Neutral Vendor Solution Case Study
St. Modwen Homes is a renowned and respected residential property developer with a strong presence countrywide. With a commitment to creating vibrant and sustainable communities, St. Modwen Homes has earned a reputation for delivering high quality new homes that blend modern design, functionality, and environmental considerations.
As part of the larger St. Modwen Properties PLC group, which boasts a history of successful property development and regeneration projects, St. Modwen Homes benefits from a wealth of experience and expertise. This positions them as a trusted partner for individuals and families seeking well-designed, contemporary homes that cater to their needs and aspirations.
St. Modwen Homes takes pride in its dedication to thoughtful design, utilising cuttingedge architecture and interior concepts to craft living spaces that cater to both aesthetic preferences and practical requirements. By incorporating sustainable building practices and energy-efficient features, the company demonstrates a commitment to reducing its environmental footprint while providing homeowners with comfortable and cost-effective living solutions.
The Background
St. Modwen Homes, like many other construction and development companies, relies on temporary labour to supplement its workforce during peak project periods or to fill specific skill gaps. Temporary labour has allowed the company to manage fluctuating workloads efficiently and bring in specialised expertise when needed. However, over time, St. Modwen Homes faced challenges related to the use of temporary labour and its engagement with recruitment agencies.
Using multiple recruitment agencies meant that St Modwen were exposed to a number of legal compliance risk. These risks included Illegal Workers, IR35 and Modern Slavery to name a few.
Another significant challenge was the varying costs associated with recruiting temporary workers through agencies and the scarce availability of workers. Dealing with a number of different recruitment agencies across the country often meant paying significant extra charges, which added to the overall project expenses.
Added to this there was a lack of control and visibility of spend. Tracking expenditure against budget was very difficult and workers would often stay longer than expected or work extra hours, further compounding the problem. Each location operated with a separate preferred supplier list with no local visibility of which agencies were already contracted to supply into St Modwen Homes.
Furthermore, relying heavily on temporary labour created issues related to workforce consistency and project continuity. Temporary workers might not have the same level of commitment, familiarity with the company's values, or understanding of project intricacies as permanent employees. This could lead to quality control and productivity concerns.
To address these challenges, St. Modwen Homes explored alternatives to the traditional model of temporary labour recruitment through agencies and engage with a neutral vendor managed service.
By streamlining the procurement of their temporary workforce, St. Modwen Homes have improved project cost management, enhance quality control. This strategic shift has also contributed to greater long-term success and sustainability for the company’s house-building projects.
The Solution
The core components of the solution offered by Datum RPO to St. Modwen encompass:
- Standardised margins across all agency supplier
- Controlled pay rates across workers
- Centralised ordering
- Technology to order, approve and pay invoices
- Pre authorisation controls for every vacancy, extension and rate uplifts
- Legal compliance audits for every agency worker
- Real time management information
- Consolidated invoices
- Dedicated account management to liaise with agencies
- Reduced costs
In practical terms, Datum RPO is fulfilling the entirety of St. Modwen's temporary labour requirements. This encompasses a dynamic workforce ranging from 400 to 500 individuals simultaneously, spread across approximately 50 client sites and engaging with nearly 250 hiring managers. This intricate operation is effectively handled while concurrently managing relationships with 50 partner agency suppliers.
The Result
Datum's RPO's neutral vendor managed service solution has played a pivotal role in streamlining St. Modwen's temporary labour procurement process. By adopting this innovative solution, St. Modwen has implemented an efficient approach to acquiring temporary workers.
Datum RPO’s neutral vendor approach means that St. Modwen benefits from a single point of contact for all temporary labour requirements. This consolidation eliminates the complexities of engaging with multiple agencies, resulting in reduced administrative burden and enhanced operational visibility.
With Datum overseeing the management of hundreds of partner agency suppliers, St. Modwen gains a structured and organised system that ensures consistent quality and performance across its temporary labour force. This centralisation also provides St. Modwen with a comprehensive view of costs, helping to optimise budget allocation and cost control.
Moreover, Datum's neutral vendor managed service guarantees compliance with all relevant legislation, including AWR and IR35. This eliminates compliance related concerns and allows St. Modwen to focus on its core construction and development activities with confidence.
In essence, Datum's RPO's neutral vendor managed service has provided St. Modwen with a streamlined, unified, and compliant approach to temporary labour procurement, contributing to operational efficiency, cost savings, and overall project success.
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