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HROTG_Winter_2013

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MSP While procurement and the business tend to define "value" the same way, he says, their view is different from the definition understood by HR and suppliers. As a result, suppliers can misjudge the importance of questions which procurement asks and so fail to address them adequately in the tender process. An example of this would be risk, which has become a key entry point to the tender process for many organisations: Procurement is the first line of defence in a world where "a large number of contingent workers are coming in and out of the organisation." Engaging with clients to understand what they really want to achieve would enable suppliers to design individually tailored propositions more closely reflecting the client's perceptions of value. and a younger demographic profile than the U.K. population as a whole. One in five U.K. adults has a disability, while 40 per cent of gay-lesbian-bisexual-transgender (GLBT) community do not "out" to their managers for fear of the impact on their career progression. But Lobb observes that "unconsciously we're preventing people from coming through because we're not interacting with these groups in a way which makes them feel comfortable." Wareham also observes that internal ownership of MSPs often has an adverse impact on the value generated from them. While RPOs are usually "owned" by HR, who focus on whether cost is fair for the value/service being provided, MSPs ownership largely rests with procurement and finance. That results in a "more mechanical and price-driven process" which focusses primarily on the "10 per cent margin." Wareham wants to get away from this, and believes that the real value creation opportunity lies in focussing on "the other 90 per cent." So how can organisations achieve this? Wareham wants to see HR increase its influence over how the organisation uses contingent workers by developing a more strategic view of this element of resourcing. He also advises procurement to seek input from HR about contingent staffing: "We can help you find millions of pounds of value," he promises. Suppliers can engage more effectively with this discussion by focusing on the "art of the possible" and broadening the client's understanding of what can be achieved with an MSP, although Wareham admits that the tender process doesn't always make it easy to do that. The Diversity Driver Lattimore proposes that the true measure of the MSP programme's success is "when you see it as a talent pipeline. Then you know you are finding good quality talent." A growing number of organisations are viewing diversity as an important driver of talent pipeline quality. Diversity is also a major theme under corporate social responsibility (CSR), a values-related entry point to the MSP tender process for many clients: "If you can't meet us on CSR, we are not going to work with you," says Wareham. However, Lobb says unconscious discrimination is affecting employers' ability to engage with the widest possible potential talent pool: "If we don't know that we are discriminating against certain people in our workforce, this means that we are not necessarily going to tap into the right talent." Businesses are increasingly keen to reach out to different communities. The U.K.'s ethnic population is expected to increase from its current level of 9 million to 13 million by 2021. South Asians, Chinese, and East Europeans all have higher qualifications Having an inclusive culture within your organisation is positive, concludes Lobb, "but you need to start pushing that message out to a wider job-seeking audience, to change candidate perceptions of your business so they can see you as an employer of choice." One way of achieving this can be through lifestyle choice websites which reflect the values of specific groups and communities, giving them the status of trusted brands. These sites allow employers to engage with potential candidates based on their habits and—in the case of ethnic groups—the language of their choice. Is greater interest in diversity influencing how suppliers engage with clients in the MSP process? And can MSP deliver great diversity in the contingent workforce? Lobb says that diversity is still predominantly a client-, rather than supplier-driven, theme; clients need to communicate their perception of how diversity impacts on value to suppliers. But equally, he says, there is an opportunity for suppliers to use diversity as a way of differentiating themselves. Wareham commented that suppliers who can deliver the kind of unique talent which drives higher revenues will be viewed by clients as offering a premium service. The overarching message which emerged from the debate is that communication—between suppliers and clients, between different stakeholders and functions within client organisations, and between employers and talent—is the key to successful staffing programmes. Communication drives better mutual understanding of expectations and perceptions of value. And, good communication breaks down the barriers which prevent different stakeholder groups from working effectively together to deliver maximum value for their organisations. WINTER 2013 | www.hroglobal.com [37]

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