This document is circulated for the participants of the 7th ECOP MGM and should NOT be used for commercial presentation purposes partially or in its entirety without EXPRESSED permission from the Author Mr. Arturo Guerrero III or HRManagement & Business Solutions Inc. Managing the RIGHT Manpower MIX Presented by: Butch Guerrero National President, PALSCON 7th ECOP Members’ General Meeting March 19, 2015 What is Manpower mix? It is the result of a systematic process of identifying the workforce competencies required to meet the companies Strategic goals. Presented by: Butch Guerrero National President, PALSCON 7th ECOP Members’ General Meeting March 19, 2015 But before you manage your manpower mix, you must plan it first Your manpower plan may be based on demand, targets and strategic goals of your company. Presented by: Butch Guerrero National President, PALSCON 7th ECOP Members’ General Meeting March 19, 2015 Aims of Manpower Planning Right Types To plan for the right numbers and the Right right types of people NumbersAnalyze Right at the right places Places and the right times Right Times Source:ICAEW-Dec-09-Workforce-Planning Presented by: Butch Guerrero National President, PALSCON 7th ECOP Members’ General Meeting March 19, 2015 Steps in Manpower Planning Analyze your current manpower inventory Analyze Forecast Forecast the manpower you need Develop employment programs Develop Design Source:ICAEW-Dec-09-Workforce-Planning Design training programs Presented by: Butch Guerrero National President, PALSCON 7th ECOP Members’ General Meeting March 19, 2015 Current business trends and issues across the globe Many industries are in the midst of a major change evolution, where having the correct workforce in place is the critical gap between success and failure. Source: ICAEW-Dec-09-Workforce-Planning Presented by: Butch Guerrero National President, PALSCON 7th ECOP Members’ General Meeting March 19, 2015 Workforce trends Trends that have an impact on the shape and expectations of the workforce. 01 02 03 04 Ageing Skills and qualifications gap Companies need an agile solution to meet their rapidly evolving needs Higher costs for scarce skills Changing career patterns and expectations Source: Tomorrow’s Workforce haygroup.co.uk Presented by: Butch Guerrero National President, PALSCON 7th ECOP Members’ General Meeting March 19, 2015 Major Industries affected by workforce trends Oil & Gas Energy Source: Tomorrows Workforce haygroup.co.uk Services Healthcare Tele-communications Manufacturing Finance Presented by: Butch Guerrero Consumer goods National President, PALSCON 7th ECOP Members’ General Meeting March 19, 2015 Your manpower mix should be a combination of internal flexibility with the use of service contractors to address fluxes in demand. Source: Ciett Adapting to Change Presented by: Butch Guerrero National President, PALSCON 7th ECOP Members’ General Meeting March 19, 2015 Payroll Demand Level Contingent Contingent Traditional Workforce Time Your Manpower mix should be managed based on the needs and opportunities that arises from the evolving market Presented by: Butch Guerrero National President, PALSCON 7th ECOP Members’ General Meeting March 19, 2015 Current workforce scenario In the Human Age, the old rules of business are giving way to the new. Today, technology and capital no longer guarantee success. Service Contractors can provide you with innovative workforce solutions that your company needs. Source: Manpower Group. Presented by: Butch Guerrero National President, PALSCON 7th ECOP Members’ General Meeting March 19, 2015 Service Contracting Then and Now Then Companies outsourced administrative functions like payroll, paying firms to manage them. Source: Manpower Group Presented by: Butch Guerrero National President, PALSCON 7th ECOP Members’ General Meeting March 19, 2015 Service Contracting Then and Now Now Then Today, companies bring service contractors in their businesses along with the skills, visibility and expertise in a worry-free package. Source: Manpower Group Presented by: Butch Guerrero National President, PALSCON 7th ECOP Members’ General Meeting March 19, 2015 Service Contracting Today The permanent presence of Service contractors ensures that the company can adjust its workforce strategies and processes fast, often and seamlessly. Source: Ciett Economic Report 2013 Fast Often Seamlessly Presented by: Butch Guerrero National President, PALSCON 7th ECOP Members’ General Meeting March 19, 2015 Service Contracting is not only in the Philippines Presented by: Butch Guerrero National President, PALSCON 7th ECOP Members’ General Meeting March 19, 2015 Service Contracting is a Global Trend Source: Ciett Economic Report 2013 Presented by: Butch Guerrero National President, PALSCON 7th ECOP Members’ General Meeting March 19, 2015 Service Contracting addresses the 5 rights of workforce planning Ensures you have the right number of people Right size paying the right price for the required skills Assess the gap in skills that will be needed to meet future goals Tomorrows Workforce haygroup.co.uk Right cost Right skills Right shape Right place Identifies inefficiency and to establish a balance of workforce Ensures the required staff resources are available in the right location Presented by: Butch Guerrero National President, PALSCON 7th ECOP Members’ General Meeting March 19, 2015 Security of Tenure Bills pending in Congress 1. House Bill no. 124 “ An act strengthening the security of tenure of employees” 2. House Bill no. 573 “An act strengthening the security of tenure of workers in the private sector” 3. House Bill no. 2419 “An act strengthening employees security of tenure” 4. House Bill no. 2955 “An act addressing the issue of labor contractualization by providing standards for term or fixed period employment” 5. House Bill no. 3559 “An act strengthening the Security of tenure” 6. House Bill no. 3560 “An act Criminalizing Labor-only contracting” 7. House Bill no. 4227 “ an act Providing for omnibus amendments to the Labor Code of the Philippines by amending the provisions on discrimination against women, security of tenure and rights of workers to organize” 8. House Bill no. 4396 “ An act prohibiting