Industry Thought Leadership

Sponsored by

Europe

Quest for the Talent Grail

The evolution of the J&J programme in EMEA
Speakers:
Ann Snoeys
Matt Wagner

Category Manager Contingent Labour EMEA J&J

Manager Professional Services EMEA Fieldglass

Moderator :
Ton Mulders

Director Strategic Solutions Europe - SIA

This webinar is broadcast through your computer speakers via the audio broadcasting icon on
your screen. You may adjust the sound volume by using the slide bar on the audio broadcasting
icon. If you continue to have trouble with the sound, you may dial into the call by dialing +44(0)20-3106-4793 and using access code 665 484 473. Need further assistance? Contact SIA
customer service at 800-950-9496 for the US and +44-(0)207-194-7754 for Europe

Confidential Report NOT for Distribution | 2011 Crain Communications Inc. All rights reserved.

18 April 2012
3pm GMT/ 4pm CET
10am PST/ 1pm EST

Industry Thought Leadership

Quest for the Talent Grail

Agenda

Webinar instructions
Sponsor opening
Changing Landscape in EMEA
J&J Case Study
Solutions Fieldglass
Q&A
Your questions are welcome!
Closure

2011 by Crain Communications Inc. All rights reserved.

Industry Thought Leadership

Slides and Replays

Copies of the slides used will be distributed to all attendees within
24 hours following the webinar
A replay of the webinar will be available for CWS Council Members
at www.staffingindustry.com

2011 by Crain Communications Inc. All rights reserved.

Industry Thought Leadership

About SIA

2011 by Crain Communications Inc. All rights reserved.

Industry Thought Leadership

Todays Sponsor

Matt Wagner
Manager of Professional Services
EMEA

Industry Thought Leadership

Fieldglass Overview

2012 by Crain Communications Inc. All rights reserved.

Industry Thought Leadership

Changing Programme Landscape in Europe

Ton Mulders
Director Strategic Solutions
Europe
Staffing Industry Analysts

Industry Thought Leadership

What are MSP and VMS?

Managed Service Provider (MSP)
A company that takes on primary responsibility for managing an
organizations contingent workforce programme. Typical responsibilities of
an MSP include overall program management, reporting and tracking, supplier
selection and management, order distribution and often consolidated billing.

Vendor Management System (VMS)

An Internet-enabled, often Web-based application that acts as a mechanism
for business to manage and procure staffing services (temporary help as well
as, in some cases, permanent placement services) as well as outside contract
or contingent labour. Typical features of a VMS include order distribution,
consolidated billing and significant enhancements in reporting capability over
manual systems and processes.
Confidential Report NOT for Distribution | 2012 by Crain Communications Inc. All rights reserved.

Source: SIA Global Lexicon

Industry Thought Leadership

Global staffing market (to scale)

Norway

Sweden
Finland

Canada
Netherlands
Ireland

Denmark

United
Kingdom

Poland

Belgium
France

United States
Portugal

Germany

Switzerland

Spain

Japan

Italy

Mexico

Brazil

Australia
Argentina

Confidential Report NOT for Distribution | 2012 by Crain Communications Inc. All rights reserved.

South
Africa

Source: Staffing Industry Analysts estimate, 2010

Industry Thought Leadership

Global staffing market (to scale)

Norway

Sweden

North America

Europe

Canada
Staffing
market
60 billion

Staffing market
Netherlands
United
Ireland
Kingdom
91
billion
Belgium

United States

Rest of World

Finland

France

Staffing market
80 billion
Poland

Denmark

Germany

VMS Managed
43 billion (72%)

VMS
Managed
Portugal
Spain
17 billion (19%)Italy

MSP ManagedMexico
24 billion (39%)

MSP Managed
10 billion (11%)

Switzerland

VMS Managed
5 billion (8%)

Japan

MSP Managed
7 billion (9%)

Brazil

Australia
Argentina

Confidential Report NOT for Distribution | 2012 by Crain Communications Inc. All rights reserved.

South
Africa

Source: Staffing Industry Analysts estimate, 2010

Industry Thought Leadership

European contingent workforce buyer priorities

Global management of contingent workforce
SOW consultants incorporated into CW programme
Significant use of offshoring
RPO
HRO
Use of an external vendor for IC compliance
Try new suppliers
MSP
Contingent Workforce in corporate planning
Master supplier
Significant use of domestic outsourcing
VMS
Tiered supplier list
Consolidate existing suppliers
Approved list
0%
In Place Today

20%

Likely to be seriously explored within two years

40%

60%

80%

100%

Source: SIA Buyers Survey 2011

Industry Thought Leadership

Challenge: Market complexity

Least Complex Markets

1
2
3
4
5
6
7
8
9

UNITED STATES
UNITED KINGDOM
CANADA
NEW ZEALAND
HONG KONG CHINA
SINGAPORE
AUSTRALIA
NETHERLANDS
IRELAND
BELGIUM

Most Complex Markets

1

10

ARGENTINA
GREECE
ITALY
BRAZIL
RUSSIA
SPAIN
KUWAIT
SAUDI ARABIA
TURKEY
EGYPT
MEXICO
POLAND
PORTUGAL
UNITED ARAB EMIRATES

Most Complex

Least Complex

Not Recorded

Confidential Report NOT for Distribution | 2012 by Crain Communications Inc. All rights reserved.

