Solving the Workforce Puzzle #3: The Optimized Workforce

This is the third in a six-part series looking at key aspects of an effective workforce.

How a company leverages its talent resources can create a true competitive advantage. Organizations with a more flexible workforce can quickly pivot to changing project demands and client expectations, more easily meet budget constraints, and remain open to innovation. Modern organizations have increasingly seen the value of a blended workforce that relies on highly skilled independent professionals working alongside full-time employees.

Many businesses have realized they must think differently about the workforce to achieve the flexibility and competitive advantage they seek. First, they must include contingent labor:

“Increasing use of independent labor can drastically impact our ability to fully optimize our workforce.”

Eighty-three percent of respondents in the Forrester survey for MBO agreed or strongly agreed with this statement. Seventy-eight percent indicated that improving their ability to manage independent workers is a high (41%) or critical (37%) priority.

When You Think New Workforce, Think Optimized

This new workforce must be optimized to attain agility and flexibility, including the best contract/full-time labor distribution and the right people with the right skills in the right seats. With an optimized workforce, an enterprise can:

• Secure specific expertise on an as-needed basis
• Fill skill gaps that can’t be filled with full-time labor
• Pursue new initiatives like testing a new line of business or entering an additional market

Optimization allows:

Access to top talent

Independent contractors have built a career around their skills. These workers are highly sought after in some skill areas, offering expertise in highly competitive areas like IT and marketing.

Operating leverage

Savvy enterprises are implementing a direct sourcing strategy that brings talent sourcing in-house rather than relying on a third-party intermediary such as a consulting firm or staffing company to fill talent needs. While they still may rely on third-party consulting or staffing companies to supply some talent, their direct sourcing focuses on the most strategically significant skills and roles. This allows them to nurture mutually beneficial relationships with high-value independents and to become a Client of Choice for these key workers.

Cost savings

Workforce optimization offers flexibility in talent acquisition, which can lower payroll costs and time-consuming recruiting activities.  Moving at least some recruiter functions in-house through direct sourcing can reduce costs. Another area of cost savings can be realized through combined workforce expertise, allowing results to be produced with fewer person-hours.

This second piece of the workforce puzzle follows from the first piece. Having a contingent labor force in place does not guarantee an optimized workforce. Nearly nine out of ten leaders responding to the Forrester survey indicated that there are more efficient ways for their organizations to manage their mix of full-time employees and contingent labor. Fifty-three percent said that their organizations do not fully realize the benefits of an operating model that focuses on workforce optimization. These results show that to get to a true competitive advantage, more attention needs to be paid to truly optimizing a blended workforce.