4 Things to Reconsider as you build your Post-COVID Workforce

The pandemic isn’t over, but it’s encouraging to see European market trends—and some employers’ decisions—pointing toward better days ahead. My homeland of The Netherlands is a prime example. A recent economic analysis projects that the Dutch economy will shrink in 2020, but see 3.2% GDP growth in 2021. Similar projections for Germany and Belgium offer renewed hope for the broader European economy. We’re already seeing that most AgileOne customers are about to return to pre-pandemic production schedules in order to keep pace with demand. Analysts do project, however, that unemployment may continue to grow next year due to government support programs being reduced. It will likely reach unemployment levels we had in 2016.

As clients start regaining confidence and envisioning their post-COVID workforce, it’s clear that smart companies are looking beyond mere survival––they must grow through this versus just getting through the crisis. They’re doing the hard work of thinking short-term and long-term, containing costs and taking care of people, laying off employees, and building up talent for the rebound.

How? By thinking holistically and doing four things differently:

Using contingent talent wisely. As my colleague, Sam Lotriet, recently pointed out, the flex ratio (the percentage of contingent workers companies engage) has always risen coming out of a crisis. There’s a good reason for that, and it’s not just about cost savings. An influx of flexible talent opens the door for a more strategic approach to workforce management. With contingent workers in place to keep critical tasks moving forward, leaders have time to bring HR, Procurement, and key operators together to reimagine the composition of their workforce. They’re able to prioritize where to bring back full-time employees first; identify where flex workers make the most sense for the long-term, and re-assess which positions and skills are most urgently needed to re-emerge from the crisis.

Retaining and reskilling top talent. Workforce training has always been important, and the pandemic is only accelerating the need to reskill. Yet all too often, companies lose great talent because they take a compartmentalized approach to staff reductions. Every manager is instructed to cut x% of their workforce budget, and x people are let go from each department to hit the company’s savings target. This flawed approach attempts to boil workforce planning  down to a simple Excel exercise, and it’s one of the most damaging outcomes of an under-developed talent strategy. Smart companies turn this process on its head.  Instead of asking, “Who’s the least expensive to let go?” they ask, “Who’s the best to retain?” They know great talent is hard to find and expensive to bring back, so they focus on keeping strong performers even when times are tough. Instead of dozens of managers cutting $X in isolation, they engage HR to manage in ways that individual department heads cannot. HR takes a holistic look at talent across the company, develops creative programs for keeping the best people, and cultivates opportunities for upskilling. This holistic approach enables them to train and retain their best talent, even though it often means crossing department lines on the org chart.

Doubling down on company culture. Every layoff and furlough chips away at an employer’s brand and a workforce’s identity. We already see some companies face backlash for poor handling of staff reductions, and the resulting brand damage will linger long after the headlines fade. Workers will remember how they were treated during this crisis. Those experiences will be on their minds as they decide whether to rejoin their company or take their skills elsewhere. Smart companies stay true to their values even during a crisis, treating people with respect and making hard decisions with a clear code of ethics. When the market comes back—and it will come back—these employers will have a competitive edge in attracting the talent they need.

While it’s essential to make hard decisions with compassion, it’s equally important to tend to the well-being of employees you decide to keep. More than ever, leaders need to set a compelling vision for their remaining teams to rally around. They need to offer reassurance that this crisis will pass, bring people together in a spirit of hope, and reinforce the very best elements of their employer brand. Culture can serve as a reassuring constant in a world that is swirling with unknowns. It can also strengthen the message that leaders value their top talent and are invested in their long-term success.

Turning layoffs into layovers. Imagine your flight is cancelled, and the airline offers zero new options for you to reach your destination. That’s exactly what happens when companies cut workers loose and sever all communication with them. It’s especially common among contingent workers, who are often the first to be let go in a crisis. Smart companies know that treating people with respect and fairness during reductions is critical, but it’s not sufficient.

They take proactive steps to keep the lines of communication open with strong performers, creating a space for them to regroup and re-engage between assignments. Talent communities are an excellent means of reaching this end. At AgileOne, our TalentETL platform lets clients nurture relationships and maintain a pool of leads. Rather than simply cutting contingent workers loose with nowhere to go, companies can provide an online community that expands their employer brand to attract contingent workers of all types. Doing so seamlessly links their career site to open requisitions in their VMS. Candidates benefit by getting automated job notifications, participating in branded social channels, and experiencing an ongoing connection with a company that had to let them go but would love to have them back.

Leaders can and must think both short- and long-term during times of crisis. Reductions may be inevitable, but adopting these best practices can help your company move beyond reactive exercises toward true workforce planning—helping your business meet today’s needs while designing a stronger future. 

MSP and Life After COVID-19: Join us for a Webinar

As COVID-19 continues to affect all aspects of the European business landscape, we are proud to host a discussion titled “MSP and Life After COVID-19.” Join us on Tuesday, November 17th, at 2:30 PM (GMT).

As your trusted workforce management partner, we have developed tools and strategies to help businesses navigate these challenging times. Hear from Tatiana Ohm, Managing Director, Europe, and Brian Clark, Senior Vice President, Global Solutions, on what strategies businesses need to acquire for the present, and how they should be planning. 

Space is limited for this FREE webinar so register today at: https://lnkd.in/dEi2ZRP