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The Tru Files - Hire Work Not Workers

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The Tru Files - Hire Work Not Workers

  1. 1. 3 e Tru Files HIRE WORK, NOT WORKERS 8 5.0 TRU HEAT INDEX @BillBoorman and Dinette Koolhaas
  2. 2. 10 /02 EVENTS 8,000field of recruiting. 48 We scoured presentations and conversations from the last twelve months of TRU events to bring you the best forward-looking ideas in the ATTENDEES BIG IDEAS
  3. 3. HIRE WORK, NOT WORKERS /03 IN THE FUTURE, PAYING FOR WORK BY THE OUTCOME WILL BE THE NORM. GET READY TO HIRE A NEW BREED OF TRANSIENT WORKERS.
  4. 4. HIRE WORK, NOT WORKERS /04 TRU uncovered an idea so radical it will dramatically disrupt the field of recruiting over the next 18 months. And yet, the concept is still so new that most recruiters are not aware of it. But before we set out to change your mind, we must sketch in some context. In particular, to understand the changing future of recruiting, we must take a detour to study the growing power and influence of the knowledge worker. UNDERSTANDING OUTSOURCING MARKETPLACES Companies like Elance and oDesk—which recently completed their merger— match freelancers (e.g. web development, writing, designers and translators) with companies seeking short-term, on-demand talent. Hiring companies can view examples of freelancers’ work and evaluations by previous hiring companies. As well, freelancers review hiring companies, disclosing such things as whether the client treated them fairly and paid them on time. As these types of marketplaces become more mainstream, companies will engage for “work” rather than “workers”. Talent Supply Chain Management will become a more integral component of traditional staffing companies. A global chemical company may engage Kelly to retool their sales and marketing efforts in Eastern Europe. Rather than asking for specific roles, the company will simply ask for specific outcomes, and a staffing company will mobilize the right mix of employees, consultants and freelancers to complete the project.
  5. 5. HIRE WORK, NOT WORKERS /05 RISE OF THE KNOWLEDGE WORKER Across every business and every industry is a potent demand for professionals whose job it is to aggregate, analyze and report information—or said another way, those who think for a living. These include traditional professionals such as attorneys, physicians, engineers and scientists, as well as the newer, high-demand jobs in the STEM field such as UX developers, data analysts and designers. What drives the relentless demand for knowledge workers? They are innovation engines for companies large and small. No longer is competitive advantage dictated by brute scale or capital; companies now gain an edge by out-designing, out-forecasting, out-strategizing – that is, out-thinking their competitors.
  6. 6. HIRE WORK, NOT WORKERS /06 This insatiable demand for knowledge workers runs in parallel to a raft of other interesting trends: Growing acceptance and prevalence of virtual work and mobility. To remain agile and support innovation, global organizations increasingly view mobility as a key competence; mobility ensures top-talent is at the ready to staff critical projects, regardless of geography. Global companies allow employees to work remotely, encourage teams to collaborate across borders, and more and more rely on contingent labor for knowledge work. IDC projects the worldwide mobile worker population will increase from about 1 billion in 2010 to more than 1.3 billion by 2015—and the company hypothesizes this shift will be a critical factor for companies to achieve greater productivity.1 Massive gains in technology to support virtual/mobile workers. This trend hardly needs explaining. The advent of cloud-based computing, near-ubiquity of broadband in developed markets, and the low cost of powerful, portable devices have removed the last barriers to working remotely. IBM, for example, allows 45 percent of its 400,000 contractors and employees to work remotely.2 Scaling these types of alternative work relationships is cumbersome and inefficient unless the work is standardized in some way (e.g. project pricing vs. payment by labor hour), and workers are easier to access and evaluate. 1 IDC, Mobile Enterprise Group. Statistic taken from Deloitte’s report, “Making virtual work business as usual.” 2 HBR: The Third Wave of Virtual Work.
