Flexibility & Strategy: The Keys to a Successful Contingent Workforce

1. Flexibility & Strategy:The Keys to a SuccessfulContingent Workforce

2. Your Presenters • Emily Elder serves as a subject • matter expert within the Randstad • Sourceright Contractor Compliance • organization. • Prior to joining Randstad • Sourceright, Elder served as a • Human Resource Generalist and • Business Partner for a number of • Fortune 500 companies in the • high-tech and financial service • Industries, as well as the HR • Director/Manager on a contract • basis for several companies in the • Bay Area. • Janice Urban serves as the • Global Process Owner of • Oracle Corporation’s Contingent • Workforce Program and is • based in the company’s • corporate offices in the San • Francisco Bay area. • Prior to joining Oracle, Jan • Served as the Contingent • Workforce Program Manager for • VeriSign.

3. Today, You Will Gain Insights As To: • Whytraditional full-time workers are engaging in contract work • Howthat impacts the way companies think about traditional labor • How the Affordable Care Act (ACA) impacts employers • How companies will address the uptick in Independent Contractors (ICs) in the workforce • Whysourcing/onboarding free agent talent requires a strategic approach • Howcompanies can mitigate risk and streamline the process to ensure compliance

4. Rise of the Contingent Workforce • Economic Downturn + Health Reform = • Rising Numbers of Contingent Workers • Today, there are more than 2.5 million workers in temporary positions. • More than 2 in 5 employees say they are more interested in non-traditional employment since the recent recession. • 26% plan to work as a temporary/contractor for the foreseeable future or until they retire. • 33% of ALL workers are more likely to consider or pursue a career as a temporary or contractor if affordable health insurance options areavailable to them as a result of health care reform.

5. http://www.randstadusa.com/workforce360/workforce-insights/aca-removes-barriers-to-temporary-work/124http://www.randstadusa.com/workforce360/workforce-insights/aca-removes-barriers-to-temporary-work/124

7. Mid-2013 research conducted by the Aberdeen Group indicates that 26% of the average company’s contingent workforce will be comprised of independent contractors this year. • Elance, the leading online work marketplace, reported that 50,000 new freelance jobs were created in September 2013. • Nearly one-third of the entire U.S. workforce is considered independent, a category not captured by the Bureau of Labor Statistics.

9. Situation: The State of Contingent Workforce Management research study found that, over the next three years, the average contingent workforce will grow by nearly 30%. And, with the lines being blurred between so many different categories of contingent labor (services, consultants, Statement of Work or SOW, traditional temporary labor, independent contractors, etc.), the modern organization will have to take a multi- faceted approach in 2014 in order to effectively maintain a sharp balance between spend, talent and performance management within their contingent workforce(The Ardent Group). Problem: Research from Aberdeen, Gartner, Deloitte and others says that less than 1 in 5 HR leaders today accept accountability for planning, sourcing, managing, and releasing “all forms of labor” in use by the organization.

10. Tangible Benefits to an Integrated Staffing Model 71% 70% 64% 62% Of companies think that the flexibility of a contingent workforce has allowed them to remain nimble during economic ups and downs Of employers believe that an integrated hiring strategy for contingent & full-time workers results in higher workforce quality Of companies agree that the flexibility of a contingent workforce has allowed them to protect their full-time workforce Of employers are considering, or currently have, an appropriate mix between contingent & full-time workers.

11. 80%of wage and hour complaints filed result in violation. When risks are managed through tighter process control, policy development and awareness, the probability and severity of lawsuits is reduced (Staffing Industry Analysts). How much would just one cost your organization?. Benefit #1 – Cost Savings Many companies realize a savings of $25 or more per invoice after automating the invoicing and bill-pay processes (Staffing Industry Analysts). Benefit #2 – Cost Avoidance

12. Federal & State Regulation: Employee Misclassification

13. The Evolution of the Talent Acquisition Function EMERGING - 2014 & Beyond “Tailored” Transaction-based General recruiting domain expertise Quantity over quality of candidates Check-list Relationship-based Specialized recruiting domain expertise Linear processes Quality over quantity with focus on active candidates Electronic search and documentation Point of need/business-based Tailored sourcing & engagement capabilities Predictive search and intelligence On-demand, blended workforce Community and networking of passive candidates

14. Getting Started • Contract labor focused • Program adoption around key skill areas (not comprehensive) • Core technology functionality • Annual Vendor and Program audit • Core focus around cost savings

15. Extended Flexible Workforce • Ensure all contract labor skills captured • Launch worker classification program for 1099 and consulting • Install services module for Statement of Work (SOW) • Conduct quarterly client and vendor business reviews • Expand use of tool functionality and business intelligence • Focus on sustainability and quality

16. Your Contingent Workforce

17. Total Cost Model • Establish a Rate Card for labor provided through services • Achieve complete business process outsourcing (BPO) model around contingent labor • Identify services spend targeted for program participation • Leverage open-supply collaboration with strategic partners

18. Reflect & Define Next-Gen Road Map • All non-FTE labor/services captured within program • Expansion of program to client’s core strategic partners (Open-Supply) • Integration with alternative talent acquisition strategies, such as recruitment processing outsourcing (RPO) for more robust solution • Operational review of technology use and expanded functionality

19. Start the Conversation Does our brand appeal to all types of talent? • How can we effectively use free agents? How do we assess our workforce compliance programs? Are we optimizing recruiting across all categories of workers? Are we able to track the cost of all types of talent? Do our hiring managers understand how to leverage a blended workforce? How are we building our talent communities? How do we include free agents in strategic workforce planning? Do we have a single view of our workforce?

20. The expansion of self-employment free agency is ever-present and will only increase as technology, society and cost come together to create a portable dynamic work environment. Embracing a strategy that promotes flexibility, efficiency and collaboration is also great for business. Successful companies have learned a blended workforce strategy is also cost-effective. The only constant is change, continuing change, inevitable change…that is the dominant factor in society today. No sensible decision can be made any longer without taking into account not only the world as it is, but the world as it will be. — Isaac Asimov