Over the past several weeks, I’ve written about the various contingent workforce, staffing, and Future of Work attributes that could contribute to the way businesses will operate a year from now. Taking into account the very strange days of 2020, combined with the anticipated growth in the utilization of non-employee talent, businesses now understand that there are many dynamic forces at play that will shape their outlook and success in 2021 (and beyond).
I had the opportunity chat with various contingent workforce, staffing, and HR technology leaders about the key trends that will shape the year ahead:
Brian Hoffmeyer, SVP of Market Strategies, Beeline
“After the crazy year that was 2020, it’s hard to predict what 2021 will hold, and, if I could do so accurately, I’d likely be a talking head on a network news show! Anyway, that said, I do think that we will continue to see growth in the contingent workforce, that’s already happening now and there’s no reason for that not to continue; companies realize that they can get the talent that they need faster and in a less-risky way; that’s incredibly important right now. The other trend that we’re seeing – and one that is imperative – is the need to create a contingent diversity, equity, and inclusion initiative. D, E, and I matter – and drives better business performance – so you need to set goals for your contingent labor program (including workers on your statements of work!) and measure your performance against them.”
Neha Goel, VP of Marketing, Utmost
“I think most people in HR, Procurement, and IT realize that COVID has been a disruptive force that has accelerated workforce trends that were already in play: greater digitization and automation, more demand for external workers, a growing prioritization of diversity, and an increased reliance on remote work. These themes, combined with (likely) continued market uncertainty, mean that organizations need a more holistic view of their workforce options, i.e. their entire talent base (skills, capabilities, locations, costs, availability) so they can make informed decisions about the best resources to get work done. I think in 2021, enterprises will make investments in these areas to drive, in the short-term, agility, resilience, operational efficiency, and cost savings. In the long-term, these investments will have the potential to deliver better experiences for the workers themselves and increased productivity for the business.”
Allison Robinson, CEO and Founder, The Mom Project
“Obviously the ongoing coronavirus pandemic has changed the landscape of the modern workplace indefinitely. Employees have more flexibility than ever before, and it’s the responsibility of the employer to continue to support and facilitate productivity and communication across all facets of the organization in this new remote workforce.”
“The increase in remote work has been a welcome shift for many, but has also added burdens to some, especially for those juggling a myriad of responsibilities ranging from childcare to virtual schooling. Organizations must remain empathetic and supportive of this ‘new normal’ by creating clear and effective means of communication, so all employees are encouraged to speak up and feel supported having their voice heard.”
“The ongoing coronavirus pandemic is something no one predicted, and no one has experience trying to navigate, so it’s more important now than ever that organizations and business leaders lead with empathy first and foremost. Employees are balancing an endless list of responsibilities all within their homes, so organizations and managers need to remain flexible in order to allow employees to meet all of the demands amidst this ‘new normal.'”
Fang Chang, SVP of Product, Coupa Software
“Procurement organizations around the world are working with their valued service providers and contingent labor pools to prepare for 2021. We are seeing elevated levels of empathy for factors such as increasing spend to diverse service providers and the need to work from anywhere. While empathetic, customers also recognize the importance of being diligent throughout 2021 and beyond in the continual assessment of risk factors that may negatively impact their business brand or bottom line.”
Kevin Akeroyd, CEO, PRO Unlimited
“There will be a continued preference of knowledge, specialized-skilled, white-collared workers to work on a contingent basis and not FTE. In most industries, this is already at 40% of the total workforce, and most Fortune 1000 companies have strategies to get that to 50%-to-60% in the next several years. This will be a career choice for millions of high-end members of the workforce, which will radically accelerate the complexities and importance of this segment. Companies will need to not only navigate these evolving areas at a rapid pace, but to also expertly address localization, globalization, changing regulatory and labor laws, remote work, and D&I, among others.
The notion of things like the “Gig Economy” are going to dramatically expand across virtually all categories of the skilled workforce, and in many industries, those leaders will have more contingent workers than FTEs. In addition, as the spend under management continues to expand, representing hundreds of billions of dollars per year with double-digit inefficiencies/over-payment, it will be mission critical for the C-suite to be more involved. This literally already is, and will become more so, a massive Earnings Per Share driver. Historically, the selection and management of outsourcing a company’s contingent workforce management program has been relegated as “tactical” and pushed fairly far down the organization’s org chart. This is radically and rapidly changing as the CHRO, CFO, CPO, and CIO are now playing a much greater role in the decision to not only outsource the non-employee management function, but also to deploy a technological ecosystem to harness software, machine-based learning, data, and intelligence to drive their businesses forward as part of their overall Future of the Workforce and Human Capital strategies.”
Catherine Candland, President, nextSource
“Since COVID, we have seen approximately 30-to-40% freelancer population increase in our client accounts. While our clients tell us that they originally engaged these individuals to achieve more flexibility and reduce costs in a period of uncertainty, they also cite a higher level of up-to-date skills and ready availability as reasons for continuing to drive towards a higher mix of freelancers in their overall workforce composition.”
“The notion that individuals accept temporary work as a means to get their foot in the door has been proven to no longer apply. In this unsettled environment, non-employee professionals, such as IT workers, are frequently engaged on multi-year assignments. Recent research indicates that a quarter of traditional employees remain with the same firm for less than that. Surveys of our EOR Associate employees indicate that many choose to work as non-employees for higher pay while their spouse works for healthcare benefits and lower pay.”
Jody Greenstone Miller, Founder and CEO, Business Talent Group
“Workforce agility and a holistic approach to talent management are more important than ever before, as companies pivot from ad-hoc solutions put in place at the start of the pandemic toward long-term recovery and growth. Establishing and easily accessible and reliable pool of skilled talent at the ready—like BTG’s marketplace of on-demand management consultants, subject matter experts, and project managers—positions companies to take advantage of fleeting opportunities and tackle urgent short-term needs while staying focused on the bigger picture.”
“The combination of project-based work, remote work, and on-demand talent provides a faster way to impact diversity within your organization. We are seeing that a remote work environment allows companies to access a wider candidate pool while reducing location bias. Project-based engagements focus heavily on the specific skills needed for success and provide a lower-risk way to bring talent on board, and, thus, can be an effective part of a diversity and inclusion initiative.”
Praneeth Patlola, Chief Product Officer, WillHire
“In recent years, the HR tech industry has gone through a huge transformation to adopt people analytics and bring a data-driven approach. The latest technologies of internal talent mobility have enabled organizations with better intelligence to increase retention and enabling the workforce to shift roles internally. While enterprises have invested in DE&I strategies, and also build metrics from sourcing to offboarding and re-engagements, most of it seems to have covered only for the full-time employee workforce and completely leaving out the contract workforce. Not surprisingly, many organizations still have challenges for accuracy around headcount and have never tracked talent diversity in the non-employee workforce. Even a bigger challenge is the non-employee workforce masked under SOW; there is less information on skill and other metrics. In 2020, we have seen enterprises recognizing the importance of total talent analytics, which includes the non-employee workforce to address this gap on metrics and centralized talent pools, while building the pathway for total talent intelligence. Given the pace at which the HR tech industry is moving, and the contingent labor space has picked the heat on direct sourcing, there is a definite possibility for seeing several uses cases in 2021 for total talent intelligence.”
RELATED RESEARCH
20 for 2020: Key Providers in the 2020s – Beeline
20 for 2020: Key Providers in the 2020s – Utmost
What Will Business Look Like a Year From Now?
The Next Evolution of the Agile Workforce
