Success Story - "Temporary Employees"
$10 Billion, Decentralized, IT Services Company
Company Situation and Problem
Large but Low Margin Nationwide Customers; Fluctuating Employee Levels; Tight Employee Market; High Turnover Rate; No Centralized Recruiting; Numerous Suppliers; High and Inconsistent Supplier Markups; Unknown but High Co-employment Risk; Poor or non-existent background and drug screening routines; Separate Invoices Each Week for Each Employee
Paladin Actions & Recommendations
Formed large cross functional and nationwide Team; Reviewed and Analyzed G/L Data; Interviewed Dispersed Users; Reviewed Invoices; Gathered Contracts; Analyzed Prices, Terms, Processes; Interviewed Suppliers; Determined Service Level Requirements and Supplier Competencies; Visited key references and interviewed customers and employees.
Consolidated Volume and Issued RFQ to National Suppliers; Implemented Electronic Processes and Controls; Hired Permanent
Temps; Required Background and Drug Tests; Reduced co-employment Issues; Managed Changeover; Improved Reporting and Controls
- Significantly Reduced Co-Employment Exposure and Risk
- Reduced 250 Local Suppliers to 1 National Supplier
- Reduced Invoices from 2,000 per month to 4 per month
- Reduced Mark-ups from over 90% to 25% - 40%
- Manual processes fully automated
- Time per Hire Reduced from 4-5+ Hours to 20 Minutes