Global Expansion of Workforce Programs Global Expansion of
Global Expansion of Workforce Programs
Global Expansion of Workforce Programs Agenda • Overview of Global Trends • Global Program Considerations • Recommendations and Best Practices • Q&A Manpower. Group Solutions TAPFIN | April 22, 2013 2
Global Expansion of Workforce Programs This report is intended to provide an overview of general business information relative to global employment conditions and considerations. It should not be interpreted as legal advice. Please consult with a lawyer to ensure that you are in compliance with all applicable laws. Manpower. Group Solutions TAPFIN | April 22, 2013 3
Global Expansion of Workforce Programs Overview of Global Trends Manpower. Group Solutions TAPFIN | April 22, 2013 4
Global Expansion of Workforce Programs Macro-Economic Forces Changing the World Technological Revolution Social Bifurcation Our research, conversations with key business & government leadership, and leading economists point to four key economic forces that will shape the world ahead… The Human Age The Global Readjustment Manpower. Group Solutions TAPFIN | April 22, 2013 Talentism 5
Global Expansion of Workforce Programs Global Rise of Contingent Workers WHO? • An increasing number of employers are expanding the use of temporary workers to augment full-time staff • Emerging Workers, Aging Workers, Unemployed Workers • Agency Workers, Subcontractors, Temporary Workers WHAT? WHEN? • Freelancers, Independent Contractors, Consultants • To augment existing workforce, to replace gaps in staff • To support short-term projects and/or expansion needs WHERE? • Everywhere it is legal • Cost efficiency, flexibility, control WHY? • To meet production needs, to bridge talent gaps Manpower. Group Solutions TAPFIN | April 22, 2013 6
Global Expansion of Workforce Programs Common Challenges Drive Global Strategy Worker Classification Parity Worker Recruitment Manpower. Group Solutions TAPFIN | April 22, 2013 Aging Workers Global View of Local Execution Talent Shortages Worker Retention Attrition Worker Engagement 7
Global Expansion of Workforce Programs Q 1’ 13 Global Trends Overview Global Labor Regulations Contingent Workforce Utilization Increasing The Americas Europe, Middle East, & Africa Healthcare reform in the US and increased restrictions of outsourced and contingent workers in LATAM labor laws Enforcement of AWR and other labor regulation is on the rise across the EU, and many new restrictions have been enacted such as the new regulations effective this November in Germany Use of contingent workers increased less than 1% in North America, as opposed to over 2% in Central and South America Steady Use of contingent workers increased by roughly 1%, with the EU averaging an increase of 2. 26% Asia Pacific Increasing parity requirements, O/T restrictions, tiered employer taxes, and pay computation alter engagement options and opportunity. Use of contingent workers did not increase on average, however Australia, New Zealand, Malaysia, and Singapore increase over 2% Geographic expansion of capability has slowed, with France, Russia, and Africa noted as key focus markets Geographic expansion of capability has continued, with China, Japan and Malaysia noted as key focus markets Technology Capability Steady Geographic expansion of capability has slowed, with Brazil and Costa Rica noted as key focus markets Economic Conditions Challenging Slow economic recovery Ongoing Euro crisis Increasing challenges in emerging markets Increasing Increased in LATAM, particularly in Argentina, Brazil, Costa-Rica, and Mexico Increased in Northern & Southern Europe, particularly in Belgium, Germany, and France , Adoption driven by regional expansion, modifications are critical, particularly in countries like Japan and Malaysia. Challenging Auditing supplier compliance and hiring process, is critical to local quality and efficiency of workforce program Auditing worker classification and modifying current process and supply strategies represent largest opportunity to drive local performance of workforce programs In country resources and partnering with providers who have existing local operations is always most efficient, and often legally required MSP Adoption Workforce Planning Impact Manpower. Group Solutions TAPFIN | April 22, 2013 8
Global Expansion of Workforce Programs The Talent Gap is Becoming the Worker Gap Increased Reliance on Aging Workers Training, Engagement, & Retention Decreased Availability of Emerging Workers Manpower. Group Solutions TAPFIN | April 22, 2013 • Skill gaps and talent shortages • Aging workforce • Regional disparity in talent • Lack of awareness re: contingent benefits • Misalignment of emerging workers (by skill, by objectives, and by geography) 9
