An HR executive throws a few bolts in our mini lightning round.
By the Editors
Financial services company Nationwide Building Society partnered with Advantage xPO to address their supply-chain management challenges. Andy Gowan, business readiness manager for Nationwide Building Society, answers our questions about his experience with managed service programs (MSP).
What is the size of your temporary workforce? On average about 800, but increases to 1,150 during individual savings account (ISA peak), as well as 1,000 professional contractors.
What services are delivered? Advantage xPO provides a vendor-neutral workforce management solution that incorporates a full lifecycle of recruitment, plus the management of suppliers throughout the U.K. Advantage xPO is responsible for all non-permanent administration, management, and recruitment delivery within Nationwide’s head office and administration centers. This includes eight call centers throughout the U.K. In addition, the company’s service spans our branch network and regional brands—Cheshire Building Society, Dunfermline Building Society, and The Derbyshire.
Advantage xPO manages the suppliers to ensure they deliver quality candidates and meet their service level agreements (SLAs). They also streamline costs, service levels, and processes to ensure the business has one consistent and thorough approach to the hiring of temporary workers and contractors. Advantage xPO also issues and manages all contracts on behalf of Nationwide and provides a full worker payroll service, processing on average 1,500 timesheets a week and making direct payment to more than 800 temps per week. Through the implementation and delivery of the managed service solution Nationwide Building Society has realized approximately £2.5 million savings in the first year with a projected savings potential of a further £5 million over the next 2 years.
What is the biggest difference you’ve achieved through your program? In conjunction with our MSP provider, we are able to scale up and down the workers in line with seasonal peaks and troughs of our business. We have an accurate picture of how many workers we have at any one time and how much it is costing the company. This partnership has allowed us ultimate control and a more consistent approach when recruiting. The workers are also of a better quality as the recruitment process is now formalized and more structured, allowing all those involved including workers, suppliers, and managers a quality experience.
We have overachieved our SLAs on time to hire and attrition due to the new processes. In partnership with our managed service provider, we have also enabled a robust approach to matters relating to compliance and risk management.
What SLAs have been met through your program? Our fulfillment ratios have increased from 8 to 25 percent across the company, and time to hire has reduced by 150 percent to an average of 7 seven days. Attrition was monitored throughout ISA season and fell from 15 percent to 2.3 percent, and onboarding has improved dramatically. Our first year cost savings was £2.5 million, and we are projecting £5 million over duration of the contract.