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.
For every 300 or more applicants, only five will be interviewed and only one will be hired. Increasing levels of unemployment are associated with increasing levels of passive application, resulting in a sea of uninterested and uninvested candidates. Implementing the best sourcing strategies in recruitment is an integral part of acquiring top talent.> Read More
The job market has undergone significant changes over the past two years. In 2020, the employment rate soared from 4% to 14.7%. According to reports by the Bureau of Labor Statistics and University of Minnesota, roughly 20.6 million Americans lost their jobs. Some businesses switched gear by leveraging contract workers, filling cracks in the foundation without bearing the expense of a full-time employee. Contract workers provided much needed flexibility and access to a diverse set of skills and alternative employment conditions.> Read More
Most HR departments and recruiters are familiar with the terms negligent hiring or negligence in employment. They are part of the reason why companies utilize lengthy background checks and interviews as part of their hiring process. Understanding what negligent hiring constitutes and how it can negatively affect your business is key to its prevention.> Read More