Fortune 500 Financial Services Provider: Implementing an Elastic Contingent Talent Strategy Saved $5.2M
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SITUATION
A top Fortune 500 financial services company based in the Midwest was struggling to contain their contingent worker spend. Their Procurement department had the additional responsibility of managing the entire independent talent program – from handling SOWs and contracting to vetting and onboarding – while supervising costly third-party staffing providers.
When a company-wide initiative to cut costs rolled out, the potential for increased legal risk and the evident administrative strain signaled that it was time to reorganize. They decided to shift from a traditional staffing provider model to engage a workforce management partner with the knowledge and experience to evaluate, optimize and seamlessly take on their independent talent program end-to-end.
GATE
SOLUTION
Working closely with stakeholders in both procurement and talent acquisition, MBO helped the organization reimagine the way value is created throughout the independent engagement lifecycle.
MBO approached the situation from multiple angles with the key objective to holistically reduce cost:
- CONSOLIDATION:
replace multiple vendors with just one.- Reduce third-party labor spend – which carried a 200-300 percent markup.
- TRANSFORMATION:
develop a tailored direct sourcing program- Increase efficiency by installing a custom talent marketplace – tech-enabled direct sourcing platform;
- Improve targeting for hard-to-source IT professionals by leveraging MBO’s known marketplace to build talent pools;
- Mitigate risk by establishing enterprise-wide independent contractor compliance procedures;
- Streamline processes for invoicing and refine attribution to accurately track SOW spend.
- TRANSPARENCY:
Increase visibility across the company’s contingent workforce at the executive level- Aggregate platform data in performance dashboards for real-time analysis.
RESULTS
With the comprehensive direct sourcing solution in place since 2017, the company has
- realized more than $800,000 in savings per year, gaining velocity with $1.9 million saved in 2022 alone, for a total of $5.2 million saved to date;
- scaled both the size and the value of their contingent workforce from $8M to $17M over the past 5 years;
- currently employs an average of 415 independent contractors on a weekly basis.
The company credits MBO’s elastic talent strategy and platform for their success navigating the disruption and budget cuts brought by COVID-19. With their remote-friendly cloud-based platform in place they were equipped to cost-effectively identify, predict and strategically adapt to rapid changes and champion a new way of working. Their annual savings more than doubled in post-COVID 2022.
Industry
Financial Services
Number of Employees
6,000 Employees
Company Revenue
$30 Billion
Areas Served
United States
$1.9 million
In cost savings in 2022 alone
415
Contractors working on a weekly basis
$5.2 million
Cost savings within the first 5 years
THE TEAM
John has more than 20 years of leadership, management consulting, and technology experience growing services-based companies. He has worked with many Fortune 500 companies across several verticals including healthcare, financial services, and technology.
THE TEAM
Vice President, Strategic Accounts
Dawnette oversees MBO's Financial Services vertical and is a passionate leader suppporting the future of work.
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