Case Study
Workspend Optimizes Contingent Workforce Management for a US-based Energy Company
The Situation
A large US-based utilities company relies on a dispersed contingent workforce to support its operations. However, due to a lack of visibility, the client faced significant challenges in managing this workforce. These challenges included underutilization of an existing centralized program, resulting in decentralized spending. Rogue spend outside approved channels undermined cost control. Uncontrolled bill rates, inconsistent supplier management with multiple one-off agreements, and inconsistent job descriptions further exacerbated these issues, hindering the company’s ability to effectively manage its contingent workforce.
The Solution
We designed and implemented a comprehensive contingent workforce management solution, developed in direct alignment with client sponsors in Procurement and HR, ensuring the program’s goals, strategies, and outcomes were tightly integrated with organizational priorities and stakeholder expectations.
Key components included:
- Controlled Supplier Markup Solution
- Mandated Program & Compliance Assurance
- KPIs and SLAs
- Supplier Transition and Optimization
- Quarterly Scorecards
- Compliance Access Control
Final Results
Significant Markup Savings: Since the program’s inception the average markups have been reduced by over 12%, resulting in $9.5 million in savings.
Increased Diversity Spend: All contingent labor spend became Tier I diverse spend, with an additional average of 28% tracked as Tier II diverse spend each quarter.
Cost-Effective Rehires: The Workspend payroll process enabled the client to cost effectively rehire former employees and retirees through the approved process.
Expanded Geographic Reach: The program supported positions across all client locations in three states, multiple cities, and municipalities.
Consistent SLA Performance: Positive SLAs were consistently met, reviewed, and maintained.
Seamless Acquisition Integration: The program successfully integrated an acquisition, adding 98 additional headcount from another energy company and increasing its supplier base.
Scalable Solutions for Specific Needs: Position-specific processes were developed to support headcount increases in specific areas, such as call centers, meter readers, and clerical roles.
Improved Sourcing for Difficult-to-Fill Positions: Alternative sourcing solutions were implemented to address challenging or industry-specific roles.
Complete Visibility: The program provided complete visibility into all non-full-time employees.
You can’t measure what you don’t know
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