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Creating Value and Impact through the Alternative Workforce Implementing New Strategies to Acquire and Engage Alternative Talent
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Alternative Workforce POV Series
The alternative workforce: Executing talent strategies to access and engage a new workforce paradigmThe alternative workforce has established itself as a foundational input to leading talent models. Organizations can no longer afford to ignore this growing workforce segment and should aim to harness the power of the entire workforce to realize their full potential. To do so properly means creating new talent strategies from the ground up and partnering across procurement, HR, and leadership to access the right alternative talent for each organization.
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Implementing New Strategies to Acquire and Engage Alternative Talent
Today’s talent market is incredibly crowded and competitive. As a result, increasingly many organizations are finding it progressively more challenging to identify the right candidates, who are the best fit for their culture, so managers can fill open positions1 and get the work done. This issue is further confounded for today’s organizations who are increasingly seeking to attain workers with a different set of skills and uniquely human capabilities, such as curiosity and empathy, and looking across talent models to find the right fit for any given role.
Historically, the response of most Talent Acquisition functions would be to add additional resources to delve deeper into the traditional employee talent pool and help find the right kind of talent they need. However, due to the rapidly changing nature of the future of work2, progressive talent acquisition organizations are taking an expanded view of the workforce and have begun including alternative workers as a core part of their overall talent strategy. For many companies that have not embraced this change, the days of “conveyor belt” talent acquisition practices
have vanished, leaving talent teams (i.e., those actively working to source and acquire workers) with a big decision – activate and leverage the alternative workforce to help achieve and exceed goals of the enterprise, or likely miss out on a timely opportunity to access a diverse pool of available talent.
Alternative workers – essential elements of enhanced talent models
By all accounts, harnessing the alternative workforce is an obvious talent solution for many organizations, however, they often lack strategies and processes to take advantage of this growing workforce segment. Significant changes in the way companies approach and apply methods to attract, engage and deploy alternative workers is long overdue. With a projected 42 million alternative workers just in the US marketplace in 2020, accessing this pool of talent should be considered an organizational priority.3
Talent teams on the front line are at a true inflection point; often unsure how to move beyond simply managing the work
of alternative workers to fully optimizing them and ultimately enabling delivery of new outcomes that exceed expectations set by the business. The opportunity has become a key imperative and is only gaining momentum, as 41 percent of organizations consider this an issue of significant importance, yet only 8 percent of organizations have determined the best path forward for their organization4 (see Figure 1).
Realizing the full potential of the alternative workforce, however, starts and is grounded in the need for organizations to reconsider the way that they access and curate talent within the alternative workforce ecosystem.5 While organizations have traditionally deemed procurement with sole responsibility for attaining alternative talent, it is imperative for HR to become involved in the narrative. Teaming these two functions together helps organizations to not only understand the current makeup of their entire workforce, but also track the full depth of skills and capabilities to utilize across the entire business rather than in silo or singular business units.
1. Deloitte 2019 Global Human Capital Trends: Leading the social enterprise—Reinvent with a human focus, Deloitte Consulting LLP and Deloitte Insights, 2019.2. The Alternative Workforce and Diversity & Inclusion as Disruptors in the Future of Work. https://www2.deloitte.com/us/en/pages/human-capital/articles/alternative-workforce.html3. Deloitte 2019 Global Human Capital Trends Report. https://www2.deloitte.com/us/en/insights/focus/human-capital-trends/2019/alternative-workforce-gig-economy.html4. Deloitte 2019 Global Human Capital Trends Report. https://www2.deloitte.com/us/en/insights/focus/human-capital-trends/2019/alternative-workforce-gig-economy.html5. Aligning Technology, Strategic Communications, and Workforce Operational Excellence to Enable the Alternative Workforce. https://www2.deloitte.com/us/en/pages/human-capital/articles/alternative-workforce.html
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Figure 1
Source: BersinTM, Deloitte Consulting, LLP, 2019
The workforce of tomorrow is increasingly diverse6 and the war for talent wages onward. Organizations must have solid practices – not processes – in place and work to ensure they are creating meaningful opportunities for all worker types. These practices will require involvement from business leaders that understand the implications of accessing multiple talent models, make the right choice for every open need, and embrace the mindset that creates space for alternative workers to operate alongside full-time and traditional employees. With an undeniable shift towards leveraging a mix of worker models, Talent Acquisition has little choice other than to see the alternative workforce as a welcome opportunity.
Augmented options for talent and new capabilities at work
Notably, the uptick in contingent work and alternate talent pools has created an unprecedented talent marketplace and advantage for a multitude of employers, or rather, organizations that are positioned to take advantage of it. Alternative workers fuel the development of a nearly never-ending pipeline of talent. For example, if an alternative worker has a positive experience
working at a company, then it is far more likely that they will ultimately want to return for additional work, contracts, projects, etc. This will likely add even more value as their understanding of a company’s culture and business can increase with each engagement.
