Looking back on the Staffing Industry - various shifts and changes have made the Industry what it is today. While we’ve come so far from what it used to be, there are still challenges facing us in this ever-changing world of work. 

So, what should we be expecting? What should we be prepared for? And what are the opportunities we should be taking advantage of in order to be successful? 

While I cannot claim to have a crystal ball, over 25 years spent in the staffing industry means that I can offer some (hopefully) useful insights to help us navigate the future.

Integration not fragmentation

At the most recent ‘Collaboration in the Gig Economy" conference, there were several showcases introducing technologies. Some found new ways to address old challenges, or in some cases provided an innovative solution to leverage an emerging opportunity, and almost all of them required the addition of a new system to an already crowded ecosystem.

As one speaker noted, the real innovation will be in how we “integrate these services and technologies together.”

Historically, the Vendor Management System was the sole system of record. While it still forms the spine of most workforce management programs, there are numerous other technologies that need to be considered. 

While some service providers have adopted an open network approach to integration, while others have pursued a “preferred” or sole partner approach. Each offers different advantages and challenges – an open approach gives organisations more options, but in turn limits the support each provider can supply. A preferred partner approach reduces the number of choices, but adds an expertise and commitment to optimizing technologies. 

The opportunity for our industry is to develop an ecosystem that provides the full scope of service, but in the words of one speaker at Gig Economy, it must “defragment, so it is seamless.”

How do we solve the Total Talent puzzle? 

When I joined Hays Talent Solutions in the mid to late 1990s, of Total Talent was largely aspirational. Permanent hiring was largely the domain of Human Resources or individual managers and there was limited central oversight of temporary workers or contractors, if at all. Over time, Managed Service or Contingent Workforce Management programmes gave visibility over the non-permanent workforce and talk of integration surfaced.

In the time that has passed, progress in Total Talent has largely fluctuated between the “peak of inflated expectations” and the “trough of disillusionment” within the hype cycle. According to Staffing Industry Analysts, the biggest barriers have been the lack of executive sponsorship paired with siloed decision making – sentiments I would very much echo.

Previously, success was found in the integration of permanent and temporary/contract hiring, but the process was sporadic. Later came a breakthrough when the focus switched to the integration of Statement of Work with other non-permanent categories. 

The pandemic stalled some of these larger scale Total Talent projects as organisations were forced to address other immediate challenges. However, this also brought some much-needed executive focus on the “Total” workforce and broke down barriers between functions.

The opportunity for the staffing industry is simple, “how do we enable our clients to take advantage of this unique set of circumstances and look at the workforce as a single population?” 

From my perspective, the ability of providers like Hays to support this integration is there, but I am also already seeing a worrying return to siloed or less ambitious thinking within organisations. Let’s hope we can collectively take the next steps while the opportunity is so readily available. 

How do we reconcile the old world of work we knew?

In 2015 I filed three tax returns. One each in the UK, US and Hong Kong, recognising my work or investments in each country. While this was simplified by having a single employer during that time, it is becoming more common for people to have a portfolio of both traditional employment, contract assignments, and potentially a “Side Hussle.” The current in-country tax regimes have been focused on the traditional “one employer” arrangement. Governments have attempted to close the gap with legislation like IR35 in the UK and AB5 in CA and the USA, but these have been focused on capturing “lost” tax revenue rather than facilitating the new “Gig Economy.”

At the same time, organisations are increasingly looking to take advantage of skills and talent, wherever they are based. This introduces new challenges in cross-border tax and risk management. For example, the screening requirements of some organisations have historically included face-to-face ID confirmation, five years of references “on headed paper,” and numerous other checks before a contractor could be engaged. This is less practical, or near impossible, in the new global workforce.

This brings us to the second challenge, and opportunity, for the staffing industry - “how do we close the gap between an organisation’s appetite towards risk and their desire for agility?”

Again, the pandemic started to show what changes were possible when fully on-site populations transitioned to virtual within days. 

The staffing industry is playing its part, offering “wrap around” services over the gig platforms and managing cross border talent delivery from designated locations, but there is likely going to be a requirement by organisations and governments to recognise that previous “red line requirements” may no longer be aligned to the new, increasingly global way of working.

Conclusion 

Whether it’s technology, legislation or an unforeseeable “act of god,” the staffing industry is being influenced by several forces. It is up to us and our clients to transform these challenges into opportunities.

AUTHOR

Robert Moffat
Senior Vice President – Global Head of Solutions and Americas Head of Sales, Solutions and Marketing, Hays Talent Solutions
With a 25 year track record of designing, implementing and managing talent services Robert has a wealth of knowledge on the challenges and opportunities facing employers in maintaining a competitive advantage in talent acquisition, engagement and retention.

As Global Head of Solutions Robert is part of the global leadership team responsible for innovation and product development and as Head of Sales, Solutions and Marketing for the Americas he is responsible for growth of the region. Having lived and worked for Hays in Europe, Asia Pacific and the Americas he is able to bring a diverse range of thought and experience to the new challenges in the world or work.

He has a passion for new ideas, markets and opportunities and has been instrumental in a number of Hays’ recent global projects including the roll out of a Global Operating Method, Supplier Engagement Strategy, the evolution of our direct sourcing approach and a quick deploy RPO service for start-up and high growth companies.