contractualization and promoting regular employment” 9. House Bill no. 5140 “An act prohibiting contractualization and promoting regular employment” 10. House Bill no. 5415 “An act specifying the requirements of legitimate contracting subcontracting” 11. House Bill no. 5416 “ An Act defining the causes of termination of employment ofPresented workers” by: Butch Guerrero National President, PALSCON 7th ECOP Members’ General Meeting March 19, 2015 Service Contracting does not abuse the Filipino workforce Presented by: Butch Guerrero National President, PALSCON 7th ECOP Members’ General Meeting March 19, 2015 Service Contracting promotes employment and helps the Filipino workforce find jobs that shape their future Presented by: Butch Guerrero National President, PALSCON 7th ECOP Members’ General Meeting March 19, 2015 Service Contracting plays an active role in facilitating transition in the labor market From unemployment to employment From education to employment Between 2 jobs Be a stepping stone to find a job Gain experience to prepare entry in the labor market Keep an activity and strengthen experience and training Source: Ciett Economic Report 2013 From any situation to temporary work Match a professional activity with a goal to a flexible way of life Presented by: Butch Guerrero National President, PALSCON 7th ECOP Members’ General Meeting March 19, 2015 Essential points of Department Order 18-A Trilateral Relationship Employer employee relationship Employee Contractual relationship Service Contractor Client Company Presented by: Butch Guerrero National President, PALSCON 7th ECOP Members’ General Meeting March 19, 2015 Essential points of Department Order 18-A Net Financial Contracting Capacity (NFCC) Refers to the financial capacity of the Service Contractor to carry out a job work or services sought to be undertaken under a service agreement. Presented by: Butch Guerrero National President, PALSCON 7th ECOP Members’ General Meeting March 19, 2015 Essential points of Department Order 18-A The minimum Admin fee of 10% based on total direct cost 10% Presented by: Butch Guerrero National President, PALSCON 7th ECOP Members’ General Meeting March 19, 2015 Essential points of Department Order 18-A Registration fee of Php25,000.00 Presented by: Butch Guerrero National President, PALSCON 7th ECOP Members’ General Meeting March 19, 2015 Essential points of Department Order 18-A Minimum paid up capitalization of Php3,000,000.00 Presented by: Butch Guerrero National President, PALSCON 7th ECOP Members’ General Meeting March 19, 2015 Essential points of Department Order 18-A Security of Tenure - Presented by: Butch Guerrero National President, PALSCON 7th ECOP Members’ General Meeting March 19, 2015 Essential points of Department Order 18-A Safe and healthful working conditions which is subject to routine inspection Presented by: Butch Guerrero National President, PALSCON 7th ECOP Members’ General Meeting March 19, 2015 Companies D.O. 18-02 & D.O. 18-A Transition 6,000 5,000 4,000 3,000 2,000 1,000 D.O. 18-02 D.O. 18-A Source: DOLE Year 2012 Year 2013 4,809 862 2,916 2,742 As of October 2014 526 4,487 Presented by: Butch Guerrero National President, PALSCON 7th ECOP Members’ General Meeting March 19, 2015 Companies Total list of Companies with D.O. 18-02 & D.O. 18-A 5,800 5,600 5,400 5,200 5,000 4,800 4,600 TOTAL Source: DOLE Year 2012 Year 2013 5,671 5,658 As of October 2014 5,013 Presented by: Butch Guerrero National President, PALSCON 7th ECOP Members’ General Meeting March 19, 2015 When appropriately regulated Service Contracting represents an embodiment of Decent work Presented by: Butch Guerrero National President, PALSCON 7th ECOP Members’ General Meeting March 19, 2015 To Summarize Service Contractors are better than other Labor Service providers Better Results Better Better Access Match Service contractors operate on a nationwide basis and are not limited to several regions Analyze Better Skills Source: Manpower Group. Presented by: Butch Guerrero National President, PALSCON 7th ECOP Members’ General Meeting March 19, 2015 Contributions of Service contracting Provide work to job-seekers Reduce illegal & undeclared work Improve the labor market fluidity Help in the creation of jobs that would not exist otherwise Act as a stepping stone for permanent employment Enhance workers’ employability Works hand in hand with the Government Help disadvantaged groups of people to enter the labor market Contribute to economic growth and government budget Source: Ciett Presented by: Butch Guerrero National President, PALSCON 7th ECOP Members’ General Meeting March 19, 2015 Choosing the right Service Contractor DOLE D.O. 18-A Registered Presented by: Butch Guerrero National President, PALSCON 7th ECOP Members’ General Meeting March 19, 2015 Certificate of Compliance COC Refers to a certificate issued by the Regional Director to a labor laws compliant establishment Presented by: Butch Guerrero National President, PALSCON 7th ECOP Members’ General Meeting March 19, 2015 Tripartite Certificate of Compliance with Labor Standards TCCLS A certificate awarded by DOLE to an establishment that has been verified by the tripartite certification committee as compliant with Labor standards, Occupational Safety and Health Standards Child-Labor Laws Has no pending case with DOLE Presented by: Butch Guerrero National President, PALSCON 7th ECOP Members’ General Meeting March 19, 2015 A member of an Association which promotes both Employers’ and Workers’ welfare Presented by: Butch Guerrero National President, PALSCON 7th ECOP Members’ General Meeting March 19, 2015 A member of PALSCON PALSCON, is an association of legitimate service contractors organized primarily to further the cause of the government and labor sectors. Presented by: Butch Guerrero National President, PALSCON 7th ECOP Members’ General Meeting March 19, 2015 An established Service Contractor with years of experience Presented by: Butch Guerrero National President, PALSCON 7th ECOP Members’ General Meeting March 19, 2015 THANK YOU Presented by: Butch Guerrero National President, PALSCON 7th ECOP Members’ General Meeting March 19, 2015
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