2. Wed 1000 CWS Talks Keynote Cwsse16

WED | 10:00

KEYNOTE ADDRESS: CWS Talks - Europe

Speakers: § Bryan Pen͂a, CCWP, SVP, Contingent Workforce Strategies, Staffing Industry Analysts § Kevin Barrow, Partner, Osborne Clarke LLP § Steven Swennen, Project Manager EMEA, Global Procurement, Takeda Pharmaceuticals International AG § Matt Jessop, VP, Product Management, Brightfield Strategies

Training & Accreditation

–Two –Seven –Three –Eight –Four –Ninth –Five –Ten –Six –Eleven

©2016 by Crain Communications Inc. All rights reserved. 1. AB Electrolux 43. CACIB 84. Ernst & Young GmbH 126. Marks and Spencer 168. Sanef Operations 2. ABB Inc 44. Cancer Research UK 85. Experian 127. Mars Chocolate UK Ltd 169. Sanofi 3. Abbott 45. Capgemini 86. ExxonMobil 128. MARS Information Services 170. Santander 4. ABBVIE 46. Carillion PLC 87. FrieslandCampina 129. Merck 171. Schneider Electric 5. Abercrombie & Fitch 47. Caterpillar 88. Fujitsu 130. Merck KGaA 172. Serco 6. ABN AMRO 48. Celgene 89. G4S 131. Michelin 173. Siemens 7. Accenture 49. Centrica 90. GE Healthcare 132. Microsoft 174. Skanska 8. Achmea 50. CGI 91. General Electric 133. Millicom Group 175. Sodexo 9. Adobe 51. CH2M 92. GHF 134. Mondelez International 176. Staples Europe 10. Ahold 52. Cisco 93. GlaxoSmithKline 135. Monsanto 177. Syngenta 11. AIG 53. Citi Group 94. Heathrow Airport Holdings 136. Morgan Stanley 178. T. Rowe Price Associates 12. Aimia 54. Close Brothers 95. Hewlett Packard Enterprise 137. Motorola Solutions 179. Takeda Pharmaceuticals 13. Airbus 55. Coca - Cola 96. Hitachi Data Systems 138. Nationwide 180. Telefonica 14. AkzoNobel 56. Columbia Threadneedle 97. Home Retail Group 139. NG Bailey IT Services 181. Teva Pharmaceutical 15. Alliander Investments 98. Honeywell 140. Nordea Bank 182. The Coca-Cola Company 16. Allianz Plc 57. Communisis 99. HSBC 141. Northern Trust 183. The Walt Disney Company 17. American Express 58. Compass Group 100. IAG 142. Novartis Pharmaceuticals 184. Thomas Cook 18. American International Group Inc 59. Computer Sciences Corp 101. IBM 143. NXP Semiconductors 185. Tieto Corporation 19. Amgen 60. ConTal 102. ICAP 144. Old Mutual Wealth 186. TKMaxx 20. Anchura 61. Co-operative Group 103. IHG 145. Oracle 187. Transport for London 21. Aon 62. Credit Suisse 104. Imperial Brands PLC 146. PayPal 188. Tullett Prebon 22. Apple 63. Crown Commercial Service 105. IMS Health 147. Pfizer 189. Tullow Oil PLC 23. Aramco 64. CSC 106. Infineon Intel Mobile Systems 148. Philips 190. UBS 24. Arcadis 65. DANONE 107. InterContinental Hotels Group 149. Pitney Bowes 191. UCB 25. Atkins 66. Deloitte 108. Jaguar Land Rover 150. PPG Industries Inc 192. UCL School of Management 26. AtoS 67. Deutsche Bank AG 109. JLL 151. Procter & Gamble 193. UK Power Networks 27. ATOS SPAIN 68. Diageo 110. John Deere 152. Progressive Insurance 194. Ultra Electronics 28. Auchan Retail France 69. Disney 111. John Lewis Partnership 153. Prudential 195. Unilever 29. Aviva 70. Dixons Carphone 112. Johnson & Johnson 154. PwC 196. Unisys Corporation 30. AXA 71. DS Smith 113. JPMorgan Chase 155. Quintiles 197. United Biscuits 31. Babcock 72. DSM Sourcing 114. KeolisAmey Docklands Ltd 156. RBS 198. UPS 32. BAE Systems 73. Dutch Railways 115. KLM 157. RELX 199. Verizon 33. Baker Hughes 74. E.ON UK 116. KPMG 158. Roche 200. Vodafone 34. Baltic International Bank 75. EasyJet Airline Company 117. Ladbrokes plc 159. Royal Ahold NV 201. Volvo Car Corporation 35. Bank of America 76. Electrolux 118. Latvijas Valsts Meži 160. Royal DSM 202. Walgreens Boots Alliance 36. Bank of New York Mellon 77. Eli Lilly & Company 119. Lebara 161. Royal IHC 203. Wessex Water Services Ltd 37. Barclays 78. eni gas & power 120. Lego Company 162. Royal Mail Group 204. Willis Towers Watson 38. BNP Paribas Fortis 79. EnServe Group 121. Liberty Global Inc 163. Royal Philips 205. Wincor Nixdorf 39. Boeing 80. EON 122. Lloyds Banking Group 164. RS Components 206. World Bank Group 40. BP 81. Equens SE 123. Lloyds Register 165. RWE Npower 207. Xerox 41. British American Tobacco Plc 82. ERGO Insurance Group 124. LRWA 166. Sabre 208. Ziggo 42. Brose 83. Ericsson 125. Magnox 167. Salesforce 209. Zurich

