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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.

Hiring In a Recession: 3 Strategies for Business Resilience

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The global economic climate is in a precarious state, with experts now predicting a 70% likelihood that the U.S. will enter a recession this year. No doubt, this news is unsettling for business owners. But it’s important to remember that recessions are a natural part of ongoing economic cycles. They can even present opportunities for organizational growth and resilience if you know how to capitalize on them.

So, how can leaders navigate today’s challenges and emerge even stronger on the other side? By strategically hiring in a recession. If you want to build bench depth on your team during tough times, here are three strategies to consider:

3 Strategies for Hiring in a Recession

1. Go Global With Remote Hiring

We’re in a much different position now than during The Great Recession of 2008. So is the global workforce. Thanks to technological advances and the prevalence of remote work models, it’s much easier now for hiring managers to tap into the vast global talent pool.

Compared with local hiring strategies, seeking out top talent internationally offers multiple advantages. Not only can you gain access to a much larger source of candidates, but you can also achieve significant overhead cost savings if you hire people in locations where labor costs are lower.

In addition, sourcing job candidates from around the world can help you develop a much more diverse team. If you are careful to hire skilled professionals, an international approach can inject your work culture and business deliverables with fresh perspectives. This can help your business operate more effectively and efficiently while supporting long-term growth.

That said, hiring globally isn’t without its challenges. To succeed, hiring managers need to be aware of hiring laws and regulations in their chosen countries, as well as cultural differences. It’s also important to ensure that hiring practices are fair and equitable, regardless of where potential employees may be located.

The importance of remote work leadership also needs to be taken into consideration here. Your organization should be prepared to develop and support management skills and practices that will help remote teams stay connected, engaged and motivated.

2. In an Era of Mercenaries, Focus on Your Missionaries

The last few years have been like a game of musical chairs for the labor market. The Great Resignation resulted in 44% of workers hopping from job to job, searching for higher pay, better benefits, and more flexible work options.

This led to a new trend known as “mercenary hiring,” where employers use inflated compensation packages to recruit highly skilled candidates without regard for the company’s mission or culture. However, this recruiting practice can be very risky. While it may be an effective way to attract top talent in a tight labor market, it can also lead to increased workforce churn and damage company culture.

Fortunately, there’s an antidote to mercenary hiring. Hire “missionaries” instead. Focus on people who share a passion for your company’s mission, purpose, vision, and values. These job seekers are more likely to invest in long-term success with your organization, so they’ll also be more invested in your company’s growth.

Of course, it’s one thing for employers to identify, attract and hire these “missionaries.” But it’s even more important to focus on creating an environment that nurtures them and encourages them to thrive. For example, this can include competitive salaries, consistent recognition, and generous professional development opportunities, as well as incentives like flexible scheduling and remote work options.

3. Find Opportunity in Adversity

The hiring landscape may have changed, but one thing remains the same: Hiring during a recession is an opportunity to tap into highly qualified talent you might not find as easily during better economic times.

During the last recession, the U.S. lost 2.6 million jobs. And in 2022, we began seeing some very prominent companies announcing major layoffs. While this news can be disturbing, hiring managers should see it as an opportunity to find the best and brightest talent amidst the chaos.

History has shown us some iconic instances of hiring when the job market was at low ebb. For example, in the 1940s, Hewlett-Packard famously capitalized on the closure of military labs to beef up its workforce. And during one of the nation’s worst 16-month economic cycles, Microsoft took the initiative to hire some of its most influential engineers. Both cases offer powerful business lessons.

Key Takeaways

So, what’s the moral of this story? Here are the three key takeaways to keep in mind about hiring in a recession:

1. Top Talent is Only a Zoom Call Away

With the rise of remote work and virtual hiring tools, it’s easier than ever to find top talent in all corners of the world. Don’t limit your search to local candidates. Consider expanding your talent acquisition reach to a global scale. This can open you to a broader pool of qualified, motivated candidates while giving you access to diverse skills and experiences.

2. Resilience in Hiring is More Than Just Hiring More People

In a recession, it’s important to be strategic about who you recruit. Look for individuals who share your goals and understand your company’s mission. People who sincerely want to advance your agenda are much more likely to stay with your company during difficult times. Focus on building a team of dedicated employees who are willing to be flexible during uncertain times. This will help you weather the storm and emerge stronger on the other side.

3. When Others Freeze Hiring, Be Bold

During a recession, it can be tempting to react with a hiring freeze. Although that approach may save costs in the near term, it is also likely to be a mistake. Investing in talent during tough economic times can set you apart from competitors and position you for success in the long term. Don’t be afraid to be brave and continue investing in your team, even when times are tough. This can help retain your best existing employees, while also helping you attract strong new talent. That combination can build the foundation your company will need to drive future growth.

Final Note

Overall, the key to successful hiring in a recession depends on three factors – your ability to be adaptable, strategic, and focus on building a team that is willing and able to weather the storm with you. By keeping these principles in mind, you can navigate even the toughest hiring climate and make your organization more resilient in the face of any economic downturn.