The Weekly Ledger No. 47: Staffing Firm Talent

Welcome to The Ledger where we sum up the latest finance and accounting news and trends for you. On this week’s entry, we’re diving into the topic of staffing firm talent and how that’s affecting the finance and accounting function across the board. Read on to explore how remote work has opened a door to a new hiring approach, what staffing trends to watch for this year, how workers are prioritizing autonomy over anything else and the biggest staffing challenges for the current year.

A New Approach to Hiring Talent - Staffing Firm Substitutes

For years, businesses have approached hiring new employees in one of two ways: in-house or utilizing the services of a staffing firm. But thanks to the pandemic and the rise of remote work, companies are rethinking their conventional methods. In fact, the forced trial with virtual work over the past two years has shown some organizations that the traditional in-office 9-5 isn’t ideal anymore (for both parties). Moreover, remote work has opened the door to a new hiring approach: open talent model. So why should businesses utilize flexible and open talent?

• Scalability. The flexibility of this model allows companies to hire (or remove) talent based on labor demand.

• Outsourcing. If you need to offload menial tasks or want to avoid the time-consuming process that comes with a staffing agency, outsourcing is the quick fix.

• Expanded pipeline. You get access to talent you wouldn’t have otherwise hired. And industry leaders across the board have used this method for smaller projects that don’t require a full-time hire.

But when does it make sense to use open talent?

• When internal team members can’t be moved to another project.

• When the cost of hiring externally is less than paying overtime to current employees.

• When you need a specific set of skills.

• When the ROI is extremely high.

For more on what trends are circling the open talent landscape, what tasks align most with this model and how managers can get started, read the full article on hbr.org.

What Staffing Talent Trends to Keep on Your Radar This Year

In a market dominated by job seekers, hiring managers need to be able to sell a desirable workplace environment. And after two years of navigating uncertainty, you would think a higher pay would send workers crawling back to their jobs. But alas, we’re in the new year and companies are having to reimagine how they sell their business to potential candidates. Here are some trends to keep on your radar:

• Focusing on employee experience. Great leaders listen to and respond to employee ideas, feedback and requests.

• Valuing upskilling workers. Employees leave their jobs for many reasons; the top reason being a bad manager. However, a World Economic Forum report found that employers expect to offer reskilling and upskilling to just over 70 percent of employees in the next three years.

• New focus on internal talent. Focusing on internal talent is crucial to business operations. A Gartner survey of human resources leaders showed that a focus area this year is current and future leadership strength.

• Finding soft skills. A LinkedIn Global Talent Trends survey found that 92 percent of hiring, and talent professionals stated that it’s “increasingly important” to hire candidates with well-developed soft skills.

• Smaller venues and outdoor space. With more people staying at home and ordering takeout, it’s counterintuitive for businesses to build large venues. Moreover, workers are happier being around fewer people because they feel safer.

• Defining flexibility. How can business leaders define flexible work? Is it hybrid work? Remote work? Four-day workweeks?

To explore, in-depth, what staffing firm talent trends to look out for, head over to hrdive.com to read the full article.

Say Goodbye to the 9-to-5 Work Hours

If you asked anyone what their top concern is when finding a job, you would probably find a common theme: traditional in-house job security. But over the past year or so, that viewpoint has changed. A 2021 Harvard Business Review survey found that 68 percent of independent workers responded to the statement “I feel more secure working independently” in the affirmative. Consider this: 31 percent of employees who left their job in the past six months did so to start a business (Source: McKinsey). This shift is the result of ongoing trends that were heightened by pandemic. Here are a few trends that have been circling around over the past few years:

• Declining security of payroll jobs. Traditional jobs are no longer appealing to many workers. Add in below-average wages and benefits and many are resigning from their long-standing jobs in favor of autonomy.

• A rise in independent workers. Technology has made it easier to operate your own business. Moreover, many independents believe that having multiple streams of cash flow provides a greater level of security than relying on a single employer.

• The pandemic as an accelerant. Thanks to Covid, many workers have a greater desire to find work that reflects their values and lifestyle. Furthermore, the perfect storm of early retirements and a lack of childcare have only fueled the need for independent work.

So how can organizations compete as they strive to hire and retain workers?

• Provide employees with greater levels of autonomy, control and flexibility. This goes beyond remote work.

• Show you value employees’ contributions. The top reason employees have been leaving their jobs over the past six months is because they weren’t valued by their organization or manager.

• Provide on-the-job opportunities. Improving internal growth for employees goes a long way – allow your workers to explore different functions, pick up new skills and work on a variety of projects.

• Hire more independent workers. Most independent workers report being willing to earn less in exchange for the non-monetary advantages associated with being self-employed.

To learn more about the shift from traditional employment to independent work, check out the full article on hbr.org.

Biggest Staffing Challenges for the Year

Last year was overshadowed by the Great Resignation and this year will be focused on retention and company culture. So how can businesses keep their best talent engaged and productive in a post-pandemic world? Here are three challenges employers should hone in on:

• Retaining high performers. One way to ensure your employees stay is through stay interviews every few months.

• Bringing back boomers. 2021 was the year of the ‘Great Retirement’. Tactics to bring back Boomers will play a huge role in getting employment levels back to a normal state.

• Safety Considerations. One-third of Fortune 100 companies have moved to implement vaccine mandates and other pandemic protocols. For job seekers, choosing an employer that aligns with their values and work environment desires are key, including pandemic policies.

As we head more into the future, organizations need to focus on putting their employee needs front and center as workers are expecting more in the way of flexibility, training and compensation. If not, you’ll be seeing more employees jump ship to another company.

To explore what staffing challenges to expect this year and beyond, read the full article on forbes.com.

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