For talent, the potential benefits are equally impressive. Today’s workers often value flexibility, variety and personal growth over stability,7 while preferences of the future workforce indicate that workers embrace opportunities to design unique career paths that do not fit into traditional talent models.8 Moreover, motivations of current and future talent may change as quickly as skills expire. As such, workers are inclined to seek diverse employment opportunities that are more meaningful and align with their desire to nurture or grow a specific capability. The bottom line is that alternative work solutions represent a groundswell of opportunities for the employer and worker alike. However, the degree to which an organization can build a strong foundation for this talent segment to thrive remains a daunting task for many employers.
Talent identification and engagement
has become increasingly complex. The hyper-competitive hiring landscape has significantly changed the narrative for Talent Acquisition teams, who are increasingly looking beyond demonstrated skills to get work done. Many of the traditional skills needed to execute routine tasks have been automated, creating an increased opportunity to introduce new human capabilities to the workforce.9 These capabilities can be nurtured and strengthened with practice, experience, and exposure. Conversely, without nurturing, they can atrophy.10
These complexities brought on by organizational needs for individuals with new capabilities, diverse backgrounds and skills is not a novel concept. For example, talent teams that continuously broaden their search efforts to expand their talent pools are four times more likely to build talent capabilities to meet future needs. Such outcomes are too valuable to overlook.11 As this workforce segment continues to grow, organizations should focus their efforts on devising integrated strategies to effectively attract, engage and embed the alternative workforce in their annual planning.
6. The Alternative Workforce and Diversity & Inclusion as Disruptors in the Future of Work. https://www2.deloitte.com/us/en/pages/human capital/articles/alternative-workforce.html7. Decoding millennials in the gig economy: Six trends to watch in alternative work, Deloitte Insights / Kelly Monahan, Jeff Schwartz, and Tiffany Schleeter, 2019.8. The Alternative Workforce and Diversity & Inclusion as Disruptors in the Future of Work. https://www2.deloitte.com/us/en/pages/human capital/articles/alternative-workforce.html9. Capabilities and Skills: The New Currency for Talent, Bersin, Deloitte Consulting LLP // Hiipakka, Mallon, Moulton, Enderes, 201910. Capabilities and Skills: The New Currency for Talent, Bersin, Deloitte Consulting LLP // Hiipakka, Mallon, Moulton, Enderes, 201911. Six Key Insights to Put Talent Acquisition at the Center of Business Strategy and Execution, Bersin, Deloitte Consulting LLP / Robin Erickson, PhD, and Denise Moulton, 2018.
Implementing New Strategies to Acquire and Engage Alternative Talent
Within 3 years, the number of self-employed workers has tripled
4 in 10U.S. workers now work on a contingent basis
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Reinventing talent strategies – from the inside out
Amending talent strategies to include activating alternative workers positions organizations to meet and exceed their business objectives and requires managing
certain levels of inherent risk. Employers must consider legal limitations and risks while also focusing on creating an attractive value proposition for workers. Given the prevalence of alternative workers in the talent marketplace, mindsets need to shift in order to create a new operational reality for
alternative workers. For leaders, this means addressing some fundamental aspects of a traditional “buy / acquire” mentality and considering an alternative view that is rooted in “build / borrow / access” talent and capabilities (see Figure 2).
Figure 2
A Mindset Shift for Talent Acquisition Professionals
Figure 3
Organizations Using Alternative Sources of Talent – High- vs. Low-Performing Organizations
64%High-Performing Organizations
10%Low-Performing Organizations
Attract
Who can we hire?
Access
Who can do the work for us?
Develop
How can we grow our employees?
Curate
How can we build a pool to tap now and in the future?
Retain
How can we keep them?
Engage
What relationships do we need to nuture?
12. Bersin, Deloitte Consulting LLP13. Open Talent Economy: A New Model for Talent Acquisition. Bersin, Deloitte Consulting LLP / Denise Moulton, 2019.
By building an enterprise-wide approach, organizations can understand and prepare for the change and start to envision how alternative workers can make near and
long-term impacts. High-performing organizations12 are already ahead of this trend and have learned to leverage talent in any way they can and create opportunities
where they did not previously exist (see Figure 3).13
Implementing New Strategies to Acquire and Engage Alternative Talent
Source: BersinTM, Deloitte Consulting, LLP, 2019
Source: BersinTM, Deloitte Consulting, LLP, 2019
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Implementing New Strategies to Acquire and Engage Alternative Talent
Getting startedWhether or not organizations are prepared, the alternative workforce is here to stay. Effectively harnessing this talent segment is one way for innovative organizations to think outside of the box and be more agile when considering how to meet their increasingly complex needs for talent. With the scarcity of skills, and the need for hard-to-find niche capabilities rising, organizations cannot afford to allow latent talent practices and outdated mindsets limit their pools of potential talent.
