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Negotiation & Cost Savings

Unlock your Savings Today with HCMWorks

WE CAN UNLOCK LARGE SAVINGS OPPORTUNITIES FOR YOUR ORGANIZATION

Savings are a key component of HCMWorks’ value proposition. We have years of experience uncovering, negotiating and realizing savings for our clients.

HCMWorks cost saving strategies

Our proven cost reduction and savings methodologies are available to help you achieve your cost savings objectives. With the help of our industry insights, experience and extensive knowledge of the total contingent workforce ecosystem, HCMWorks can unlock these large savings opportunities for your organization.

Historically, HCMWorks engagements have generated between 7.5% and 15% in hard cost savings on spend under our management in the first year alone. In subsequent years, through continuous management and optimization, our programs can yield further savings of 2% to 5% per year.

DISCUSS POTENTIAL COST SAVINGS

“…I wanted to emphasize my appreciation of the services we get from HCMWorks, as much on the speed of their replies as the relationship that is being established. They are helping our group to fill more than twenty requisitions and have most recently helped us in difficult times. I am impressed. For me, as a manager, this partnership is really an added value that allows me to focus on my priorities. Thank you”
Manager, Business Lead at Client C

“The HCMWorks team was the foundation in the implementation of a contingent workforce managed solution which extends from the hiring process to the payment of consultants.  For more than 5 years, our partnership with HCMWorks enables us to effectively meet our objectives in accessing a large talent pool, all while controlling our costs.” 

Vendor Management Client

"I've been working for almost 10 years with the HCMWorks' team and I hope to continue for another 10 years.  Professional and passionate are few words that best describe this team. They offer excellent overall service and are always available for any inquiries. Their knowledge of the market makes them an asset for the business. I would not hesitate to recommend them."

National Senior Manager Staffing Office
Saving Solutions from HCMWorks' Contingent Strategies

MAJOR DRIVERS THAT IMPACT SPEND AND SAVINGS

The savings always vary from client to client, as no two programs are alike. However, the common major drivers impacting spend and savings are as follows:

Cost Management

Managing staffing vendor markups is not enough!

We’ll help you make sure you’re paying fair market rate for your contingent workers using our extensive industry knowledge plus proprietary and multiple independent data sources.

  •      Market Rate Analysis
  •      Rate Card Strategy
  •      Direct Vendor Negotiations
  •      Rate Card Compliance
Strategic Sourcing

With a centralized process and the help of technology, many tools become available to derive previously inaccessible savings.

  •      Competitive Bidding
  •      Broadcast Rules
  •      Supplier Strategy
  •      Supplier Optimization
  •      Supplier Compliance
  •      Rogue Spend Management
  •      Demand Management
  •      Supplier Mark-up Management
Value Engineering & Visibility

HCMWorks helps you offload non-productive routine tasks including job broadcasting, managing job requisitions, on-boarding and off-boarding. Additionally we provide a single consolidated invoice, properly coded and reported on in a way that is meaningful to you.

  •      Cost Management & Containment
  •      Total Workforce Tracking
  •      Reporting

Here's an example of typical savings broken down by component:

Driver Savings Potential

Competitive Bidding 1.5% - 3% Hard Cost Savings

 Enforce 100% contract rate compliance
 Price discovery through real time supplier competition
 React to and apply market driven events (rates decline)
 Compare historical rates: candidates, suppliers

Preferred Supplier Enforcement 1.5% - 3% Hard Cost Savings

 Preferred vendor management (Tier1/ Tier2)
 Sourcing process (Closed Rate/Open Rate)
 Limit the number of vendors/candidates

MSP Negotiations 1.5% - 3% Hard Cost Savings

 Renegotiate rates above market price for the current contracts
 Action out strategies through visibility into vendor, contractor & market rates

Program Improvement 1.5% - 3 % Hard Cost Savings

 Introduce & apply multiple rate reduction initiatives
 Invoice accuracy & elimination of multiple invoicing
 Management of payment terms

Directly Sourced Candidates 1.5% - 3% Hard Cost Savings

 Creation of process for directly sourced contractors
 Negotiate pay-rates
 Mark-down from staffing vendor to payrolling mark-up

Total Potential Savings 7.5% - 15% Hard Cost Savings

Contingent workforce management help

We're a recognized industry leader in helping businesses reduce cost, complexity and risks, so they can truly benefit from their contingent workforce. It starts with a discovery call so we can find out more about your business challenges and opportunities.

The HCMWorks Blog

4 Contingent Workforce Trends That Will Continue to Impact Your Company in 2020

4 Contingent Workforce Trends That Will Continue to Impact Your Company in 2020

Last year at HCMWorks we wrote an article about a study by The Economist that found the demand for contingent workers would skyrocket over the next five years, with more than 61 percent of top bosses expecting the use of contract labour to increase.

The report surveyed executive decision-makers at 210 US and UK companies with at least 2,000 employees, finding that contingent workers account for more than a fifth of the workforce at over half (58 percent) of those businesses. A figure set to grow over the coming years.

> Read More

Our Most Popular Contingent Workforce Insights in 2019

Our Most Popular Contingent Workforce Insights in 2019

The contingent workforce is always changing. Whether it’s the growing pool of workers, new methods of sourcing talent, changing workforce laws or optimizing your contingent workforce management program, there is always something new to learn and implement.

Making sure your organization stays on top of these changes is a crucial element of ensuring your contingent workforce is consistently optimized so that it can maximize results for your business.

> Read More

How to Improve Cost Management in Your Contingent Workforce Management Program

How to Improve Cost Management in Your Contingent Workforce Management Program

Organizations have significantly increased their use of contingent workers over the past decade, helping to compete with rising labour costs, improving access to top talent and adapt to rapidly changing market conditions.

In fact, new Ardent Partners research shows that 41.5 percent of the average enterprise’s total workforce is considered non-employee, which includes temporary workers, independent contractors, professional services, gig workers and freelancers.

> Read More