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Is Your Talent Pipeline Prepared for Turbulent Times?

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Sponsored by Toptal

In today’s fluid business environment, employers are still struggling to find the right kind of talent when they need it. But what does it take to build a truly flexible, modern workforce? It takes a creative strategy and a nimble game plan. For example, a growing number of companies rely on a remote talent pipeline that scales up or down with their organization’s requirements.

In this podcast episode, we explore how employers can improve organizational resilience by tapping into a diverse pool of qualified specialists whenever the need arises…

Meet Our Guest: Vicky Mackie

This week, I’m excited to speak with Vicky Mackie, SVP of Talent Operations at Toptal — the world’s largest fully remote workforce of top talent that enables companies to scale their teams. Vicky plays a central role in matching clients with talent who have specialized expertise, on-demand.

Prior to joining Toptal, Vicky honed her strategic and operational acumen as a management consultant at Bain and Company, where she helped executive teams in multiple industries tackle their most pressing issues.

With her depth of experience, I know Vicky has loads of helpful advice to share about talent strategies that support business agility. So let’s get started!

Why a Flexible Talent Pipeline Is Essential

Welcome, Vicky. The concept of a flexible workforce seems to be gaining even more popularity now. Why do you think this model works so well, especially in an unstable business climate?

When building a talent pipeline, great leaders rely on data. What metrics are we trying to hit? What projects will help us reach those goals? From there, you can build out your recruiting pipeline over the next 6 months, 12 months, 18 months.

But although planning is still very valuable in an unstable environment, you can’t always predict the future. So the option of a flexible workforce helps supplement full-time workforce planning. It also helps fill gaps when things are uncertain or unexpected.

For example, you can flex capacity up and down as needed. Or you can tap into highly qualified talent much more quickly. Or you can find a new type of talent that matches growing demand for emerging technologies, like AI and Generative AI.

Linking Flexible Talent With Remote Work

How do you see talent management evolving with the shift to remote work and the need for flexible talent?

Research by Manpower Group says almost 80% of companies face talent shortages today. And with the pandemic, companies saw firsthand how effective remote work can be, right? Now, more processes and technologies are available than ever to make that experience incredibly smooth.

So, to attract talent that will differentiate your company, you need to leverage remote work. You’ll not only find and attract the best talent, but also retain them.

And because you’re not limiting yourself to a specific geography means you’ll have access to capabilities you may not have had in the past.

Staying Productive Through Change

While building a flexible remote pipeline, how can employers maintain quality and productivity?

First, make sure you rely on a vetted network. By ensuring the people in your talent pool are really experts in their field, you remove the risk of working with contingent talent.

Also, you’ll want to be sure you’re considering the broadest, most diverse pool you can find, so you’re able to choose the best available talent for each role.

Lastly, it’s important to build a culture around outcomes and results. When you’re in the office, you can see people doing the work. A remote environment is different. So focusing on outcomes helps people produce high-quality work without micromanagement.

How Work Culture Fits In

That point about culture is key. It’s important from the outset, right?

That’s right. You want to treat flexible talent as part of your team. They are part of the solution to the problem you want to solve. They’re the experts. And they want to be partners with you.

So you’ll want to be very clear about what success looks like. Investing in that kind of onboarding will improve the experience for everyone.

 

Learn More About Building a Strong Talent Pipeline

For more insights about how your organization can benefit from a flexible talent pipeline, listen to this full podcast episode. And be sure to subscribe to the #WorkTrends Podcast on Apple Podcasts and Spotify.

You’ll also find a wealth of helpful insights and resources for employers on the Toptal Blog.

And anytime you want to continue this conversation on social media, follow our #WorkTrends hashtag on Twitter, LinkedIn, and Instagram. Let’s talk!

Hiring Outsourced Labor? Here’s How to Maximize ROI

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In a world filled with uncertainty, one thing is certain. “Business as usual” is no longer a realistic strategy. So, during unusual times like this, is it wise for companies to continue hiring? Many employers say yes. But others are turning to creative alternatives like outsourced labor. Here’s why:

Despite lower inflation and a temporary pause in lending rate hikes, the U.S. economy remains shaky. Some experts still say a recession is likely. Yet even though job growth has recently gained some steam, layoffs continue to spook employees — especially in the tech sector. And who can blame them? After all, technology companies have laid off nearly 211,000 people this year. At the same time, the number of open tech jobs has plunged from a high of 477,000 last August to only 168,000 this month. Chilling.

