Utility Provider Standardizes Compliance Procedures and Gaining Visibility into the Contingent Workforce
Client Profile: An electric utilities provider based in the U.S. with over one million customers
Our client chose Simplify VMS to provide visibility into their contingent labor management program in the U.S. and to help streamline their required compliance procedures. Prior to onboarding Simplify VMS, the client’s HR managers experienced several challenges with managing their CW, including:
They didn’t have a full view of non-employees working for their organization; where they were located, which agency they were from, or which compliance procedures were followed (if any) to onboard them
They didn’t have one centralized process to manage their CW; creating a significant burden surrounding supplier engagement (e.g., contract negotiations, invoice reconciliation, etc.)
As part of their quarterly compliance process, they were required to pull HR information to be submitted to a regulatory oversight board and were unable to generate accurate reporting from disparate data sources
Through a competitive RFP bid process, the client decided to go with Simplify VMS for its robust integration capabilities, reporting and analytics functionality, and ease of use.
“My team spends less time worrying about organizing reports for compliance purposes and more time focusing on sourcing reasy-to-use candidates that we don’t have to certify. This has helped save us time and money. What we really wanted was to centralize our non-employee processes and date. We did it, quickly, and this allowed us to empower our newest suppliers who make our work easier. We’ll be expanding our program with Simplify in 2019.”
By onboarding Simplify VMS, the client was able to centralize their CW data stream into one channel in seven weeks. From this channel, HR and procurement managers were able to pull workforce compliance reports on a quarterly basis, which helped streamline their compliance procedures and reduce their CW program’s complexity. Additionally, by having one “point of truth” from which to report, managers were able to completely consolidate their disparate services spend platforms into one system through multiple real-time integrations, which helped reduce rogue spend. The time saved from reducing program complexity was applied to drive on a talent management strategy to rationalize the client’s supplier base, which resulted in a greater number of candidates meeting the regulatory board’s compliance criteria.
Another major benefit of funneling their contingent labor data (e.g., invoices, timesheets, requisitions, etc.) through one tool was that the channel eliminated the need for touchpoints (e.g., emails) and requisitions outside of the system. This has helped ensure that all CW cost points are in one system and easily reportable, which has maximized the program’s return on investment (ROI).
After having successfully undergone two compliance audits since onboarding Simplify VMS, the client has significantly reduced the time needed to support their audit procedures. As a secondary benefit of all of the CW data being in one easy-to-report-on system, the client reported that having the “correct, well-vetted” suppliers in-place helped them eliminate investments in underqualified personnel from tertiary suppliers. Streamlining of their quarterly audit ultimately helped limit the administrative burden on the client’s HR team who could then focus on other higher value add efforts like sourcing “suppliers who, though price inelastic, provide us with highly qualified candidates who ‘check all of the boxes’ for compliance purposes.”
Overall, managers were able to create measurable metrics for HR to use and eliminated inefficiencies in the program. As a result, the client created a benchmark to measure ROI against each year for HR, reduced time spent on compliance audits by ~33%, and reduced overall CW program costs by ~12% in their first year of the program.