How can you turn your
temporary workforce into an enduring competitive edge?
Within the evolving global labor landscape, many organizations are evaluating how they can best solve today’s talent supply chain crisis. Skills shortages are driving higher prices and inflation while adversely impacting business productivity, says Teresa Carroll, CEO of Magnit, a leader in workforce management.
Navigating the challenge requires strategically orchestrating the optimal workforce mix to ensure broader, faster access to quality talent while managing cost and compliance. How can companies adjust to this new workplace reality?
A leading multinational automotive manufacturer came to Magnit with specific goals for its pool of non-permanent—or contingent—talent. It wanted to transform a patchwork of short-term hiring fixes into cost-effective, scalable teams.
“Contingent is not throwaway talent,” says Carroll. “It’s a key part of your talent strategy.”
It’s a fresh perspective that’s helping companies to entirely rethink one of their most overlooked resources.
Understand The Causes Of The Talent Shortage
The supply of talent is being compressed at both ends of the scale; an aging baby boomer population is heading toward retirement, and declining birthrates have reduced the influx of workers into the market.
Tight immigration policies have only exacerbated this labor shortage, particularly in sectors that rely on foreign talent.
“[Companies need to] stop thinking that tomorrow is going to be like yesterday,” Carroll warns. “There are a lot of companies that have always worked with the same talent acquisition partners and continue to do so. They haven't thought broader in their hiring strategy than what they've always done.”
Know What It Means For Workers
Recognize Other Crucial Challenges For Employers
The talent shortage has handed new levels of leverage to workers, who are no longer job seekers, they’re job choosers. They want more control, better conditions and increased flexibility.
“More and more people want to work contingent rather than full-time,” says Carroll. Companies are realizing they need a strategy to meet the moment.
In addition to embracing a contingent workforce and flexible talent, companies need to review the worker experience to ensure people are treated fairly, feel appreciated and operate in safe, secure environments.
“How do you build your organizational environment and attraction processes to make people genuinely want to come work for you?” adds Carroll.
As companies progress through their talent optimization journey, embracing automation and AI will be key to driving future savings and amplifying output, says Carroll.
“If you aren't, as a company, automating as much of your work as possible…you're not going to increase productivity enough to compensate for a leaner workforce,” says Carroll. “Businesses should also increase focus on workforce reskilling and education to fill emerging skills gaps and improve talent retention.”
Companies are also beginning to recognize that having a homogenous workforce in a globalized world only exacerbates the effects of their talent shortage. Carroll suggests that companies need to identify and overcome any existing biases to better access pools of high-quality talent.