  7. 7. /07 HIRE WORK, NOT WORKERS Expanding cadre of free agents. Working independently—outside of the confines of a traditional employer/employee relationship—has become mainstream. In the United States alone, there are an estimated 10 million self-employed individuals, as well as almost 22 million non-employer firms (i.e. businesses with no payroll, which means solo practices). Knowledge workers—with their position of power and influence—seek to work on their own terms. They want to live in certain regions, report to work on a flexible schedule, work remotely when convenient, and are more likely to work as free agents. Yet scaling these types of alternative work relationships is cumbersome and inefficient unless the work is standardized in some way (e.g. project pricing vs. payment by labor hour), and workers are easier to access and evaluate. Outsourcing marketplaces such as oDesk, Elance, Freelancer.com, Guru, Contently and GLG Research point to a future of free agency. These platforms connect independent workers and micro-practices with large companies seeking specialized knowledge areas and skills. Engagement types range from the simple (e.g. translation and copywriting from Elance) to the complex (e.g. supply chain consultants and forensic accountants from GLG Research).
  8. 8. /08 HIRE WORK, NOT WORKERS But in order for a large global organization to rely on independent workers for a growing portion of their talent needs, these marketplaces will need to offer more standardized “packages” to corporate clients. Knowledge workers will need to be paid based on outcomes rather than hours. Or said another way, companies will pay for work rather than the worker. Fast-moving global organizations will plan a project with an 18-month timeline, and pull in a diverse team of independent experts to deliver results—an undertaking that will resemble supply chain management more than staffing or hiring.
  9. 9. /09 HIRE WORK, NOT WORKERS IF COMPANIES SEEK WORK AND NOT WORKERS, WHAT WILL THE ROLE OF RECRUITERS BE? In a world in which companies are interested in hiring this type of flexible, on-demand labor, recruiting must adapt targeted strategies for free agents. For example, if it’s true a company will want to engage, terminate and re-engage a single worker multiple times over the course of their career, then the recruiter’s focus will no longer be on one-time hires or one-time projects.. Instead, recruiters must forge lasting relationships with high-value prospects, and keep those individuals engaged over many years. (An idea we explore in the New Role of the Recruiter ebook.) Recruiting programs may come to resemble university alumni programs: organizing ongoing events, providing education, and constantly communicating with free agents regardless of whether the recruiter has an opening for that person or not.
  10. 10. /10 HIRE WORK, NOT WORKERS We predict that within the field of recruiting, an important new role will take shape: the Talent Attractor. This new breed of recruiter won’t be responsible for sourcing any individual candidate, but rather building long-term relationships with professionals who either may become candidates in the future or who may influence future candidates. Talent Attractors will borrow lessons from so-called content marketers and behave more as publishers. Rather than promote their own brand, they will answer questions and publish educational information to help would-be job seekers and the types of transient workers described here. Recruiting will become less a function of hiring John Smith for a specific job, and more about keeping an eye on John over a lifetime of work, engaging him in conversation if he’s deemed to be a high-value passive candidate, and understanding what types of opportunities he’s interested in at different stages of his career.
  11. 11. /11 HIRE WORK, NOT WORKERS: ACTIONABLE INSIGHTS GET YOUR FACTS To hire flexible, on-demand labor, recruiting must adapt targeted strategies for free agents. Recruiters should no longer focus on one-time hires or one-time projects. Instead, they will forge lasting relationships with high-value prospects, and keep those individuals engaged over many years. (An idea we explore in the New Role of the Recruiter ebook.) To get started: Assess the need. While the idea of hiring for work rather than the worker sounds promising, your organization may not be ready to make the leap. First assess the need for on-demand labor. Survey hiring managers and senior business leadership. Does your company use contingent and freelance labor as part of a purposeful strategy, or simply to fill short-term needs? Would the company be served by increasing reliance on free agents? In which fields? Identify low-hanging fruit. Many organizations hire tomorrow’s workers based on how they hired yesterday’s workers. Which is to say, if they previously hired engineers as full-time employees, they will likely continue to do so. Study your organization’s mission-critical talent, and explore which roles may be better filled by free agents rather than employees (based on how workers in that field prefer to work, time-limited assignments, and other relevant factors). Consider a pilot. Identify a new project that requires a fast-moving, interdisciplinary team. Use the project as a pilot to test whether mixing free agents and employees in a single working team makes sense. How well did free agents work in concert with employees. Was the “on-demand” nature of the independent workers a benefit? Did the hiring manager also think so? Share results. Share results of the pilot study with other hiring managers and leadership. Assess whether the program makes sense to duplicate on a larger scale, and how to adapt the recruiting team to support it.
