OneBeacon™ Case Study
Transforming Contingent Labor
Client Background
Industry: Biopharm
HQ: Cambridge, MA
Founded: 2010
IPO: 2013
Focus: Cancer genomics
Revenue: $116.9 million (FY16); up to $152.9 million (FY17)
Departments: 34
Headcount: Initially estimated at 40-50 contingent workers
Challenge
- Organization experiencing exponential growth
- HR, Procurement and Finance had limited visibility into spend or total usage
- Contingent pay rates unknown and causing temp-to hire challenges
- No standardized on-boarding or compliance process created risk and co-employment concerns
- Losing contractors before they start because PO approvals took too long, 2-3 weeks on average
- HR team struggling to manage multiple vendors and had limited visibility into performance
- Decentralized procedure created a litany of risks and a surge in costs
- Weekly invoicing from multiple suppliers overextended A/P, A/R teams
Solution
- Deployed a dedicated on-site support team
- On-boarded all high performing suppliers and optimized supply chain
- Implemented a customized VMS technology to provide clear transparency, robust reporting and to capture clients unique financial and approval
- Streamlined and implemented a more effective purchase order process
- Established an efficient and compliant contractor on-boarding and off-boarding process
- Customized delivery for high-volume departments for improved talent access
- Bench-marked pay rates to those internally and to provide better cost control and simplify the conversion process
- Rationalize rates across program to provide cost savings
- Implemented a robust continuous improvement program
- Worked with key stakeholders to bring SOW and 1099 into the program
The Results
- 100% Program Adoption as a result of our high touch change management approach
- Uncovered rogue spend that resulted in 2.3 times the client's original estimate
- Zero Business Interruption: All chosen/preferred suppliers and their talent on-boarded into the program
- Rate bench-marking created a better understanding of the market demands and enabled temp-to-hire transitions resulting in 30% of clients internal headcount being acquired through the program
- Needs-Based Solutions: the MSP program managed multiple categories of non-employee labor
- User-Specific Sourcing Strategies: Better talent access via customized delivery for high-volume users and hiring managers with unique skill set demands
- Controlling Risk: Onsite program team created clear delineation between internal and non-employee resources reducing co-employment exposure
- Developed robust talent engagement program including consistent performance reviews resulted in reduced turnover and increased redeployment
- Program team led full life-cycle administrative management of all non-employee headcount reducing the burden across the organization
Cost Savings Within the First Six Months
- Savings: Overall spend will be approximately $3.3 million less under OneBeacon, compared to prior state
- Cost controls: 33% reduction in average bill rates
- Benchmarking: 34% reduction in pay rates
- Reduced Fees: Customized cost solution for high-volume users
[The Team] showed us that they value what we do and they were willing to adapt to our business needs, operational challenges and help to create a program for us to manage our Contingent Workforce that is tailored to our growing business. The time they took to understand “who we were” instead of pushing products or features gave us the comfort that they are willing to put us first and that they are willing to grow with us to achieve our business objectives
