Context
In 2020 a leading food manufacturer partnered with Flexhuis to enhance contractor management and recruitment processes by consolidating suppliers, improve the visibility of their contingent workforce, and mitigate compliance risks associated with their contractor management process.
The Challenge
The client used several suppliers for contract recruitment and after a contractor audit, they wanted to improve the visibility of their contingent workforce and enhance some of the processes through which they engaged with contractors.
Additionally, due to the IR35 changes taking place in the private sector in 2020, the client wanted to reduce risk in their end-to-end contractor management process, from identification of need through to ongoing working practices.
Having worked with Flexhuis’ sister organization, Harvey Nash for a number of years, our client approached Flexhuis to implement a more formal managed service provision across all of their business divisions.
Solution
With the client encountering significant hurdles, primarily spurred by changes in IR35 legislation, and concerned with potential risks associated with their contingent workforce, they sought a solution to ensure alignment with regulatory requirements.
Prior to proposing a Managed Service Provision (MSP), we conducted an audit across our client’s current contracts. This revealed that their challenges extended beyond compliance with IR35. The audit uncovered a complex landscape of contracts, varying terms, unstructured management across various business entities within the group, and potential risks, including rates, compliance status, and right-to-work documentation. Realizing these challenges we recognized the need for comprehensive oversight and therefore proposed the implementation of an MSP solution to streamline the client’s contractor management processes.
Initially, our dedicated MSP team worked with managers to establish a clear and transparent point of contact, implementing a Contractor Care function where managers could resolve any contractor requirements or queries efficiently. This fragmented approach, previously managed by multiple suppliers handling various roles, proved inefficient and costly, as it hindered visibility into contract terms, rates, and compliance. To enhance visibility, and gain better control, the Flexhuis team initiated the seamless transition of all contractors and suppliers to our managed service program, consolidating contractor engagements under one compliance process and onboarding framework.
The Flexhuis team was also responsible for transitioning all current suppliers across to the managed service where updated contracts and SLAs were put into place as well as terms aligned across the newly implemented preferred supplier list (PSL).
Once our managed service (MSP) was in place, our client had access to full MI and reporting across all business areas, providing full clarity over contractor numbers, costs, and delivery. Flexhuis supported a standardized IR35 process for all current and new contractors working with the business to support managers with their hiring needs.
Through our MSP service, we established centralized processing and recording of data, enabling our client to gain oversight of their recruitment process and assess the effectiveness of the candidate journey. This facilitated the collection of feedback, empowering the client to make informed, data-driven decisions aimed at enhancing the candidate experience.
The key drivers for a new MSP were the standardization of processes, compliance, and IR35 reforms. As part of the service, the Flexhuis team alleviated the initial problems, which are underpinned by continual service improvement while working with the client. This includes cost savings, improved branding, market intelligence, and ensuring business and service continuity.
Results
A dedicated service delivery team was introduced to the client to ensure all managers had one point of contact for all contract requirements. This team also acted as a central Contractor Care function for all contractors, enabling them to have any issues or queries managed quickly and effectively. Establishing transparent communication, coupled with the implementation of a seamless onboarding system greatly improved the candidate experience, achieving a 100% satisfaction score from our 222 successful hires.
We successfully transitioned all contractors and suppliers across to our MSP seamlessly with no disruption. Under our managed service, all contracts were updated with SLAs implemented.
Terms were also aligned across the newly implemented preferred supplier list (PSL). With a PSL now established for all contingent recruitment across the client’s business we were able to reduce the average agency spend and provide significant cost savings for the client.
Our client also benefitted from full access to MI data reports. Effective decision-making was made easier due to the full transparency across the business’ hiring ecosystem, providing the business with valuable metrics such as cost and placing of contractors. By leveraging these insights, our client managed to avoid £150,000+ in expenses.
We achieved one of our client’s biggest goals, reducing the risk of newly implemented IR35 rule changes. Flexhuis worked in partnership with the client to establish an IR35 process maintaining and improving compliance across the business, as well as implementing guidelines for working with outside contractors IR35. We continuously support the organization by providing regular updates on market changes to ensure appropriate compliance and governance.
Our collaborative efforts with the client yielded transformative results, elevating their contractor management and recruitment processes. By establishing transparent communication channels and implementing a seamless onboarding system, achieving a 3:1 ratio for CV to hires and a 2:1 ratio for interviews to hire, greatly reducing the time to hire.
To find out more about Flexhuis MSP solution click here or contact us at hello.usa@flexhuisglobal.com
