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The Challenge
This organisation was faced with numerous contingent workforce sourcing and management challenges – one of the largest being the risk and safety concerns over their workforce during the Queensland floods. Primarily, they were concerned about their inability to identify and reach all their contingent workers, due to the lack of visibility of their contact details and work sites, caused by inconsistent management and record keeping.
Solution
The company needed to outsource their contractor payroll and management to an experienced specialist that could provide visibility and compliance. After reviewing a range of models, they extended their existing permanent staffing model to encompass their contingent workforce management program under the same umbrella.
This model involved:
- A recruitment process outsourcing (RPO) function, which manages the overall sourcing program for permanent and contingent employees, both direct and supply chain sourced.
- The outsourcing of their contractor management, including payroll and management of all contingent workers after placement.
CXC was selected to provide the contingent workforce management function, which involved contingent engagement, payroll, management and remuneration services.
The relationship CXC held with the RPO partner was based on transparency, understanding and mutual respect for the functions of both parties in delivering a contingent workforce management program. To cement the partnership, both parties combined to produce a partnership charter to document the shared vision and goals and set out a framework of ‘ways of working’ together to deliver the best possible outcomes for the client and the contingent workforce.
Results
Since implementing the solution, the results achieved by the CXC’s services have had a direct effect on the visibility and control of the contingent worker population. Key achievements include:
- Enhanced reporting and insights including monthly performance dashboards, disengagement reports and spend reports
- On-site Account Management in key markets and a dedicated services team
- A transparent and seamless working partnership with the RPO provider
- Tightened compliance and governance standards
- Consistently meeting SLA requirements, including a 99.5%+ accuracy across payments and invoicing
- Raising OHS rules among the CXC contingent worker population
- Significantly increased hiring manager and contingent worker satisfaction from 65% to 85%
- Driving strategic roadmap development through facilitating strategy workshops and establishing a pipeline of cost savings.
Due to these key achievements, CXC contributed to savings in excess of $21M over three years.
“Our contingent workforce management program is a shared responsibility between the ‘talent acquisition’ team and CXC. CXC have brought a collaborative and partnership mindset to the model, working with both “talent acquisition and the operational business, and operated very proactively to deliver scalable workforce solution through a time of significant transformation for our business.
The reporting provided gives a clear analysis of the job families; skill sets and costs involved in managing the contingent workforce and so providing the visibility to senior management of the current competencies that can be analysed against future requirements.
CXC has given us visibility of its contingent workforce and has helped transform the broader workforce talent management undertaken by our organisation – enabling the right balance across the workforce of permanent/contingent ratios. Through CXC there was a clear understanding of costs – payroll & other associated workplace costs (WorkCover; Payroll Tax; Agency Fees).”
General Manager AP&C – Resourcing & Systems Delivery
If you have a lack of visibility over your contingent workforce, CXC can provide comprehensive transparency and reporting.
