Multigenerational MSP Program Providing Staff Augmentation, Payrolling and SOW For Major Transportation and Logistics Company Continues Innovating and Expanding
A transportation and logistics company, owned and operated by a Fortune 10 company, was originally looking to establish rigor and discipline around its contingent labor program. Learn how Sevenstep’s full lifecycle contingent labor program, including staff augmentation, payrolling and SOW, has evolved with the business over the last 12 years to innovate and meet new labor trends and needs.
Volume: 300-350 contractors/year
Roles: IT, administration, finance, engineering, HR, drafting, LiDAR technicians, and COVID-19 contract tracers
Geography: Central United States
- Cost savings: No standardized rate across all contract labor for the business.
- Lack of centralized processes: Procurement spent a considerable amount of time educating hiring managers on contract labor and pricing.
- Process adherence: Inconsistent onboarding requirements and rates with no system in place to accurately manage the tenure of contractors to ensure compliance with contingent worker guidelines.
- Administrative burden: Hiring managers were inundated with supplier follow-up and feedback requests. The business was self-managing contract nuances and negotiations on a one-off basis.
Solution Type: MSP
Delivery Model: Full lifecycle contingent labor management
- Established complete overview of contingent labor utilization across the business, including:
- Standardized rate card and supplier agreements
- Instituted volume discount
- Streamlined all administrative elements of the MSP program, including supplier contracts, invoicing, sourcing and managing suppliers, etc.
- Established processes to handle and ensure all contingent labor approvals, including managing the tenure of contractors to stay within established guidelines.
- Frequent and periodic rate parity and analysis to ensure talent is secured at market rates versus at a premium.
- Created an onsite program manager role to assist with hiring manager education, relationship building, requisition management, onboarding/offboarding facilitation, contractor and supplier management, and contractor engagement.
- Partnered with senior IT leadership in resource planning and resource management; provided enhanced reporting on the use of contingent labor to senior IT leadership.
- The total spend managed through the program has increased more than 230 percent over the last 12 years.
- The quality of contractor hires and the program has continued to increase throughout the duration of the relationship. Results include:
- Decreased average time-to-fill by 13 days.
- Improved hire quality and contractor retention.
- Decreased average bill rates by $23/hour.
- Increased cost savings through the implementation of a volume discount.
- Additional scope was added throughout the duration of the relationship.
- Initially, the program supported IT contingent hiring only. Since then, HR, administration, finance, engineering, drafting, specialized technicians and COVID-19 contract tracers have been added to the scope of the program.
- The program has also evolved to include payrolling and SOW expansion.
- Enhanced supplier relationships.
- Partnered with incumbent suppliers to ensure prioritization of client and to reduce supplier attrition by 50%