The way you manage your total workforce (including temporary employees and independent contractors) directly influences your ability to recruit new talent and respond to market opportunities.
Workforce management is evolving beyond simply filling an open position -companies are seeking the right mix of internal and external staffing solutions to meet their overall requirements, and have processes in place to manage them.
Today, there are three mature staffing models used in the Energy Industry:
The Master Vendor consists of a single, main staffing vendor who is responsible for fulfilling all temporary staffing requirements. The cost, (usually included in the hourly rate or mark-up charged), can allow for significant savings if a volume discount or a lower overall mark-up is negotiated. A best-in-class Master Vendor will usually provide a suite of services including payrolling for both recruited contract workers and pre-identified workers such as alumni and retirees, and 1099 Compliance for existing independent contractors. For well-established programs, the Master Vendor would also provide Direct Hire services to staff certain full-time employees.
Recruitment Process Outsourcing (RPO)
This model is based on a company outsourcing recruiting functions to an external service provider. It can include all elements of the recruiting process, ranging from job profiling, sourcing candidates, interviewing and on-boarding. RPOs charge based on a flat monthly fee, cost per hire or cost per number of candidates. RPO is considered a cost effective alternative for companies maintaining a large internal recruiting staff.
Managed Staffing Provider (MSP)
The MSP is in charge of managing a group of approved staffing vendors (within a Vendor Management System) to fulfill temporary requirements for a client. The MSP acts as a central point for requirements, and is responsible for distributing to staffing vendors and ensuring performance and compliance. The MSP will take a percentage (1-3%) from the hourly billing rate charged by secondary vendors. An MSP Program is more commonly seen in organizations with a large contingent workforce.
Choosing a Staffing Provider by Asking the Right Questions
It’s important that you define why you need a staffing provider before you engage one. You want talented contractors, but how else might your staffing provider lighten your internal workload? Do you need help with statement of work (SOW) management? Or assembling Project Teams? Knowing what services your company needs will help you choose a staffing provider.
After you’ve determined what you need from a staffing provider, look for the following items to find the best fit for your company:
- How does the staffing provider find talent? Look for an agency that does more than just collect resumes – they should actively recruit the best candidates to work on your projects.
- Are they transparent about their recruitment process? Ask them about their methods, especially for recruiting passive candidates.
- Does the staffing provider understand the complete staffing supply chain? Find someone who can educate you on issues like compliance, wage management and supply and demand in your geographic area.
- Do they understand your “employment brand”? You want to make sure that independent contractors feel connected to your company culture throughout the entire recruitment and placement process.
- Can the staffing provider serve your needs locally, nationally, and internationally? Some firms might have excellent local candidates, but very few workers for your overseas project. Most oil and gas companies need a staffing provider with global connections.
- Do they provide the services you need? Besides filling jobs, your company might need a staffing agency that offers payrolling and 1099 compliance services.
Build a Talent Community
The bottom line is that a great staffing provider will build a talent community – a network of candidates and consultants to meet your staffing requirements. The best staffing providers will work with the goals of both the company and the job candidate in mind, so that projects are staffed and completed properly, and workers want to stay with the company and be placed into the next project.
Clover specializes in placing professionals in the oil and gas industry. If you are an Operator seeking to augment Project Teams, contact Jeff.W@clovergs.com
If you are an experienced professional looking for opportunities in the Upstream Industry (Alaska, Eagle Ford Shale Play, Bakken Formation, Deepwater Gulf of Mexico), send your resume in complete confidence to Chris.S@clovergs.com