$2 Million
Savings due to an informed and consistent approach to rates across the supply base
69% Risk Reduction
After reclassifying assessed contractors to mitigate compliance risks
25% Faster Engagement
Reduction in time-to-fill
from 20 to 15 days
from 20 to 15 days
The flexible workforce accounts for as much as 36% of the total corporate workforce. With such a growing presence, today’s contingent workers contribute greatly to business performance. This is true whether the resources being engaged number in the hundreds, as with many companies, or in the tens of thousands for global enterprises. Unfortunately, disconnected and unmanaged engagement of the extended workforce can raise costs, limit access to workers and impact compliance.
For one cancer treatment innovator, the variety of workers it engaged prompted the biotech company to face these challenges and leverage flexible resources more effectively. To start, it implemented a managed service provider (MSP) solution to more effectively manage contract worker assignments and suppliers. The resulting program delivered an initial $2 million in cost savings. And with a tenfold growth in the number of workers covered by the program to accommodate expanding business needs, the company can achieve continuous value through strategic management of its extended workforce well into the future.
10x
Growth in the number of workers covered by the program
Expanding Geographies
US program expanded to Canada and EMEA
Establishing a Lasting Source of Value
The Challenges
Inconsistent costs were a key issue. Overall bill rates were lower than market value for some suppliers, resulting in more difficult fulfillment, and they were higher in other cases, resulting in inflated costs. The company needed a balanced, consistent approach across the supply base.
The Program
As its MSP, AGS brought together the management of 100+ contractors under assignment through 11 suppliers. Workers covered multiple categories, including IT, clinical and scientific fields, help desk, management, medical administration and warehouse skills.
Impact and Evolution
Initially, the AGS team conducted an analysis of rates and established a rate card to drive consistent costs across key assignment types. Along with this effort, the team also identified and addressed compliance risks. The program has expanded from the US to Canada and EMEA, and is positioned to cover services procurement and additional contingent workers to increase future value.
Capturing Value
The ability to demonstrate cost and performance impact is essential to establishing and growing the value of a contingent workforce strategy. Since launching the MSP program, the company has proven the impact of its strategy, capturing value across the following key areas:
Cost Improvement
More than $2 million in spend reduction was achieved in the first full year of program operations. Main sources of improvement included:
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Promoting equal competition among suppliers by implementing a standard-cost rate card
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Building an inventory of job descriptions for proper management and worker classification
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Implementing a cost structure that aligns with market benchmarks to replace a pre-established pricing structure dictated by supplier markup
Time-to-Fill
The time-to-fill for assignments was reduced by more than 25%, from 20 days to approximately 15 days. Much of this improvement was due to implementing a defined submittal period followed by a dedicated review process, ultimately aligning hiring managers and suppliers for faster review and turnaround.
Compliance
More than two-thirds of select independent contractors were found to be potentially non-compliant with worker classification rules. Corrective action, including converting non-compliant workers from 1099 (US independent contractor) to W-2 (employee tax withholding) status, reduced worker classification risks.
Growth and Transformation
Program expansion provides visibility into the entire non-employee worker population. Independent contractors are now being tracked in addition to contingent workforce suppliers, with the initial US scope expanded to include Canada and EMEA.
Embrace an MSP Program to Meet Your Needs Today
Think your processes and people are not primed to achieve workforce impact? Think again.
AGS addresses the fundamental keys to success to match the scope of your specific MSP needs.
Deploy Efficiently
Don’t let building a program take longer than needed. AGS applies a right-sized deployment approach to bring all aspects of contingent workforce strategy to life, from implementation and change management, to supplier onboarding and consistent rates.
Tap into Extended Workforce Expertise
No matter what size the MSP program may be, no one should “go it alone” when managing the contingent and contractor workforce. AGS provides the support and partnership to keep the strategy on track, navigate new challenges as they arise, and drive continuous, scalable improvement.
Leverage Data and Technology
Data-driven decision-making is the foundation of an effective extended workforce strategy. AGS draws from smart, cloud-based AI solutions to enable vendor management from limited or distributed locations, or pairs with traditional VMS providers for enterprise applications.
Embrace a Transformative Journey
Deliver on today’s goals and lead with an eye on the demands that a changing world of work will bring. AGS aligns its industry leadership, investment in technology and development of its people to help you better engage the resources you need to "get work done."
Ready to rethink the way work gets done in your organization?
