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HR Vs Procurement — Who Runs the Show?

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HR Vs Procurement — Who Runs the Show? TUESDAY 16:00‐17:00 OTTER/ESPERANCE Concurrent Session: Leadership and Execution HR vs Procurement —Who Runs the Show? Moderator: Matt Norton, Research Analyst, Staffing Industry Analysts Panellists: . Richard Jackson, Managing Director, Hays Talent Solutions . Andy Moffitt, Group Professional Services Director, Computacenter . Jonathan Winters, VP, Sourcing Team Lead, Bank of America Merrill Lynch Sponsored by: 21‐22 April 2015 © 2015 Crain Communications Inc. All rights reserved. Hotel Okura, Amsterdam DIGITAL SURVEYS Don’t forget to provide feedback HR vs Procurement —Who Runs the Show? Rate this session by accessing the evaluation from your Conference Mobile Community OR tap the iPad screen as you exit. 21‐22 April 2015 © 2015 Crain Communications Inc. All rights reserved. Hotel Okura, Amsterdam Definitions: Procurement . The process of obtaining goods and services from preparation and processing of a requisition through to receipt and approval of the invoice for payment. It commonly involves (1) purchase planning, (2) standards determination, (3) specifications development, (4) supplier research and selection, (5) value analysis, (6) financing, (7) price negotiation, (8) making the purchase, (9) supply contract administration, (10) inventory control and stores, and (11) disposals and other related functions. Source: www.businessdictionary.com © 2015 Crain Communications Inc. All rights reserved. 21‐22 APRIL 2015 Hotel Okura, Amsterdam Definitions: Human Resources . The administrative discipline of hiring and developing human capital so that they become more valuable to the organisation. Human Resource management includes (1) conducting job analyses, (2) planning personnel needs and recruitment, (3) selecting the right people for the job, (4) orienting and training, (5) determining and managing wages and salaries, (6) providing benefits and incentives, (7) appraising performance, (8) resolving disputes, (9) communicating with all employees at all levels. Source: www.businessdictionary.com © 2015 Crain Communications Inc. All rights reserved. 21‐22 APRIL 2015 Hotel Okura, Amsterdam European Contingent Buyer Survey 2014 © 2015 Crain Communications Inc. All rights reserved. 21‐22 APRIL 2015 Hotel Okura, Amsterdam Which of the following plays a lead role in selecting your suppliers? Procurement/finance from corporate headquarters 72% HR from corporate/headquarters 43% Hiring managers in your organisation 40% MSP/Master staffing supplier 37% Procurement/finance (from outside corporate/headquarters) 28% HR (from outside corporate/ headquarters) 28% Executives from corporate/HQ (other than HR or procurement/finance) 25% Executives from outside corporate/HQ (other than HR or procurement/finance) 13% Outsourced procurment/BPO 7% Source: Staffing Industry Analysts – 2014 Buyer Survey © 2015 Crain Communications Inc. All rights reserved. 21‐22 APRIL 2015 Hotel Okura, Amsterdam CW Program Management Which department is best equipped to manage the CW program day‐to‐day, by respondents' department 6% 15% 9% CW 23% best the is 61% day? ‐ 46% to ‐ 89% day manage 68% 26% to 39% department 5% 13% program Which All respondents Procurement HR Other equipped Respondents' department Procurement HR Other Source: Staffing Industry Analysts – 2014 Buyer Survey © 2015 Crain Communications Inc. All rights reserved. 21‐22 APRIL 2015 Hotel Okura, Amsterdam CW Program Management Which department is best equipped to make a long‐ term strategic plan for your CW program, by respondents' department 8% 2% 2% 23% term ‐ 48% best 48% is long a 94% plan? 75% 22% make 45% to department 30% 5% strategic All respondents Procurement HR Other Which equipped Respondents' department Procurement HR Other Source: Staffing Industry Analysts – 2014 Buyer Survey © 2015 Crain Communications Inc. All rights reserved. 21‐22 APRIL 2015 Hotel Okura, Amsterdam What functional group are you a part of? . Procurement . Human Resources . IT . Finance . Operations . Other © 2015 Crain Communications Inc. All rights reserved. 21‐22 APRIL 2015 Hotel Okura, Amsterdam Which function is best equipped to develop a long term strategic plan for your CW program? . Procurement . Human Resources . IT . Finance . Operations . Other © 2015 Crain Communications Inc. All rights reserved. 21‐22 APRIL 2015 Hotel Okura, Amsterdam HR vs Procurement –Who Runs the Show? . Moderator: Matt Norton, Research Analyst, Staffing Industry Analysts . Richard Jackson, Managing Director, Hays Talent Solutions . Andy Moffitt, Group Professional Services Director, Computacenter . Jonathan Winters, VP, Sourcing Team Lead, Bank of America Merrill Lynch © 2015 Crain Communications Inc. All rights reserved. 