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9 steps to building a flexible workforce strategy talent wave

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A variable workforce model can attract scarce talent, while driving significant cost savings and enhancing enterprise flexibility. How do today’s HR professionals partner with other colleagues, including Procurement teams, to determine the ideal mix of traditional versus flexible workers (independent contractors, freelancers, temp workers)? That is the “million-dollar” question.

This question is hard to answer because talent demand is not static and is constantly in flux. Where do best-in-class organizations draw the line between full-time employees and flexible workers? And if your organization isn’t using flexible workers, should you? That's where a total talent management strategy comes in.

In this flexible workforce webinar you will learn:

-- How, and why, progressive companies are balancing their traditional, full-time workforces with non-employee workers like contractors, freelancers, temps and SOW workers
-- The strategic benefits of taking a blended approach to your workforce
-- When and where to leverage flexible workers
-- How to build a step-by-step action plan unique to your organization
-- How to mitigate risks involved with the contingent workforce
-- The strategic value of building a talent community

Published in: Recruiting & HR
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9 steps to building a flexible workforce strategy talent wave

  1. 1. 9 Steps to Building a Flexible Workforce Strategy That Attracts Scarce Talent & Drives Savings Kieran Brady, COO Kimball Norup, SVP Marketing
  2. 2. About TalentWave The most experienced vendor-neutral provider of independent workforce engagement solutions: • 80+ enterprise clients • 5,000+ contractors engaged weekly • Extensive MSP, VMS partnerships iConnect® platform seamlessly delivers: • Independent contractor compliance • Agent-of-record IC engagement services • Employer-of-record professional payroll services • Vendor qualification • Sub-vendor engagement • Talent re-engagement • Global and advisory services
  3. 3. Agenda for today • Today’s complicated talent environment • Enterprise talent management • Potential sources of talent • Talent supply/demand modeling • Developing a strategy • Success factors • Q&A
  4. 4. Skilled labor shortage By 2018 More jobs than people to fill them Shortage of 30-40M college- educated workers BY2020 43% of U.S. workforce can retire in the next 8years. United States 66% of multinational companies say talent shortages are likely to affect their bottom line in the next five years.
  5. 5. Polling question 1 Is your organization feeling the impact of talent scarcity?
  6. 6. Shifting workforce demographics 29% of current U.S. workforce. By 2019, 100% >= 55 will be 50% of the U.S. workforce by 2020 MILLENNIALS (1981-1997)BABY BOOMERS (1946-1964) On average, 10,000 Baby Boomers retire every day. 75% of retirees want to continue to work – but want the flexibility to enjoy their retirement
  7. 7. Non-traditional employment BY 2020 contingent workforce is 40%of total U.S. labor market of all job growth in past 5 YEARS was due to contractor/temp roles 93% 56%of millennials choose FLEXIBILITY over more pay 82%say they are optimistic about FREELANCING as a career path MILLENNIALS The U.S. contingent workforce is expected to be 50% of total by 2020, or sooner, depending on economic conditions.
  8. 8. Polling question 2 Is the contingent portion of your workforce growing? Stable? Declining?
  9. 9. Challenges • Knowledge workers leaving workforce • Shrinking supply of skilled (STEM) workers • Growth of the independent workforce (IC, freelancers, sub-vendors, etc) • Increasing risk/complexity in managing total workforce – Must balance FTEs with temp labor and independent workers Opportunities • Engaging independent workforce provides access to new pools of talent: – Leverages the demographic trend towards self-employment – Building a private talent community for re-engagement – Public talent clouds (Catalent, Toptal, Hired, etc) • Risk mitigation • Cost savings (typically 15% to 20% savings vs. agency spend – For every $1M in spend: $150K to $200K+ in savings What does this mean for you? Conclusion: Companies must develop a clear strategy to direct source and safely engage independent workers
  10. 10. So, what’s the solution?
  11. 11. Enterprise talent management A holistic view of your entire workforce— ensures the right workers are available, in the right place, at the right time maximum business flexibility
  12. 12. Sourcing independent workers Then… Traditionally sourced from staffing suppliers Now… More than ever, companies are deploying a direct sourcing strategy
  13. 13. Polling question 3 Does your company direct-source independent workers?
  14. 14. Finding the right mix… Traditional Workers vs. Flexible Workers • The “million-dollar” question! • Hard to answer, unique for each company • Constantly in flux • Many factors…
  15. 15. The Total Workforce FLEXIBLE WORKERS
  16. 16. Enterprise Talent Demand Curve Driven by business needs, economic conditions
  17. 17. Where do you draw the line? Where and when to use flexible workers
  18. 18. Understaffed organization Talent scarcity and longer time to productivity
  19. 19. Overstaffed organization Reduced flexibility and high fixed-cost labor
  20. 20. Balanced organization Ultimate flexibility and cost savings
  21. 21. Matching the right workers to the work
  22. 22. Non-Core Work Core Work Internal IP X External IP O ? (Employee) (Consulting)(IC) (Temp, Freelancer) Define who should do the work
  23. 23. Where the rubber meets the road…
  24. 24. 1. Map your current organization structure—including all non- employee, and outsourced resources 2. Clearly define all work being done across organization, and who currently performs it • Think in terms of output and deliverables, not just job descriptions 3. Define skills/experience required for each role: • Core vs. non-core, Internal-IP vs. external-IP • Consider: Strategic/tactical, Variable/steady workload 4. Establish optimal workers required to do work: • Employee • Consultant • Independent Contractor • Temp/Freelancer Create your own talent strategy (1/3)
  25. 25. 5. Estimate number of workers for current/projected workloads within framework defined above. Think about the cushion your business needs. 6. Process re-engineering – Some considerations: • Does all the work still need to be done? • Can it be done more efficiently? • Can any of it be outsourced? • Can it be packaged differently (“projectized”)? • Ideal org structure? 7. Based on your unique business, decide on appropriate mix of FTE vs. flexible workers by category • Role, department, group, project • Use decision matrix as guide Create your own talent strategy (2/3)
  26. 26. 8. Discovery: Identify your workforce • Do you have the right people on the bus? • Are they in the right seats? • Where are the gaps today? Anticipated in future? 9. Sourcing: Identify suppliers of talent • How will you find/attract new workers? • Can you be a “client of choice” for independent workers? • Internal vs. external recruiting? • Direct sourcing vs. 3rd party suppliers? • What will the working relationship be between workers and the organization? 10. Rinse and repeat! Create your own talent strategy (3/3)
  27. 27. Teamwork works! HR and Procurement are better together! working in silosSTOP
  28. 28. Flexible workers: 10-50% of total headcount (FTE & flexible) Some guidelines… • Temporary: 50-80% of flexible workforce • Freelancer: 5-10% of flexible workforce • Independent contractor: 10-40% of flexible workforce • Consulting: 5-10% of flexible workforce • Each business is unique! There is no right answer… Strike a balance
  29. 29. Risk, reward and the double-edged sword “Engaging independent contractors is not inherently illegal, and legitimate independent contractors are an important part of our economy.” —David Weil, DOL’s Wage and Hour Division Administrator The IRS, DOL and state agencies ramping up enforcement, stating 46% of U.S. workers are misclassified
  30. 30. Create a talent community Web-based population of known talent with specialized skills, who are interested in working for you again Who are they? Independent contractors, consultants, freelancers, retirees, interns and “silver medalists”
  31. 31. Q&A

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