A leading global provider of insurance services with more than 60,000 employees in over 100 countries faced a challenge common among large multinationals: It lacked visibility into the overall organizational spend for time and materials associated with their contingent workforce.
The company had grown over time, acquiring a large number of subsidiaries. These organizations sometimes operated independently of the corporate office, particularly related to contingent workforce management. In addition to causing coordination challenges and reducing efficiency, this ad hoc approach resulted in three separate instances of the vendor management system (VMS) and fragmented management or oversight.
With a large number of suppliers and a lack of organization-wide systems, the company needed to rethink contingent workforce management in order to meet cost-savings goals, improve efficiency and comply with corporate policies.
TAPFIN had provided payroll and sunset vendor services to the client for several years. Based on the success of this relationship, TAPFIN was engaged to provide MSP services in the United States with an eye toward developing a comprehensive global workforce solution over time.
TAPFIN developed a multi-phase approach to address the client’s challenges. The first phase involved an audit of resources, processes and technologies. Once a more complete understanding of the landscape was in place, TAPFIN was able to create systems to consolidate and standardize best practices. This included implementing processes related to change management, vendor compliance reporting requirements and approval processes at the business unit level.
The second phase involved the consolidation of different VMS platforms. The team also built in a vendor RFP plan and considered how the company’s footprint could be leveraged to consolidate labor searches and provide economies of scale. The outcome was an effort that invited larger national vendors to propose volume-based pricing models based on multiple locations. This provided an additional efficiency in that non-IT, consulting and technology contracts could have the same vendors. These efforts also revealed a need to better understand the non-employee population. Specifically, understanding exactly who has access to their systems and information, where they are, and under what circumstances they are engaged. This worker tracking effort covers tens of thousands of workers and continues to be underway.
Phase three focuses on additional cost-savings based on the client’s strategic interests to seek talent in lower-cost markets and reduce their real estate footprint in primary markets. This emphasis led to a redesign of the solution focused on identifying TAPFIN staff who could work remotely from less costly locations. The model evolved into a combination of offsite and onsite presence with coverage across every region of the United States.
Based on the success of the solution, TAPFIN has been engaged to roll out services in the United Kingdom, Ireland, and Canada. In addition, all performance targets have been met or exceeded including:
- Hiring manager and stakeholder satisfaction is consistently above target’s requisition and cycle time expectations.
- Aggressive cost savings are achieved through pricing models as well as strategic consulting related to workforce locations.
- All diversity targets have been exceeded.
- As a result of continued success, TAPFIN launched an integrated direct-sourcing solution that curates and manages client-specific talent pools, such as past payroll contractors, former FTEs, retirees, runner-up candidates and referrals. This furthers the client’s ability to use lower cost, direct sourcing models more frequently across all regions to support their contingent workforce demands.