Developing & implementing the largest non-employee management program in Australia

Case Study
  • region: Australasia
  • industry: Industrial

The Situation

CXC partnered with Australia’s leading energy retailer – a public company listed on the Australian Stock Exchange. They have a diverse non-employee workforce of up to 1,500 workers at peak times.

This organisation was faced with numerous contingent workforce sourcing and management challenges in early 2011 – one of the largest being the risk and safety concerns over their workforce during the Queensland floods. Primarily, they were concerned about their inability to identify and reach all their contingent workers, due to the lack of visibility of their contact details and work sites, caused by inconsistent management and record keeping.

Our Contingent Workforce management model is a shared responsibility between the ‘talent acquisition’ team and CXC. CXC have brought a collaborative and partnership mindset to the model, working with both “talent acquisition and the operational business, and operated very proactively to deliver scalable workforce solution through a time of significant transformation for our business.” The reporting provided gives a clear analysis of the job families; skill sets and costs involved in managing the contingent workforce and so providing the visibility to senior management of the current competencies that can be analysed against future requirements.

CXC's Solution

The company needed to outsource their contractor payroll and management to an experienced specialist that could provide visibility and compliance. After reviewing a range of models, they extended their existing permanent staffing model to encompass their non-employee program under the same umbrella.

This model involved:

  • A recruitment process outsourcing (RPO) function, which manages the overall sourcing program for permanent and non-permanent employees, both direct and supply chain sourced
  • The outsourcing of their contractor management, including payroll and management of all non-employee workers after placement.

CXC was selected in 2011 to provide the contingent workforce management function, which involved non-employee engagement, payroll, management and remuneration services.

The relationship CXC held with the RPO partner was based on transparency, understanding and mutual respect for the functions of both parties in delivering a non-employee workforce resourcing and management solutions. To cement the partnership, both parties combined to produce a partnership charter to document the shared vision and goals and set out a framework of ‘ways of working’ together to deliver the best possible outcomes for the client and the non-employee workforce.

The Results

Since implementing the solution, the results achieved by the CXC’s services have had a direct effect on the visibility and control of the contingent worker population. Key achievements include:

  • Enhanced reporting and insights including monthly performance dashboards, disengagement reports and spend reports
  • On-site Account Management in key markets and a dedicated services team
  • A transparent and seamless working partnership with the RPO provider
  • Tightened compliance and governance standards
  • Consistently meeting SLA requirements, including a 99.5%+ accuracy across payments and invoicing
  • Raising OHS rules among the CXC contingent worker population
  • Significantly increased hiring manager and contingent worker satisfaction from 65% to 85%
  • Driving strategic roadmap development through facilitating strategy workshops and establishing a pipeline of cost savings.

Due to these key achievements, CXC contributed to savings in excess of $21M over three years.

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