Temporary Recruitment Solutions - Areas to Consider
Gaining an understanding of costs
Often the true cost of utilising temporary staff is difficult to ascertain. Incorrect or outstanding invoices, credit notes, incorrect nominal and cost centre codes etc. often mean that gaining a detailed overview of costs is difficult for a centralised procurement team.
Include varying job descriptions, grades and rates and it is clear there are often inappropriate or unnecessary costs and duplication.
Cost leverage and consolidation
Local negotiation and control, preferred local suppliers and varying charge rate models always present opportunities for hard cash savings. Importantly though, are these the optimal rates?
Efficiencies are not always generated from reducing costs further. Increased productivity and lower labour turnover can generate cost savings too.
Identifying the most appropriate business models
Annually across the EEA the recruitment industry is valued at in excess of €100 billion with a further €127 billion being invested in and spent on recruitment globally. The value of this industry has generated a variety of business models and approaches for procurement, operational, finance and HR professionals when working with a temporary workforce. Recruitment agencies and businesses, cost reduction organisations, and non-independent vendors will advise on the introduction of RPO, Managed Service, Master Vendor, Neutral Vendor, PSLs and many other solutions. But which is best, and what do they really mean?
La Gente’s unique understanding of this industry focuses on supporting business professionals tasked with identifying the most appropriate solution. When faced with differing operational, geographical and cultural needs this can be a combination of the above.
Back office process improvements
To be successful, the multi-solution approach has to be supported with appropriate technology. Integrating varying types of ordering, timesheet and invoicing platforms, especially through differing suppliers with varying objectives, can be off putting. It appears easier to use a single supplier to benefit from transactional benefits, but is it really as effective as it appears?
Based on years of experience, La Gente Consulting supports its clients with identifying, implementing and maximising the use of web based platforms. La Gente can provide a business process to support a combined solution with all of the benefits of consolidated invoicing, management information and supplier KPIs.
Quantifying current levels of supply
Current service levels are notoriously difficult to identify. Effective KPIs require effective data, and this relies on both the supplier and user to provide this, often with conflicting interests.
KPI measurement is often subjective, and reviews are often conducted utilising the suppliers own data. This can be inaccurate, does not provide a suitable benchmark, and means ineffective review meetings. The presence of an independent, industry aware representative, supported by individual data, can ensure constructive and effective reviews and planned outcomes.
Understanding contractual relationships
Locally agreed contracts, agency’s own terms of supply, and the use of sub-contractors often lead to a disparity in terms of supply.
Unsurprisingly, agency terms of supply are designed to protect their business, often with clauses ensuring they can maximise charges and dissolve themselves from any form of responsibility. It is important to ensure that your business is protected and that clear documented agreements outlining responsibilities are in place.