CWS 3.0: May 14, 2014

Print

Get Proactive or Lose Talent, Pay More

As the face of the workforce changes rapidly, companies will have to become proactive in their approach unless they are willing to lose talent or pay more for their workers. How so?

Today, 18 percent of the average large company’s workforce in North America is contingent, according to our most recent North American Buyers Survey. In Europe, buyers we surveyed said the percentage of their workforce that is contingent is 10 percent and is expected to expand to 15 percent in two years and a whopping 20 percent in 10 years.

This is just the beginning of the wave. We know a substantial portion of millennials, baby boomers and retirees will be looking to work flexibly in some form as their preferred availability and the need for their expertise changes. The average employee tenure is already feeling the impact of growing flexibility in today’s workforce. The average tenure in the U.S. is approximately three years; in Silicon Valley, it can be less than a year for technology workers. This forces companies to look at new and creative ways to get the job done. The workforce composition is evolving and the way companies get work done will be very different in the future.

Many companies have been reactive in their talent management approach.  In fact, VMS technologies and MSP solutions came to evolve, as companies realized they needed to be able to keep track of who is in their contingent workforce from staffing firm temps to independent contractors to SOW — and how much they cost.

The next logical step is to become proactive, using total workforce management techniques. Predictive analytics now exist to look at holistic spend and demand management. Now, companies can use an integrated approach to become proactive and manage their workforce. A proactive strategic workforce plan demands a look at future workforce needs, especially those that are core or critical to the business. Long-term company goals and internal and external demographics are all essential factors to be included in the strategy.

There are six building blocks to look at when going from reactive to proactive in total workforce management:

In addition, make sure to look at online staffing and consider its impact. Fifty percent of buyers we surveyed say they are not familiar with online staffing services (yet) and where it will fit into companies’ plans? Consider how the plan promotes even better talent solutions across the board for direct hire, temporary and temp to perm. Being proactive also can create a shift in your supplier relationship and move it into a much more consultative realm.  Going forward contingent talent will be a growing, integral part of many companies. Taking the steps now to become proactive and strategic in your workforce approach will ensure a strong blended talent pool at a fair cost.