That the vast majority (72%) of companies are focused on engaging new and unpredictable skillsets is telling, as the contingent workforce of the future will surely be a relied-upon source of talent. This is despite the fact that potentially half of all jobs a decade from now do not exist today – a fact that seems more science fiction than reality. And, as the pace of technology progression, coupled with the major economic, political, and social shifts in how businesses operate, presents a frightening scenario for even Best-in-Class organizations: that they will be woefully unprepared from a workforce and talent perspective in how they address future skills gaps and unpredictable needs for volatile expertise requirements.
Ardent Partners is gearing up to publish the 2020 edition of its annual State of Contingent Workforce Management research study. The paragraph above is a tiny sneak peek of the upcoming report, and one of many references to the relative importance of skills in an uncertain business climate.
Since the non-employee workforce has long been a core strength for those organizations that need unique and on-demand skills in short order, it will be even more vital to those organizations in the years to come (especially in a post-COVID-19 economy). When the business world moves back to a steady state, companies will not just reevaluate the roles of technology and talent in getting work done but will also effectively reimagine the very idea of work optimization.
Well over a decade ago, the contingent workforce proved to be an incredibly valuable lever in economic recovery and business survival, helping organizations pivot from “survival mode” to “revival” quickly and efficiently. The economic fallout of the current pandemic was directly sparked by a health crisis, not a financial crisis (as it was in 2008-2009). While this doesn’t necessarily move the goalposts too much regarding how or when things will return to some semblance of normalcy, it does translate into a more defined “end” if the medical side of this crisis is solved.
In times of need, businesses turn to their “known” talent to get work done. During the challenging moments of this pandemic, businesses will develop a stronger relationship with the key workers in their talent pools, including freelancers, contractors, retirees, etc. as a robust means of better aligning short-term needs with the best-fit, best-aligned talent available. The fact that these workers were curated based on skills, expertise, and trust translates into a reliable backstop for businesses that understand that “work still needs to get done.”
Direct sourcing, noted as one of the top focal areas for businesses in 2020, is also a key differentiator to help businesses navigate these challenging times. Direct sourcing, also known as “self-sourcing,” harnesses a company’s overall brand and power to attract various types of candidates (e.g., silver medalists, alumni, freelancers, etc.) as part of its overall talent-pool strategy. During current pandemic times, businesses may not even be thinking about ramping up staffing or increasing headcount (unless, of course, the business is part of several key sectors that have experienced incredible growth over these past few months).
However, the overall theme of “skills are critical!” is not something that will suddenly vanish over the next few months. Direct sourcing will be a viable strategy for businesses that want to stay close to their candidates, to keep strong level of communication and engagement for when the time is appropriate to ramp back up. As the economy begins to recover and as businesses think about how they will address skills-based needs and requirements, the very concepts of talent pools and direct sourcing will reward these organizations with curated benches of talent that are ready to deliver when the time is right.
RELATED RESEARCH:
The CPO Rising 2K20 Virtual Series – Ardent Partners is hosting an exciting new virtual series focused on the key strategies that procurement, supply chain, finance, and HR leaders will need to get through this period of adversity. While these topics below were designed for HR and contingent workforce managers in mind, they are absolutely applicable for any procurement manager dealing with a remote workforce or interested in building out their organization’s skills and capabilities. Click below to register and view each session on your own time.
Workforce, HR, & Talent Management Virtual Sessions:
The Three Pillars of Managing a Remote (& Productive) Workforce (Christy Schumann, Christopher J. Dwyer)
What the Pandemic Means for Your Workforce (Christopher J. Dwyer)
Guarding Against Increased Cyber-Risk in the Age of COVID–19 (Dr. Marcus K. Rogers)
Reflections on Anytime, Anywhere Education: Driving Engagement and Performance (Fiona Wood, Phil Broughton)