Source: SIA Contingent Market Complexity: International Comparison

Industry Thought Leadership

Challenge: VMS & MSP Appreciation gap

Customer Experience Buyer vs Supplier - VMS

Customer Experience Buyer vs Supplier - MSP

Promotors
Passives
Detractors
Confidential Report NOT for Distribution | 2012 by Crain Communications Inc. All rights reserved.

Source: Staffing Industry Analysts Net Promotor Score Survey 2011

Industry Thought Leadership

Challenge: VMS & MSP value-add continuation

Buyer NPS by Programme Length - VMS

Buyer NPS by Programme Length - MSP

Promotors
Passives
Detractors
Confidential Report NOT for Distribution | 2012 by Crain Communications Inc. All rights reserved.

Source: Staffing Industry Analysts Net Promotor Score Survey 2011

Industry Thought Leadership

In practice ..
Johnson & Johnson

2012 by Crain Communications Inc. All rights reserved.

Industry Thought Leadership

Speaker
Ann Snoeys
Category Manager
Contingent Labour
Johnson & Johnson EMEA Cross Sector

Industry Thought Leadership

Introduction J&J
Contingent Labour
Programme
Challenges of the Mature
MSP Programme
Towards a Value Driven
Approach

Industry Thought Leadership

Johnson & Johnson

Founded in 1886
More than 250
Operating Companies
In 60 Countries
118,000 Employees
Worldwide
Total sales of
$65 Billion in 2011

Industry Thought Leadership

Broadly Based in Healthcare

Consumer
Products

Medical Devices
& Diagnostics

Pharmaceuticals

Industry Thought Leadership

Credo
The values that guide our decision making
are spelled out in Our Credo. Put simply, Our
Credo challenges us to put the needs and
well-being of the people we serve first.
Our Credo is more than just a moral
compass. We believe its a recipe for
business success.
Procurement is enabling function for, with &
through the business.
We leverage our supplier network.

Industry Thought Leadership

Contingent Labour
Programme

Industry Thought Leadership

Definitions: External Labour Classification

Sub-Category
Level 2

Sub-Category
Level 1

External Workforce

Temp
Labour

Time and
Materials

Statement
of Work

Contingent
Labour

Consulting
Services

Contract
Labour

Tactical
Consulting

Strategy
Consulting

Procurement Strategy

Industry Thought Leadership

Temporary
High

Professional

SOW

Consulting

Strategy
Consulting
Operational
Consulting

Price

Project Work

Professional
Contracting
Light Industrial / Office Temps
Low
Simple

Labour Type

Complex

Industry Thought Leadership

Maturity Evaluation
High

In order to move towards next in class we envision Johnson & Johnson

to move towards a managed service provider (MSP).

2009 state
Managed Service
Provider (MSP)

2005 state

Master Vendor

Selective set of
suppliers selected
Contracts in place
Service level
agreements (SLAs) in
place

One supplier
(possibly managing
second and third tier
suppliers)
One point of
contact
Direct cost savings
on bill rate and usage
Customized SLAs
and process

II

III

Preferred suppliers
Decentralized
Low

Several suppliers
Procurement done
on an ad-hoc basis
Management done
internally

Contingent
workforce spend
under management
One point of
contact
Direct cost savings
on bill rate and usage
Customized SLAs
and process
Non-compliant
spend elimination
Total cost of
ownership savings
IV

Enterprise Workforce
Solutions
Total workforce
spend under
management
Complete
workforce visibility
Direct cost savings
on bill rate and usage
Customized SLAs
and process
Non-compliant
spend elimination
Increased total cost
of ownership savings
Additional
productivity and
process savings
High degree of
value added services

Level of value added

Targeted state

Maturity stages

Industry Thought Leadership

Current Business Model

Temp Labour

MV 1

Contract Labour

MV 2

Vendor

Tier 1 master vendor with first

right to fill orders

Rates

Markup established with contract;

pay rates reviewed periodically

Tier
Strategy

If master vendor unable to fill the

position, the request goes to
secondary partners

Benefits

- Control costs
- Standardization
- On-site management

MSP
Vendor

Multi-vendor, tiered

Rates

Market rate cards, including maximum

rates

Tier Strategy

Broadcast to Tier 1; If unable to fill,

broadcasted to Tier 2

Benefits

- Access to the best vendors by

service line and region
- Higher quality people at competitive
rates

VMS Technology

Vendor Owned
Clinical

Tier 1 Vendors
Tier 2 Vendors

IT

Engineering
Freelancers
Tier 2 Vendors

Industry Thought Leadership

Implementation Framework

Phase 1 MSP/VMS Deployment

Business Partners

Create
Req in
Ariba

Create
Job
Posting

Interview
Candidates

Create
Work Order

Approve
Time &
Expense

Activate
Work Order

Hiring Mgr

1. Single common process

enabled by E Tool giving
traceability,
visibility
MSP
Partner and
standardization and
reduced hiring cycle times
Tier 1
Supplier

