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War for Talent

The Heightened War for Talent

Contingent WorkforceDirect SourcingGeneral InsightsPodcastSolution ProvidersTalent by Christopher J. Dwyer on

The Future of Work Exchange podcast features coverage of industry news, software developments, Future of Work happenings, and, most importantly, conversations with industry thought leaders.

Several months ago, I chatted with Steve Dern, EVP of Talent Solutions at Evaluent (click to listen to the full interview). Steve and I discussed the growth of the extended workforce, its impact, and what lies on the horizon. Today’s article is a recap of our conversation. [Note that this excerpt has been edited for readability.]

Christopher Dwyer: You’ve been in this space for such a long time. From your viewpoint, you probably have a dynamic take on the state of the contingent and extended workforce. What are your thoughts on the growth of the extended workforce, its impact, and where do you think we’re heading?

Steve Dern: As I look back on all this, especially the last 2.5 to 3 years, the COVID-19 pandemic has changed everything in terms of how we work, not only with contingent labor but also traditional employee labor. Remote work structures became the norm because they had to. And that challenged some organizations and maybe pulled the blinders off. Many companies with staffing offices and remote office locations closed their brick-and-mortar buildings because the investment wasn’t necessary. We can work effectively being remote or have a hybrid model, which is becoming the norm as people return to the office. Interview processes changed, as did the time to act when hiring talent. Whether it’s traditional, permanent, or contingent hiring needs, you’ve got to act very quickly now. Today’s talent has the leverage due to talent economy dynamics. As a result, companies are increasing wages for premium talent.

In the production and manufacturing environment specifically, there’s a heightened war for talent. And from a partnership and sales perspective, it was more difficult to build and cultivate newer relationships over the last two years. We were remote talking through a computer camera and a headset as opposed to shaking hands with people and breaking down social barriers that may exist. Reading body language was difficult as well. We work in a very different way now.

In terms of workforce trends, there’s a demand for more flexibility on the part of the hiring organization. Do we need employees to come into the office five days per week? What is the flexibility of some pre-pandemic requirements, such as college degree mandates or pre-employment screenings? With legalization of marijuana in some states, there may be some flexibility there.

There is also a significant gap in talent for manufacturing, distribution, and fulfillment centers. Here in Ohio, where we’re only 10 hours away from half the U.S. population, there’s a huge presence of retail distribution and fulfillment centers. And those fulfillment centers are having a tough time finding workers. To widen the talent pool, they’re considering Second Chance talent. These are folks coming out of jail with possible felonies in their background. However, many distribution and fulfillment center operators are seeing good retention rates and performance output.

From a company perspective, we (Evaluent) handle both direct hire and contingent labor placement. On our staffing entity side, we saw a large increase in the direct hire needs — one of our sales reps said 80% of new business activity was direct-hire related. So, there has definitely been a shift from a client perspective overall. Ten years ago, we were just hearing about this concept called direct sourcing. I was fortunate to see it succeed early in a couple of my accounts.

Back then, direct sourcing was pitched as having the ability to take over 80% of the staffing leads that we had. And it really didn’t end up being that way. Instead, it was focused on high-volume needs that were repeatable, with evergreen types of requisitions. That’s where companies were able to leverage direct sourcing not only for contingent but also for direct hire as well. Flash forward to 2021/2022, we’re now beginning to see direct sourcing gain some traction. More and more, I see RFPs coming out asking about direct sourcing partners and strategies, as well as what the technology, curation, and AOR models look like. Two years ago, I was rarely seeing that showing up in RFPs. That’s where some of the biggest changes have been in recent years.

 

 

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FOWX Notes: September 24 Edition

General Insights by Christopher J. Dwyer on

Some picked-up pieces from across the industry, which we call “FOWX Notes,” for the week ending September 24:

  • The business implications of the Biden Administration’s vaccine mandate, whilst expected to be effective in boosting lagging inoculation numbers across the United States, are already (as to be expected) creating plenty of questions for executives and enterprise leaders. Who’s on the hook for COVID testing? Will businesses offer more PTO for vaccine appointments and potential side effects in the days after injection? What are the OSHA implications of non-compliance in enterprises? How do businesses manage competing vaccine exemptions (i.e., multiple workers in the same unit)? There are so many potential issues here that are about to slip to the surface and it will be interesting to see how both businesses and states handle the weeks ahead, especially as more and more businesses begin to include vaccination status in job requests and job descriptions.
  • The Gig Workers Collective has asked customers to delete the Instacart app from their devices in what could be the first of many similar moves for gig workers’ rights. The collective, representing a group of nearly 13,000 Instacart shoppers, is fighting for equitable treatment and compensation for Instacart workers. Nearly half a million contractors work for Instacart, a figure that is 2.5 times bigger than it was before the pandemic (and before on-demand food and grocery delivery became a necessity in the era of social distancing, lockdowns, and quarantines). Batch order payments and default tipping percentages are two of many demands from the collective, which had also pushed for better working conditions during the beginning of the pandemic (especially concerning PPE and paid time off). The group is also asking for occupational death benefits given the risks of working during a pandemic. As Instacart flirts with the idea of going public, groups like the GWC will fight even harder for equity, protection, and better compensation (and benefits) in the months ahead.
  • “Worker burnout is not a mental illness” is a phrase that needs to be eliminated. Nearly every industry now faces worker burnout and fatigue, even without a pandemic backdrop. What the past 18 months have done, however, is transformed businesses in such a way that some sectors (healthcare, veterinary medicine, shift-based work in light industrial and manufacturing) experience workers clocking 50-hour (or longer!) work-weeks, with professionals in remote environments having trouble balancing an “always on” mentality with a laptop frequently within vicinity of wherever they are within their homes. Business leaders are not therapists, nor should they be the ones to diagnose mental health issues. However, worker burnout has become so prevalent that it’s time we reassess its validity as a true mental health issue and how exactly managers and other enterprise leaders can give their workers they support they need.
  • Nearly 80% of businesses plan to transform their workplaces into more attractive destinations for candidates over the next year. New Future of Work Exchange research finds that the vast majority of enterprises are laser-focused on turning their offices into more alluring places to work. Given the personal, professional, and societal changes happening in the greater market, as well as the ongoing “Great Resignation” that started in the spring, businesses face a more expansive war for talent than they ever have before. While there is no cure-all to this transformation, enterprise leaders only have to truly listen to what candidates want to begin this process: flexible working environments, inclusive workplace cultures, clarity on career paths, opportunities to hone key skills, etc.
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