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Why Should Offshore Wind (OSW) Developers and General Contractors Work With a Staffing Intermediary?

Written by nTech Workforce | Mar 6, 2023 11:00:00 PM

Arthur Ransier, Director of Business Strategy at nTech Workforce, highlights this monumental opportunity for offshore wind investors and contractors, “Applying staffing & labor best practices, in partnership with a skilled General Contractor which is responsible for the day-to-day oversight and planning for construction, improves ROI by ensuring sufficient project management, a skilled workforce, enhancing safety, managing labor costs, and mitigating risks. Having the right people with the right skills in the right roles at the right time is tricky business; a staffing intermediary complements your general contractor by ensuring workers are appropriately trained & experienced, reducing downtime and increasing overall project efficiency. Bringing a staffing & labor intermediary on board means improving your ability to adapt & respond to the trickiest resource to manage – people.”

 

How Do Staffing Intermediaries Differentiate From General Contractors?

General Contractors deliver value through construction planning and day-to-day project oversight. Many have robust supply chain management teams responsible for direct & indirect categories, ordering supplies, and engaging vendors of all types to deliver within scope, schedule, and budget. However, a dedicated staffing intermediary is adept at building and managing workforces; a staffing intermediary brings decades of established relationships – spanning pre-apprenticeship programs in the nonprofit sector, workforce development agencies in the public sector, Union and Non-Union subcontractors, minority-owned businesses – which ultimately gives you access to a diverse workforce including millions of workers. Research shows that diverse companies outperform less diverse companies; a McKinsey study from 2014-2019 found that companies in the top quartile for cultural diversity were around 35% more profitable than those in the fourth quartile. 

In offshore wind, where heavy upfront investments exist and an even greater demand for long-term ROI, diversity – and working with a staffing intermediary to achieve it – will pay dividends.

How Do You Implement a Staffing & Labor Program for Offshore Wind (OSW) Projects?

 

What Will a Staffing Intermediary Do to Support Offshore Wind Projects?

A staffing intermediary delivers a holistic managed staffing & labor solution that improves pathways into OSW jobs. Partnering with the general contractor and developer, the staffing intermediary can leverage planning data to project upcoming hiring needs (minimum 6 months out), share that knowledge with subcontractors, and connect them to workforce agencies & nonprofits that offer pre-apprenticeship programs. Ultimately, a staffing intermediary improves access to good-paying OSW jobs, provides standards and templates for subcontractors to provide ongoing training & development through apprenticeships, and builds a reliable talent pipeline for developers and general contractors to get work done by serving as a staffing & labor catalyst at a program-management level. If needed, the staffing intermediary can integrate a bespoke training program by engaging third parties.

 

What Are the Day-to-Day Responsibilities of a Staffing Intermediary? 

A staffing intermediary is responsible for the strategy, management, and administration of the contingent workforce supply chain, which includes numerous tasks such as the following:

  • Sourcing contractors, subcontractors, and workers
  • Managing contracts and work orders
    • Enforcing flow-down provisions and negotiating remediation
  • Managing standard operating procedures and policies
    • Uniformity, consistency, and standardization for supplier relationships
  • Engaging suppliers
    • Measuring supplier performance with a balanced scorecard
    • Quarterly business reviews
    • Job/work order intake calls
    • Worker performance surveys and open dialogues
    • Monitor job category market data for changes (up or down) to rates
    • Negotiate supplier discounts for volume
    • Provide a greater opportunity for top-tier suppliers
  • Timekeeping & invoicing
    • Consolidated invoicing & standardized billing practices
    • Time entry management
    • Supervise systems integrations & review invoice accuracy
  • Optimizing workflows
    • Engage developer and GC to ensure adherence to business rules
    • Document developer & GC feedback to inform continual program improvement
    • Implement technology to reduce operational costs
  • Complying with mandates, statutes, and regulations
    • MBE goals
    • Audit compliance (rate card, background checks, data quality)

 

Will Staffing Intermediaries Add Strategic Value? What Are Some Expected Results? 

Your staffing intermediary has a lot to offer and will be able to go beyond the day-to-day tasks of administering technology for your organization’s staffing & labor needs. While specific service-level agreements will need to be discussed, and aligned with your needs, here are a few to get started:

SUSTAINS LONG-TERM VALUE

  • Satisfactory performance survey scores
  • Continually improved worker retention on new assignments
  • Supply chain partner audit compliance

ADDS GREATER EFFICIENCIES

  • Supply chain partner portfolio rate card compliance of (on average) 100%
  • Reliable integration between vendor management systems and invoicing systems
  • Timely supply chain partner payments
  • Average work order response time under three business days

EASY FOR STAKEHOLDERS TO USE

  • Net promoter score (from the developer, general contractor, and supply chain partners)
  • Uptime of vendor management system (VMS)
  • Minority-owned business (MBE) participation

In alignment with offshore wind goals to develop good-paying, local, and highly-skilled jobs in sustainable energy, nTech Workforce – through its Managed Staffing & Labor Services – offers developers a system for engaging staffing & labor supply chain partners which is (a) easy for stakeholders to use, (b) adds greater efficiencies, and (c) sustains long-term value. We expect to provide developers with a more resilient, adaptable, and reliable workforce, thereby improving long-term investment returns and growth opportunities.