Global Expansion of Workforce Programs Global Program Considerations Manpower. Group Solutions TAPFIN | April 22, 2013 10
Global Expansion of Workforce Programs Why Won’t This Work Globally? Workforce dynamics are evolving and complex. They vary by country and region–for example: Availability and Capability of Workforce Parity Requirements Manpower. Group Solutions TAPFIN | April 22, 2013 Restrictions on Workforce Composition… e. g. %temporary, %domestic, %subcontracts Ability to Subcontract Restrictions on Contracts e. g. duration, severance, transitioning Reporting & Tax Requirements 11
Global Expansion of Workforce Programs VS Manpower. Group Solutions TAPFIN | April 22, 2013 12
Global Expansion of Workforce Programs Flexibility in labor law, but these countries require dedicated programs Flexible legislation and abundant workers enable MSP delivery in these markets – usually leveraged on price 1 Relative rank calculated based on active regulations related to contractual terms, costs or labor and termination, hiring and firing restrictions, and enforced consequences 2 Relative rank determined by MSP awareness, knowledge, and adoption More innovative models not restricted to contingent labor are necessary Manpower. Group Solutions TAPFIN | April 22, 2013 An established partner is required in these markets to manage labor legislation and achieve flexibility and efficiency 13
Global Expansion of Workforce Programs Parity Regulations Continue to Increase Globally: Just Pay Parity No Parity Required Austria Bahrain Belarus Bolivia Chile Denmark Dominican Rep. Ecuador Finland Guadeloupe Guatemala India Israel Japan Kazakhstan Macau Malaysia Monaco Morocco Norway Panama Paraguay Philippines Puerto Rico Russia Sweden Taiwan Tunisia UAE Ukraine USA Vietnam Manpower. Group Solutions TAPFIN | April 22, 2013 Just Benefit Parity Australia Canada Hong Kong Mexico Singapore Colombia Croatia Hungary New Caledonia Thailand Full Pay & Benefit Parity Argentina Belgium Brazil Bulgaria China Costa Rica Czech Rep. El Salvador Estonia France Germany Greece Honduras Ireland Italy Korea (South) Source: TAPFIN 2013 Contingent Workforce Index Lithuania Luxembourg Netherlands New Zealand Nicaragua Peru Poland Portugal Reunion Romania Serbia Slovakia Slovenia S. Africa Spain Switzerland Turkey UK Uruguay Venezuela 14
Global Expansion of Workforce Programs Best Practices & Recommendations Manpower. Group Solutions TAPFIN | April 22, 2013 15
Global Expansion of Workforce Programs The Global Approach (Think Global…. . Act Local) Global Region/Country Project Initiation Validation Project Planning Validation VMS Tool Implementation Project Execution • System Engineering • Communications and Training • Vendor Enrollment • Launch Manpower. Group Solutions TAPFIN | April 22, 2013 16
Global Expansion of Workforce Programs There are 10 Steps Essential to Globalization 1. Due Diligence 2. Analysis 3. Planning 4. Design Leadership 5. Configure Communication 6. Test 7. Train 8. Implement 9. Review 10. Update Manpower. Group Solutions TAPFIN | April 22, 2013 17
Global Expansion of Workforce Programs Establish and Communicate 1. Due Diligence 2. Analysis 3. Planning 4. Design 5. Configure 6. Test 7. Train It is essential that you identify an Executive Sponsor within your organization. This sponsor can assist in driving the corporate discussions that are required in order to gain consensus on critical issues such as: • Whether or not to mandate the program • Whether the program will be centralized vs. decentralized • Which groups, operations, and work categories will be in scope Ongoing communication of decisions, plans, and what is to come is a critical component of a successful MSP deployment and should be a priority in every step of the process. 8. Implement 9. Review 10. Update Manpower. Group Solutions TAPFIN | April 22, 2013 18
Global Expansion of Workforce Programs Do Your Homework 1. Due Diligence Evaluate Local Operations Research Local Market 2. Analysis 3. Planning 4. Design 5. Configure • Local Resources • Hiring Activity • Current Spend • Cost Analysis • Size of Workforce • Skill of Workforce • Labor Shortages • Strikes/Disruptions 6. Test Audit Legislation & Regulations 7. Train 8. Implement 9. Review • Parity/Severance • Contracts • Taxes • Reporting Audit Financial & Reporting Conditions 10. Update Manpower. Group Solutions TAPFIN | April 22, 2013 19
Global Expansion of Workforce Programs Know What it Means 1. Due Diligence 2. Analysis 3. Planning 4. Design Legislation & Policy Market Dynamics Local Operations How should you classify workers? How can your recruitment and onboarding be enhanced? What are your requirements? How long can you engage workers? How should you engage with workers? What can you commit to? What must you provide workers? How can you fund your program? How can you manage suppliers? Is necessary technology available? 5. Configure 6. Test 7. Train 8. Implement 9. Review 10. Update Manpower. Group Solutions TAPFIN | April 22, 2013 20