Tier 1
Supplier
Tier 2
Supplier

Approve
Job
Posting
In Ariba

Approve
Work Order

Approver

Distribute
Job
Posting

Shortlist
Candidates

Issue
Work Order/
Auto create
WWID & JJEDS

Monitor
Time &
Expense

Consolidated
Invoice

VMS Team

Distribute
Candidates

Invoice
Time &
Expense

Accept
Work Order

Supplier

Tier 1
Supplier
Tier 2
Supplier

2. Vendor Neutral Managed

Service Provider (MSP) as
single point of contact for
hiring managers and suppliers
and acting as hirer for all
contractors

Tier 2
Supplier

3. E Tool Technology
connecting hiring managers
approvers, VMS party,
suppliers and contractors

Register
in
software

Submit
Time &
Expense

Worker

4. Preferred suppliers
competing on quality,
availability and cost based on a
framework of standardized job
profiles and rate cards with
ceiling rates

Phase 2
Competitive Sourcing

Industry Thought Leadership

End-User Benefits
Single Point of Contact for all contract
labour activities

Managers

Full visibility of contractors and spend

Weekly timesheet approvals
Streamline AP and PO process

MSP on-site Team

Powered By Fieldglass

Tier 1
Supplier

Tier 1
Supplier

Standardised legal and payment terms

with all suppliers
Tier 1
Supplier

Cost Savings Opportunities

Reduced effort around contractor selection

Tier 2
Supplier

Tier 2
Supplier

Tier 2
Supplier

Onsite day-to-day operational support

Broader access to quality candidates

Industry Thought Leadership

Challenges of the
Mature MSP
-towards a value driven
approach-

Industry Thought Leadership

Direct (Supply
Basic MSP
ValueSide)Delivery

Basic MSP Value Delivery

Indirect (Demand Side)

Greater leverage from supply base

Frees time to focus on core operations

Increase quality of candidates wider reach

Improving spend compliance & controlling costs

Reduce Admin Burden - Simplified process for

suppliers & hiring management

Market rate intelligence

Reduce transaction & process costs

Cost savings by using rate-cards

Process Improvement
Reduce cycle-time and effort
Improved on-& off boarding processes
Automated order/fulfillment
Automated time-keeping & payment
Contractors access system

Risk Management
Traceability of all transactions
Regulatory compliance
SOX compliance
Decreased Co-employment risks

Industry Thought Leadership

Challenges

Process

Promotion

Performance

People

Standardize
for crosscountry
leveraging
Technology
development

Face-2-face
time with the
customer
Marketing of
the value

Metrics
Objectives

Staff the key

objectives
Right-skilling
Knowledge
management

Industry Thought Leadership

Solutions with Fieldglass

Market Rate Intelligence
Detailed visibility into spend for competitive benchmarking

Platform for Multi-Instance Operational Support

Scaled with J&J expansion to accommodate multiple MSPs
and country specific nuances, etc

Product Roadmap Influence

J&J Single sign-on (SSO) Portal

User Interface Initiative

Consumer grade user interface to improve user adoption

Reporting for Visibility

Insight into spend throughout the business

Industry Thought Leadership

Consolidated View of Supplier Activities

Supplier KPIs

Activity Matrix

Program Cycle
Times

Industry Thought Leadership

Closing Takeaways
Fieldglass customer case study featuring a large,
global healthcare company
Access now:
resources.fieldglass.com/case_study_healthcare.html

CWS Summit London, May 15-16

Chance at a complimentary pass,
www.fieldglass.com/CWSLondon12
Fieldglass Panel: Mobilise Your Globalisation Efforts:
Strategy, Leadership & Change Management, moderated by
Fieldglass Co-Founder and CEO Jai Shekhawat and
featuring customers, Bank of America, BP and Google.
Wednesday 16 May, 13.40-14.40

Industry Thought Leadership

Any Questions?

Industry Thought Leadership

SAVE THE DATE!

15-16 May 2012
Lancaster Hotel, London
www.cwssummitwe.eu

2007-2011 The London Organising Committee of

the Olympic Games and Paralympic Games Limited

2011 by Crain Communications Inc. All rights reserved.

Industry Thought Leadership

Next Buyer Webinar Europe:

MSP and RPO Contracts in Europe
-Dealing with the Law-

30 May 2012
10:00 EST, 15:00 GMT, 16:00h CET
Sponsored by Randstad

2011 by Crain Communications Inc. All rights reserved.

Industry Thought Leadership

Remember we want to know what you are

thinking..
Ton Mulders
Director Strategic Solutions, Europe
E: tmulders@staffingindustry.com
P: +31 (0) 651 385 435

THANK YOU!
2011 by Crain Communications Inc. All rights reserved.