Why Let Independence and Business Success Remain Temporary?

There is no end to the challenges firms face in hiring and retaining top talent. In 2022, ManpowerGroup found that 75% of employers worldwide reported staffing shortages, a problem plaguing various industries today.?

To solve manpower shortages, enterprises across various industries have used direct sourcing to address talent gaps in their operations. The strategy of continuously nurturing and engaging a pool of vetted independents who can immediately be deployed for projects has proven effective.

While many enterprises use direct sourcing, many see this as a one-off tactical program instead of a long-term solution. To maximize the benefits of direct sourcing, enterprises must see it as more than a stopgap measure and instead a strategic imperative.

Under current economic pressures, attaining improved business outcomes within the desired timeframes may not be achieved through traditional models of hiring employees and using staffing firms for contingent labor.

Direct sourcing can help your firm weather talent shortages, address staffing needs, and maximize enterprise value in the long run. With that said it, would be disadvantageous for your firm to not leverage the independent workforce, which has grown to over 64.6 million in 2022, a dramatic rise over the 38.2 million workers in 2020.

But too many enterprises I speak with still see independent workers as a temporary measure rather than a long-term solution. Independence is not temporary - strategic approaches to workforce optimization are not just the key to ongoing success, they are imperative to ensure businesses are not left behind.

Strategic direct sourcing addresses labor gaps quickly and flexibly, even in tight timeframes, ensuring unhindered productivity and business success. As an enterprise leader who wants to maximize the benefits of direct sourcing as a long-term strategy, it’s your responsibility to:

●????? Carefully plan what types of talent your company needs and organize these talents into pools of valuable labor.?

●????? Develop and maintain relationships with existing talent pools to encourage their continued engagement with your firm. Doing so boosts your firm’s direct sourcing program’s effectiveness and your company’s status as a client of choice.

●????? Work with your management to achieve workforce optimization and accelerate productivity by having a “mix” of independent labor, full-time workers, and even offshore talent.

●????? Incentivize your business units to utilize independent contractors to hit financial targets by having legally compliant processes, a talent-friendly environment, and a management system for leveraging independents.

As our CEO, Miles Everson , has pointed out: “Why limit yourself to just 25% of the available workforce when there’s a human capital scarcity problem and companies are struggling to hit investor returns?”

You risk being left behind in 2024 and beyond if you're not thinking strategically. Now is the time to optimize your workforce and ensure lasting business success by adopting direct sourcing permanently in your firm.?

Today’s issue was guest-authored by VP, Enterprise Solutions John Devlin .

Trending Topics:

●????? According to the Wall Street Journal , 30% of white-collar workers have used their paid sick leaves this year, up from 21% in 2019. Though some firms find this costly, more employers and managers agree that being generous with sick leaves can help build loyalty among workers, especially in a tight labor market.

●????? New research from MIT Sloan Management Review found that toxic workplace culture and lack of organizational support is driving a nursing shortage that can result in 450,000 or 20% fewer nurses in the U.S. healthcare system by 2025.

●????? iSolved’s annual survey of 1,100 full time employees found that nearly 60% of them intend to switch jobs this year, with salary being a motivating factor in 2 out of 3 workers.

●????? Intel CEO Pat Gelsinger highlighted the importance of reforming immigration laws to? address the talent shortage in the U.S. chip manufacturing industry.

●????? According to an Entrepreneur article , retaining employees during a recession can be better achieved with increased mental health benefits and flexible hours.

●????? Aflac’s annual report found that nearly 90% of employees with burnout also suffered other mental health conditions such as anxiety and depression over the past year, causing some to switch jobs.