Global Expansion of Workforce Programs Evaluate Priorities 1. Due Diligence 2. Analysis 3. Planning 4. Design 5. Configure 6. Test 7. Train 8. Implement Purpose • • Define how business is done today How technology supports the process Understand policy and procedures Identify process efficiencies and savings opportunities – “Value Proposition” Key Activities • Identify Subject Matter Experts (SMEs) • Establish communications and project plan • Rank objectives based on internal and external considerations 9. Review 10. Update Manpower. Group Solutions TAPFIN | April 22, 2013 21
Global Expansion of Workforce Programs Map it Out 1. Due Diligence 2. Analysis 3. Planning Purpose • Finalize workflows • Gather data necessary to implement technology • Document and discuss transition strategy of applicable business rules and SLA 4. Design 5. Configure 6. Test Key Activities • Distribute contractor data-gathering templates • Working session with project leaders to review workflows • Gather org unit data (locations, projects, charge codes, etc. 7. Train 8. Implement 9. Review 10. Update Key Deliverables • Future State Design Package • Application Configuration Workbook • Data Requirements Document • Business Rules and SLA • Integration Requirement Document, if needed Manpower. Group Solutions TAPFIN | April 22, 2013 22
Global Expansion of Workforce Programs Modify and Finetune 1. Due Diligence 2. Analysis 3. Planning 4. Design 5. Configure Determine VMS Configuration Requirements Application Configuration Integration Development Conference Room Pilot Data Management Testing Production Management 6. Test 7. Train 8. Implement 9. Review 10. Update Manpower. Group Solutions TAPFIN | April 22, 2013 23
Global Expansion of Workforce Programs Testing 1, 2, 3… 1. Due Diligence 2. Analysis 3. Planning 4. Design 5. Configure 6. Test Purpose • Finalize application configuration • Test workflows, SSO and integrations, if necessary Key Activities • • Conference Room Pilot to validate workflows System Testing and UAT, if necessary Integration Testing Data Load 7. Train 8. Implement 9. Review 10. Update Key Deliverables • Conference Room Pilot Report • Testing Acceptance Package • Application Readiness Package Manpower. Group Solutions TAPFIN | April 22, 2013 24
Global Expansion of Workforce Programs Can You Hear Me Now? Customer Stakeholders 4. Design Communication Activities 3. Planning Suppliers Sponsorship, Announcements, Info Sessions etc. . Tools 2. Analysis Customer Users Technology, Documentation, Training Guides etc… Training 1. Due Diligence Training Material, Support, Sessions etc… Contractors 5. Configure 6. Test 7. Train 8. Implement 9. Review 10. Update Manpower. Group Solutions TAPFIN | April 22, 2013 25
Global Expansion of Workforce Programs The Devil is in the Details 1. Due Diligence Month 1 4. Design Month 3 | | | 2. Analysis 3. Planning Month 2 | | | Supplier Enrollment Supply Project Management Month 4 Project Initiation Communication (Change Management) Launch/ Post Launch 5. Configure 6. Test Solutions Architect 7. Train VMS 8. Implement 9. Review Solutions Delivery Program Design (Assessment/Design) System Engineering Training Estimated 120 Day Implementation(includes VMS tool selection) 10. Update Manpower. Group Solutions TAPFIN | April 22, 2013 26
Global Expansion of Workforce Programs Double Check 1. Due Diligence 2. Analysis 3. Planning 4. Design 5. Configure 6. Test 7. Train 8. Implement 9. Review • Define operational readiness criteria • Defining operational acceptance criteria • Validation the following project stages and phases have been completed: • Stage 1 Initiation • Stage 2 Planning • Phase 1 System Engineering • Phase 3 Optimization • Phase 4 Supplier Enrollment • Validate: • Supplier agreement approved • All launch items and action items resolved • Production environment active and all data loaded • Validation of launch communications documents by: • Project Quality Review 10. Update Manpower. Group Solutions TAPFIN | April 22, 2013 27
Global Expansion of Workforce Programs Things Change 1. Due Diligence Workforce Dynamics 2. Analysis 3. Planning 4. Design Vendor Performance 5. Configure Program Updates 6. Test 7. Train Legislation Financial Policy Hiring Needs 8. Implement 9. Review Economic Conditions 10. Update Manpower. Group Solutions TAPFIN | April 22, 2013 28
Global Expansion of Workforce Programs Regional Highlights Manpower. Group Solutions TAPFIN | April 22, 2013 29
