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HRO TODAY April 2013

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MSP MSP Relocation Begin by benchmarking all current onboarding processes; document the process used for each category of third-party labor. This audit will help you identify gaps and inconsistencies, and the likely cause of each. Is the gap related to technology? Lax processes? Lack of ownership? A combination of many factors? It's important to consider how each problem is related to others. For example, a particular location may require a standard set of documents completed and 'signed off' for each worker; because there is no single point of entry for contingent labor, dozens of managers are responsible for sign off and compliance is low since no one is auditing compliance. The solution to this 'gap' will likely involve a combination of new processes, technology, and greater accountability. A strong onboarding process will funnel all new contingent workers through a single initiation point, and enforce a standardized set of processes and procedures for all contingent workers, regardless of category of work, pay scale, or geography. approvals to ensure the appropriate controllers are reviewing and approving headcount and access as needed. The VMS tool can also integrate with a company's back-end security system to initiate the badging process; provide visibility/acceptance to security personnel that all onboarding criteria has been met; and enforce access criteria for contingent workers based on their role and location. A VMS tool is also a critical tool for real-time reporting of security and compliance issues. Using it, management can keep a consistent view of highrisk compliance areas, such as contract compliance, onboarding policies, third-party certifications, safety training, induction compliance, NDAs, security clearance, drug tests, and related background checks. What's more, technology solutions give executives better insights into how third-party labor is being used currently and how to extract maximum value going forward. For example, which suppliers are companies using category by category across the enterprise? Which sourcing or supplier strategies are missing? To ensure new processes and procedures are sustainable, map out stakeholders in the onboarding process—including your internal risk mitigation and compliance office—and ask them to participate in the early stages of benchmarking and review. This team will help to drive and support changes to onboarding policies and procedures, and help to solidify early and ongoing adoption within your enterprise. Ultimately you will need to assign an outsourced compliance support team to ensure that clear processes and protocols, as well as technology to reinforce those elements, are in effect. Define and enforce how compliance will be measured over time (i.e. who ensures audits are conducted and findings acted upon?). Some companies hire a dedicated 'contingent workforce manager' to monitor the use of contingent labor and ensure compliance. Even companies with good intentions are stymied because they lack an integrated technology solution that can align finance, procurement, HR, legal, and regulatory. And without an integrated solution, visibility is typically poor and can have large consequences for risk control and compliance. Finally, identify automation opportunities. Ensure technology offers, from a visibility standpoint, a fully 'auditable' approval process. Visibility should include on-demand access to the full range of required documentation for each category of resource (e.g. drug tests, background checks and signed NDAs) and the ability to visually verify reports were reviewed and signed. Companies should consider: • What systems are in-place to track selection, onboarding, and performance? • Are processes automated such that non-compliance is i mmediately visible? • What visibility and reporting are you able to provide to ensure security and compliance/risk management? Achieving a Holistic View of Talent To manage a complex global workforce, more and more companies are applying supply chain management principles to talent management. Why? Most larger organizations with third-party services and outsourced workforces will ultimately weigh the benefits of technology partners, in particular vendor management systems (VMS). A 2012 survey by Aberdeen Group found VMS solutions are in use 58 percent more often within best-inclass organizations than in all others. A VMS offers significant efficiencies and risk controls during onboarding and beyond. VMS tools allow users to incorporate a centralized and automated onboarding protocol including user and category specific onboarding checklists. They also have the ability to incorporate elaborate headcount If a company waits for labor demand to peak before restocking their labor pool, it misses out on critical opportunities. Yet, workforce planning can only be as accurate as the business plan it's based on. And these days, most organization's workforce planning efforts are limited to budgeting and headcount planning. Organizations must look across the entire workforce—considering fulltime employees and third-party labor—and align with business goals beyond the short- term, tactical needs. This holistic view of talent requires the right team, technology, data, and processes. Organizations willing to invest in this new outlook gain critical agility across global markets. Eric S. Williams is senior director of global services procurement at KellyOCG. To access the full report, visit www.kellocg.com. APRIL 2013 | www.hrotoday.com [29]

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