§ Belgium § Skill Shortage and Talent Retention § France § Managing Programme Cost § Germany § Management Across Different Countries § Netherlands § Legal Compliance and Risk § United Kingdom § Managing Programme Cost § USA § Management Across Different Countries

©2016 by Crain Communications Inc. All rights reserved. ©2016 by Crain Communications Inc. All rights reserved. ©2016 by Crain Communications Inc. All rights reserved. ©2016 by Crain Communications Inc. All rights reserved. ©2016 by Crain Communications Inc. All rights reserved. A few changes in 2016…. § New Case Study Format § Shorter Sessions – 30 Minute Case Study Sessions – 45 Minute Concurrent Session § 4 Tracks – Talent & Quality Track – Application & Efficiency Track – Technology & Innovation Track – Ideas in Action § CWS Connect - London

• Detailed 30 minute single client case studies focused on unique solutions or challenging client issues actual contingent workforce problems. Delivered in an informal Q&A format.

• RPO, Talent Management, Branding, Strategic Workforce Planning, Talent Pools and Total Talent Management

• Topics addressed include SOW management , Cost Savings Strategies, MSP, Global Expansion, Legal and Regulatory issues.

• HR related technology and services innovation. FMS, HRIS, VMS technology, Data Science and Analytics.

• Opportunities for the providers to demonstrate the latest in cutting edge technology and services

©2016 by Crain Communications Inc. All rights reserved. CWS Connect - London • High-energy "speed networking" style session, find people with similar challenges or who can help with your programme challenges – With Booze

Fast Forward: New Ways of Working in the 21st Century

§ Thematically TED Events are multidisciplinary, focused on the power of ideas to change. § Events are a suite of short, carefully prepared talks, demonstrations and performances on a wide range of subjects to foster learning, inspiration and wonder -- and to provoke conversations. § Single presenter per talk § No talk should exceed 18 minutes* § No Q&A

Training & Accreditation

• Employees – Full time or part time – Apprentices, trainees, and paid interns • Non-Employees – Temporary workers – Independent contractors or consultants/freelancers – Online workers (e.g. micro tasks, crowdsourced, etc.) – Professional services (e.g. management consultants, lawyers) – Outsourced services (e.g. security guards, maintenance) – Partners (e.g. supply chain, partnerships, joint ventures) – Formal and informal volunteers (e.g. self-service customers) – Franchisees/affiliates/associates (e.g. marketing, sales activities, etc.) – Robots/drones/cognitive computing applications

© 2015 Crain Communications Inc. All rights reserved.©2016 by Crain Communications Inc. All rights reserved. Firms Use a Wide Variety of Non-Employees Based on what you know, which of the following types of ‘workers’ did work on behalf of your company/organization during 2014?

Robots/drones/cognitive computing 5%

Informal volunteers 5%

On-line workers 6%

Franchisees/affiliates/associates 10%

Formal volunteers 14%

Partners 27%

Outsourced services 45%

Professional services 54%

Temporary workers 62%

Independent contractors or consultants/freelancers 62%

0% 10% 20% 30% 40% 50% 60% 70% Source: Staffing Industry Analysts, Global Total Talent Management Survey, May 2015

• The world’s most popular media owner creates no content

• The world’s most valuable retailer has no inventory

• The world’s largest accommodation provider, owns no real estate

AWR Liability

Joint Employment

Assignment Limits

Intellectual Property Employment Taxes

Kevin Barrow – SIA Conference – April 2016 osborneclarke.com About Osborne Clarke

Why should I listen to OC?

