Do you have an inconsistent supplier strategy for contingent workers, with varying contracts, capability gaps and no effective way of managing them?
Companies have substantially increased their use of contingent workers over the past decade, as a way of increasing flexibility, reducing labour costs and supplementing skillsets. 30% of the Australian workforce is now comprised of contingent workers, which is expected to reach 40% by 2025.
With the greater use of contingent workers and the need for flexibility, we’re seeing a greater complexity of regulation and operating models. By engaging, managing and payrolling contractors through a large, decentralised supply chain, many organisations are facing significant risks, inflated costs and inefficiencies. We see a significant under-investment by recruitment agencies in the middle and back office, leading to colossal compliance failings (e.g., Plutus Payroll, the largest white-collar fraud ever in Australia).
Our vision for contingent workforce management is that agencies will move away from providing payroll and employment services, and instead focus solely on sourcing. Organisations will increasingly want to centralise their contingent workforce model, help them reduce risks and costs, and improve quality and efficiency.
CXC understands the limitations of a decentralised contingent workforce management program, and has helped organisations develop a best in class, centralised model.
CXC has developed agency relationships for over more than 30 years, with our initial offering managing and payrolling the independent contractors of recruitment suppliers.
Our service offering to corporate customers harnesses our long-standing relationships with suppliers, market insights and expertise in payment processing.
How CXC can help
- Streamlined single cycle client invoice and outsourced payment processing to the recruitment supply chain.
- Systems and processes to distribute requisitions and performance management of selected suppliers.
- Relationships with over 235 pre-vetted and proven recruitment suppliers in APAC, which can be used to source a large number of niche job categories.
- Recruitment licenses in all states in Australia, as well as over 30 offices globally and a network of local recruitment suppliers in each region (including in South America) who can assist to fill roles.
- To support the talent team, CXC has a sourcing hub in Asia, which has the capability to find niche roles in Thailand, Hong Kong or the Philippines. For internationally based candidates, CXC can provide an invoicing and payment solution to Beach Energy while managing all the overseas legislation, taxes and insurances.
CXC partnered with a national transport organisation, who specialised in developing and managing urban toll roads throughout Australia.
During implementation, suppliers were engaged early to obtain contractor data and confirm transition scope. Suppliers were kept informed of timelines and requirements and briefing sessions were conducted, greatly assisted by the fact the majority of suppliers were familiar with CXC.
Through implementing CXC’s solution, CXC consolidated the engagement and management of 40 suppliers. Prior to our solution, these were all invoicing and billing Transurban directly. CXC now invoices on behalf of all suppliers and remits the supplier margins where appropriate.
In year one of the program, this client saved approximately 5% of recruitment spend. This was from implementing our recruitment supplier cost savings initiatives, along with process management initiatives, including correct worker classification and assistance with Workday implementation.
“We’ve been very happy with how quickly the CXC on-site team have become part of our team, and how well the model has been adopted by the business. CXC are high-touch with our contractors, they’re responsive and available. The model really works”
General Manager for Recruitment and Engagement, Large Health Insurance Client