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KEY TAKEAWAYS CWS DALLAS 2018

The Hays Talent Solutions go-to-market team was out in force for last week’s CWS and Gig Economy conference held in Dallas, TX. In addition to strong representation from solution providers across the contingent workforce solutions ecosystem, there were also over 600 buy-side attendees representing 300+ organizations.

Most people receiving this communication know the value and importance of the contingent workforce, but we sometimes forget just how significant it is. To put it into perspective, SIA estimates the global “gig” economy spend to be $3.7 trillion and that a significant portion of the US workforce (approaching 50% according to many experts) will be contingent within the next decade. These figures include all categories of non-employee labor (temporary workers, freelancers, consultants, contractors of all stripes.)

The following are a few of the major themes we observed:

Talent scarcity

The war for talent is over, we are clearly in a new era of talent scarcity. Many organizations are struggling to both attract and retain the talent they need to execute their business plans. The concept of “total talent management” whereby organizations seek to engage the “best” type of worker for the work that needs to be completed.

HR and procurement

There is a pronounced shift in terms of who “owns” the contingent workforce within organizations. Procurement has begun to play more of a supporting role, instead of leading. Under their leadership, HR and Talent Acquisition has shifted their focus to attracting and engaging the best talent at the right place and time, seeking quality instead of driving cost out. Additionally, HR and TA, who are veterans in creating and messaging their Employer Value Proposition can use that experience to create on designed for contingent labor, Contractor Value Proposition.

Diversity

Diversity, inclusion, representation was a thread that came up in a number of sessions. In addition to being the right thing to do, there is a huge volume of research that is proving it drives better decision making and improved business performance. One big challenge for contingent workforce programs is that it is easy to drive diversity spend by selecting diversity certified suppliers, however that does not guarantee the actual workers provided are in fact diverse. As more organizations focus on this challenge we will no doubt see improvement.

Technology-enabled services

Technology has become an important building block to an effective contingent workforce management program. There were a number of VMS systems, recruiting solutions, FMS platforms, and online staffing providers speaking and exhibiting at the conference. Three things are clear: (1) This has evolved into a complex and interconnected ecosystem of solutions, (2) The “right” solution will be different for each unique organization use case, and (3) Technology alone will not solve the problem. An effective contingent workforce program requires technology with a robust service layer.

Talent Forward MSP

Hays Talent Solutions received a lot of attention at the conference with our vendor neutral, Talent Forward MSP strategy. This model strives to provide clients with the best talent, at the right time and place, for a fair cost, regardless of worker classification or source. Clearly, many organizations are recognizing that an enabling approach to engaging staffing partners is a better path forward in the new era of talent scarcity. For more background on our unique philosophy check out the Talent Forward Manifesto here.

SOW

Gaining greater control and visibility over SOW spend continues to be a challenge that many organizations want to address. Many organizations have experienced a dramatic increase in SOW spend as a result of implementing contingent workforce management programs, this “squeeze the balloon” effect has created new levels of enterprise risk in terms of worker misclassification and unmanaged spend. As SOW spend grows in volume it also grows in importance for contingent workforce program managers to monitor it.

Extending the supply chain

In an effort to find and engage the best talent, many organizations are exploring how to go beyond the traditional temporary agencies and when to get talent. The notion of an extended supply chain now includes online staffing solutions, SOW, independent contractors, consulting firms, and direct sourcing.

Direct sourcing

While many organizations are beginning to enable self-sourcing (where their managers engage with known workers, often with a payroll provider in the middle) very few have deployed a true direct sourcing solution, where a third party helps them to recruit and curate a proprietary talent pool that can be leveraged to provide better talent, quicker, and at a lower cost than traditional temp agencies. While companies like Hays have been providing this solution for years in EMEA and other regions of the world, we predict this approach to finding and engaging talent will explode in the upcoming years here in the Americas.

Self-managed programs

Out of sheer frustration with the lack of innovation and new strategy from traditional MSPs, more companies are exploring the merits of self-managing their contingent workforce programs. This “make versus buy” consideration is understandable when so many programs look and operate the same way, and cease to deliver anything but small incremental improvements year over year. While this will undoubtedly prove to be the right move for some organizations, many will discover that it is not easy to do, and over time a program can become completely insular and out of touch with the market and industry best practices.

Focus on talent

Given the imbalance between talent demand and talent supply, there was a surprising lack of discussion or focus on improving the talent experience for contingent workers. Unlike traditional employees there is very little social safety net for gig workers, who typically don’t enjoy anywhere near the same access to wellness benefits, retirement plans, or continuing education opportunities. This is a challenge for the industry, and a huge opportunity for organizations who can build a “client of choice” brand that attracts and retains talent by adding more value than just providing a gig.

Overall, this year’s CWS conference proved that the contingent workforce is a growing and dynamically evolving segment of the economy. As talent scarcity and the need for business flexibility continue to grow, the contingent workforce - and how organizations engage it – will create a strategic advantage for those who embrace it.

AUTHOR
Kimball Norup
SVP, Head of growth at Hays Talent Solutions- Americas

With nearly two decades of experience in the human capital management industry. Kimball has experience in structural engineering, publishing entrepreneur, and running a successful strategy consulting firm. He earned a Bachelor of Science degree in Civil Engineering from California Polytechnic State University, San Luis Obispo and an MBA with honours from the University of California, Davis.

Now his expertise is used working cross-functionally with the Hays Talent Solutions global leadership team to build the strategic plan for the expansion of Hays Talent Solutions in the Americas region. Focusing on business growth and client acquisition, activation, retention, and upsell across the region.