21‐22 APRIL 2015 Hotel Okura, Amsterdam Global MSP Clients © 2015 Crain Communications Inc. All rights reserved. 21‐22 APRIL 2015 Hotel Okura, Amsterdam UK&I CEROW APAC Total MSP Clients 25 25 10 60 Managed Spend $0.9bn $1.0bn $0.3bn $2.2bn Population 11,000 7,300 3,000 21,300 © 2015 Crain Communications Inc. All rights reserved. 21‐22 APRIL 2015 Hotel Okura, Amsterdam Who owns the contingent workforce function? 59% Procurement 20% HR & Procurement 15% HR 4% Business 2% HR, Business & Procurement © 2015 Crain Communications Inc. All rights reserved. 21‐22 APRIL 2015 Hotel Okura, Amsterdam Geographically –Who owns the contingent workforce function? Procurement HR Business HR & Business HR, Procurement Business & Procurement Germany 100% ––––– Netherlands 50% 25% 25% – – – UK 30% 30% – 30% 8% 2% Australia 20% 20% – 55% 5% – © 2015 Crain Communications Inc. All rights reserved. 21‐22 APRIL 2015 Hotel Okura, Amsterdam Geographically –Who owns the contingent workforce function? Procurement HR Business HR & Business HR, Procurement Business & Procurement Germany 100% – – ––– In the UK market we see a move to Netherlands a joined-up approach to ownership 50% 25% 25% of the––– contingent workforce function. UK 30% 30% – 30% 8% 2% Australia 20% 20% – 55% 5% – © 2015 Crain Communications Inc. All rights reserved. 21‐22 APRIL 2015 Hotel Okura, Amsterdam . As the market matures –we see a more joined‐up approach from all stakeholders in the delivery of an outsourced programme . As markets and programmes mature, cost is not the sole driver of a successful outsourced programme . Contingent outsourced programmes are now enterprise‐wide talent initiatives rather than a cost saving exercise . The range of services provided by outsourced providers has expanded materially and involves a wider range of business stakeholders . As P&L’s strengthen –through the economic recovery –the voice and involvement of the business has increased in all areas of talent acquisition © 2015 Crain Communications Inc. All rights reserved. 21‐22 APRIL 2015 Hotel Okura, Amsterdam Computacenter and CW Overview . Computacenter - One of Europe’s leading vendor independent IT Services companies - 2014 turnover £3.1bn - £86m EBIT - 14,000+ employees . Contingent Workforce - 2180 contingent workers across Europe (Q4 2014 average per day) - 1350 UK - 700 DE - 130 FR - €130m spend © 2015 Crain Communications Inc. All rights reserved. 21‐22 APRIL 2015 Hotel Okura, Amsterdam Approach in 3 Countries Full MSP & VMS • MSP in existence since 2001 • VMS added in 2009 and upgraded in 2011 • Current MSP provider ‐ Hays • Covers 95% of total spend • Delivers cost savings, quality, control and speed of response © 2015 Crain Communications Inc. All rights reserved. 21‐22 APRIL 2015 Hotel Okura, Amsterdam Approach in 3 Countries PSL moving to MSP & VMS • 5 Platinum Partners with long tail of other providers •Only 40% of spend through Platinum Partners –partner selection de‐centralised, administration centralised • Complex compliance environment and getting tougher • Tender process completed in 2014 to implement MSP & VMS solution, preferred partner selected •Go‐live planned for 1st July 2015 to deliver UK benefits with Delivers cost savings, quality, control and speed of response © 2015 Crain Communications Inc. All rights reserved. 21‐22 APRIL 2015 Hotel Okura, Amsterdam Approach in 3 Countries PSL • Smaller numbers compared to UK and DE and PSL recently brought under control • New PSL processes implemented in Q1 2015 • Plan to investigate MSP & VMS solution in H2 2015 ready for implementation programme in 2016 with one of either the UK or DE partner © 2015 Crain Communications Inc. All rights reserved. 21‐22 APRIL 2015 Hotel Okura, Amsterdam The relationship sits within operations –why? . Over 80% of the contingent workforce is involved in delivering front‐line services to Computacenter customers ‐ this drives the thinking . The direct relationship between Computacenter service management and the MSP provider leads to a better service for the customer and improved outcomes for Computacenter . The relevant operational/service manager is accountable for all aspects of customer delivery including resourcing. The MSP provider is part of the solution, regarded as a virtual member of the service delivery activity . Speed of response to resolve issues and new engagements. Short notice, large requests are a feature of the service . Regular regional service reviews with operational management allow the MSP provider to get “under the skin” of service delivery leading to improved quality and proactive and innovative solutions © 2015 Crain Communications Inc. All rights reserved. 21‐22 APRIL 2015 Hotel Okura, Amsterdam The relationship sits within operations –why? . Use of contingent workers is embedded into operational strategy against which Operations are held accountable ‐ Cost
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