Supplier and Program Management Tools

Tools for optimization opportunities and building your diversity, equity and inclusion programs.

Review Supplier Performance and Optimization Opportunities

  • Optimizing your supplier base increases talent retention as the employer has more employees to leverage better benefits and perks for their employees

  • Depending upon non-employee program size, a Master Supplier program or Managed Service Provider (MSP) should be considered.

  • MSP option

    • Companies with spend of $20M and higher maybe suitable for a Managed Service provider or Vendor Management System
    • There are dozens of options for Managed Service Providers
    • It’s important to do a full assessment of non-employee needs, supplier base, job descriptions used for filling requisitions and rate card before implementation
    • A VMS is appropriate for this size of a program 

  • Master Staffing Supplier option

    • This is a good option when there are multiple suppliers being used to fill similar roles within the US.
    • The Master Supplier option is better for staffing on-demand and cyclical business needs

  • It’s important to create scorecards and measurement tools to monitor supplier performance

  • Creating Client, Talent and Supplier Surveys will provide a 360 degree feedback view of your program.

 

Tools for building your Diversity, Equity and Inclusion Programs 

  • Do your supplier partners possess the talent magnetism to attract diverse individuals in underserved communities for your client needs?

  • Does your supplier work with you to provide an inclusive environment to retain their diverse talent?

  • Non-employee talent programs have tremendous potential to become large pools of diversity owned supplier spend - is that leveraged?

  • Government partnerships/agreements with companies who utilize diverse owned suppliers is a very lucrative opportunity

  • Many staffing and consulting companies are diverse owned and available to provide on-demand talent

  • Do your suppliers mirror your customers diverse and ethnic backgrounds? If not, that should be adjusted as appropriate.

  • Does the current supplier sourcing model include underserved communities?

  • Consider appropriate use of neuro-diverse candidates in suitable roles

    • The potential talent pools found in these various communities is an abundance of opportunity for both sellers and buyers

Non Employee Program Ownership and Stakeholder Alignment Tools

  • Discover all opportunities for all non-employee program critical stakeholders (HR, Talent Acquisition, Procurement and Legal) to create shared goals and become aligned during the development and maintenance of the program.

  • Decide who owns the program. There must be an answer and not everyone agrees but someone must own it.

  • Create specific roles and responsibilities for all internal stakeholders

  • Establish who owns the policy, supplier relationships and program management

  • Review Opportunities to minimize co-employment practices amongst Hiring Managers

  • There should be a deliberate approach to the prevention of co-employment, but don’t get bogged down the co-employment bogeyman.

  • Most companies have gone overboard and a fresh approach must be considered as the use of non-employee has risen dramatically as a result of the “Gig Economy”

  • Review Payrolling Services for HM referrals and transitioning candidates

    • Most corporate non-employee programs have a high percentage of candidate referrals from Hiring Managers which can be incredible potential ambassadors for the program
    • Referrals from HM should on-boarded with an adjusted ‘payroling” rate rather than a sourcing payrolling rate

  • All non-employee labor must be categorized correctly according to IRS guidelines

  • If Hiring Managers are frustrated with the non-employee talent acquisition process, they will ignore rules and go around the process

  • Give Hiring Managers tools and not needless rules to acquire their non-employee talent

Cost Savings Strategies and Tools

  • Cost Savings plans begins with an overall assessment that includes the following data:

    • Talent activity by role/function
    • Dollar spend (bill rate and pay rate)
    • Top locations for talent needs
    • Supplier usage and optimization
    • Client goal development

  • Immediate Savings will be realized if……..

    • You optimize and refresh the supplier base with rigor and regular service/cost business reviews
    • You transition to a master supplier model, your transition rates can provide immediate and generous savings for those contractors who transition
    • You transition all of your payrolling to one supplier, the mark up savings are significant as that usually accounts for 40% of most program spend. 
    • Rigorous review of MSP rates and ensure they are value add and not cumbersome or non market friendly.