Top editorial insights of 2024
CWS 3.0 - Contingent Workforce Strategies
Top editorial insights of 2024
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The most recent issue of CWS 3.0 featured a review of the most important articles written by SIA’s CWS Council and advisory team. This week, we feature some of the top articles written by our editorial staff in 2024.
Hot topics ranged from artificial intelligence to diversity to program strategies and more. Overshadowing all, however, was a contentious political environment that almost guarantees that last year’s concerns will continue to evolve in 2025. The dynamic environment requires contingent workforce managers to pay keen attention to the trends, as they will undoubtedly impact programs in the new year as well.
Program Management
Hire-train-deploy under fire. The US Department of Labor asked a federal court to stop hire-train-deploy practices by an IT staffing provider, Managing Editor Katherine Alvarez reported, alleging that the employers prevent employees from leaving their jobs by requiring them to pay up to $30,000 if they leave the company before completing 4,000 hours — about two years — of billable work.
Skills-based hiring. Becoming a skills-based organization involves finding the most efficient and effective ways to get jobs done, Assistant Editor Danny Romero reported in his coverage of a panel at SIA’s CWS Summit Europe. The goal is to optimize performance by aligning job specifications with the skills of employees, and key steps to this goal include getting specific about the skills they require to get work done effectively.
AI. The Biden administration released AI guidance that provides employers and developers with guidelines meant to enhance job quality and protect workers’ rights, Senior Editorial Director Craig Johnson reported. The Department of Labor developed the principles as directed by Biden’s Executive Order on the Safe, Secure and Trustworthy Development and Use of Artificial Intelligence.
Background checks. Discussions about background screening increased amid key regulatory changes. Romero examined fundamental best practices contingent workforce program managers must understand and why verifying candidates’ backgrounds successfully — and compliantly — grows more complex as regulations and technology evolve.
VMS strategy. Evaluating systems and deciding on a provider is no longer as difficult as it has been, wrote Adrianne Nelson, VP of solutions delivery. Cost savings, higher-quality talent and greater visibility are just a few of the benefits of having a proper strategy. She provides a few things to consider as well as helpful research and resources to tap as you evolve your VMS strategy.
Vendor sales. Come to the table prepared for a successful transaction when interacting with your suppliers. Andrea Berkshire, VP, contingent workforce strategies, new business development, advises that prioritizing thorough preparation from the buyer’s side at the onset of the relationship will provide the best outcomes and provides three key aspects aspects buyers should consider.
Manufacturing workforce. An increase in megafactories will boost demand for workers in a market already struggling with a staffing shortage, and contingent workforce managers in the US may find it more difficult than ever before to recruit manufacturing talent. Nelson discussed how technology and AI will help you by providing smarter factories that will increase productivity and enhance labor efficiency.
MSPs. Large companies facing complex workforce challenges are turning to MSPs for AI-driven solutions for cost, compliance and efficient staffing, wrote Kersten Buck, senior VP, global strategic solutions. While the availability of advanced technology has added complexity to MSP solutions, it also requires a deeper partnership with client organizations.
Online staffing platforms. The utilization of online staffing platforms within CW programs represents a strategic imperative for organizations seeking to maximize efficiency and cost savings in talent acquisition, Buck wrote. As the workforce landscape continues to evolve, the integration of technology and talent will play a pivotal role in shaping the future of work.
Inclusivity
DE&I backpedal. Harley-Davidson curtailed its supplier diversity spend goals and hiring quotas, Johnson reported. The motorcycle maker also reported it has not operated a diversity, equity and inclusion function since April 2024. Other major firms such as John Deere, Tractor Supply Co. and Lowe’s also backtracked on DE&I policies in 2024.
ESG. Despite recent pushback, environmental, social and governance responsibility still resonates with talent, and many companies remain committed to the concept, Alvarez reported. ESG policies help companies recruit and retain talent and build their reputation, and companies with such policies also boast a 4.5% higher profit margin compared to others. With new regulations impacting ESG programs worldwide, there are best practices that your program can implement to bolster your program and help your organization.
Refugee hires. Military conflicts, political turmoil and natural disasters across the globe are displacing people at record rates, creating a flood of refugees into more stable countries such as the UK and the US. Often overlooked, companies can seek out these new residents to fill both temporary and permanent roles with diverse talent, Romero and Alvarez reported.
Fair chance hiring. Second chance hiring programs warranted a second look from workforce managers in 2024 as the concept gained acceptance, even among the largest brands in the US. The concept can also benefit contingent workforce managers, Alvarez reported. The pool of potential workers with justice-impacted backgrounds is deep, and oftentimes their infractions have no relevance to the work that needs doing. Before jumping into this talent pool, however, take some important steps to set your fair chance hiring program up for success.
Regulatory
H-1B visas. The US Department of Homeland Security announced a new, final H-1B rule aimed at streamlining the approvals process as well as other improvements, Johnson reported. Denial rates for the visas remain low but could increase under President-elect Donald Trump’s administration, according to research by the National Foundation for American Policy. The research also notes that automaker Tesla, led by Trump advisor Elon Musk, ranked among the top employers on the list this year after significantly ratcheting up its use of the visa.
Legal. As in prior years, fines, investigations and other legal woes remained top of mind in the industry. For instance, Senior Editorial Director Sharon Thomas reported on a John Deere supplier that was fined $296,951 related to its use of child labor and ordered to set aside $1.5 million to benefit children it employed illegally. Tuff Torq Corp. — which produces components for such companies as John Deere, Toro and Yamaha — has also been ordered to stop employing children illegally. Thomas also reported on the dismissal of a long-running lawsuit alleging Uber Technologies misclassified drivers as independent contractors rather than employees, saying a third trial would be futile after two separate juries deadlocked.
Noncompetes. A year-long debate over noncompete agreements drew headlines in 2024. The Federal Trade Commission in April issued a ban on noncompetes that was rejected by district courts, but those decisions are still under appeal, Johnson reported. In addition, General Counsel Jennifer A. Abruzzo of the National Labor Relations Board wrote a memo in May stating noncompetes can violate the National Labor Relations Act. However, experts believe the upcoming Trump administration will likely take a more employer-friendly approach and shift focus away from noncompetes.
If 2024 was an active year for the industry, 2025 looks to be even more so. New administrations around the world will undoubtedly impact changes made last year and bring their own visions of workforce policies into place. However, a keen understanding of past trends will help you guide your program forward.