REVOLUTIONIZING CONTINGENT WORKFORCE MANAGEMENT
A Success Story in the Global Oil and Gas Industry
In the complex and rapidly evolving global oil and gas industry, managing a diverse contingent workforce can present a myriad of challenges.
This case study will provide an in-depth look at how a leading Global Oil and Gas organization overcame significant labor mobility and management difficulties. Faced with a need to reevaluate its workforce model due to pandemic-induced risk and safety concerns, the company turned to ERA Workforce Solutions to restructure and streamline its processes.
The Challenges
Securing Entity Presence in Vietnam
The client, a leading global firm in the oil and gas industry, needed to establish a legal entity in Vietnam to facilitate the mobility of contractors for project engagements. Without this, compliance and logistical issues arose, hindering project timelines and workforce deployment.
Managing a Diverse Workforce Across 55 Countries
With a contingent workforce spread across numerous locations worldwide, including the UAE and EU, managing labor mobility posed a significant challenge. The client needed a streamlined approach to coordinate the movement of contractors, particularly in emerging markets like Vietnam.
Lack of Visibility and Workforce Tracking
Inconsistent and decentralized administration practices created difficulties in rapidly identifying and contacting contingent workers. The absence of a unified system for tracking contact information and work locations increased the risk of miscommunication and delays.
Decentralized Record Keeping
The existing approach to managing workforce records was fragmented, which resulted in inefficiencies and limited the ability to respond quickly to labor mobility needs. This lack of centralized oversight further complicated compliance efforts and increased the potential for operational risks.
COVID-19 Risk and Safety Concerns
The pandemic heightened the risk and safety considerations for workforce mobility. In early 2021, the client encountered multiple challenges when trying to send contractors to Vietnam, leading them to reconsider their contingent workforce strategies.
The Solution
After evaluating various models, the client identified the need for an outsourced contractor payroll and management solution that could provide full visibility and compliance. They desired a professional who could mobilize contractors in Vietnam.
The Approach
In November 2022, the client selected ERA Workforce Solution Vietnam through a tender process to provide various services, including contingent labor engagement, payroll management, and remuneration.
The key decision-making criteria for selecting ERA were based on our ability to:
- Mitigate risk, reduce costs
- Improve processes
- Enhance the services and experiences of contingent workers, especially in new markets
The Results
A year later, the results of the ERA Vietnam Employer of Record (EOR) Model have directly impacted various aspects of the client’s operations.
Key outcomes include:
Improved reporting and analytics encompassing monthly performance, disengagement reports, and cost reports.
On-site Account Management and a dedicated Services Team offering transparent and highly successful service delivery.
Enhanced compliance and governance in visa, work permit compliance, tax obligations, workers’ compensation, statutory requirements/insurance, Occupational Health & Safety obligations, co-employment risk, and disengagements.
Consistently met standards and maintained accuracy levels above 99.5% in contingent worker payments and invoicing, positively impacting the bottom line.
This case study underscores the effectiveness of ERA Workforce Solutions in addressing complex workforce challenges and delivering tangible results that drive organizational success. The ERA’s Employer of Record (EOR) model has profoundly impacted our client’s operations, enhancing process efficiency, risk and compliance management, safety awareness, and financial performance.
Our client’s success journey stands as a testament to the power of strategic outsourcing in transforming contingent workforce management, paving the way for enhanced operational efficiency and risk mitigation.
