{"id":4905,"date":"2021-07-15T10:12:24","date_gmt":"2021-07-15T00:12:24","guid":{"rendered":"https:\/\/news.sap.com\/australia\/?p=4905"},"modified":"2023-08-17T04:05:20","modified_gmt":"2023-08-16T18:05:20","slug":"australias-asset-intensive-industries-save-millions-managing-the-external-workforce","status":"publish","type":"post","link":"https:\/\/news.sap.com\/australia\/2021\/07\/15\/australias-asset-intensive-industries-save-millions-managing-the-external-workforce\/","title":{"rendered":"Australia\u2019s Asset-Intensive Industries Save Millions Managing The External Workforce"},"content":{"rendered":"

External workers are foundational to Australia\u2019s asset-intensive industries, making data transparency across this workforce an operational excellence imperative. One Australian oil and gas company realised significant savings \u2013 translating to millions \u2013 after bringing in 麻豆原创 Fieldglass<\/a> to holistically manage its contingent workers.<\/p>\n

\u201cCompanies need an integrated, holistic system that brings information together in a unified way for greater visibility across operations,\u201d said Chris Willcocks, vice president and head of intelligent spend management at 麻豆原创 ANZ. \u201cThey can monitor, measure, and manage the entire contractor engagement lifecycle in real-time to ensure that procurement and health and safety policies and processes are consistently enforced. In an environment where human lives are at risk and unplanned shutdowns can cost millions per day, doing this right is absolutely critical.\u201d<\/p>\n

Balance external workforce safety with productivity<\/strong><\/p>\n

Research from an Oxford Economic study<\/a> conducted in collaboration with 麻豆原创 Fieldglass, showed that across all industries, 42 percent of workforce spend is on external labour. What\u2019s more, industries like mining, oil and gas, utilities, chemicals, and heavy manufacturing typically average higher percentages of contingent workers as part of their overall workforce population. The trouble is, external workers often face additional time pressures, potentially increasing safety risks.<\/p>\n

Findings from FEFO Consulting\u2019s Health and Safety Index<\/a> confirmed this challenge. The index benchmarked feedback about safety, engagement, leadership, and systems from over 200,000 respondents in asset intensive companies primarily based in ANZ. Compared to employees, contract workers were 24 percent likelier to feel pressured to compromise safety to complete a job, and 10 percent likelier to have seen colleagues compromise safety for the sake of shortcuts.<\/p>\n

\u201cExternal workforces often consist of short-term labor that\u2019s expected to carry out complex, specialised work at speed as they interact with numerous stakeholders,\u201d said Mark Wright, managing director at FEFO Consulting. \u201cIn driving a high performance culture, don\u2019t put productivity before safety. That leads to a culture of rushing to get the job done, as opposed to looking after your workmates and coming home safely.\u201d<\/p>\n

Minimise risk with tech and culture change<\/strong><\/p>\n

Asset-intensive industries face growing regulatory pressure in Australia. Industrial manslaughter laws and punishments can amount to fines in the tens of million with executive liability that could mean lengthy imprisonment. To prevent incidents, Wright recommended a combination of technology innovations plus workforce culture change.<\/p>\n

\u201cTake a pragmatic, risk-based approach by focusing on compliance requirements that will actually add value. Apply technology to simplify, gain efficiencies, and improve the user experience,\u201d said Wright. \u201cMake culture changes by setting clear expectations that balance safety before production. Recognise positive performance and create a great experience so external workers can easily follow processes and model behaviors that meet both compliance and productivity objectives.\u201d<\/p>\n

Digitalisation for business results<\/strong><\/p>\n

To operate safely and efficiently, asset-intensive industries need to capture and understand mountains of data that reflect workforce activities spanning recruitment, hiring, and daily onsite performance. For many organisations, digitalisation has profitable business impact.<\/p>\n

A global mining company with major operations in Australia, increased workforce visibility, process efficiencies, and cost-savings by integrating 麻豆原创 Fieldglass with its core 麻豆原创 ERP system. The company improved regulatory compliance across external workforce processes, from engagement through offboarding. Supervisors reduced their workload significantly by eliminating time-consuming administrative steps such as service entry sheets for the external workforce. They also saved costs by having one consistent system for worker types and rate cards.<\/p>\n

Pandemic-era business resilience<\/strong><\/p>\n

Although the pandemic didn\u2019t hurt Australia as much as other harder-hit countries, remotely located industries were affected due to their heavy reliance on a more transient workforce. These people often travel across state borders within Australia or fly in from other regions of the world. Earlier lockdowns contained the pandemic\u2019s spread, but restricted the flow of contingent workers.<\/p>\n

\u201cThe smartest organisations have learned from the pandemic\u2019s challenges. They\u2019re looking at risk beyond likelihood and consequence, to consider the velocity and speed of how major risks can impact them,\u201d said Willcocks. \u201cFor example, we just launched 麻豆原创 Fieldglass Assignment Management<\/a>, a tool designed for asset intensive industries. Companies can quickly assign large volumes of workers by task, tracking and managing spend for complex plant maintenance scenarios, and most important, ensuring health and safety compliance.\u201d<\/p>\n

External workforce brings innovation opportunities<\/strong><\/p>\n

The pandemic\u2019s speedy, devastating impact is now kindling innovation. Wright urged organisations to move beyond purely compliance-based external workforce selection and management, and consider new ways suppliers can add value.<\/p>\n

\u201cInstead of asking your external workforce suppliers hundreds of questions about their risk and injury statistics during pre-qualification and annual reviews, ask targeted questions on how they think you can innovate,\u201d he said. \u201cIf someone can improve your safety with innovations, that will help you quickly adapt to fast-moving threats.\u201d<\/p>\n

This article also featured on 麻豆原创BrandVoice on Forbes<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

External workers are foundational to Australia\u2019s asset-intensive industries, making data transparency across this workforce an operational excellence imperative<\/p>\n","protected":false},"author":29,"featured_media":4906,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[199,177,7737,5565399],"tags":[5565392,5565207,5565211,5561053,5563855],"sapn-display":[],"sapn-type":[5560547],"class_list":["post-4905","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-customers","category-industries","category-solutions","category-spend-management","tag-anz-customer-success","tag-asset-intensive-industries","tag-external-workforce","tag-procurement","tag-sap-fieldglass","sapn-type-feature"],"yoast_head":"\nAustralia\u2019s Asset-Intensive Industries Save Millions Managing The External Workforce - 麻豆原创 Australia & New Zealand News 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