CWS 3.0: December 23, 2014

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Integrate total talent management business initiatives now

Shifts in management strategies are typically driven by some important market change agent, which is then accompanied by distinct initiatives that ultimately drive innovation in how business is conducted. Wholesale change of a management strategy or model is a more risky affair, hence a more practical approach is rolling out manageable initiatives that deliver gradual, impactful improvements with targeted return on investment.

Today, a key market change agent is the increasing usage of contingent worker (CW) talent in an organization’s workforce. The CW median usage is around 15 percent of the overall workforce for organizations with 1,000 or more traditional employees; however, some businesses report actual CW penetration rates of 35 percent to 50 percent today. These numbers are game changers in the integrated and strategic management of the emerging “blended” workforce. For example, a recent job description was floating around LinkedIn for an organization’s CW business partner, a position similar to a HR business partner role but just for contingent workforce support. Things are indeed moving and changing at a fast pace.

So what strategic, transformative considerations does an organization face when CW talent comprises a fifth, a quarter, or even more of the operating organization’s workforce? It’s time to optimize and support this blended workforce rather than deploy talent management strategies for the labor force of the past.

Deploying targeted total talent management (TTM) workforce business initiatives is one effective method of deploying a TTM strategy for this evolving blended workforce that incorporates more and more distinct worker classifications from permanent, to contingent, to SOW, to independent contractor, etc.

Logically, it seems natural this workforce should be governed by an integrated talent management strategy. But some key structural issues stand in the way, such as limited functionality of established technologies. In many cases, there are territorial program ownership issues concerning worker classification elements of a blended workforce. Some of these talent management groups don’t want anything to do with each other! So what can be done in the meantime? 

Some TTM-related business initiatives are already being rolled out in the marketplace today. Many are familiar CW talent management leverage plays that have not been fully adopted and maximized to their full potential.

Conversions. Today’s talent acquisition strategy incorporates multiple sourcing channels and incentives to source the talent an organization requires. One of the most productive channels is converting CW talent to permanent opportunities. On average, companies convert 20 percent to 30 percent of their engaged CW talent to full-time employment. Is this just a business unit manager activity or is HR now formally and fully embracing this sourcing channel.

Leveraging vetted talent. If a contingent worker is delivering top performance and productivity, then why would companies let that talent simply walk out the door at the end of an engagement? This talent initiative is primarily focused on CW talent requirements, but transitioning full-time employees (like retirees or alumni) could also be incorporated. With some policy adjustments, important permission management and a database tracking tool, a reasonable initiative could be deployed that leverages the high performing stars in one’s CW program and/or transitioning internal workforce. A payrolling service and other engagement support might be required to deploy this initiative effectively.

Vetted candidates. This initiative is sometimes called a “silver medalists” program. Thousands and thousands of vetted candidates participate in final interview slates for organizations every year, and then walk away after coming in “second place” in the job search process. Some of these vetted candidates would be highly interested in getting a foot in the door for specific brand companies in certain industries, professions and geographic locations. What if a couple of steps are added to the perm hiring process to gage their interests for CW engagement opportunities? There is definitely an extended ROI opportunity here on the initial candidate vetting investment.

Other CW classifications. CW program management has dutifully focused its talent management practice on the staff augmentation work classification. But now many programs are branching out to deploy the TTM strategy in every non-employee worker classification that exist in the organization. These targeted work classifications range from SOW engagements to interns/retirees to independent contractors to even the tracking of outsourced solution services talent.

Engaging a total talent management strategy to manage a quickly evolving blended workforce needs to be carefully considered by those responsible for the talent acquisition and management of both CW and permanent talent. Both pools of talent can be integrated with TTM business initiatives that can deliver competitive leverage to each group to achieve their individual goals of engaging quality, proven talent more quickly and cost-effectively.

The key is to not wait until the solution is a perfect one. Even now some competitive talent acquisition leaders are deploying initiatives to grab and keep the best talent in the marketplace before you even have a chance to jump in.