In 2018, we have reached what some have termed "full employment." While this statistic may be exciting for many, it can cause stress for today's HR departments, who are struggling to find the right people with the right skills to fill open requisitions. As many as 45% of employers (and 67% of large organizations) say they are currently having difficulty finding the skills they need for their workforce.
Today, highly in-demand workers find that it is often more lucrative, and possibly more fulfilling, to work independently than to pursue traditional employment. One in five full-time independent workers earns more than $100,000 annually, an increase of 70% since 2011, according to our new research.
So just what can today’s HR professionals do? The answer: become what we call a "client of choice." Clients of choice are businesses that have established policies and procedures that put the needs of talent first. This status is particularly important for organizations seeking highly skilled talent, which has the most choice about where, and with whom, they work.
These four areas of focus can help organizations implement and optimize successful programs.
1. Establish organization-wide procedures for the engagement of independent talent.
Businesses are now accustomed to using independent talent to fill specific gaps or needs in their workforce. By using independents, businesses feel that they can be more agile, and often that independents also offer flexibility and allow for a faster pace of innovation.
But without proper planning, this can also open your engagement to rogue spend and potential misclassification risk, as managers source and engage talent through non-vetted programs or platforms.
Organizations should create a clearly-defined contingent workforce strategy as part of their total talent management initiatives. At the highest level, this includes securing the right level of leadership support, communicating clear expectations to business leaders and managers engaging independent talent and understanding your organization’s starting point: Are you just beginning to engage independent talent, or have you been doing so for some time without a defined program?
2. Build an independent-friendly infrastructure.
With each passing year, more workers choose to go — and stay — independent. The factors that contribute to this decision are manifold, but include everything from high compensation and work-life balance to control, over both their career paths and their schedules. As the corporate world evolves, both in policies and in technological systems, more and more individuals are likely to try and make it on their own.
Highly skilled talent, however, has a choice when it comes to their clients. Our research found that 46% of independents have a great deal of choice when it comes to selecting clients, and 36% have at least some amount of choice. It’s increasingly important that HR professionals get it right when it comes to setting up a talent-friendly program.
Now is also the time to put in reporting and tracking mechanisms and technology, as well as strategic staffing where needed. From the beginning, look at the total engagement process to remove layers of inefficiencies and hidden costs or mark-ups from third-party suppliers. Introduce and implement talent- and manager-friendly programs and policies.
3. Educate your organization to ensure ongoing success.
As with any initiative, a properly managed program requires watchful care and support.
Independents value doing the work they love, without added hassle. This includes clients that are responsive and offer efficient processes and fast payment terms. But satisfaction is most effectively driven by communication: managers must clearly define project goals and objectives, provide helpful feedback and establish a defined project scope for each and every engagement.
Once the program is up and running, conduct regular reviews — either internally or with a partner specializing in the independent workforce — to ensure program optimization. Reviews can be used to mitigate inefficiencies, minimize duplicative systems or vendors and make it easy both for independents and managers to engage quickly, safely and cost-effectively.
4. Scale and grow.
According to Deloitte, the increasing use of what they term the “off-balance sheet” worker is one of the two most powerful forces shaping the workforce of tomorrow. Enterprise leadership teams are increasingly understanding that HR, people and talent strategies are not support functions. Rather, they are key elements of business strategy. By integrating independent professionals into their workforce, organizations can harness the power of this new way of working and transform their businesses.
This means many things, including reliable access to a high-performing network of independent professionals. This talent is a critical complement to full-time employees, empowering businesses to pursue emerging areas of opportunity, flex and scale at the right time and acquire transformative expertise that supports their primary abilities.
