Here’s how Magnit transformed
an automotive company’s short-term labor solutions into strategic talent reservoirs.
Twelve years ago, the company hit a roadblock.
Its huge global team was supplemented by a contingent workforce that could quickly step in to provide mission-critical skills. However, due to fragmented hiring processes and the absence of a unified system of record, it struggled to track key metrics like worker location, pay rates and time to fill roles.
These workers received inconsistent rates across varying contracts, and the organization was concerned about risk and compliance issues.
With more than 100 suppliers, the manufacturer was buried in paperwork, causing delays in invoice processing. It required an automated solution that would create an improved experience for all contingent labor and house all systems within one source of truth.
The Challenge
With its extended workforce managed internally, the automaker realized that with market forces shifting rapidly, it needed to rethink its talent strategies. It needed a more formalized contingent worker program.
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The Challenge
The
plan
The
results
“
Because of the labor shortage, you have to be thinking about your contingent strategy much like you think about your full-time strategy. Companies can plan better, do nothing, or hope. And hope is not a strategy.”
Teresa Carroll
CEO, Magnit
Contingent Critical
CxOs of high-growth enterprises are
contingent workforce over the next year, compared to leaders of low- or no-growth companies.
Forbes CxO Growth Study
to rely on the
The Future
The automotive manufacturer has navigated
fast-moving business needs, market conditions and talent shifts with Magnit’s help. But it’s hardly finished.
The path forward for this organization involves the continued transformation of its extended workforce, and the automaker plans to further build on its work of attracting an increasingly diverse team.
“If you leave contingent talent on the side and don’t think about it as part of your holistic talent strategy, you’re missing a big component of what makes your organization successful,” Bogan says.
A Roadmap For Growth
built for success
Some acknowledge they
will need to increase flexible work arrangements to ensure their organization’s long-term growth.
Forbes CxO Growth Study
Combining your organization’s strengths with external contingent expertise, as this leading automaker has done, allows companies to build the flexible team they need to succeed.
By planning for the future of the workplace today, organizations can nimbly navigate economic shifts—tapping a skilled workforce and ensuring they always have the talent they need at their fingertips.
Reimagining A New Tomorrow
Magnit’s Five Fundamentals
For A Talent Supply Chain Makeover
Know The New Workforce: Understand that talent has more choice than ever before. “They can be in your company’s supply chain or somebody else’s. … Don’t take it lightly,” says Carroll.
Equip Workers: If you spot a talent gap emerging, ask the question, “If we can't find it on the market, how do we build it and develop it?”
Automate Work: Look for areas where automation technologies can streamline processes and optimize workforce utilization, because “the labor shortage is real,” adds Carroll.
Promote Inclusion: Foster an inclusive environment that caters to the diverse needs of the workforce. That will help retain the talent you have at your company.
Invest And Generate Returns: “Don't look at talent as just a cost,” says Carroll. “Look at them as an investment because they will generate a return.”
Get Magnit’s Quick Start Guide To Unlocking Your Contingent Workforce’s Full Potential
The Plan
The automotive manufacturer came to Magnit with an overarching need—a more mature contingent workforce program. Magnit delivered with technology, services and insights backed by data.
Its transformation was built around Magnit’s vendor management system (VMS), a global multitenant SaaS solution configured to manage the end-to-end workflow of the organization’s extended workforce and capture data in a single system of record. Magnit also became the employer of record for the client’s contingent talent, taking on responsibility for worker benefits and risk management.
As the company’s managed service provider (MSP), Magnit also reviewed and evaluated the overall effectiveness of the automaker’s contingent program, offered recommendations to further optimize its approach, and ensured it leveraged more diverse or minority-owned staffing suppliers.
“We are a strategic partner supporting their overall contingent workforce talent needs and vision versus a vendor who solely supplies people when they need them,” says Amy Bogan, Magnit’s SVP of client services.
The Results
The auto industry giant eliminated manual, disorganized talent management processes and turned its extended labor programs into a vital part of its talent strategy.
Once-siloed talent data is in one place, giving the organization full visibility into its extended workforce. The invoice backlog disappeared, and the company no longer has to worry about operational inefficiencies and improved the staffing supplier experience.
Magnit’s direct sourcing solution—which leveraged the client’s brand to help it hire talent directly, rather than through staffing suppliers—led to $620,000 in savings.
The automaker’s talent overhaul resulted in a pipeline of top candidates, and now the company's managers only need to conduct an average of 1.5 interviews before hiring.
Diverse hires have increased by 13%, and the automaker has a 35% conversion rate on positions, well above industry benchmarks.
“
That openness in being able to challenge and then lead together, in partnership, has been really essential in driving the program forward. We’re embedded together in what we’re trying to accomplish, and that makes a huge difference.”
Amy Bogan
SVP, Client Services, Magnit