Future strategic workforce management strategy – the considerations

There are many compelling reasons why companies are increasing the number of their ‘nonemployee’ workers; i.e. contractors, temporary, contingent and otherwise non-permanent.

- At this time of economic instability and uncertainty, resources are needed for major restructuring and growth but there is a reluctance to commit to permanent staffing.

Gartner research shows that 32% of organisations plan to replace permanent workers with contingent for cost saving and flexibility.

- Agility is required to engage the required skills more quickly and at less cost. The ‘agile workforce’ is defined as one that is scalable, engaged and leveraged dynamically and delivers the required skills.

Ardent Partners research shows that 69% of organisations have prioritised direct sourcing over the next 2 years to lower ‘hard’ recruitment costs and to improve their time to fill rates.

Gartner research illustrates that differentiating costs is the largest driver of competitive advantage and that people costs are the biggest cost.

- Worker lifestyle preferences are having an increasing effect. 10 years ago, 20% of workers were non-permanent and this is 43% today (Ardent Partners). This was confirmed as 39% in the UK between January and March 2020 before Covid struck.

Flexibility and mobility are becoming the norm, with 40% of millennials planning to abandon their job to freelance in the next 5 years (USA Today).

- Skill requirements are changing for the digital age and there will be many new projects established as businesses look to transform and compete. This may be why 64% of organisations have prioritised Statement of Work and service procurement projects over the next 2 years. (Ardent Partners).

- This skills issue ties in with Gartner’s findings that there needs to be a fundamental re-think in workforce management planning. The Gartner report of May 2020 stated that talent plans are currently misaligned, being focused on roles, not skills

All of these and more are causing organisations to consider a more strategic use of a contingent workforce.

An ideal solution to address the requirements for the future:

• Gives access to a constant supply of the best available talent
• Reduces the volume of non-suitable applicants
• Provides access and completes the engagement process quicker
• Costs as little as possible in both hard overhead recruitment costs and the payment of optimum rates to the workers
• Minimises the administrative overhead in terms of time
• Retains useful information for future reference
• Provides a superior experience for all parties and particularly candidates
• Relies on a superior technical solution which is easy to use and comprehensive

How we can help

For 30 years, we have provided software and support services to businesses of all sizes so you can compliantly manage your contingent workforce. From applicant tracking and pre-employment screening to pay & bill software and worker engagement, we would love to be your trusted partner.

We would love to show you our end to end solution so please email hello@giantprecision.com and one of our experts will reach out.

(REGISTER FREE to hear Giant share their expertise on BFI's Workforce Management webinar: Thursday 17th September, 1100 - 1200 BST www.bfi.co.uk/what-to-do-this-week-18. If you're seeing this after the webinar has aired, ask BFI to send you the recording)