Global Engineering and Construction Firm
Client Challenge
For ten years, System One has provided talent to one of the world's largest engineering and construction companies. The breadth of support reflects the firm's leadership in such diversified markets as infrastructure development, power generation construction and environmental waste remediation.
To enhance scalability, the company complements its core team with skilled contractors — all of whom must meet rigorous safety and quality standards. Working with more than 100 temporary agencies enterprise-wide represented a multi-million dollar annual investment. While local point solutions accommodated rapid growth, this scenario afforded little visibility into return on investment.
Recognizing the opportunity for operational efficiencies, the firm undertook an initiative to review its contract worker procurement practices. According to the firm's Director of Staffing Programs, "In essence, what we were looking to do was to simplify the hiring and management of contract personnel. This, in turn, allows us to serve our clients more efficiently and effectively."
Our Solution
After an extensive review process, System One was selected to implement a Managed Staffing Program (MSP) based on our experience running similar large-scale initiatives for complex technical organizations. The scope of the MSP encompasses all of the client's divisions and subsidiaries, including those undertaking Federal contracts.
At the onset, several key program components were identified:
- A single point of contact to be located onsite at corporate headquarters
- Web-based tools for requisitioning contract labor, managing the hiring process, and managing vendors
- Detailed review of existing mark-ups and market rates to establish standardized ranges
- Reduced administrative tasks, simplified timekeeping, and consolidated invoicing
- Detailed usage reporting to facilitate evaluation of vendor pricing and performance.
A customized Vendor Management System drives operations and compliance, as well as the reporting functionality that lies at the heart of performance-based metrics. Once a suitable contract employee is identified, System One coordinates the offer, verification, criminal/ background check and drug screen.
The Results
Our client has created a model for success based on its skilled, principled approach and having the resources necessary to solve the toughest challenges. With the MSP in place, this success model now extends across the entire contract recruiting function. Key benefits include:
Increased visibility:
Hiring managers and vendors have real-time access to the status of open job orders. This transparency enhances communication and supports prioritization of the most critical openings.
Vendor consolidation:
Reducing suppliers leveraged the client's purchasing power to establish consistent labor markups, representing a first-year hard dollar cost savings estimated at $250,000
Operational efficiency:
Standardized agreements strengthened contract conditions and compliance, while creating clear guidelines for performance. Additionally, the MSP significantly reduced invoicing volume and complexity.
Investment tracking:
Detailed reports provide a clear view of the investment in contract resources, allowing the client greater accuracy in budgeting and personnel forecasting.
The Director of Staffing indicates, "We have no doubt that our employees, clients and contractors will realize tremendous benefits from this new program. It reinforces the scalability of our services and the strength of proven processes."
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