Contingent Staffing's Role in Preparing for "the Great Resignation"
(Source: Firos nv on Unsplash)
During the uncertainty of the height of the pandemic, employees chose to stay at their jobs. At the time, unemployment was rising as some businesses shuddered and others let go of employees. The job market became challenging for job seekers in some industries.
Now that there is a tentative end to the pandemic in sight, some employees are reassessing their current positions and preparing to look for greener pastures elsewhere. If these trends are correct, it could result in mass resignations across industries. At least, that's the assessment of a recent article in Fast Company which examined reports and studies about the phenomenon.
But the pandemic isn't the sole driver of this trend. According to a quote by Shahar Erez, CEO of freelance talent platform Stoke, "The great resignation is propelled by three forces: the changing generation, the economic crisis, and the realization people have had that they can have a different social contract, spending more time with family when they work remote and skip the commute."
The extent that employees search for new jobs may depend on each company, but procurement departments must prepare to keep the organization from being caught off guard.
Advocate for More Flexible Working Conditions
One of the key reasons people are planning to leave their jobs is because they are realizing the benefits of flexible working conditions. During the pandemic, many employees had to work from home. Although this created some significant challenges for organizations, it also demonstrated that some roles can be done effectively even if the employees filling them are outside of the office.
Some employees also preferred working from home, for obvious reasons. It Meant they could be closer to their families, work in a more relaxed and comfortable environment, and didn't have to commute. Now that workers are going back to their offices, they're discovering that they're missing the many perks of working from home, causing them to search for jobs that provide more flexibility.
If possible, advocate for workplace flexibility as a standard at the organization. This may not persuade every employee to stay in their position, but it could persuade those who consider flexible work a priority.
Offering flexible working conditions doesn't require a sacrifice in productivity. Many organizations have successfully launched hybrid work programs that allow employees to work from home on certain days of the week, for example, and some have even realized an increase in productivity as a result.
Procurement must play a significant role in developing this type of program. In most cases, the function will be responsible for acquiring the tools and resources necessary to facilitate remote work.
Develop a Contingency Plan for Staffing Shortages
Most business continuity plans include a business impact analysis that examines or predicts the consequences of disruption while also laying out the proper response for that disruption. As such, mitigating the risks of staffing shortages should be an integral part of your organization's business continuity plan.
Your recovery strategy should include a means to acquire staff in the event of a shortage. This may include a plan to hire a contingent workforce, but it could also include a plan to scale up resources for traditional internal hiring.
Analyze your area's job market to determine if there are enough active job seekers to find internal staff when you need it. If there aren't, you should consider reaching out to staffing agencies, contractor networks, and other staffing partners in advance. For example, some states tend to have relatively low unemployment rates at most times of the year—if you're in one of these states, you may need to extend your contingent staffing resources.
Depending on your industry, you may also need to bring in labor from outside your immediate area. Don't hesitate to seek help from staffing agencies outside of your state or region. The manufacturing, IT, healthcare, retail, and maintenance industries rely on contingent workforces from around the country at certain times of the year or in varying amounts throughout the year depending on the need.
Consider a Blended Workforce as the New Normal
Many organizations are hesitant to rely on freelancers, contractors, and contingent staff because they don't believe they'll be able to train them fast enough. While productivity is often a concern when working with contingent staff, many organizations have found success by augmenting their internal staff with a consistent branch of contingent workers.
For example, according to Forbes, tech giant Microsoft has two-thirds as many contractors as employees. Forbes also reported that 91% of companies are already utilizing some form of outside talent.
Prepare for the Next Disruption
By forming stronger relationships with staffing agencies and contractor networks, companies can scale their contingent staff as needed. When gaps in roles appear, they can quickly be filled.
Contingent staffing doesn't have to be a means to an end, either. If contingent employees show an aptitude for the work, they may even be attracted to full-time positions.
To learn more about how procurement can keep the organization agile during times of disruption, don't miss the next ProcureCon Contingent Staffing Virtual Summit and Expo. Sign up for free today.