HIGH TECH

Red Hat Transforms its Mission-Critical Contingent Workforce Management Program with SAP Fieldglass Solutions

As the world’s leading provider of enterprise open-source solutions, Red Hat embraces a community-powered approach that puts innovation in the hands of everyone. The company helps clients standardize across environments, develop cloud-native applications, and integrate, automate, secure, and manage complex environments with award-winning support, training, and consulting services.

 

SOLUTIONS IMPLEMENTED

SAP Fieldglass Contingent Workforce Management

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MAIN GOALS

  • Implement a contingent workforce program with one comprehensive solution
  • Gain greater visibility into contingent labor spend, hiring trends, and vendor performance
  • Standardize practices across its North American operations
  • Improve the value benefit of its contingent workforce: access top talent, accelerate hiring and onboarding and offboarding
  • Reduce external labor costs through tight adherence to market rate cards
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THE CHALLENGE

Making the right choice for a contingent workforce management program

With Red Hat’s broad portfolio of open-source solutions, the company relies on contingent workers to fulfill a variety of roles, from project managers and marketing specialists to technology experts and software engineers.

But the company’s processes for engaging contingent workers across departments and locations were manual and irregular, leading to inconsistent billing rates for similar roles, disparate rules for conversions, and a lack of centralized tracking of costs for contingent workers.

Red Hat needed to increase visibility on spending, headcount, and trends while also standardizing practices across its North American operations. This led the company to review several external workforce management solutions, including the SAP Fieldglass Contingent Workforce Management application.

THE SOLUTION

Transforming contingent workforce management with a single solution

Red Hat chose SAP Fieldglass Contingent Workforce Management for its robust capabilities, highly configurable design, and the speed and ease of implementation and integration. With a wide range of functionality and features, the application offers opportunities for Red Hat to leverage more capabilities as it continues its global expansion. It also offers the comprehensive data and reporting tools that Red Hat needs to make contingent workforce planning a strategic priority and to realize potential savings from its supplier network.

In addition, SAP Fieldglass Contingent Workforce Management provides Red Hat with increased visibility of its contingent labor spend. The company’s business groups in the United States and Canada can also leverage the application, enabling Red Hat to consolidate and streamline its disparate contingent workforce management processes, including supplier management and payments, as well as the onboarding and offboarding of contingent workers.

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THE RESULTS

Improving contingent workforce planning, performance, and savings at a record pace

Red Hat chose Monument Consulting as its managed service partner (MSP) to implement and run SAP Fieldglass Contingent Workforce Management. At just 90 days, the rollout was achieved with lightning speed.

Now Red Hat and its MSP can better manage and control the company’s contingent worker hiring program. With a central source for vendor insight and negotiation, Red Hat is now able to lower rates for the same contractors by 10%. Overall, they’ve already seen a 7% savings in their workforce program. Automated processes have transformed the onboarding and offboarding of contingent workers, dramatically reducing a hiring manager’s paperwork to one form, and earning a 92% hiring manager satisfaction rate.

In addition, the consolidated invoice functionality of SAP Fieldglass Contingent Workforce Management has eliminated the need to pay each supplier invoice individually. Now, Red Hat pays a single invoice every cycle, and the MSP uses the application to handle all the downstream payments. And with a reduced cost to Red Hat of US$50 per invoice processed, the savings are significant.

How the numbers add up for Red Hat

Red Hat implemented the SAP Fieldglass Contingent Workforce Management application with the goals of increasing visibility on spending, headcount, and trends while also standardizing operational practices in North America. The results have been transformative:

  • 7% savings to workforce program

  • 7% savings with market rate-card functionality

  • 90-day net-new program implementation

  • 10% lower rates for the same contingent workforce contractors

  • 92% hiring manager satisfaction

  • 30 days or less time-to-fill rate

  • Reduced cost to US$50 per invoice

 

FUTURE OUTLOOK

Taking innovative contingent workforce management beyond North America

Red Hat has already gained more detailed insight and control of its contingent hiring program with SAP Fieldglass Contingent Workforce Management. Monthly and quarterly metrics reporting on program use, spend, hiring trends, length of service, and vendor performance provide the visibility and insight Red Hat needs to expand hiring well into the future.

In fact, while SAP Fieldglass Contingent Workforce Management is currently being used only in Red Hat’s North American operations, the application’s success is getting noticed by hiring managers from other regions. They are reaching out to Red Hat’s MSP looking to also adopt a more streamlined consolidated external workforce management process using the application.

Red Hat Reduces the Cost and Complexity of Managing a Contingent Workforce

Learn how Red Hat gained detailed insight and control – and millions in savings – over contingent workforce hiring and spend with the help of SAP Fieldglass solutions.

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Resources
SAP Fieldglass Contingent Workforce Management overview

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