Even so, employers continue to grapple with the country’s ongoing labor shortage. In May, the unemployment rate remained low at 3.7% (about 6 million people), while job openings inched up to 10.1 million. In other words, many more jobs are available than today’s unemployed Americans can fill.

All these variables are making workforce planning especially difficult. So, rather than debating whether to downsize or expand your workforce — why not consider doing both? This strategy may seem counterintuitive. But it actually lets you retain valued employees while hiring talented candidates who want more work stability.

Of course, for this to succeed, your company’s reputation, benefits, and culture must be top-notch. U.S. employees are interested in organizations with a vibrant work culture backed by strong core values. In fact, 75% of employees say it’s “very important” to work for a company with well-defined values. And almost 20% of employees consider it the most important factor for job satisfaction.

If your company neglects these things, you could lose current employees. What’s more, attracting strong new talent will be much more difficult. For ideas about how to make the most of this strategy, keep reading…

How to Hire Quality Talent Amid Labor Shortages

When hiring, prioritize quality over quantity. The importance of hiring the right people can’t be overstated. It may feel good to receive hundreds of applications for an open position, but it won’t necessarily make things easier. If only a few applicants are qualified, you’ll need to spend many more hours of review and deliberation to find them. This unnecessary effort only makes your hiring process less efficient. 

If you choose to hire full-time employees, seek out candidates who have worked at startups or other scrappy environments. This kind of work experience suggests that a candidate is resilient, resourceful, and comfortable wearing multiple hats. 

Alternatively, consider hiring contingent workers. Because outsourced labor is ubiquitous and inexpensive, this is an attractive solution during talent shortages. Outsourced workers can focus on repetitive, easy-to-learn tasks so your full-time, in-house employees can spend their time on more strategic activities. This increases organizational efficiency and effectiveness. It also enhances the employee experience, which should improve workforce retention.

It’s also worth keeping in mind that the current labor shortage is expected to persist. If so, employee hiring and retention challenges are likely to continue. As a result, many companies could turn to outsourced staffing as a long-term solution. That’s a compelling reason to put successful outsourcing practices in place from the start.

5 Ways to Boost Workforce Performance With Outsourced Labor

Keep in mind that managing outsourced labor differs from managing in-house staff. To make the most of your outsourced workforce, try these tactics:

1. Invest in Structure and Quality Control

Designate one or several points of contact to manage outsourced labor roles, responsibilities, check-ins, and quality standards. This creates structure, which in turn prevents confusion, missteps, and other problems. It ensures that your contingent team members are aligned with your organization’s objectives and functional needs. Plus, it encourages two-way communication that helps minimize disengagement, quiet quitting, and excessive turnover.

2. Schedule Regular Check-Ins

Touching base with outsourced staff and outsourcing partners helps maintain accountability, transparency, and trust. By conducting weekly or biweekly check-ins, you can identify and address issues more quickly and keep the relationship moving forward smoothly.

I’ve seen several clients hire and onboard outsourced staff, and then treat it as a “set and forget” business arrangement. Soon, expectations became unclear, and clients didn’t get what they needed. Keeping in touch with contingent employees is vital to be sure everyone stays on the same page.

3. Don’t Overlook Onboarding and Training

An effective onboarding and training plan sets up outsourced workers for success. By providing the information, resources, guidance, and support needed to perform well alongside in-house employees, you can optimize the business value of contingent staff.

Unfortunately at many companies, onboarding is lackluster — even for in-house hires. In fact, according to Gallup, only 12% of employees think their organization does a great job of onboarding new people. With so much room for improvement, effective onboarding is likely to become a key trend in the future of outsourcing.

In my experience, new hires don’t start strong without complete information and training. They’re less likely to understand their role, and often they’re unsure where to go for answers when questions arise. This can lead to unnecessary mistakes.

However, when organizations plan and deliver thoughtful onboarding, they’re rewarded with motivated people who feel empowered to hit the ground running. So taking time to onboard both in-house and outsourced staff can quickly boost your team’s overall efficiency, productivity, and effectiveness.

4. Watch for Hidden Costs

An outsourced labor strategy is often a budget-friendly move. However, hidden costs can potentially erode any financial advantages. For example, you’ll want to pay close attention to the cost of communication and coordination with outsourced workers, as well as the cost of compliance with local labor laws and regulations.

