we can negotiate with our vendors to get the best prices.”
Kimberley McDonald, Director of Talent Acquisition
H&R Block
■ Increased use of Enterprise-Wide CT Programs and CT Tools such as Managed Service providers (MSP), Vendor Management Systems (VMS) and Independent Contractor Engagement Specialists (ICES) ■ Each of these tools improve
capabilities to effectively manage CT program and people
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Discussion Question: ■ What aspects of Contract Talent as a talent management strategy
have the biggest impact?
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Benefits of EWCTP & CT Tools Organizations with CT Tools
% Agree That CT Program has: The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again.
Organizations with CT Tools % Agree That CT Program has:
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Conclusion
■ Final thoughts from panel
■ Your questions
■ Look for more best practices and case studies on Contract Talent
from HCI and Beeline in our series, Contingent Workforce in the
21st Century, on www.hci.org