HR Category Expertise
Specialized cost reduction expertise in the complex and previously off-limits Human Resources spend category
Temp Staffing Cost Reduction
Data Collection for Temp Labor
Data collection must be performed first to understand your current contingent workforce – speaking with all internal departments that utilize temporary labor or SOW based work, and each of the staffing agencies to request the fully executed agreements (if unavailable internally) and current usage reports to gain an accurate picture of the workforce. Included in this must be usage, pay rate, bill rate, mark-up percentages, overtime hours, overtime bill and pay rates.
Strategic Sourcing and Cost Reduction for Contingent Workforce Management
If the contingent labor spend for your organization is approximately $10M/year, working with a Managed Service Provider (MSP) and/or Vendor Management System (VMS) may be your best next step. To choose the best MSP for your organization, the following steps should be completed after data collection:
- Develop and execute an RFP to assess the agencies capabilities and expertise
- Analyze the agencies responses and score them, to assist in determining the partner with the best fit
- Decide which pricing model is the best option for your organization
- Determine the best sourcing option (vendor-neutral, master vendor, or blended model)
- Create a cross functional team that includes all areas of the business that uses temporary workers or Statement of Work Agreements to work together with the MSP/VMS for the implementation of the program
Insurance and Benefits Cost Reduction
Corcentric’s proprietary market intelligence allows you access to the most-qualified and best-fit brokers/consultants. However, it is important to understand that those brokers/consultants will still have an imperative to sell the most expensive plans and options, within the bounds of practicality to your stated objectives. After all, the nature of any broker/consultant is often driven around maximizing employee adoption and increasing commissionable contracts.
Corcentric can help prepare you for this eventuality, arming you with strategies and techniques for managing your brokers/consultants. When it comes time to renegotiate your plans, you and your brokers/consultants will make the most well-balanced decision that secures your value, controls your costs, and minimizes your risk in the short- and long-term.