When selecting an outsourcing provider, choose one that is transparent about prices. Also, look for a provider that adds value with payroll, human resources, and compliance services. This reduces management complexity for your organization and minimizes unexpected additional expenses.

5. Protect Against Security Risks

Unfortunately, data security risks are a modern business reality — especially when you rely on outsourced labor. Of course, some security breaches are unintentional. This is where proper upfront training can build awareness and help staff protect sensitive data and systems.

Regardless, intentional threats still exist. Although your trust in contingent staff will naturally increase over time, proactively protecting your business is mission critical. Some of my clients have experienced security breaches because they shared a little too much data and information before new hires settled into their roles. You don’t want that to happen.

To minimize exposure, carefully review outsourcing provider agreements for indemnification clauses that protect you in the event of a security breach. Also, your organization should use password-sharing tools that make it easy to detect and lock out workers who pose a threat.

A Final Note on Outsourced Labor

For most organizations, business uncertainty and talent shortages continue to play havoc with workforce planning. In this environment, it’s critical to determine how your organization can operate effectively and efficiently, no matter what. Hiring the right people is essential. But if you’re reducing headcount or slowing your hiring rate, outsourced labor is an attractive alternative. Relying on contingent staff to augment your in-house team can help you cut expenses and improve business efficiency without compromising core functions. And when managed well, this solution can help your organization effectively weather today’s economic challenges.

Rightsizing Your Workforce in the Face of Economic Change

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Businesses everywhere are still grappling with tremendous change, as pandemic aftershocks continue to roll through the global economy. Although most Covid-era restrictions are behind us, organizations large and small are still dealing with significant people-related issues. Workforce capacity planning is just one piece of this complex, multi-faceted puzzle. But if you’re an employer, rightsizing your workforce has likely become one of your top priorities during these turbulent times.

One of the most serious repercussions of the pandemic involves talent — or the lack thereof. Companies aren’t able to hire enough skilled workers to meet their operational needs. This inability to attract and retain qualified talent — coupled with inflation — is driving compensation higher. In fact, according to the March 2023 U.S. employment cost index, civilian wages continue to increase, up 5.0% over the past year. And depending on the industry, some workers are asking for even more.

This means employers are having to get creative when attracting and sourcing talent. For example, some are focused on rightsizing their workforce to maintain operational efficiency while qualified workers are in short supply. And many companies are downsizing and upsizing simultaneously, as they adjust to continuously changing industry challenges and trends.

Effective Workforce Rightsizing Isn’t Only About Efficiency

For numerous organizations, workforce rightsizing involves reliance on contingent workers. This can be a smart choice. Contractors and temporary workers often provide the flexibility needed to operate efficiently and effectively, even when market demand shifts or business priorities change. This strategy is also attractive because it helps protect internal employees and their core responsibilities.

Even so, a flexible workforce might not be enough to weather a negative business cycle. It may also be necessary to make the difficult decision to lay off existing employees. Obviously, the most challenging aspect of downsizing is deciding which employees to lay off.

Is it best to make these decisions based on individual performance? What role should seniority play? And how can you be sure your remaining team will have the skills, knowledge, experience and motivation to sustain your business through tough times and support future growth?

If layoffs are followed by a hiring freeze, there’s the additional question of how to retain remaining employees. What will you do if critical contributors decide to resign? The last thing you want to do during a business downturn is jeopardize a product launch, revenue goals, or customer experience.

It’s important to recognize that drastic workforce adjustments can trigger problems with stress, morale, and engagement. Naturally, staff members who aren’t laid off are likely to soon wonder, “Is more bad news on the way?” or “Am I next?”

Even in an era known for record levels of voluntary resignations, job loss is foremost on employees’ minds. In fact, it is the top concern among 85% of people, according to the Edelman 2022 Trust Barometer. Concerns like this can prompt even the most loyal team members to start hunting for a new job. And without proactive intervention from leaders, this kind of “flight” response can spread and upend your organization’s efforts to regain stability.

Rightsizing Your Workforce: 4 Key Strategies

When rightsizing your staff, finding the right balance isn’t easy. It’s even more difficult when you need to downsize one department while upsizing another.

You can certainly be upfront about your intentions — and you should be. Transparency and clear communication are essential when managing change. However, you can’t afford to lose sight of the fundamental challenge every organization must face. You must determine the best way to anticipate and respond to potential business fluctuations. Here are a few ideas that can help:

1. Include Contingent Workers in Your Plan

By definition, contingent workers serve as supplements to your core employee base. They generally work on a project-by-project basis. As such, adding contingent workers to your plan offers significant flexibility when rightsizing your team becomes necessary.

