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Controlling costs through workforce management outsourcing

Transportation
CXC Global3 min read
CXC GlobalJuly 09, 2024

Summary

Challenge

The sheer number of talent sources meant there was a lack of consistency across onboarding, employee agreements, rates and supplier margins.

Solutions

We operate on a tripartite relationship with the client, agencies and the contract workers, ensuring consistency across the account.

Results

The client was able to limit agency margins from 24% to under 14%. Savings at the time of implementation were around $180,000.

CXC partnered with a national transport organisation, who specialised in developing and managing urban toll roads throughout Australia.

Industry

Transport

Company Size

500-1,000 employees

Location

Sydney, Australia

Founding Year

1996

The management of our contractor workforce has never been so transparent and reportable and this has been in direct correlation to our engagement of CXC as a partner.

Head of Talent Acquisition, Transport client

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 Challenge

Traditionally, recruitment for this company has been undertaken by hiring managers through at least 15 different recruitment agencies. This sheer number of talent sources meant there was a lack of consistency across onboarding, employee agreements, rates and supplier margins.

This prevented accessing comprehensive workforce data – to attain insights about contractors, they needed to contact recruitment agencies individually.

This fragmented approach to workforce sourcing meant they needed a new way to make better hiring decisions with improved speed and accuracy.

Solution

As a company built on a foundation of integrity, collaboration, accountability, ingenuity and respect, the organisation needed a partner that understood their values and could act as an extension of the business and brand, on behalf of their contingent workforce.

CXC provided the client with this partnership, by establishing a contingent workforce management outsourcing solution. This included:

  • Contractor onboarding
  • Contractor management
  • Contractor lifecycle management
  • Contractor payroll management
  • Reporting

CXC now provide in-depth data on their contingent workforce, including:

  • Monthly spend report
  • Contingent worker extensions and end date report
  • Contingent worker right-to-work and visa
  • Insurance expiry report
  • Contingent workforce report
  • Contingent worker starters report
  • Contingent worker finishers report
  • Invoice report
  • Contingent worker assignment tenure report
  • KPI report
  • Outstanding timesheets report

Reporting is managed by a dedicated project management team, drawing together subject matter experts from across the business, including HR, Procurement, Finance, Hiring Managers, Recruitment and IT. The client has access to a dedicated account manager as well as CXC’s customer service team. We operate on a tripartite relationship with the client, agencies and the contract workers, ensuring consistency across the account.

Results

The key results are already being realised, just six weeks into the program. These include:

  • Savings through agency agreements: The client has expanded their recruitment agency suppliers to a total of 30 providers. Because of the centralised workforce management outsourcing solution CXC provides, they are able to limit agency margins from 24% to under 14%. Additionally, once a contract worker has been with the company for 12 months, the agency margin no longer applies. Savings from these initiatives, at the time of implementation, were around $180,000.
  • Oversight of business operations: CXC provides tailored reporting and analysis to the client, with oversight over their contract workforce, allowing them to make more effective workforce and business decisions.
  • Better compliance and risk management: CXC ensures all contractors go through the same process of police checks, updated insurances and superannuation, achieving a streamlined candidate experience and a vastly improved risk profile.
  • CXC also discovered that mandatory police checks had not been conducted on 20% of all active working contractors when we first examined the workforce population. Now, this process is standard at the time of contractor onboarding.

“The service we receive from CXC has been great, our Account Manager is always on hand to deal with any issues in a prompt and efficient manner and more importantly foresee and potential issues before they arise. The management of our contractor workforce has never been so transparent and reportable and this has been in direct correlation to our engagement of CXC as a partner.”

Head of Talent Acquisition, Transport client

If you have a similarly decentralised supply chain, with limited visibility, ask us how we can help you simplify and streamline your agency panel.


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About CXC


At CXC, we want to help you grow your business with flexible, contingent talent. But we also understand that managing a contingent workforce can be complicated, costly and time-consuming. Through our MSP solution, we can help you to fulfil all of your contingent hiring needs, including temp employees, independent contractors and SOW workers. And if your needs change? No problem. Our flexible solution is designed to scale up and down to match our clients’ requirements.

CXC Global