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Background
At the time, this company engaged less than 50 contractors, primarily in white collar roles such as engineers and document controllers. Most of these were sourced directly and then engaged and payrolled by a payroll provider or an agency, with the remainder sourced and managed through recruitment agencies.
The situation
Before engaging CXC, they had challenges around the management of their contingent workforce due to a decentralised model.
Some of the challenges they were exposed to include:
- When onboarding a worker, they would need to use a different form for each agency.
- Delays in contractor payments when contractors failed to submit timesheets on time.
- No centralised visibility or control increasing governance risk.
- Minimal opportunities to drive cost savings across suppliers.
- Inconsistent contingent worker experience as they are engaged through various suppliers.
In 2020, they went to market to narrow down their supply chain and centralise their process. CXC was selected as the provider to manage the engagement and payroll of their contractors.
CXC’s solution
Through our close partnership, CXC became the human resource function for all of the contingent workforce post decision to offer. Key elements of our solution include:
- As they are based in Western Australia, the client’s account manager is onsite in Perth twice a year to provide an analysis of the performance of the program and ensure ongoing strategic alignment.
- Through CXC’s model, we have a consistent way for onboarding workers, with a turnaround time of 48 hours.
- Agencies are now put on a sourcing-only margin, as we take on the payroll and management of contingent workers.
- CXC now checks to make sure all agencies are set up correctly for invoicing, and all contractors are insured.
- We receive a feed of their timesheets out of their system, which allows for seamless payment of contractors and reimbursement to agencies. This allows for minimal manual intervention and greater efficiency.
- Agencies now don’t have to worry about invoicing, as invoices are all consolidated once a week through CXC.
- We have a bespoke report to identify which contractors haven’t submitted their timesheets, allowing the company to easily follow up.
- Contractors receive a welcome email introducing them to the account manager and instructions for how CXC operates.
- Client code of conduct completed online through the CXC portal as part of the standard onboarding process.
The results
CXC now manages in excess of 100 contractors. Over the course of our partnership, we have provided:
- Significant cost savings based on current and projected workforce models.
- A governed program for contingent workers mitigating financial and reputational risk.
- A streamlined consistent process for contingent workers regardless of source (onboarding, engaging, managing, payrolling and offboarding).
- Standardised and customised contingent worker lifecycle, leading to improved candidate experience.
- Data and insights to enable visibility, control and support business and HR initiatives.
