Business professionals know that it has become increasingly difficult to find, recruit, and maintain top independent talent. In fact – it’s practically a war zone out there. So…how do you keep the talent you have, and continually attract top new talent at the same time? The answer is surprisingly simple: keep your independent contractors and consultants happy— and stay compliant. But how? On November 12th, Terri Gallagher, owner and CEO of Gallagher and Consultants, a leading workforce strategy solutions company, joined us to discuss how to best utilize the 30.2 million full- and part-time Independents currently in the workforce. "Leveraging Independent Contractors: A Solution for the Talent War" explored both how organizations can become a client of choice for top talent, as well as how independent consultants can make themselves more attractive to companies.
7. 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?
(c) Gallagher and Consultants
8. 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.
5.1
4.6 4.6
5.8
9.3 9.6
8.9
8.1
7.4
6.2
5.4
0.0
2.0
4.0
6.0
8.0
10.0
12.0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Avg. Nat. Unemployment Rate
(c) Gallagher and Consultants
9. 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
(c) Gallagher and Consultants
11. 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.
(c) Gallagher and Consultants
15. 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.
(c) Gallagher and Consultants
17. 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.
(c) Gallagher and Consultants