Driving the future of mobility is no easy feat. With more than 160,000 people across 126 manufacturing facilities and 12 major technical centres worldwide, our client requires a significant number of highly skilled people. Many of these are part of an increasingly large and complex contingent workforce.
As any procurement or HR leader knows, successfully procuring and managing a contingent workforce can be challenging, especially when they are spread across multiple countries with various different compliance, tax and worker legislation.
Procuring and managing a contingent workforce under a single global program raises the challenge bar even higher, but as we will see achieves next-level results across KPIs.
How our contingent workforce management program went global
In 2007, this global mobility and technology company partnered with Guidant Global to utilise our expertise in ensuring compliance, managing suppliers, and driving cost savings through an MSP program.
At that time, the client was operating predominantly in the US. Fast forward to today and Europe has now become their largest market, Asia is becoming an increasingly bigger portion of their global market share and North America is actually shrinking as a percentage of their overall business. The scope of our MSP program has expanded to reflect this.
We now have successful contingent workforce management programs that includes Germany, the UK, Sweden, Portugal, Poland, France, Luxembourg, India and China.
Worker type has also evolved as the program has matured. When we originally launched in Europe, for example, we only managed engineering services within the MSP program. Since then, the MSP has expanded to include all labour and skill set categories globally.
At each stage of regional expansion, as countries were added to the program we were able to deliver definitive proof points from preceding countries and bring forward those examples of how we were able to consistently take cost out, improve efficiency, increase compliance, visibility and reporting, ensure talent quality was enhanced and availability improved.
The results speak for themselves. We now have upwards of 80 per cent of the client’s global contingent labour managed in the program, with a continuing roadmap to pick up the other key markets.
The most recent data from across our programs indicates our time-to-fill and fill-rates are in the 99 to 100 percentiles, our fill-rate is more than double the client’s internal processes for permanent labour, and fill time is less than a third of what our client spends on direct hires.
The company also permanently hired more than 90 contract workers directly from the program, without any fees being charged.
In 2019, spend under management for the entire global MSP program totalled $83.8 million, with $7.9 million in direct savings and $8.3 million in indirect savings achieved through ongoing efficiencies, consistently high-quality talent attraction and retention, improved visibility of our client’s contingent workforce, increased compliance and consistent reporting.