Big 4 Bank – Neutral Vendor (MSP)

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​$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