Big 4 Bank – Neutral Vendor (MSP)

$35 million saved within the first three years through centralising management of the contractor procure to pay process with an MSP.
Client Challenge
Due to a decentralised and inconsistent recruitment and contractor workforce management program, our Banking Client experienced the following challenges;
Hiring Manager’s considerably burdened by manual processes
Excessive and unnecessary agency interaction with hiring managers, for recruitment and sales generation purposes
40%+ supplier panel leakage
Inconsistent contractor job profiles and pay rates
Ineffective workforce planning
Inconsistent and incomplete on-boarding/off-boarding
Inconsistent permanent and contractor recruitment processes
No visibility of agency margin and overall contractor spend
Insufficient information to assess the quality of contractors and their performance
These challenges resulted in poor candidate quality, longer fill times, risk exposure and excessive costs at each stage of the process. Additionally, time wasted by hiring managers took them away from focusing on their core business.
Solution
ManpowerGroup Talent Solutions implemented a comprehensive, centralised and consistent recruitment solution for the Bank’s entire contractor workforce. Under a neutral vendor model, we manage the procure-to-pay process nationally via a dedicated onsite team. Our Program Management includes recruitment and management of supplier panel, rate card management, on-boarding and candidate management, timesheet management, pay rolling, tenure management, assignment management including redeployment and exit management, supplier performance management, reporting and invoicing.
25 Suppliers
>$300 million spend under management
2,500+ contractors
1,900+ suppliers total
>10% cost savings achieved year on year
Vendor Management System (VMS) Technology: Skillstream
Results
Compliance
Strong supplier engagement - compliance reached record highs of 99.15%
Decreased time to fill from 10 days to 7 days
Improved compliance to market pay rates
Efficient broadcasting of roles to suppliers
Customer satisfaction consistently above benchmark
Risk Management & Mitigation
Payroll of ABN and sole trader independent contractors/companies
Transitioned contractors from non-compliant and non-panel suppliers
Improved background check compliance, reducing issues
Ensured suppliers met commercial insurance obligations
Improved contractor performance management /exit process by providing guidelines to hiring managers
Provided advice on employment legislation
Cost Savings and Cost Avoidance
Over $35 million in cost savings achieved in the first three years with a further >10% cost savings year-on-year
Reduced manager time spent on contingent hiring activities thus increasing productivity on core tasks
Reduction of lost opportunity from vacant roles through decreased time to hire
Reduction of unnecessary spend due to inflated pay rates and high margins
Reduction of risk from non-compliance to insurance requirements by suppliers through increased hiring compliance
Eliminated inaccurate and potential overpayments to suppliers by implementation of consolidated invoicing
Quality
A team embedded in the business ensuring a solid familiarisation with the business, procedures and culture
With supplier performance analysis conducted monthly, ManpowerGroup conducts six-monthly review meetings with all suppliers to review their performance to the SLA measures
Quarter on quarter meeting, or exceeding, performance SLA’s and client satisfaction ratings