Contingent Workforce

Last week, we discussed the many tenets of the Future of Work that will play invaluable roles in 2021, including diversity and inclusion, direct sourcing, new talent channels, the depth of transformational business thinking, flexibility- and empathy-led leadership, and the overall impact of new technology and innovative solutions.

I once again spoke with several contingent workforce, HR, and talent acquisition technology leaders over the past week to gain their perspectives on what’s in store for the Future of Work and the agile/extended workforce in the months ahead:

Murali Mazhavanchery, VP of Product, Utmost

“The Future of Work is here. Clearly, we now know that new business models and workforce dynamics are needed – and that means almost all of what we know is not useful. Agility in all dimensions is the only certainty – and that starts with the talent to run these businesses. What is the talent profile I need, how much, when, and where do I need them, and what do they cost? The organizations that thrive in 2021 and beyond will be the ones that embrace flexibility in talent – using a mix of employees and extended workforce, direct employment, direct sourcing, staff augmentation, and strategic services – and have extreme elasticity in logistics such as location, hours, and qualifications. This requires enterprises to define a continuous, always-on process that involves multiple channels, pipelines, and worker scenarios. To enable this transformation, there’s an acute need right now for modern, purpose-built technology that manages large ecosystems of workers and worker channels that each look and act very differently.”

Geoff Dubiski, Chief Solutions Officer, Workforce Logiq

“Leveraging a unified brand, remote and agile work engagements, and the prospect of a boundary-less talent pool – Contingent, FT, and Gig – allows organizations to challenge traditional hiring mindsets; the benefits of total talent acquisition is closer than you think.”

Sunil Bagai, CEO, Crowdstaffing

“We are seeing trends that businesses are increasing their use of direct sourcing to take advantage of their existing talent pools like their Career Website, ATS, Alumni and Referral Networks, and Silver Medalists, as well as extend their reach into additional talent pools like online marketplaces, job boards and other digital sources to more effectively search for the right candidates across a variety of available talent pools. Not only does direct sourcing improve hiring outcomes, but it provides tangible cost savings.”

Mike Wachholz, CEO, Geometric Results, Inc. (GRI)

“As organizations wrestle with the “post-pandemic” work paradigm, those companies that are best positioned to bring relevant jobs at the right moment to candidates will win the competition for top talent. In addition to flexibility in work location, and perhaps more importantly, is how organizations find, engage, vet, and attract the right talent. By leveraging a Direct Sourcing model and proactively developing and cultivating private talent pools, companies will be on the front foot in 2021 when it comes to talent engagement.”

Chris Johnson, Director of Industry Strategy, Checkr

“Jeff Bezos once said, “Customers are always beautifully, wonderfully dissatisfied. Even when they don’t yet know it, customers want something better, and your desire to delight customers will drive you to invent on their behalf.”

This intense focus and desire to meet our growing consumer expectations has conditioned the world to expect access to instant data driven results in the palm of their hands.  The most successful retailers have sophisticated systems that enable real time access to availability, pricing, peer reviews, and additional product recommendations that give us insights that simply can’t be had in the brick-and-mortar experience. 

This expectation has become table stakes for all of us in almost everything we do from ordering food to finding a vacation rental.  Think about names like Uber, Amazon, and AirBnB…now think about how integrated these brands are in our daily life.  We “Uber” to work, we “Prime” a red dress, and we stay at an “AirBnB” on vacation.

You can use any of these services with just a few clicks and in less time than it takes to order a coffee.  They have compressed processes that took multiple steps and people into ones that take minutes and are now self-service – This is the “Sign up Culture” and what the modern candidate expects.

Staffing agencies are now adapting to this world of dissatisfied consumers. The growth of signup culture combined with the unprecedented digital shift of 2020 has changed the job market forever. Agencies that want to keep up need to understand what has changed and how it impacts them. You have a split second to capture a candidate’s interest. That means staffing recruiters have to think like marketers.”

Tim Meehan, Global Head, Innovation Lab at Pontoon Solutions

“When it comes to talent pools or, Talent Rivers, as we call them at Pontoon, finding talent with a just-in-time approach is the most effective way to proactively establish, develop and maintain a selection of screened, pre-selected candidates for our clients. Talent Rivers incorporate workforce demand, D&I targets and strategic routes to new candidate markets.”

