The GIFT that keeps on giving: How can firms achieve agility and flexibility in today's world of work?

Friday: Mindfulness by Miles FROM THE DESK OF MILES EVERSON: Welcome to today’s edition of “Mindfulness by Miles!” We’ll be sharing some insights about the contingent labor imperative and how enterprises can succeed in a modern workforce model. At MBO Partners, we’re highly focused on topics about the independent workforce and the future of work. We believe it’s important that business leaders and managers know how to tap into the power of contingent labor to continually achieve organizational goals. Ready to know more about today’s feature? Keep reading the article below. CEO, MBO Partners Chairman of the Advisory Board, The I Institute

The GIFT that keeps on giving: How can firms achieve agility and flexibility in today's world of work? The health crisis we’ve experienced over the last 3 years have spurred economic changes and accelerated many workforce trends. As a result, many enterprises have had to adjust to these changes and the pandemic’s economic effects such as: Chronic skill shortages Supply chain disruptions Shifting consumer and business buyer behaviors … and others. According to recent studies in the U.S., many firms have responded to these issues by increasing their flexibility and agility, and developing a new workforce model that includes the increased use of independent labor. What’s more? These studies also show that today’s savvy enterprises are planning to further increase their use of contingent labor in the coming years. Contingent Labor is Here to Stay In May 2022, MBO Partners and Emergent Research surveyed around 500 human resource managers, directors, vice presidents, and chief human resource officers (CHROs) from large corporations in the U.S. Based on the data gathered from the survey, an average company reports contingent labor makes up 28% of its workforce, and for the next 5 years, most of the companies surveyed expect their use of contingent labor to increase substantially. This means contingent work is here to stay… and the more a company uses and is familiar with this workforce, the more likely it will be used in the future. What are the benefits of using contingent workers? There are supply-and-demand reasons why corporations tap into this workforce nowadays: On the demand side, some companies are facing talent shortages and struggling to attract those with in-demand skills as full-time employees. Because of this, hiring managers recruit highly-skilled independents to gain workforce agility and flexibility. Meanwhile, on the supply side, tight labor markets and strong demand for those with specialized skills enable contingent workers to get more work AND command a premium for their services. This leads to more workers choosing independent work over traditional employment—one of the reasons why many firms break free from outdated business models and choose to welcome independents to their offices. Other top reasons why companies use contingent labor include: Meeting temporary workload needs Increasing productivity Getting tasks done more quickly Accessing specialized skills and hard-to-hire talents Meanwhile, saving money fell on the ranking list of why firms tap into the contingent workforce. This means businesses’ priorities have changed: The need to improve business productivity, workforce flexibility, and access to highly-skilled talents has overcome cost savings in importance. Contingent Labor: The “Gift that Keeps on Giving” In today’s world of work, skilled independent labor is an agile enterprise’s ultimate ally. That's why it’s important that businesses put in place systems and processes that encourage and support the use of contingent workers. One of the ways companies do that? Through direct sourcing! This strategy improves firms’ abilities to find and hire skilled and talented independents. Direct sourcing also allows companies to create a curated talent pool to quickly access qualified contingent workers. There are several options available when pursuing a direct sourcing strategy. Businesses can access top talents via: Online Marketplaces These are open-to-the-public, skills-based platforms that allow access to people who are prequalified to promote their services online. These marketplaces can be business-to-consumer or peer-to-peer. Freelance Management Systems (FMS) This refers to using technology that puts top talents into an online marketplace and provides an end-to-end solution to store talents, post and fill projects, and manage invoicing and onboarding. Talent Networks, Talent Clouds, Talent Communities, and Talent Benches These are the places where organizations store top talents. Here, the platform allows a user to easily share projects and tap into a group of talents whenever a project opportunity comes. These options, when properly used and implemented, help increase work quality, decrease fill time, reduce sourcing costs and compliance risks, and improve the likelihood of contingent workers fitting in with a firm’s culture. — As the use of contingent talent increases, so does the need for more efficient and effective ways to find, hire, retain, and manage independent workers and integrate them into a company’s teams. … and because of this need, direct sourcing through corporate internal contingent labor platforms has emerged as one of the leading methods for thriving in today’s world of work. We hope you find today’s topic helpful and insightful in building an agile enterprise! Keep in mind that blended and constantly shifting teams of internal and external contingent talents are increasingly becoming the norm as corporations tap into highly-skilled independent workers, boost organizational productivity, and adapt more quickly to changing market conditions. By putting in place systems and processes that prove beneficial not only to your firm but also to full-time employees and independent professionals, you can become a “Client of Choice” of these workers and achieve your business goals. Stay tuned for more topics on the contingent workforce and the future of work!     Follow us on LinkedIn.