• International law firm and leading legal advisers on "an acknowledged expert in the HR outsourcing field and global flexible workforce projects highly regarded for specialist advice to staffing companies • In 2012-6 advised on RPO, MSP and staffing projects in and end users of their 46 countries in Europe, Asia, Americas and Africa: services." • every major European country Legal 500 "the acknowledged experts [in • China, HK, India, Singapore, Brazil, South Korea, recruitment]." Russia, Iraq, Saudi and Qatar and Legal 500 • places as diverse as Angola, Tanzania, Azerbaijan, Chad, Ecuador, Kenya, Ethiopia and Columbia • 2013-5 SIA risk methodology for major UK and US hirers • Led lobbying by staffing platforms in the UK 2011-13 • SEUK and Cabinet Office initiatives 2015-16

42 osborneclarke.com Growth of flexible workforce models involving online platforms

• Growth of flexible workforce models involving online platforms such as Uber, Upwork, Handy, Taskrabbit, Workmarket and dozens of others • Reports from McKinsey, PwC etc. about what online platforms can add to economies in terms of finding work for otherwise under-utilised talent, and doing so quickly, reducing un[der]employment, and increasing diversity • Predictions by economists about robotics and AI • Data from banks about growing irregularity of income and increasing range of sources of income via platforms • Millennial preference for this type of working? osborneclarke.com Growth of flexible workforce models involving online platforms

• …and online platforms could reduce • skills shortages for hirers • cost of hire for hirers, and • time to hire osborneclarke.com What's slowing platforms down?

• One challenge is that this new community of online staffing platforms does not fit easily into regulatory and tax structures designed for: • traditional long term employer-employee relationships • newer "standard" recruitment and staffing models osborneclarke.com What's slowing platforms down?

• Examples of problems users can suffer • employment law problems § NLW, (US) FLSA and EU/Jap minimum pay laws § protected occupations § …but no major class action tradition in the UK/Europe • regulatory problems including criminal offences § checks § payment services § charges to work-seekers • other § immigration • security osborneclarke.com What's slowing platforms down?

• Examples of problems users can suffer • tax liabilities (biggest issue in UK and Europe?) § self-employed? • 2014 UK Intermediaries legislation about self-employed workers working via a chain • 2017 personal service company legislation • US worker misclassification law • German and Dutch new legislation § employment taxes • 2016 umbrella company legislation • …and if they had to comply with all that the [cost-saving plus immediacy] business model would fail osborneclarke.com How have the platforms reacted?

• So, how have the platforms set themselves up to minimise problems? • "I might be subject to regulation but will go for it anyway" • "I'm not regulated in [UK]" § …but this attitude has PR implications etc. • "I'm not an employment agency" – just a passive medium § No checking obligations § No limits on charging work-seekers § No limits on payment intermediary services § …but the UK regulator may not allow this osborneclarke.com How have the platforms reacted?

• …which has led to lobbying • OC discussions with BIS in 2009-2013 • SEUK lobbying group suggestions § Clarity of status of work-seekers and platforms • Cabinet Office discussions § Exemptions/thresholds § "Third Way" § Government worrying that regulation is stifling something useful • …but there are two big challenges osborneclarke.com Challenges for policy makers

• What are the policy challenges? • "Daily Mail headlines" • Relaxing regulations in Europe about protection of vulnerable workers is not easy at a time of concern about the future of work § Morecambe Bay § Desperate workseekers § Immigration • Fears about loopholes for unscrupulous intermediaries to exploit the new category of flex-workers osborneclarke.com Challenges for policy makers

• What are the policy challenges? • Tax revenue loss • Workplace tax (e.g. PAYE and NICs, and the apprenticeship levy etc.) is still the biggest source of revenue for most Governments • Creating a new category of non-employed worker outside PAYE and NICs will devastate HMRC? And OTS say it will not work osborneclarke.com Likely outcomes

• So…what will happen? • Our guess is not much legislative change quickly! • Careful structuring by platforms in the short term…and be careful about using ones which don't have systems/partners to deal with the risks • HMRC will soon require platforms to provide information about who pays people via them, and what people get paid. They only want this information for one reason! • In due course HMRC may expand CIS to all arrangements in which "labour" is paid for? [What about international arrangements?] • Some increase in usage via FMS with traditional staffing companies and payroll companies partnering with the platforms and morphing into compliance companies osborneclarke.com Likely outcomes

• Staffing companies and MSPs etc. will continue to be key partners for the time being! osborneclarke.com Law Firm of the year 2015 Legal Business & The Lawyer

“The firm has in recent years cemented a position as one of the UK’s most upwardly mobile law firms.”

