Case Studies

Utility Case Study

Utility Case Study

The Client

An electric and gas utility company serving over 1,300,000 customers, the company employs approximately 7,500 people. It is comprised of both union and management personnel and utilizes contingent labor for both categories. They have contingent labor requirements in several Midwestern states.
 

The Challenge
In its environment at the time, the Client was in a decentralized staffing model, using services from over 100 staffing suppliers. As a result, there was little or no method of accountability and control in place. Needless to say, this arrangement meant that they were not effectively leveraging their spend, thus not capturing significant cost savings. They were also experiencing inconsistent service delivery in the acquisition of talent, and did not know exactly how much they were spending on contingent labor.
 

Situational Environment
At the time, their staff augmentation/contingent labor efforts were decentralized among multiple suppliers concentrating on specific general labor and professional areas. There are four main categories that their contingent labor is segmented into:

  • General Labor
    • General Labor included clerical, light industrial, custodial, some professional, payrolling and seasonal employee enrollment.
    • There was a single provider managing and sourcing general labor.
    • The existing provider had an on-site liaison.
    • The existing supplier utilized an internal requisitioning process in which the hiring manager completed an intranet form.
    • The existing provider managed their summer hire program.
    • They also had a large number of payrolled employees.
  • IT Professional Services
    • IT Professional Services included help desk support, XP environment support, database administration, application development and support, project management and various specialty services.
    • There was an existing provider managing the program, utilizing VMS software.
    • Positions were sourced by 13 IT staffing providers.
  • Engineering Professional Services - Drafting
    • CAD Drafting, project management, construction inspector, rely work and technicians
    • Spend was decentralized and handled primarily by the hiring managers. Drafting had a consistent process and blanket contracts with a large number of suppliers.
  • Finance
    • Auditing
    • Financial analysts
    • Sourcing was done by the hiring managers. There were a few blanket agreements in place, but generally a number of firms were used.

Desired State
To move to a Vendor Independent Managed Service Provider (MPS) staffing model that would immediately be responsible for administering general labor as a tier one provider. After the implementation, the MSP should have integrated all categories of staff augmentation, as well as provided consolidated billing, verification of total spend of each category, verifying supply base and optimizing the supply base through rationalization of potential sourcing.

MSP Deliverables

  1. Cost savings
  2. Reporting capabilities on total staffing spend
  3. Management of supply chain including professional services
  4. Technology
  5. Contract administration and management
  6. Ability to manage co-employment and provide risk mitigation
  7. Innovation regarding ongoing savings
  8. Consultation on supplier rationalization and sourcing

The Solution

Enterforce designed and implemented the "Enterforce Advantage" Vendor Neutral Managed Services Program (MSP). A more efficient/cost-effective procurement process was put in place for the client’s acquisition of contingent workers, consultants, interns/co-ops and direct hire human capital resource requirements. 

The "Enterforce Advantage" is a true Vendor Independent MSP model that ensures a win-win for the client and suppliers. It fosters competition through adherence to a level playing field. The MSP model helps ensure that the Client gets the right resources, at the right price, at the right time. Because Enterforce is Vendor Independent and does not provide staffing services, Enterforce does not compete with suppliers in the program. This gives the program credibility and facilitates a more open dialogue with the participating suppliers. 

This environment enables Enterforce to more effectively take on the role of a trusted advisor which opens the lines of communication, resulting in a more responsive supplier base. 

The staffing industry has endorsed the Vendor Independent MSP model because it’s proven to deliver better results (better quality candidates, faster response times, etc.) when all suppliers have an equal chance to compete for the opportunities. As an outcome of this approach, our Client gets access to the highest quality talent available from a variety of search firms who have been screened and briefed to know the exact needs. 

Since it has been implemented, our MSP program has delivered industry-leading results in supplier and program performance. In addition, the Client is benefiting from the following solutions and services:

  • Independent Contractor (IC) Compliance Services
    • With a solid understanding of co-employment issues and Federal and State regulations, our Program Managers are very proficient with managing the risks of using Independent Contractors by ensuring that they are in compliance. We have developed a comprehensive screening process to help ensure they meet the criteria of IC's according to tax laws. Enterforce's MSP is a viable and cost-effective safeguard to this dilemma, and is capable of helping ensure this high-risk venture is a safe one.   
  • Payroll Services
    • Enterforce’s Payroll Services have become an essential part of the Client’s contingent workforce strategy. Former independent contractors, returning retirees and essential workers sourced by the Client have become an integral part of the organization’s workforce strategy. In addition, utilizing Enterforce’s payroll services creates the same employer-employee relationship between Enterforce and the assigned worker, which minimizes the Client’s exposure to co-employment risks.
  • Intern/Co-op Program Management
    • Enterforce has been able to deliver additional cost savings through the management of the Client's Intern/Co-op program. The program leverages the people, process and technology already in place. It provides centralized standard metrics and reporting to support planning and managing Intern/Co-op programs. Our client benefits from our ability to source top talent as an outcome of our established relationships with university/trade school leadership and outplacement programs. 
  • Professional Services (SOW) Expertise
    • The Enterforce team's extensive management consulting experience resulted in the development of requirements for a Professional Services (SOW) component of our MSP software solution. The solution is comprised of time-proven templates and detailed processes to successfully manage the entire engagement process. We’ve utilized an RFP process to create competition, obtain additional cost savings and source the best resources for the client’s professional services engagements. 
  • Suppliers Diversity Program
    • As an organization, we are focused on maintaining a pool of M/WBE suppliers, not just because it helps our clients meet their supplier diversity objectives but also, as a WBE, because we understand diversity suppliers add significant value to our client’s supply chain. Enterforce keeps current with new and growing diverse suppliers by being actively involved in organizations such as WBENC and NMSDC which work closely with diverse suppliers.  
  • Direct Hire Services
    • Enterforce’s Direct Hire MSP solution allows clients to fill key full-time positions by using the full power of our extensive network of resources. This solution utilizes the resources of best-in-class suppliers who have refined methods of passive recruiting and candidate information gathering to gain access to prime candidates who may be working for your competitors and who may not be actively seeking new employment opportunities.

The Results

“Partnering with Enterforce and utilizing their model has reduced our cost and helped us provide fair competition with suppliers. We have reduced our cost at a rate of 15% which equated to reducing our cost by $2M in the past year.  By doing so, not only have we reduced company costs but we have done so for our customers.

“Enterforce has helped us manage our risk with independent contractors against our pension plans. One claim can amount to $250,000.00."

Director of Supply Chain

In addition, Enterforce results include:

  • Increased visibility and control
  • Significantly reduced management/administration fees
  • Decreased risk
  • Outsourcing independent contractor analysis
  • Improved process through leveraged technology
  • Obtained loyalty of suppliers by implementing a vendor neutral strategy
  • After the MSP program implementation, client expanded the program to include Professional Services, and Independent Contractors
  • Enterforce was awarded the first of three STAR Awards for cost reduction, innovation, supplier and workforce diversity, customer satisfaction, and innovation.  Enterforce is the only supplier to win the award three years in a row.
  • Utilizing Enterforce's proven Supplier Diversity methodology, we were able to increase supplier diversity spend 240% over a three year period.