Joey Frasier, Co-Founder and CEO, Shortlist

“Shortlist has always been a family-first organization out of necessity but also believe that in order for our talent to bring the best to our customers they first needed to be ‘whole’ themselves – mentally and physically. The challenges of 2020 demonstrated more than ever that getting the best out of people isn’t about balancing work and life but instead integrating our family into our work. The pandemic, economic crisis, social injustice debates have made it clearer than ever that organizations can’t treat people as ‘just workers’ but need to focus on talent as whole individuals. I feel confident that the organizations that will be most successful in the year(s) ahead will be those that decide that a family-first culture, where health is the top priority, and that is a manager’s top focus day-to-day.”

“The past year has unfortunately shown us how “at risk” contingent labor can be as most organizations made quick cuts to contractors as they were the easiest line item in the budget to reduce spend in. That said, there is a new recognition that global health crises, global social unrest and related or unrelated global economic disruptions can all affect businesses and their supply chains more rapidly than ever before. Therefore, in the year(s) ahead, I believe that organizations are going to be more focused on improving their Capital Workforce Agility – or simply stated, the amount of total talent spend that is flexible and agile (contingent) vs fixed (full-time employees) is going to continue to increase in favour of flexibility and agility. This isn’t a negative but a positive for talent. Organizations will need to enhance their focus on improving how they engage with this non-full-time workforce and how they ensure mutually beneficial relationships with this talent as they’ll want to be the “first choice” or talent when multiple opportunities come up. Workforce capital agility and overall workforce capital efficiency will be a top C-Suite priority across all functions with a priority place on HR and finance.”

Taylor Ramchandani, Product Manager, VectorVMS

“Something we have been asked more frequently about by our clients is how to move from having diverse suppliers to having a more diverse candidate base. I foresee over the next year increasingly more interest in tracking and measuring diversity and inclusion in the contingent workforce and using that data to identify gaps in not only engagement but attraction of candidates.”

“We have seen organizations work in interesting ways over the past year to keep up with the changes that have been thrown at us. We have seen our clients turn to talent pools to help them manage furloughed staff, create pools of pre-credentialed healthcare staff, and bring back alumni talent to reduce ramp-up time and save cost.”

Bernie Caputo, President of Contingent Workforce Solutions, Atrium

“Imagine the strength of talent acquisition when you connect our dedicated recruiters to your brand influence and existing resources to rapidly fill temporary roles — without additional overhead, but with significant cost savings.”

Kelly Couto, Vice President of Enterprise Solutions, Atrium

“As the rise of remote work removes sourcing barriers, and social responsibility shifts corporate mindsets from value streams to valuing the people who influence them, the possibilities of a flexible workforce are boundless.”

Marlon Rosenzweig, CEO and Co-Founder, WorkGenius

“Digital staffing and traditional staffing models are converging. Talent is working remotely and online platforms process W2s just as well these days. Finding the right talent is key and while humans may have an edge at it, that edge is declining as technology gets better and better. Hybrid models of humans and machines provide for a smooth transition in the meantime.”

“Fractional employment requires new models for mortgage underwriting, health insurance pricing and more. While some of this will be taken care of by the free market, governments should ensure not to get in the way of providing freelancers with the freedom they sought in the first place when becoming freelancers.”

Jan Alexander Jedlinski, Founder and CEO, Gustav

“The staffing agency and recruiter market will see a massive digital transformation. Staffing agencies and their talent supply will become more accessible online through deployment platforms. Staffing agencies and recruiters who will adapt to this shift will look more like talent curators and use technology to provide faster access to available talent for their end clients.”

“Staffing agencies and recruiters will have a massive opportunity to put millions of people back to work. You will see technology and services around the traditional staffing agency model evolve. The agency will become a talent curator and technology platforms and services like EOR will play a dominant role driving the operations for the agency in the background.”

If you caught last week’s Contingent Workforce Weekly podcast, we chatted about several distinct attributes of the world of work and talent that will be transformed in the year ahead. In the span of just under 30 minutes, we just barely scratched the surface of the vast possibilities that the Future of Work movement will have on businesses across the globe over the next 12 months, given the many “accelerants” that contributed to work optimization in 2020.

There are many tenets of the Future of Work that will play invaluable roles in 2021, including diversity and inclusion, direct sourcing, new talent channels, the depth of transformational business thinking, flexibility- and empathy-led leadership, and the overall impact of new technology and innovative solutions.