To that end, organizations can begin tapping into alternative talent by rewiring the prevailing norms about working with alternative workers. This starts with determining the organizations optimal mix of talent, and further assessing how to best engage with each worker type. Those that do so effectively set themselves up for success and open the door to creating and establishing valuable connections, accessing new capabilities and delivering talent strategies that can scale with the business. Organizations have a clear choice and great opportunity to meet and exceed their goals and objectives. For business and talent leaders, while this may require navigating the various hurdles and mitigating possible risks posed by leveraging alternative workers, those that do so effectively can reap the full potential and benefits of alternative talent and set themselves apart as leaders in the marketplace.
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Clarify the types of results (e.g., access to niche skills, scalability of high volume areas, testing new markets, cost control) the business expects from leveraging alternative workers and confirm all stakeholders are aligned to those outcomes. Establish a plan to measure results and revisit/refine strategies for the alternative workforce. Leverage leadership planning meetings to talk about how they use alternative talent today, and collectively explore opportunities to do things fundamentally different.
Organizations can leverage existing relationships, programs (e.g., Vendor Management Systems, Recruitment Process Outsourcing, Managed Service Provider) and Human Capital Management and Talent Acquisition technologies to enable more streamlined management of alternative workers. In addition, organizations should consider sources of talent previously untapped or not optimized (e.g., is a silver medalist a great fit for a contract position? Are you capturing your employees’ referrals for alternative talent?). By establishing the means for acquiring the right alternative workers for your organization, clearly aligning to business strategy and having a solid governance model in place, talent teams can focus on other highly valued activities such as creating meaningful experiences and engaging opportunities for workers.
Based on your organization’s current use of alternative workers, consider which policies and practices need updating or amending. An honest assessment of challenges with your organizational culture, design, processes and technology is necessary to gather a complete view. Calibrate current management practices with preferred future operations. Be transparent about the changing mindset and impact on how teams work today. Most importantly, HR needs to shift away from the idea that “procurement owns contingent workers” – HR and procurement must come to the table together and collectively define roles, responsibilities and ideal outcomes.
Alternative workers are an important and valuable resource and the company culture should reflect the value they bring. Comparable to the expectations of full-time employees, alternative workers may need access to tools and technologies to enable them to ramp up (quickly) to productivity, opportunities to perform meaningful work, and recognition for their contributions provided through the appropriate channels. A culture should be defined that acknowledges the value that alternative workers offer, while still educating the organization on the distinct differences and other considerations required to effectively manage the work of both the employee and non-employee workforces while mitigating legal risk.
Managers play a big part in supporting alternative workers to make them feel welcome and engaged with the work, the team and the organization – regardless of length of assignment. As such, managers need to have keen insight about the right blend of capabilities and skills needed to get work done. Unlike their full-time counterparts, alternative workers may not have significant ramp up time; therefore, organizations must enable success from the first day on the job (e.g., technology, work plan, clear deliverables, and access to permitted organizational resources required for their work). Tightening up processes to help ensure alternative workers can be productive from day one is critical to success.
Just like some full-time employees, alternative workers may opt to complete several different assignments with an employer over a period of time. Therefore, the need to foster a culture of inclusion and engagement14, growth and retention is duly important to alternative workers. If a company is able to develop a culture that welcomes all types of workers, enables them to perform meaningful work, recognizes accomplishments in an appropriate way, and stays engaged with the workers, then employers can expect a workforce that returns for additional opportunities by choice – hopefully adding more value with each engagement.
Here are some key considerations for organizational leaders and those seeking to delve into this new frontier for talent:
Determine what success looks like
Understand the options
Build a plan to get there
Create a culture of inclusion
Enable hiring managers
Stay engaged
14. The Alternative Workforce and Diversity & Inclusion as Disruptors in the Future of Work. https://www2.deloitte.com/us/en/pages/human capital/articles/alternative-workforce.html
Implementing New Strategies to Acquire and Engage Alternative Talent
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Implementing New Strategies to Acquire and Engage Alternative Talent
Let's talkIf you’d like to learn more about using talent strategy, acquisition and engagement to access the full potential of the alternative workforce, we’d welcome the opportunity to talk with you.
Kevin MossConsulting Managing Director, Human CapitalWorkforce Strategy & Solutions Leader Deloitte Consulting [email protected]
Denise MoultonVice President, Bersin™ Research HR & Talent ResearchDeloitte Consulting LLP [email protected]
Kathryn CharltonSpecialist Leader, Human Capital HR Transformation Deloitte Consulting [email protected]
Robin JonesPrincipal, Human Capital US Workforce Transformation LeaderDeloitte Consulting [email protected]
Robert DicksPrincipal, Human CapitalWorkforce TransformationDeloitte Consulting [email protected]
Mike GrennierSpecialist Master, Human Capital Workforce Strategy & Solutions Deloitte Consulting [email protected]
Melanie LangsettPrincipal, Human CapitalUS Rewards & Wellbeing Leader Deloitte Consulting [email protected]
Zac ShawSenior Consultant, Human Capital Workforce TransformationDeloitte Consulting LLP [email protected]
Author Key Contributors
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