From "Employer of Choice" to "Client of Choice": Here's how you can optimize your workforce for the future!

Friday: Mindfulness by Miles FROM THE DESK OF MILES EVERSON: Welcome to today’s “Mindfulness by Miles!” I’m excited to share with you an interesting topic related to the future of work. In March 2023, I published an article on the Fast Company website. There, I talked about the things that enterprises need to focus on to go from “Employer of Choice” to “Client of Choice.” Check out the actual article here. I also encourage you to keep reading below. I’ll be sharing snippets from the article and input additional insights regarding the topic. CEO, MBO Partners Chairman of the Advisory Board, The I Institute

From "Employer of Choice" to "Client of Choice": Here's how you can optimize your workforce for the future! The future of the workforce is changing at an unprecedented pace. While it’s encouraging that the U.S. job market is becoming increasingly diverse, this also presents a challenge to companies that must adapt their hiring policies to attract and retain talents from various backgrounds. Additionally, with the gig economy expanding, more workers are opting for freelance or contract-based work. The COVID-19 pandemic has also accelerated the trend of remote work, which is likely to become a permanent feature of the present and future labor market. The Importance of a Blended or Optimized Workforce in Today’s Work Environment The days of viewing independent professionals as commodities are fading. As enterprises in the U.S. are growing the contingent labor component of a blended workforce, the independent professional population continues to grow. As of 2022, the number of independents in the U.S. is almost at 65 million. On the surface, there seems to be sufficient supply to meet demand. However, if you dive deeper into this subject, the picture changes. According to data from the U.S. Bureau of Labor Statistics, job openings still outnumber unemployed workers in the U.S. today… and among the highly skilled and professional services population, the labor gap grows even more pronounced. Companies once challenged to fill full-time roles for critical skills areas have found they must turn to independent workers to get the job done. In many cases, this strategy not only helps firms leverage best-in-class skills but also achieve business agility at the same time. What’s more? Independent professionals today are filling business-critical roles that were once considered employee-only. These workers not only fit the role but also align with team/company culture, have well-developed soft skills, and have work styles compatible with company operations. … but there’s a catch. Many of the issues enterprises face in engaging the right independent talents nowadays echo the same issues in the recruiting space. This means companies that have successfully addressed these challenges when hiring and retaining employees can have similar success in engaging and maintaining relationships with independents. In other words, a company that is an “Employer of Choice” has a head start in becoming a “Client of choice.” Ways to Thrive in the Future of Work As automation, digitalization, and greater emphasis on work life and personal life balance are changing the nature of work today, companies must know the importance of creating a culture that values employees’ contributions. Transparent communication, honesty, and trust are essential components of this culture. Firms also need to shift their focus from being just a good employer to being a partner that provides value to its essential, ad hoc, and evolving employee solutions. This means fostering a work environment where employees feel empowered to take part in the success of their company. What else should enterprises do to go from an “Employer of Choice” to a “Client of Choice?” Strategy comes first. Before translating “Employer of Choice” to “Client of Choice,” organizations should first articulate the strategic importance of a blended or optimized workforce. Accomplishing this requires initial consideration of the entire talent pool and how independent professionals fit in. Management teams should ask themselves: What mission-critical outcomes do we need to accomplish regardless of where we access talents? How do we ensure we have access to the right talents when we need them without delay? What is the optimal mix of independent workers to full-time employees? Is that mix expressed as a percentage or a list of specific roles? What administration should enable our independent worker program? How can we ensure that our independent worker classification is compliant? Once these questions are answered, the next step is to consider activities that parallel the employee experience. For example: How does the company onboard full-time workers and ensure employees have all the tools and access they need from day one? From there, that firm must identify which of its employee-focused processes and procedures can translate to independent contractors. Branding is BIG. Employer branding involves managing everything that positions an organization as an “Employer of Choice.” It influences a firm's reputation among job seekers and requires ongoing oversight. Nowadays, many organizations invest heavily in employer branding, generally seeking a reputation as a “great place to work.” However, they should also put in place additional parameters to attract top independent talents. To become a “Client of Choice,” companies should have a strong client brand… and one of the ways to do that? By beginning with their employer brand! Investing in employer branding and client branding is not that complicated. By starting with creating a great workplace, businesses are on their way to being a “Client of Choice.” — Based on a Society for Human Resource Management benchmark survey, the average cost of employee hiring in 2022 is USD 4,700. However, many employers report costs of three or four times a new hire’s salary. Combine this with the increasingly low job tenure from the Bureau of Labor Statistics’ data and it’s fair to say that hiring employees in a high turnover environment is an expensive proposition. The same is true for independent professionals. That’s why retention is key these days! By ensuring contractors are motivated beyond pay rate and scope of work, companies offer ongoing education that benefits these workers professionally and fosters a sense of belonging. Take note of today’s tips and insights to thrive in the future of work!