Life sciences company gets much-needed insight and clarity with a managed services program, resulting in $800,000 in savings
| 3 min read |
A lack of consistency in contingent workforce management caused by too many suppliers with varying rate cards resulted in excess costs and limited program visibility.
The company implemented a managed services program (MSP), delivered by Randstad Sourceright, to ensure a robust and transparent approach to managing contingent talent.
In the first year of the program, the company achieved nearly $800,000 in cost savings, while attracting higher quality talent. The company streamlined invoicing and payments, and enhanced supplier management. It maintained a 97% fill rate, even while medical positions were in higher demand. Overall employer brand improved, and the company achieved a stellar Net Promoter Score of 9.
lack of consistency, rogue spend, inefficient processes
A large life sciences company committed to delivering innovations across diagnostics, life sciences, food and applied markets relies on contingent talent to drive its research and innovation. Without a top-down approach and proper governance for contingent workforce management, however, the company experienced numerous challenges. For example, job sites worked independently and without understanding the nuances in temporary resource hiring, making it difficult to ensure suppliers were operating compliantly.
Without proper structure, the organization was not able to confirm that contingent talent pay rates reflected market recommendations, while a decentralized payment process complicated compliance and funds approvals.
Faced with these challenges, the company wanted to improve the way it works with suppliers to hire contingent talent. Its main goals were to achieve cost savings, consistency in job requisitions and supplier rates, and greater visibility and compliance.
optimize the contingent talent supply chain through MSP
The life sciences company realized the opportunity to gain visibility and achieve greater consistency through a managed services program (MSP), delivered by Randstad Sourceright. With the program in place, the company immediately established consistency by setting rate guidelines for the different positions it hires for – along with new job titles based on roles and responsibility.
To address the challenge of rogue spend, all talent spend is now under the MSP, with established rate guidelines in place for all suppliers. In addition, suppliers are instructed to bill their services through the vendor management system (VMS). This provides complete visibility into talent deployment, rates and rogue spend.
Leveraging the Randstad Market Insights talent market intelligence tool, the company also receives detailed reporting and robust data on all of its contingent talent activities. For example, by reviewing data around pay rates, supply and demand, location and recommended time to fill prior to releasing requisitions to suppliers, the company can make educated decisions about contingent talent.
The MSP also empowers the company to hold its suppliers accountable for their performance via robust metrics. In the past, suppliers were often used based on individual relationships with hiring managers. New controls ensure suppliers are now rated and engaged based on their results. This also helps with supplier rationalization, enabling the company to remove suppliers that don’t perform at the levels required.
Within the company’s lab services, previously the organization engaged contractors to work at various lab locations across the U.S. through two dedicated suppliers. Initially, the company preferred to continue managing lab services contractors through those two suppliers as it believed they were the only suppliers that could deliver the talent it needed.
After talent analytics illustrated greater savings potential — without the risk of compromising talent quality — the life sciences company expanded its supplier network and potential talent pool. As a result, the company could open up its positions to more sources of talent for these crucial lab-based roles.
cost savings through consistency
Since implementing the MSP, the company has significantly improved its contingent talent management strategy. It now benefits from a high-quality candidate pool, better relationships with suppliers and a greater understanding of business needs for its different sites — all while optimizing spend and increasing compliance.
In terms of cost savings, the company has saved nearly $800,000 in the first year of the program alone. This was achieved through the consistency and discipline introduced by the MSP, enabling streamlined invoicing and payments and enhanced supplier management. Through supplier rationalization, the company has the insight needed to remove suppliers that aren’t performing at the levels required.
The company has also maintained a 97% fill rate – a strong accomplishment during the COVID-19 pandemic when medical positions have been in higher demand than ever. Based on these successes, the company is shifting to a direct fulfillment strategy. Randstad Sourceright manages direct sourcing of contingent talent, and frees up more time for the company’s hiring managers.
As the relationship evolves, the company will work with Randstad Sourceright on new contractor initiatives, such as a program aimed at bringing stay-at-home mothers back into the workforce.
Overall, adopting the MSP has allowed the company to transform its contingent hiring strategy, while providing a consistent, visible and cost-effective approach. This strategy has also helped improve the overall employer brand — helping the company to achieve a stellar Net Promoter Score of 9 — that will further attract high-quality talent.