I spoke with several contingent workforce, HR, and talent acquisition technology leaders over the past week to gain their perspectives on what’s in store for the Future of Work and the agile/extended workforce in the months ahead:

Brian Hoffmeyer, SVP of Market Strategies, Beeline

“The events of 2020 make me a bit reticent to make any predictions for 2021, but I’ll try! As the pandemic comes to an end due to a combination of vaccine distribution and herd immunity, I think we’ll see companies adopt a blended in office and remote work strategy for their entire workforces. Some jobs will be 100% in the office and others will be 100% remote but, for a large number of professional workers, we’ll see a mix where key activities return to being in person. At the same time, specifically as it relates to the extended workforce, companies will continue to engage workers in locations where they don’t have a physical presence as they’ve learned that they can grow their talent pools and drive down both time-to-fill and costs by doing so.”

William T. Rolack, Sr., VP of Diversity and Inclusion, Workforce Logiq

“With real incentives for tangible results, D&I leaders are in a better position to move beyond tracking diverse supply chain expenditures to drive real impact on overall employee representation. And, those often overlooked contingent workers must be a part of the diversity dialogue. With the call for workplace equity, regardless of worker type, and because contingent workers are strong talent pool for full time positions, organizations risk missing the mark if they focus their D&I efforts solely on their full-time workforce.”

“Diversity and inclusion isn’t a “program.” Too many organizations today treat it as an ad-hoc initiative. Employers that have fostered real cultures of belonging understand D&I needs to permeate the organization at the core, and be a lens through which senior leaders invest, act, and make decisions.  Real progress can only occur when employers understand this interconnectivity and link D&I initiatives with their larger business objectives.”

Allison Robinson, CEO and Founder, The Mom Project

“We are seeing more and more companies turn to The Mom Project for help building diverse talent communities. That signals to me that, while there’s a real commitment and willingness to invest in diversity and inclusion, many companies are still trying to identify the right partners that will actually help them move the needle. We developed our Diverse Talent Cloud offering to connect our partners and customers with the best talent communities of diverse candidates.  I think you’ll see more companies look for solutions like The Mom Project as they get serious and strategic about converting their diversity objectives into impact.”

“Forty percent of our community of 400,000 working parents are women of color. When I see stats saying approximately 60 percent of the jobs eliminated the first months of the pandemic were held by women and that women of color were disproportionately affected, I am reminded that our mission of finding moms jobs is more important than ever. One of the things we’re doing beyond connecting diverse talent with flexible, professional work is funding initiatives like RISE, an upskilling and opportunity-creation program for women and families. It’s a virtuous circle that bolsters the program and the mission benefiting everyone involved.”

Kevin Akeroyd, CEO, PRO Unlimited

“A world where more than 50% of the workforce is not FTE is not too far into the distant future. In fact, the contingent workforce landscape is growing at an unprecedented rate – with approximately over 40% of all skilled workers being contingent vs. full-time. As employers begin to augment their human capital strategies to accommodate for this shift in the market, many leading organizations are supplementing traditional sourcing channels by creating private talent pools of known (alumni, silver medalists, referrals, retirees) and unknown (brand-attracted) talent. Done correctly, direct sourcing powers significant cost savings, improved talent quality and faster time to fill. However, some organizations are finding the execution of direct-sourcing programs more difficult than anticipated and struggling to realize the full benefits. Often, the use of multiple vendors is the culprit, creating bottlenecks, discontinuity and inefficiencies. When powered by cutting-edge technology and human expertise, a single direct-sourcing platform eliminates disjointed communication between parties, reduces confusion and inefficiency created by overlapping responsibilities, and aligns all interactions to one service team.”

Jim McCoy, SVP of Talent Solutions, ManpowerGroup

“Increasing DE&I in existing markets where local demographics do not align with targeted skill sets has limited success unless remote sourcing is leveraged properly. Increasing candidate diversity is best achieved in markets where diverse candidates actually reside. 52% of school age children are learning remotely at least part-time and 1/3 of children under 12 years old lack adult supervision. To attract diverse candidates, accommodating the priority needs of workers, such as childcare, is increasingly critical.”

“In 2020, many employers had to contend with employees who had to log off or step away from their jobs for 10-to-14 days at a time, requiring them to reallocate skills to their remaining workforce or assign managers to take on additional responsibilities. The willingness of workers to take on dual roles is a short-term reality as competitors seek to hire singular skills, increasing risk and rate of turnover, and the trend of overperformers taking on extra work will not continue indefinitely.”

