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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

New HCMWorks Video Explains the Importance of a Contingent Workforce Management Strategy

New HCMWorks Video Explains the Importance of a Contingent Workforce Management Strategy

Today’s on-demand economy means companies are increasingly relying on contingent workers to support their workforce requirements. These non-permanent workers give businesses access to top talent, help boost growth, and encourage the creation of an agile and flexible workplace.

However, the management of contingent workers is complex and has created extra workload for both HR and procurement professionals, who need to source and vet contract workers for a variety of positions and departments across their organization. 

> Read More

How Changing Workforce Behaviours Have Created Access to a New World of Talent

How Changing Workforce Behaviours Have Created Access to a New World of Talent

The world of work has evolved significantly over the past decade, and the contingent workforce has boomed in recent years. This has translated into ample opportunity for today’s large businesses to tap into a new network of world-class, on-demand talent.

As we covered in a recent blog, titled “How Technology and Communication Tools Have Fueled the Gig Economy”, technology and communications tools have been a huge factor in the changing workforce behaviours. 

> Read More

What is a SOW and how can SOW Management Benefit my Contingent Workforce Program?

What is a SOW and how can SOW Management Benefit my Contingent Workforce Program?

When it comes to an organization’s contingent workforce program procurement and human resource (HR) professionals must strive for a transparent and company-wide strategy.

Whether your business is looking to create or improve your contingent workforce program, it can be a time-consuming and frustrating process. However, with contingent workers making up a large part of many companies’ workforce, updating the program you use to manage them is essential for acquiring the best talent and reducing costs. 

> Read More