CASE STUDY
INTERNATIONAL FMCG COMPANY
THE SITUATION
An international FMCG company came to RightSpend because they...
- had been provided a rate card by their agency, with a staffing plan encompassing a single global average.
- wanted more transparency.
- lacked detail in their staff plans and costs.
THE ACTION
RightSpend’s system and industry knowledge was utilized to...
- accurately assess hourly rates by job function across all 43 of their global markets.
- identify the agency hourly rates were 21% higher than the benchmark.
- reveal the agency’s grouping of titles (junior and senior) was enabling them to inflate hourly rates – applying high-end senior rates to junior staff.
- highlight the agency were also using a higher overhead rate and profit margin to develop its rates.
THE RESULTS
The client was able to...
- achieve an initial 16% in direct savings
- renegotiate their agency rates
- amend agency contracts to ensure that key metrics, including Hours per FTE and overhead rates are made country specific.