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Judge us by results
At CXC Global, we’re proud of the dedication and service we offer our clients. Here are few case studies showing what we’ve been able to do for organisations, just like you.
BankWest Background
BankWest wanted to restrict the number of recruitment companies it was dealing with to a small select panel. In addition it wanted to have - on the panel - one company who could look after its directly-sourced contractors in the most efficient and cost effective manner.
Ideally this company could also provide a pipeline for non panel recruitment companies to provide resources: but this route was only to be used when all other avenues had been exhausted in finding the particular candidates via the panel members. BankWest also did not want to bring these contractors onto its own books because of the associated employment risks involved.
Problem or challenge
There were a number of problems or challenges here. The greatest challenge faced was to convince the recruitment companies that CXC was not stepping onto their turf and getting into recruitment, itself.
The challenges were: - To provide a simple easy system that would make it easy for BankWest to refer contractors to CXC in a very cost effective manner
- Adjust CXC internal systems to account for contractors that pay no management fee. Management fee is paid by the client
- Pay contractors on time in a regular manner regardless of when funds were received from BankWest
- Convince BankWest management of potential savings
Solution - Visit all potential panel members to discuss CXC Global’s role in the BankWest tender process. In most cases this resulted in a favourable response. They appreciated the honesty shown by CXC Global.
- Centralisation of the BankWest proposal through the Perth office. That way, BankWest only has one person to deal with who has intimate knowledge of all the processes involved. BankWest similarly has only one person involved in this process resulting in a clean, smooth operation whereby the parties are fully aware of what is required. As regards to cost effectiveness CXC Global offered a simple cheap solution (as compared to the agencies) which was very attractive to BankWest. Service, service and more service
- Adjusting CXC Global internal systems to take account of the margin deal with no CXC Global fees or PRT reflected on contractor payslips
- Establishment of a fortnightly pay run for BankWest contractors regardless of when funds are received
- Preparation of case studies to reflect savings to BankWest and assistance to BankWest in the establishing of a Rate Calculator that shows the CXC Billing rate once a rate for the contractor is inputted
Results
A smooth effective system has been established with little or no problems encountered by either CXC Global or BankWest.
Savings were made by BankWest.
A route established whereby BankWest can maintain the integrity of its panel using CXC Global to assist in issues with non panel suppliers.
Reed Constructions Australia Pty Ltd Background
Reed Constructions specialises in construction, engineering and project management. They have a variety of divisions across all disciplines of the construction industry, including hospitality.
Problem or challenge
The nature of their business means that a large percentage of the workforce was working away from home.
In addition: - No in-house resource to provide salary packaging to their employees who worked interstate and in remote areas
- Consulting firm providing salary packaging to their employees weren’t willing to indemnify the advice given to employees
- High costs to retain interstate staff as accommodation was covered by business in most cases
- Retaining staff was becoming more difficult
- Issues with understanding complex taxation laws in relation to LAFHA (Living Away From Home Allowance)
Solution - CXC Global provides indemnification for all salary packaging advice given to employees living interstate
- Employees can salary package all living costs
- CXC Global able to reduce company’s costs on accommodation, payroll tax and insurances
Results The initiative CXC Global was able to provide resulted in overall savings of $24,600 p.a. - $9,000 cost savings in insurances and payroll tax
- Employees receive an average increase of $100 per week extra in their salary
- Reed is happy to offer LAFHA to employees as the advice is indemnified by CXC Global
- Further costs savings generated by potentially reducing the payment of accommodation allowances - $300 per week or $15,600 per year per employee for the following year
- Increased retention through happier employees
Major global software company Background
This high-profile global software company employs sales and marketing talent, as well as technical consultants with client service skills.
Of their overall workforce in 2008, 25% were independent contractors.
Problem or challenge The organisation faced a number of employment challenges: - Employment market squeezed in growing business
- Quality of staff attracted to company compromised:
- Tight margins compromised talent quality
- Staff retention not as high as it could be:
- Contractors not getting best of breed payroll, management or salary packaging
- Being payrolled through third parties who are not experts in this field
- Conflict between HR wanting to fill jobs internally and recruitment agencies wanting commissions
- Unnecessary costs incurred:
- Excessive administration of timesheets and invoices
- Internally sourced contractors being managed by agencies
Solution - Payroll and contractor management service provided by CXC Global:
- All contractor administration managed by CXC Global
- Online portal for sign-up and reporting
- Recruitment agencies focus on core business of recruitment, not payroll
- Contractors still managed at arms length as per corporate policy
Results The initiative CXC Global was able to provide resulted in overall savings of $1,932 p.a. per contractor, an overall saving of $483,000. - Improved sign-up process
- More efficient approval process with line managers and contractors
- Cost savings by using CXC Global versus agencies payroll system:
- Equates to 14% previous margin spend
- Attraction and retention improvements
- Contractors better off financially
- Contractors have access to specialist services such as car leasing, financial planning
- Increase of referral rates
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