What to do when more and more employees opt out of full-time employment?

More than 4 million Americans quit their jobs in April, and that record was broken again in August, according to the Labor Department. Both months represent nearly three times as many as were laid off or fired, and the most ever since the US Labor Statistics began tracking resignation data in 2000. Worse, a new Microsoft report titled, “The Next Great Disruption Is Hybrid Work – Are We Ready?” reveals that more than 40% of workers globally are considering quitting. Microsoft’s research, which evaluated over 31,000 workers in 31 different markets, suggests:?

1. Flexible work is here to stay
2. Leaders are out of touch with employees and need a wake-up call
3. Shrinking workplace networks are endangering innovation
4. Talent is everywhere, but only if you embrace a hybrid work model

The Federal Reserve recently highlighted excessive staffing challenges in its latest "Beige Book ", stating, "Many firms indicated they were operating with fewer staff members than they would like because of a dearth of job applicants.”

While over 50,000 US professionals permanently left the job market as COVID began to recede given a reprioritization of their quality of life, many more are simply opting out of traditional, full-time, and/or onsite employment.?

“Many of us have been working in a way that we realize may not be sustainable for the next two decades, and it has crowded out so many of the other aspects of life that are so vital,” says TBWA\London CEO Sara Tate, who plans to step down in September to start a consultancy and launch a book.

Tate is looking not for a new job but for new ways of working that don’t require a 60-hour-per-week commitment to succeed. “I want a much more varied or hybrid way of working,” she says. “I’m not sure that being employed in a job can offer this, so some of us are choosing to build serious career jobs under our own steam.” (AdAge, June 29, 2021, “Why Marketers are quitting their jobs - What the exodus means for the industry”)

“Talent has decided that they are no longer in jeopardy of losing their jobs, so they're more risk-tolerant about changing jobs, as well as quitting and either going freelance or taking time to reset,” says Debra Searcy, consultant, and headhunter at executive search agency Grace Blue.?

The ranks of freelance workers are swelling as last year’s drought of contract work comes to an end, says Simon Fenwick, exec VP, talent equity and inclusion at the 4A's. He predicts in less than 10 years an astonishing 50% of the advertising industry could be freelance.

So, this all begs the question, “What should business leaders do in the face of these new labor realities?”

Communo anticipated the migration from full-time to freelance years ago. As such, they have a sizable head start on helping both traditional employees and employers learn how to navigate the new world order of contingent labor. These three tips will hopefully prove helpful:

I. Don’t be crushed by the waves of change, ride them!

Business leaders need to open their minds and accept that many (perhaps even most) of their roles do not require full-time, onsite talent. Too many false or flawed paradigms exist about the benefits of permanent employees and/or the challenges of contingent workers. The truth is both have pros and cons, and employers are obligated to more thoughtfully consider both options.?

For example, pretend your full-time Marketing Director?for the past 8 years, resigns. Resist your instinct to immediately replace him or her with another full-time candidate. Instead, consider how that role has morphed over time, and consider how your future needs for that position will increasingly evolve.

Hypothetically, assume you post that position as is, and retain a headhunter. Let’s say you get 50 acceptable candidates.??

1. Of those, assume only ten (20%) are exceptionally qualified, meaning they are well-credentialed with highly relevant experience in the task AND within your industry.?
2. Of those 10, assume 8 (80% of remaining; 16% of total)) are affordable, meaning they are willing to work within your allocated overhead budget.
3. Of those, assume 4 (50% of remaining; 8% of total) reside within your city or are willing to relocate.
4. Of those, assume 2 (50% of remaining; 4% of total) would accept your offer because they really want to work for your organization full time.
5. Two strong candidates pale in comparison to organizations that think differently about accessing talent.

Using the same scenario as above, organizations with hybrid labor models and a willingness to access top talent who work remotely and on a contract or part-time basis, have a minimum of four times as many options to choose from (these organizations can stop after Step II, meaning they have 8 viable choices to consider). Given today’s hyper-competitive environment, 4X the talent pool is a massive competitive advantage. However, even more interesting, what if that position was posted on a platform like Communo? Instead of starting with 50 reasonable candidates, you may start with 100, or 500! Over 60,000 talented professionals and marketing specialists are accessible on Communo’s platform, providing employers an embarrassment of riches to begin their search from.?

II. Employees aren’t just looking for work anymore. They are looking for flexibility.

COVID-19, combined with extreme government mitigation tactics, caused us to reflect on what matters most, and how we spend our time. Rumors of a mass exodus from big cities are afoot as people look to reduce commutes and increase their standard of living. Worse, now every CEO in any market has to compete with the likes of renowned ‘best places to work’ like Google, Facebook, Dropbox, Salesforce, SAP, Shopify, and Zillow. Each of these firms can now hire top talent in any of our backyards because they are willing to hire workers who work anywhere. In fact, much of Google’s success is attributed to the fact that more than 50% are temp or contract workers. That hybrid approach results in both cost savings and access to specialists who do better work, faster. So, while perhaps we used to be the ‘hot shop’ in town or one of the better employers in a given city, now we have some serious competition eager to access our local workforce.

III. The dawning of a new DE&I day

Few talent management topics are more topical in the past 12 months than diversity, equity, and inclusion. “Agencies are having to rethink their recruiting model and admit our biases precluded us from hiring some great talent because of preconceived ideas we've had,'" says Simon Fenwick, exec VP, talent equity and inclusion at the 4A's.?

Most organizations need to severely overhaul their recruiting, retention, and promotion practices to create more equitable opportunities for all individuals, inclusive of any race, color, creed, sex, sexual orientation, age, religion, national origin, or disability. Doing so often requires far greater access to a broader and deeper talent pool, and being more accommodating for different working styles or preferences.?Diverse talent is often more easily accessible by seeking outside your geographic boundaries and beyond your typical universities. Fortunately, platforms like Communo attract diverse talent and make them easier to partner with.

The punchline is this: In order to compete, every organization needs exceptional talent. Unlike years past, more and more of the talent we want most are opting out of traditional full-time, onsite employment. Rather than be upset by this trend,?capitalize on it! Embrace innovative new talent management beliefs and behaviors that alter the blend of a full-time, part-time, long-term contract, and short-term contingent support.?

(If you’re seeking over 72 job functions associated with marketing, digital, creative, and/or advertising professionals, Communo is here to help you get started, and get better. Fast. www.communo.com)