In fact, 63% of organizations told SAP Fieldglass that contingent workers enable greater organizational agility. What’s more, 62% believe contingent workers are essential for filling key IT and digital skills gaps. For example, when companies experience a sudden influx of work, they can call on this scalable talent pool for quick access to the right capabilities.

2. Be Strategic About Any Hiring Freeze

When initiating a hiring freeze, one of the biggest mistakes companies make is to halt all recruitment activities and contingencies, entirely. It’s important to continue hiring-related processes. This way, when the need for additional help arises, you can more easily pick up where you left off and maintain operational continuity.

Even if incremental roles are temporary, you’ll be better able to tap into the skills needed to support critical business objectives. In fact, 61% of companies told SAP Fieldglass that contingent workers help accelerate their speed to market. In other words, relying on flexible staffing can actually help you continue to scale during a hiring freeze.

3. Treat Skills Development as a Long-Term Investment

Don’t be shortsighted about talent recruitment or development. Focusing only on the skills you need now can leave you scrambling to fill critical roles down the line. In addition to the skills and competencies you need today, emphasize what will be essential for your business in the next few years.

Investing in professional development also gives you a chance to leverage learning and growth opportunities in your recruitment efforts. It can help your job openings stand out in today’s environment, where jobseekers value employers that emphasize learning and career advancement.

4. Leverage a Talent Marketplace

Essentially, a talent marketplace is a system that helps employers align talent with open roles. It can work one of two ways:

  • Internally, you can use this kind of system to facilitate employee mobility, helping individuals pursue different roles based on their skillset. Or you can redefine and reorganize an employee’s existing role so it better aligns with your organization’s changing needs. This process can be especially helpful during a hiring freeze.
  • Externally, a talent marketplace can help organizations open the door to freelance, temporary, or gig workers who are qualified for hard-to-fill roles. Think of it as creating a larger, more agile talent pool that lets you secure the right skills at the right time, while saving costs typically associated with recruiting and hiring internal employees.

Final Notes on Rightsizing Your Workforce

Pandemic aftershocks are still reverberating through the business world — and organizations will continue to be disrupted by unexpected external factors. As a result, smart employers are staying open to more agile workforce planning and management strategies.

Today’s successful employers are already rethinking the way they recruit, hire, manage, lead, compensate, and redeploy talent. Rightsizing your workforce is just one piece of this larger puzzle, but it can make a significant impact on your organization’s long-term success.

Flexible Work And The Power of Choice #TChat Recap

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Working “In The Zone”

Think for a moment about your ideal work scenario. Look beyond the substance of the work, itself. Instead, focus on structure, and flow, and surroundings. Think about the “how” and the “when” and the “where” that make it possible to perform well.

What does it feel like to operate in your most productive way? And how often do you actually achieve that level of focus and energy? Is something standing between you and your vision? If so, how could you or your employer close the gap?

Of course, each of us has a unique work/life narrative. And there are countless ways to create an effective fit between professional responsibilities and personal pursuits. But anything is possible, as long as we’re empowered to make choices that work for us and for those who need our talent.

Straight Ahead: No Boundaries

Did I just hear a chuckle from the cynical side of the house? Granted, I see blue sky in the forecast. But this week’s #TChat forums indicate that flexible options aren’t just an isolated phenomenon or a passing fancy. Instead, soon we should expect many more workers to find  flexibility within reach. Why? Consider these points:

1) The concept of work, itself, is being radically redefined — as Jason Fried, founder of the productivity application company, 37Signals, explained in this compelling TED Talk:

2) Employers are waking up and recognizing the business value of flexible work options. And, as many #TChat participants suggested, ROI can be measured in multiple ways. For example:

(For more thought-provoking tweets, see the #TChat highlights slideshow at the end of this post.)

3) Our expert guests are evidence that flexible options are gaining credibility and momentum. Both are leading the way in today’s work/life fit movement. They shared real-world perspectives about why these initiatives are gaining traction, along with tips to “make it work.”

• Lisa Horn, Co-Leader of SHRM’s Workplace Flexibility Initiative and a SHRM Senior Government Relations Advisor;
• Susan Lovegren, SVP of HR at Plantronics, a leading-edge technology company that offers “Smarter Working” choices.