In industries such as IT, where the demand for talent increased due to COVID-19, competitive pay has been critical. There was little to no unemployment for IT workers, who shouldered essential responsibilities of helping companies deploy most of their employees to work from home while also maintaining the highest levels of cyber security. As long as IT workers are receiving appropriate compensation, they are less inclined to switch jobs and move to a new company where they will have less tenure.”

Saleem Khaja, COO and Co-Founder, WorkLLama

“While the usual priorities around cost optimization and DEI will stay top of mind, there will be an increased focus on talent wellbeing and tools that will contribute towards that, e.g., tools that maximize efficiency while minimizing stress in the new way of doing work, tools that predict outcomes towards achieving this objective both from a talent and organizational perspective, etc.”

Vanessa Janus, Vice President, Enterprise Solutions, DZConneX (A Yoh Company)

“Direct sourcing and proactive talent pools have quickly become a critical component to a total talent strategy as organizations seek ways to provide a unified high level candidate experience and strong employee value proposition regardless of labor type. Direct Sourcing, as part of a holistic vision of your talent acquisition program, is more important than ever in order to attract the most qualified and diverse talent faster and more cost effectively.”

“The challenge going forward will be to ensure a company’s diversity, equity and inclusion efforts are happening for all labor types and talent acquisition streams. Thus, the rise in direct sourcing and total talent management to help not only increase visibility but to also unify and maximize D&I efforts.”

Dave Putt, SVP Sales and Marketing Strategies, ELEVATE

“We see the adoption of direct talent sourcing has been slow and steady. More importantly, there is an on-going appetite from customers and partners to include talent pooling and other direct sourcing capabilities into our ELEVATE VMS.”

The concept of business agility is not a new ideal, but in fact an evolving set of attributes that describe a company’s overall dynamic responses to real-world pressures and barriers of all sizes and types (economic, supply chain, internal, etc.). Business agility, in essence, translates into the modern business’ overall ability to react in real-time to the challenges that they face on a daily basis. And, in 2020, the very notion of agility is something that has been embraced by enterprises across the world as a key facilitator of survival in these strange times.

Just a few years ago, the contingent workforce was (still) in the midst of its years-long trajectory of growth and impact, as it continues to be today (Ardent Partners research finds that 43% of the average workforce is considered contingent/non-employee, including temporary workers, gig workers, freelancers, independent contractors, and professional services). As the reliance on non-employee labor continued to increase, so did its link to true business agility. Thus, the natural evolution of the contingent workforce was its transformation into the agile workforce.

The agile workforce can be described by its four key benefits: 1) natural cost flexibility, 2) speed-to-hire and speed of engagement), 3) adaptability of expertise, and 4) its productivity gains. However, during the current business climate, there is one attribute of the agile workforce that represents its next natural evolution: its progressive skillsets and how they fit into the ongoing transformation of the modern business.

The next evolution of the agile workforce will help businesses build:

• A more dynamic talent acquisition strategy that focuses on skills and expertise gaps. The number one reason for leveraging agile talent today aren’t the cost savings that long were associated with this workforce, but rather the depth of skillsets and expertise it brings to the average organization. Businesses can build talent acquisition strategies that are enhanced with skillset-led tactics to develop the best-aligned, deepest bench of workers.
• A workforce that does not have to account for traditional barriers in engaging new talent. The remote work angle has always been a piece of contemporary businesses, however, in 2020, it’s become the norm. Eschewing location and traditional barriers will allow businesses to expand their relative talent pools, expand active and passive recruitment, and promote expertise ahead of “where” a potential candidate is located. Too, harnessing the power of artificial intelligence and predictive analytics will enable contingent workforce, HR, and talent acquisition leaders with the ability to develop more expansive recruitment marketing strategies that are not limited by traditional barriers.
• A more diverse workforce that will spark innovation and new ideas. Diversity and inclusion initiatives are an idealistic means for businesses to bring in new and fresh voices to its functional units as a way to spark innovation across key enterprise strategies. A truly agile mindset towards talent acquisition and contingent workforce management translates into the ability to find, engage, and source talent that can bring more dynamic ideas into the greater organization.
• A way to shift resources as both market conditions and corporate competition evolve. “Adaptability” has become a common refrain, especially nearly seven months into a global pandemic that has caused economic and business disruptions across the world. A truly agile workforce and skillset-led talent management strategies will allow businesses to “shift” their workers based on current market conditions, as well as enable them to position necessary expertise to where it is needed as products and services evolve. Talent pools can be further segmented, while both FTEs and non-employee workers can align their unique expertise to the functional areas that need them based on how the business progresses in regards to market, economic, and competitive factors.