Global Expansion of Workforce Programs Strategic Update on Americas There has been little change to the MSP dynamics in North America, however in South and Central America a number of opportunities and challenges exist today: Opportunities Challenges • Common legislation in some countries that enable shared services or joint-strategy • Definition of worker types and regulation of use can vary drastically, particularly with regard to VAT registration, required work contracts, and contract duration • Common language and similarity of culture facilitate regional control within a global program * Size of labor force based on January, 2011 as reported by CIA Factbook • Technology and Supplier capability is not consistent outside of the EU, is difficult to align in MEA, and requires further customization in S. Europe • Language variance, cultural dynamics, and disparate regulation of staffing industry add further complexity to workforce management across the region ** Relative rank calculated based on active regulations related to contractual terms, costs or labor and termination, hiring and firing restrictions, and enforced consequences Size of the Labor Force* <1 million 1 -5 million 5 -10 million 10 -25 million 25 -50 million 50 -100 million 100 -250 million 250 -500 million >500 million Manpower. Group Solutions TAPFIN | April 22, 2013 30
Global Expansion of Workforce Programs Strategic Update on EMEA The regional adoption of Agency Worker Regulations is nearly complete in the European Union, creating a common framework for many processes, however individual country regulation and dynamics continue to impact workforce strategy in the EU and other markets within the region: * Size of labor force based on January, 2011 as reported by CIA Factbook ** Relative rank calculated based on active regulations related to contractual terms, costs or labor and termination, hiring and firing restrictions, and enforced consequences Opportunities Challenges • Common travel areas, similar parity requirements, standard currency, and regional market familiarity have increased ability to drive regional strategy through the EU • Definition of worker types and regulation of use can vary drastically, particularly with regard to VAT registration, required work contracts, and contract duration • Maturity and regional capability of suppliers, particularly in N. Europe provide opportunity for regional sourcing strategy and migrant worker policies to enhance cost-efficiency and control at a multi-national level • Technology and Supplier capability is not consistent outside of the EU, is difficult to align in MEA, and requires further customization in S. Europe • Language variance, cultural dynamics, and disparate regulation of staffing industry add further complexity to workforce management across the region Size of the Labor Force* <1 million 1 -5 million 5 -10 million 10 -25 million 25 -50 million 50 -100 million 100 -250 million 250 -500 million >500 million Manpower. Group Solutions TAPFIN | April 22, 2013 31
Global Expansion of Workforce Programs Strategic Update on APAC The disparity in the level of quality available in the local workforce across APAC requires both local diligence in requisition development and vendor performance analysis: * Size of labor force based on January, 2011 as Reported by CIA Factbook ** Relative rank calculated based on active regulations related to contractual terms, costs or labor and termination, hiring and firing restrictions, and enforced consequences Opportunities Challenges • Local workers have more familiarity of non-traditional work opportunities/benefits than in any other region of the world and there are broad frameworks in place for migrant worker engagement, training incentives, and staffing agency use – making it possible to develop and adopt Hybrid program models that have a regional focus with local market customization that can bridge talent gaps and improve performance of local hiring process • Definition of worker types and regulation of use vary drastically, particularly with regard to contract duration, legality of subcontracting, or fixed-term contracts in general • Supplier margins are generally low across the region and often eliminate probability of supplier-funded programs • Technology and Supplier capability is not consistent in smaller markets, and can result in substantial gaps if not accounted for in other processes or resources Size of the Labor Force* <1 million 1 -5 million 5 -10 million 10 -25 million 25 -50 million 50 -100 million 100 -250 million 250 -500 million >500 million Manpower. Group Solutions TAPFIN | April 22, 2013 32
Global Expansion of Workforce Programs Question & Answer Manpower. Group Solutions TAPFIN | April 22, 2013 33
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