Savings are a key component of HCMWorks’ value proposition. We have years of experience uncovering, negotiating and realizing savings for our clients.
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.
“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.”
"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."
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:
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.
With a centralized process and the help of technology, many tools become available to derive previously inaccessible savings.
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.
Here's an example of typical savings broken down by component:
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.
Independent contractors, freelancers, and contract workers are a valuable source of high-quality talent but managing dozens, if not hundreds of IC contracts, invoices and more, is a full-time job for several of your people.
Learn how to simplify, streamline and reduce the complexity of managing your freelancers, consultants and contract workers.
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
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
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