Legal Business on why OC became its Law Firm of the Year 2015

“It would be hard to find another firm with the same momentum as Osborne Clarke at the moment.”

The Lawyer on why OC became its Law Firm of the Year 2015

54 osborneclarke.com Key contacts

Kevin Barrow Partner, Recruitment T +44 20 7105 7030 [email protected]

Kevin advises staffing companies on all types of legal work, including commercial deals and mergers and acquisitions. He works for hirers and suppliers on market-leading national and international flexible workforce (MSP, RPO and VMS) projects, regulation of digital recruitment and online exchanges, and worker misclassification and 'co-employment' class actions. He has led a campaign to change the regulatory regime affecting online exchanges. He has led the roll-out of staffing/MSP deals in 40 countries in the last two years and been involved in half of the higher-value staffing and recruitment sector M&As in Europe since 2010. Kevin speaks regularly at conferences and seminars in the sector and advises US-based staffing industry analysts on global staffing issues.

55 Thank you osborneclarke.com Humans are terrible at making choices/decisions

©2016 by Crain Communications Inc. All rights reserved. ©2016 by Crain Communications Inc. All rights reserved. RFP’s are the worst form of decision making for supplier selection, except for all those other forms that have been tried from time to time.

©2016 by Crain Communications Inc. All rights reserved. ©2016 by Crain Communications Inc. All rights reserved. Meanwhile at every turn……..obstacles § Legacy supplier failure § Information gaps § Technology failure § Poor team execution § Personal bias § RFP drafting challenges § Pre-existing relationships § Scoping issues § Executive expectations § Client needs §Adoption § Supplier power § Supplier leverage § Data analysis and scoping § Stakeholder buy-in § Business process

Steven Swennen - 2016 CWS Summit Europe - London Client Engagement Accelerated

65 | Who am I?

From Belgium

100% dedicated to Professional Services Project Manager – Global Procurement Steven Swennen

Joined Takeda August 2015

Living in Denmark Who is Takeda?

67 | Our Strategic Roadmap is changing the way we work

Strategic Roadmap to become One Global Takeda

Global Procurement Transformation Procurement will play a pivotal role in Takeda’s success - our new operating model allows us to deliver strategic value

One of the key New Procurement goals: Business Vision Business Partnering Alignment Takeda’s goal is to implement a best in class model for its contingent workforce by the end of 2016

Takeda is striving Goals: to develop a best • Compliance Takeda’s in class model for • Global standardisation its contingent • Channel optimisation Implementation of Initiated October the program by MSP workforce that • Best possible 2015 matches commercial value end 2016 project Takedaism and • Transparency / Big Data delivers value to • Positive brand image the organization • Better access to Talent The implementation is divided into 3 phases with the intention to roll-out our first phase by the end of 2016

Phase 1 (End 2016) 2 3

USA, UK, Austria, Switzerland, Germany, Countries Japan and remaining EMEA countries APAC, LATAM, NEMEA Poland

800 + contingent workers Scope … … ca. 80 mio. USD spend Understanding, developing a strategy, going to market and doing a final recommendation, all within 6 months

6 Months

…

• Procurement and Talent Acquisition alignment • Internal stakeholder communication To become a strategic and efficient business partner we have to take full responsibility

How did we achieve this?

Right moment in a changing organisation Business Partnering - - Roadmap One Global Transparency & building relations Takeda

Communication Project management Expertise - - - Facts vs. Interpretations Driving the project & Done it before Assumptions Taking responsibility

Creating Credibility and Trust Utilizing a top-down and bottom-up approach brought the 3 key pillars together

Key Sponsor: Global Head of Talent Acquisition

Key Stakeholders: Global Talent Acquisition, HR BP, Finance, Legal, Compliance

Procurement, Business and Suppliers

Face-to-face meetings with nearly all suppliers in phase 1 countries

Procurement Roadshow to meet face to face with local stakeholders in phase 1 countries Client Engagement Accelerated

Active Appetite for Business Accelerated Change Results Partnering Thank you