[Publisher’s Note: I saw an interview this week mentioning the perfect storm that is brewing in the contingent workforce market and it reminded me of this article from Chris that first published in the ‘dog days’ of summer – August 2013. We’re sharing it again for you now.]
“Talent” is a word that reflects a wide range of priorities within the modern business world. Some enterprises consider talent to be the most crucial aspect of their greater organization, while others put it well behind various initiatives (such as cost reductions / cost savings efforts).
However the typical company views its talent, whether it be traditional, full-time equivalents or contingent labor, a critical fact is that today’s market demands that enterprises do all they can to gain a true competitive advantage over its peers and competitors. And what these enterprises are realizing (even the ones that have not prioritized it) is that in order to gain this advantage, they require top-tier talent.
The interesting angle to all of this is that the average enterprise has a myriad of options regarding engaging and hiring talent that differ so greatly from the talent sourcing strategies of the past. Ten or fifteen years ago, many companies would search for talent via more traditional means for more traditional (read: full-time) roles. The realm of contingent labor was not yet an accepted aspect (as it is today) of supporting key corporate initiatives.
The economic downturn of last decade, combined with the true value realized by enterprises that turned to contract talent in the wake of the financial crisis, created a veritable “perfect storm” of non-traditional talent engagement that is growing by the day in today’s lightning-paced business world. Enterprises have several options in finding the right talent for their projects and initiatives, but they also have some concerns:
- Companies can engage non-traditional workers via a variety of sources. The current context of contingent workforce management reinforces the notion of “choice,” in that enterprises are given a variety of choices in sourcing contract talent. Beyond the realm of staffing suppliers (and agencies and vendors), the modern company can turn to professional services, SOW-based labor or consultants to handle intricate, critical projects, and also directly source temporary talent from their own internal pools (independent contractors). The non-traditional spectrum becomes muddled when fresh, more nuanced aspects are included, such as online labor marketplaces, which are veritable “talent catalogs” that offer the talent that organizations require for complex projects.
- While the non-traditional workforce is on the rise, its growth is a business cause for concern. Now, “concern” doesn’t translate into “negative.” The rise in contingent labor and non-traditional workers (30% over the next three years) certainly speaks to the benefit of this type of workforce. Flexibility, cost and level of talent are all value propositions to contract talent. However, the fact that this shift is occurring is a cause for concern. Are enterprises prepared for the influx of non-traditional talent? Do they have the proper systems and programs in place to control this talent? Is there a robust plan for addressing the growth of non-traditional labor in the years ahead?
- “Compliance,” in all of its forms, remains the largest issue in leveraging non-traditional workers. Compliance is a heavy theme within the contingent workforce management world, whether it be identity management (background checks, access to data, etc.) or contractor compliance. Having access to many sources of talent is ideal, but this variety can also result in multiple stakeholders across an enterprise traversing outside of standardized sourcing processes to engage talent…bringing about compliance, spend and project risks. No matter the source of talent, companies must ensure that talent engagement occurs in a compliant and centralized manner.
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