Reducing agency costs for a client’s contractor population

Case Study
  • region: Australasia
  • industry: Financial Services

CXC engaged an Australian multinational independent investment bank and financial services company. Headquartered in Australia and listed on the Australian Stock Exchange, they employ more than 14,000 staff in 25 countries, is the world’s largest infrastructure asset manager and Australia’s highest ranked mergers and acquisitions adviser, with more than $A495 billion in assets under management.

The Situation

This organisation was facing rising contingent worker costs business-wide. Before engaging CXC, their approach to contractor workforce management was leading to inflated margins, non-compliant practices and process inefficiencies.

They needed a new model – one that enabled them to lower contingent worker costs and remain competitive in their industry.

Annual cost savings of $1.2M have been achieved as a result of a workforce/payroll and tenure management program.  In addition, workforce reporting and analytics have provided us with unprecedented visibility of spend and trends, enabling for tighter cost control and strategic workforce planning.

CXC's Solution

CXC implemented a contingent workforce management service, where CXC engaged and managed and direct contractors, in addition to agency contractors after a 12 month period. CXC has consistently managed over 300 contract workers and processed payroll of over $209M to them.

Key services we have provided include:

  • Compliance with taxation and industrial relations obligations
  • Indemnify ATO risk and co-employment concerns
  • Risk mitigation at all work sites
  • Online portals reducing manual processes, and processing errors
  • Support for rate negotiation process and for contract extension and terminations
  • Managing the intricacies around RPO payroll, PSL payroll and tenure management with a provider who is vendor neutral
  • HR Business Partner advice and rate management
  • Dedicated Account structure with customer service line for all contingent workers
  • Added value services, including financial and property advice for contingent workers

We provide these services in conjunction with, and as part of, the on-site Hudson RPO model who manage the end-to-end recruitment process.

The Results

CXC’s workforce management solution has delivered enhanced compliance and governance controls, and significant cost and process efficiencies, including:

  • Annual cost savings in excess of $1.5M from direct payroll and 12month tenure transition policy since program inception
  • Average cost saving of 5% per contingent worker, versus using a recruitment agency payroll service
  • Compliant engagement and workforce management resulting in zero co-employment claims
  • Advanced reporting introduced to monitor weekly performance, month end date management, trends and analysis providing transparency of the (in scope) contingent worker landscape
  • Streamlined invoicing process with more detailed and accurate spend data
  • Value added benefits including financial consultation and property investment advisory for contingent workers, strengthening the employer brand
  • Asia Pacific payroll project support across multiple geographies and jurisdictions.

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