in the Financial Services Sector
Contract Compliance Technology
A major human resource (HR) firm provided third party recruitment services for a large Australian bank. The HR supplier organised specialised resources for the bank, invoicing a base rate plus a finder s fee margin on top, for the first 12 months since the recruit was hired.
Profectus conducted a Contract Compliance audit to identify historical invoicing errors and ongoing live auditing of invoices prior to payment. The Contract Compliance technology also provided the banking client access to low-level data for reporting and highlighting spend optimisation opportunities.
Profectus conducted the Contract Compliance audit, comparing data and rate cards provided by both the client and HR firm. Cost checks on a weekly line item basis were completed, as well as checking finder’s fee margin calculation, base salary and on cost rates.
Identified by Profectus was over $2.2 million in overcharges equating to roughly 0.61% of total spend for the HR supplier.
Did you know?
The average rate of overcharging in HR/Contingent Labour spend is 0.71%, and can reach up to 5.21%.
What will you uncover?
The implementation of Profectus’ Contract Compliance technology has resulted in the adoption of standardised reason codes and rate cards across various categories of new recruits hired. An ongoing compliance framework was also implemented, which reviews historical invoices whilst validating future invoices prepayment.