  12. 12. HIRE WORK, NOT WORKERS /12 THE #TRU STORY I first discovered the Unconference concept when I led a track at #RecruitFest in Toronto in 1999. I was taken aback by the way discussion flowed and how different the format was to a traditional conference. I led a track all day under a tree and learnt far more than I gave. Two months later and back in the UK, we ran the first #truLondon at Canary Wharf in November 2009. Today, we’re running dozens of #tru events a year across Europe, North America, Africa and the Asia-Pacific. Thousands of recruiters, HR leaders and providers come together in an informal spirit of information sharing and networking. #tru is based on the BarCamp principle, which means that everybody can be an active participant instead of listening to speakers and watching presentations all day. The emphasis is on communication and the free exchange of ideas and experiences where the participants fuel the conversations. BILL BOORMAN
  13. 13. HIRE WORK, NOT WORKERS /13 THERE’S A SEISMIC SHIFT TAKING PLACE WITHIN THE WORLD OF WORK Companies aren’t hiring workers anymore; they are hiring work / Talent and want to pay for an outcome rather than an hourly rate. Leading companies need an agile and innovative workforce, and massive gains in technology which allow for virtual and mobile workers make this possible, a trend which hardly needs explaining. Working independently, as a free agent, outside of the confines of a traditional employer/ employee relationship is becoming part of the mainstream. But despite this massive shift, there continues to be an important place for recruiters to help source, manage and communicate with free agents. For example, who will keep track of the best workers operating in an industry? We predict that within the field of recruiting, the role of the Talent Attractor will emerge, who won’t be responsible for sourcing any individual candidate, but instead build long-term relationships with professionals who either may become candidates or influence other candidates. They will also have an important role in the formation and management of online talent communities. Recruiters should no longer focus on one-time hires or one-time projects. Instead they will forge lasting relationships with high-value prospects and keep those individuals engaged over many years. DINETTE KOOLHAAS DINETTE KOOLHAAS VP Operations Leader EMEA Dinette who leads EMEA operations joined Kelly in June 2008 as VP Regional General Manager Western Europe. Since 2013, as VP Operations Leader EMEA, she is responsible for leading the operations to execute our growth strategy. She started her career as Consultant at a logistic consultancy agency in Holland. In 1997 she moved to USG People and started her career in staffing as Sales Executive. Within USG Group she was General Manager for both specialized niche brands Unique and Secretary Plus as well as generalist and large account player Start People. Dinette holds a Master degree in Business Administration. In her leisure time, Dinette likes playing golf, cooking for friends and family and reading.
  14. 14. For more thought leadership go to talentproject.com EXIT 2 1 TO LEARN MORE ABOUT THE FUTURE OF RECRUITING, DOWNLOAD THE FOLLOWING TRU FILES EBOOKS. e Tru Files CANDIDATE EXPERIENCE 2 3.5 TRU HEAT INDEX e Tru Files CULTURE BRANDING 5.0 TRU HEAT INDEX e Tru Files MOBILITY 5 3.5 5.0 5.0 ABOUT KELLY SERVICES® Kelly Services, Inc. (NASDAQ: KELYA, KELYB) is a leader in providing workforce solutions. Kelly® offers a comprehensive array of outsourcing and consulting services as well as world-class staffing on a temporary, temporary-to-hire, and direct-hire basis. Serving clients around the globe, Kelly provided employment to approximately 540,000 employees in 2013. Revenue in 2013 was $5.4 billion. Visit kellyservices.com and connect with us on Facebook, LinkedIn, and Twitter. Download The Talent Project, a free iPad® app by Kelly Services. This information may not be published, broadcast, sold, or otherwise distributed without prior written permission from the authorized party. All trademarks are property of their respective owners. An Equal Opportunity Employer. © 2014 Kelly Services, Inc. TRU HEAT INDEX e Tru Files HIRE WORK, NOT WORKERS 8 TRU HEAT INDEX e Tru Files ASSESSMENTS 3 4.0 TRU HEAT INDEX e Tru Files SOURCING TECHNOLOGY 6 4.0 TRU HEAT INDEX e Tru Files GAMIFICATION 9 3.5 TRU HEAT INDEX e Tru Files VIDEO INTERVIEWING 4 3.5 TRU HEAT INDEX e Tru Files NEW ROLE OF THE RECRUITER 7 TRU HEAT INDEX e Tru Files SOCIAL RECRUITING PERSONALIZATION 4.0 TRU HEAT INDEX

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