Professional Documents
Culture Documents
• Increase workforce productivity in relation to uptime A contractor management system should have tools that
and production allow you to analyze overall productivity so that you can
be sure to get the most utilization, performance, and
• Measure the profitability of contractors quality from your contract labor force. Data should be
compared against industry-relevant key performance
• Determine the safety and health impact on the indicators in real time. This allows you to uncover labor
environment, based on contractor actions trends to improve overall performance and align your
contract labor and equipment resources for maximum
effectiveness.
Optimal solution
What does an optimal contractor management solution
look like? First, the system should be able to determine
exactly how many contractors are needed across shifts
and days of a week and schedule the right set of contract
labor accordingly. This is critical to managing labor costs
and workforce productivity.
A New Approach to Contractor Management in the Energy Industry
before it is forwarded to the ERP system for payment. Additionally, by tracking labor to understand effective-
Subsequent controls and approvals can be applied, but ness, the location and presence of these contractors
simplifying this initial review and approval by the energy are known to a much better degree. This results in an
firm’s employees who have responsibility for the comple- improved ability to account for labor during emergencies
tion of the work will speed up the approval and payment or identify missing workers in “man down” situations.
process.
Final recommendations
Environment, safety, and health Managing contract labor in the energy industry has its
In a relatively dangerous environment such as a refinery own set of unique challenges. Organizations that use
or power plant, the utmost care is taken to ensure the manual processes and systems are vulnerable to many
safety and health of workers and to minimize any impact risks, including the inability to control costs and comply
on the environment. An automated system allows you with increasing health, safety, and environmental regu-
to track safety violations by individual contractors and lations. An automated contractor management system
links your organizational safety policies to the time and designed specifically for the energy industry can help
attendance records of your contract workers. A contractor these organizations by providing real-time insight into
management system also helps to ensure that contrac- operations and the ability to measure performance using
tors have the right skills and certifications to work on a industry-specific key performance indicators. This infor-
job. Improved financial performance can also be realized mation allows organizations to take immediate action to
by understanding where and when a contractor uses and increase workforce productivity and utilization and close
bills for more skills and experience than a job requires. gaps in safety, health, and environmental compliance.
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