Leveraging Independent Contractors A Solution For the Talent War

Leveraging Independent ContractorsA Solution For the Talent War

(c) Gallagher and Consultants

Sara Conde

Director, Consultant Services

MBO Partners

Moderator


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Terri Gallagher

President/CEO

Gallagher and Consultants

Presenter


Evolution of IC’s – Shift from Companies Employing You Sparingly to ……….

• Early 1990’s ‐ the IRS began looking for employers who misclassified independent contractors as employees.

• 2007 – 2009 ‐ The “Great Recession” 8.8 Million Jobs Lost.

• 2011+ improved networks to connect IC’s to the people who need them.

• Growing IC population; why?


Evolution of IC’s – …….IC’s – in High Demand!

• 2010 ‐ The escalation of the “Knowledge Economy”.

• Enter the millennials and disenfranchised workers.

• Globalization of the workforce and the “Talent War”.

• Escalated technology evolution enables IC’s across the globe to connect with the organizations that need their skills and experience.

5.14.6 4.6

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4.0

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2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Avg. Nat. Unemployment Rate


Technology is Driving How, Where, and When We Hire IC’s

• Online Staffing Platforms ‐ allowing IC’s/freelancers to sell their services directly to businesses or consumers.

• Freelance Management Systems ‐ enables enterprises to self‐manage their engagements with independent workers and freelancers.

• Many of these systems are integrating into VMS tools to participate in Contingent Workforce Programs (CWM/MSP).

• IC Management Systems • MBO Partners – Provides Compliance, Engagement,

Payment, Talent Management. MBO Connect provides Direct Sourcing Cloud‐based “bench.”

• Clients have access to temp talent communities they otherwise would not have.

• Technology Connecting talent directly to end user; less layers

Connecting talent directly to end user; Increase of direct peer‐to‐peer, non supplier intermediated engagements

Total Spend “Human Cloud”

2014 2015 2020

$11B$16B+ $46.5B


How Can IC’s Market Themselves? • Network, Network, Network

• Word of mouth, particularly for those at $100K+ annual income

• Brokers• MBO Connect

• Former employers

• Protect your reputation and build your brand• Social Media• Continue to keep your skills relevant and current

• Online platforms good start for relatively young or inexperienced workers


Total Workforce Landscape – Expanding Opportunities for IC’s

• Technology Changes • New methodologies available to integrate IC’s into total workforce and expand IC opportunities across the globe.

• Risks –• Co‐employment “Uber Effect”.

• Control – Behavioral and Financial ‐Model is still evolving

• Some “Gig” companies moving to W‐2 (Spring.com, Luxe.com)

• Some of these suites getting dismissed (Google, Uber – Belgium).

• Treat IC’s right; majority of suits started by mistreated workers.

• Results of these suits will not slow down usage; the benefits far outweigh risks.


Companies Want to Hire You! ‐ IC Talent is Critical to sustaining Growth and Profitability

• Companies are recognizing the strategic advantage to growth and profit utilizing IC’s; high quality talent and cost effective.

• Globalization of the Workforce and Technology evolution• Connecting key talent to companies that need them across the globe quickly, efficiently.

• Businesses will continue to turn to independent workers to meet their needs for agility and flexibility due to an increasingly volatile, complex, competitive, and always‐changing global economy.


Advances with Workforce Intermediaries – Connecting IC’s to Employers• Different intermediaries were created (MSP’s, VMS’s, Hybrids, RPO’s, etc.).

• Over the past 15 years, information technology has begun to transform existing intermediaries.

• We are now entering a new period. Businesses are increasingly engaging independent “critical talent” on a contingent basis across the world.

• IC’s reach expands globally; Enter Online Work Platforms (OWP’s) and Freelancer Management System Platforms (FMS’s) .


Workforce Landscape – Mix of Labor Changing in IC’s Favor

• In 2015, the U.S. Department of Labor found that 65 percent of employers anticipate an increase in the use of flexible staffing arrangements to meet their future talent needs.

• Millennials – by 2020 are estimated to make up 50% of our workforce. They want interesting work, earnings potential, and mobility.

• Baby Boomers leaving the workforce and taking their skills/knowledge with them.

• This creates substantial opportunities for IC’s across the globe.


Workforce Landscape ‐ Globalization and the Talent War

• Globalization of the Workforce:• Economic tug of investment, production, and services toward emerging/developing markets.

• Technology‐enabled capabilities to engage those workers across the globe.

• Talent War• Talent shortages and shift in total workforce make up 33%+ temp labor creating unique challenges

• Shortages in Science, Technology, and Engineering and Mathematics categories (“STEM”).

• These categories have high percentage of skilled/experienced IC talent available.


How Will the “New Normal” in the World of Work Affect IC’s?

• Technology Changes • New methodologies available in Technology strategies (Human Cloud, VMS Integration) to integrate IC’s into total workforce.

• Globalization of the Workforce• Growing Utilization of Global Talent to accommodate organizations investment, production, operations, and services across the globe.

• Economic and market conditions creating explosive growth in usage of IC’s

• Average usage of temp labor was 20% of total workforce for organizations and growing; some are as high as 50%.


What’s Next for IC’s in the World of Work – Core Takeaways

• Technology, including mobile devices, is enabling the growth of opportunities and speed in which IC’s are connected to organizations that need their skills and expertise, across the globe.

• The Great Recession drove dramatic changes in workforce• More workers want to work independently, create their own career path.• Knowledge Economy, and Talent shortages in “STEM” categories creating many opportunities for IC’s; antidote to solution the Talent War.

• Globalization and the growing usage of temp labor.

• Benefits of utilizing the IC community in the “new normal” of our current workforce and economy far outweigh risks.


Leveraging Independent Contractors A Solution For the Talent War

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