Renovating Windfarm Operations

A Success Story of Streamlining Contractor Mobility, Management, and Contract Standardization

Our client is a global leader in sustainable energy solutions, with over 29,000 employees helping to create a better world by designing, manufacturing, installing, developing, and servicing wind energy and hybrid projects all over the world.

With numerous +169 GW of wind turbines installed in 88 countries, their sustainable energy solutions have already prevented 1.5 billion tonnes³ of CO₂ being emitted into the atmosphere and contributed to a more sustainable energy system.

They have more than 40 years of experience in wind energy and were the first company to reach the 100 GW landmarks for both the installation and service of wind turbines.

Terms explained:

“+169 GW” refers to an increase or capacity of 169 gigawatts, a unit of power measurement equivalent to one billion watts, often used to describe large-scale energy production facilities’ output or potential output.
“100 GW” refers to 100 gigawatts, a power unit equal to one billion watts, commonly used to measure the capacity or output of large energy sources like power plants.

However, our client grappled with challenges threatening their operational efficiency and growth prospects. They approached us with the following issues:

The Challenges

Mobility, Engagement, and Management of Non-Employee Workers in Vietnam

The company faced significant challenges in managing both international experts and local workers in Vietnam for project development. This included difficulties in tracking work progress, effectively engaging workers, and ensuring they had the resources needed to perform their tasks. The existing system also needed more mobility options, limiting workers’ ability to work efficiently across different project sites.

Standardization of Contractor Agreements

With contractors operating under various contract types, the company encountered inconsistencies in terms and conditions, payment structures, and other contractual obligations. Transitioning these diverse contracts into a unified and standardized agreement presented an administrative burden, further complicated by the need to align with Vietnamese regulations.

Compliance with Vietnam Market Regulations

As the company expanded its operations in Vietnam, adhering to local regulations became increasingly complex. Ensuring compliance when sending teams to service the market was particularly challenging, given the need to navigate unfamiliar legal requirements while maintaining smooth operations and avoiding potential legal pitfalls.

The Solution

To tackle the client’s challenges, ERA Workforce Solutions implemented a strategic and comprehensive approach tailored specifically for their operations in Vietnam. The key solutions provided were as follows:

Comprehensive Insurance Coverage for Contractors in Vietnam:
We ensured all contractors in Vietnam were protected with professional indemnity, public liability, and workers’ compensation insurance, as required by local regulations. This measure safeguarded both the contractors and the company from potential legal and financial liabilities, ensuring compliance with Vietnamese law.

Frequent Contractor Reassessments for Compliance:
Given the evolving nature of legislation, we conducted regular reassessments of contractor agreements. This proactive stance enabled us to swiftly update contract terms in line with changes to Vietnamese regulations, maintaining ongoing compliance and reducing legal risks.

Evaluation of Payroll Tax Remittance Requirements:
We determined whether payroll tax remittance was necessary for each contractor in accordance with Vietnamese tax laws. This evaluation helped prevent non-compliance penalties and ensured accurate and compliant financial reporting.

Efficient Contract Extension and Cancellation Management:
By effectively managing contract timelines, we ensured timely contract extensions or cancellations, minimizing the risk of service interruptions and maintaining continuity in operations.

Streamlined Contractor Management for Cost Savings and Efficiency:
We optimized the client’s contractor management processes to reduce redundancies and improve workflows. This approach led to significant cost savings and enhanced overall operational efficiency.

Additional Contractor Benefits

As part of our solution, contractors were provided with access to personalized, one-on-one sessions with a professional tax advisor or accountant. These sessions offered guidance on tax matters, superannuation, investments, and wealth management, enhancing the contractors’ experience and fostering a sense of trust and support between the contractors and the company.

The Results

The collaboration between the ERA Vietnam team and our client’s Project Manager yielded significant results. Our comprehensive approach addressed all aspects of project management, from resource requirements and communications to staff training and change management.

Milestone Identification
Together, we identified critical milestones and timelines for various projects. This ensured a clear roadmap was in place, which significantly improved project execution and helped avoid any potential delays or bottlenecks.

Continuous Model Evolution
Our commitment to continuous improvement led us to launch several new projects as part of the model evolution. The focus was on providing clients with more insights to help them make informed decisions about their contingent workforce. This strategic approach has been instrumental in driving growth and success for our client.

Improved Reporting
We introduced enhanced reporting methods that provided a clear overview of spending, trends, KPIs, and budget analysis. This data-driven approach enabled our client to make smart financial decisions and optimize their budget allocation.

Cost-effective Contractor Engagement
We evaluated whether long-term contractors could be more cost-effectively engaged by offering them permanent employment or extending their contracts sooner with greater remuneration. This resulted in significant cost savings for our client and increased job satisfaction among contractors.

Smooth Contractor Management
Our efficient contractor engagement and management processes resulted in higher performance and output from contract workers. This also led to a motivated workforce, significantly contributing to the overall productivity and success of the company.

Our collaboration with the client resulted in streamlined operations, improved decision-making, and a highly motivated and productive workforce. We are proud to have played a part in our client’s journey towards becoming a global leader in sustainable energy solutions.