(Hear details in the #TChat Radio show listed in the week’s resource list, below.)

4) The backlash has begun. You know a business practice is becoming legitimate when  nay-sayers appear at the gates. Ironically, just this week HR Executive Online reported on “next wave” research: “Non-Remote Workers Jealous of Telecommuters.” Why leave anyone behind? As our #TChat Radio guests explained, even when telecommuting isn’t practical, flexibility can come in other forms.

5) Key takeaway — change is a two-way street. Whatever is ahead in the realm of flexible work, it’s clear that change is needed on both sides of the employment contract. As this nested tweet suggests:

Thanks to everyone in the TalentCulture community who contributed opinions and ideas at this week’s #TChat events! We invite you to review highlights in the slideshow below, along with other related resources — and we look forward to expanding this conversation, as work/life blend issues continue to shape today’s workplace!

#TChat Week-In-Review: The Flexible World Of Work

SUN 8/18:

Forbes.com Post: To kickstart the conversation, TalentCulture CEO, Meghan M. Biro challenged business leaders to recognize the value of flexible work options. Read: “5 Reasons Why Workplace Flexibility Is a Smart Business Strategy.”

MON 8/19:

#TChat Preview: Our Community Manager, Tim McDonald, expanded on the week’s topic and events in his preview post: “Reworking The 9-to-5 Office Job.”

TUE 8/20:

Related Post: TalentCulture blog contributor, Heather Huhman, offered a snapshot of today’s flexible workforce trends with an infographic post: “5 Reasons To Hire Flexible Talent.”

WED 8/21:

TChatRadio_logo_020813

Listen now to the #TChat Radio show

#TChat Radio: In a highly informative warm-up to the Twitter conversation, Lisa and Susan joined our hosts, Meghan M. Biro and Kevin W. Grossman to discuss key issues and opportunities surrounding flexible work options, and how the concept translates into organizational life at Plantronics. Listen now to the radio show recording.

#TChat Twitter: Immediately following the radio show, our entire community gathered on the #TChat Twitter stream for an open discussion about work/life fit from many points of view. To see highlights, check out the Storify slideshow below:

#TChat Highlights: Workplace Flexibility As A Business Strategy

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Closing Notes & What’s Ahead

GRATITUDE: Thanks again to Lisa Horn  and Susan Lovegren for generously sharing insights about flexibility initiatives and work/life blend issues. You’ve opened our eyes to new aspects of this critical business trend.

NOTE TO BLOGGERS: Did this week’s events prompt you to write about flexible work arrangements or work/life fit issues? We’d love to share your thoughts. Post a link on Twitter (include #TChat or @TalentCulture), or insert a comment below, and we’ll pass it along.

WHAT’S AHEAD: Next week, our “summer restart” series concludes, as author Bob Burg joins us to  look at entrepreneurial endeavors within corporate environments. So plan to join us, and check for details this weekend on TalentCulture social channels.

In the meantime, the World of Work conversation continues everyday. So join us on the #TChat Twitter stream, on our LinkedIn discussion group. or on other social channels. And feel free to explore our redesigned website. The lights are always on here at TalentCulture, and your ideas and opinions are always welcome.

See you on the stream!

Image Credit: Stock.xchng

5 Reasons To Hire Flexible Talent

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Having a hard time finding the right employee for the job? You may be looking at the wrong group of candidates. According to recent reports, hiring within the flexible job market has steadily increased over the past 12 months. In addition, employers plan to hire more flexible workers this year than any other year before.

So, why is it in your best interest to consider flexible workers?

This infographic, compiled by Hourly (an employment network that quickly matches people who are interested in flexible positions with the right opportunities), illustrates why the flexible talent pool is the group to watch. Some noteworthy takeaways:

  • 40% of employers plan to hire temp workers this year, and more than 80% plan to increase their flexible workforce;
  • 25 million Americans work part-time, 20 million telecommute, and 10 million are independent contractors;
  • 39% of temporary workers will transition into full-time jobs.

If you’re an employer, what role do flexible workers play in your talent strategy? Or, if you’re on the other side of the table, as part of the flexible workforce, tell us how flexible options have helped or hindered you.

Check out the full infographic below, and share your thoughts in the comments section!

What do you think? What are some other reasons to hire flexible workers?

(Image Credit: Nicole LaPointe-McKay)
(Note: Gumby is a trademark of Premavision Inc/Clokey Productions)