Q3/Q4 2019 | Employment & Economic Trends2019-09-06T17:35:55+00:00

EMPLOYMENT & ECONOMIC TRENDS

Employment & Economic Trends

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Global Economic Snapshot: August 2019

By DAVID BAROL
Research Director

Labor Markets Shrug-off Anxiety

The first seven months of 2019 have provided economists with an important lesson: labor markets can continue to expand and strengthen even during times of profound economic uncertainty. The unresolved trade issues that are at the root of this uncertainty include:

The unclear future of the U.S.-Mexico-Canada trade agreement, which was negotiated to replace NAFTA. This treaty remains unratified in the legislatures of all three nations.

The imposition of tariffs between the U.S. and China, the world’s two largest economies. The escalation in tariffs has been routinely described as a “trade war,” with significant increases scheduled for September.

No Brexit agreement has been struck, but there is a deadline looming on October 31.

Yet, despite the threat of future instability, most leading economies continued to have low unemployment, strong job creation (although often at a reduced rate of growth compared to 2018), and high levels of job vacancies. As economic expansion continued well into the third quarter, employers were challenged by the scarcity of available talent and the ensuing need to raise wages to recruit and retain their workforce.

Low Unemployment & Slower Job Growth

The U.S. economy added 164,000 jobs in July and posted an unemployment rate of 3.7%. July capped 106 months of continuous job growth – the longest stretch in the nation’s history. The unemployment rate dropped from 4% in January to just 3.6% in April and May. The slight increase to 3.7% in June and July was caused by more Americans joining the labor force, a sign of growing confidence in the labor market. There are currently more than 7 million job openings posted, greatly outnumbering the unemployed.

Job growth averaged 165,000 new jobs per month in the first seven months of 2019, decreasing from the rate of 227,000 during the same period last year. The slowing rate is explained by some analysts as a sign that the economy may be running out of workers. However, a more verifiable cause is that trade uncertainties have stalled growth in goods-producing sectors, such as manufacturing, and this is causing a drag in the overall growth rate. The decreased rate of job creation has not raised significant concern because it is still comfortably higher than the approximately 100,000 new jobs required each month to meet the growth of the working-age population.

Canada’s employment numbers in the first half of the year were mixed. After starting the year with two months of strong job growth, Canada posted a net job loss in March. In hindsight, this decrease appeared to be an anomaly when 107,000 jobs were added in April.

However, the increase in jobs slowed significantly in May with only 27,700 new positions. In June, the Canadian economy posted a loss of 2,200 jobs, followed by a decrease of 24,200 payrolls in July, raising the unemployment rate to 5.7%.

In Europe, many economies posted strong job gains and continued low unemployment. The UK’s August Labour Market Report showed 425,000 more people working than one year earlier, with employment rates at or near record-highs throughout 2019. Brexit continued to consume much of the public’s attention after the March 31 deadline was missed. The rejection of Prime Minister Theresa May’s negotiated Brexit agreement led to her resignation. She was replaced by Boris Johnson, who campaigned heavily for Brexit during the national referendum. With the October 31 deadline growing closer every day, fears have increased that the UK will leave the European Union with a No Deal Brexit, causing the pound to stumble and generating calls for renegotiation with the EU.

Even with no clear way to forecast near-term economic conditions, the UK unemployment rate was at 3.9% during the April through June quarter. For other major European economies, the unemployment situation was mixed. The Eurozone’s unemployment rate was 7.5% in June, falling 0.3% from the end of the first quarter. France posted an unemployment rate of 8.7% in June, a decrease from the first quarter, while Germany’s rate fell to the very low 3.1%.

In the Asia-Pacific region, unemployment rates in leading economies mostly remained at extremely low levels. During the second quarter, China reported an unemployment rate of 2.6%; in June, Japan was at 2.3%, Hong Kong at 2.8% and South Korea fell to 4%. In contrast to the steadily decreasing unemployment rates of other leading economies, India’s unemployment rate rose to 7.9% in June.

Other APAC economies posted mixed employment numbers. Australian unemployment fell to 4.9% in February, the lowest in eight years. However, it has been higher ever since, ending the first half of 2019 in June at 5.2%, which held steady in July. New Zealand reported that its unemployment rate had fallen to 3.9% in the second quarter of this year, down from 4.3% at the end of 2018.

Wages Rise with Demand for Talent

When wages rise faster than the rate of inflation, households are able to increase their spending power, which, in turn, can benefit the economy as a whole. Wage increases have outpaced inflation in much of the developed world so far this year. When the supply of talent remains as low as it has in many of the world’s largest economies, employers raise wages with the hope of recruiting new workers and keeping those they already have.

The U.S. annual wage increases stood at 3.2% in July, well above the 1.8% annual inflation rate. In the UK, nominal regular wages rose to 3.9% in June. This robust wage increase can be explained at least in part by an extended period of low unemployment. When unemployment in the UK stood at 4% in August of 2018, the annual wage increase rate was just 3.1%. But, after 10 months of sustained low unemployment and a decrease of just 0.2%, the rate of annual wage increases rose by 0.7%.

In two other major English-speaking economies, wage growth was both more modest and uneven. Canada posted anemic growth rates in much of the first half of 2019, reporting annual weekly wage gains of just 2.1% in May before jumping dramatically to 3.6% in June and rising again in July to 4.6%.

In Australia, annual wage growth remained at just 2.3% for the 10 months leading up to June 2019. After instituting a new law on July 1, Australia has the highest minimum wage law in the world. Australian wages are considered to be high in relation to comparable economies and some posit that the already-high wages blunt the demand for pay increases. Another reason offered for its comparably low rate of growth is Australia’s relatively high unemployment rate. Wages have grown much faster this year in the U.S. and UK, where unemployment rates are below 4%, while Australia’s wage growth has stalled with unemployment rates above 5% for much of the year.

Call the Matchmaker? The Evolving State of Talent Supply & Demand

Indeed’s Hiring Lab studied labor markets in four key economies – the U.S., the UK, Australia and Canada – for the past five years. Indeed leveraged its extensive job posting and resume data to research how the distribution of job listings has evolved in these four markets and how successful job-seekers were in keeping up with changing demands for talent.

Key findings included:

  • With improving labor markets, smaller overall talent pools are the challenge for employers, not poor matches between job-seekers and available positions.
  • Overall, new job opportunities are changing at a similar pace across countries.
  • Tighter labor markets are associated with lower mismatch between job-seekers and the types of positions employers are trying to fill.

Why does the mismatch rate between job candidates and job postings decrease when labor markets improve? Indeed offers the example of a construction worker applying for jobs during a recession when construction jobs are scarce. With few construction jobs available, this unemployed worker would need to look to other sectors – such as retail – to find work. Once the labor market strengthens, more construction job opportunities open up, increasing the chances of matching a job for which they are qualified. When the job market improves overall, so does the level of candidates matching the jobs being offered.

However, a greater rate of matching between job-seekers and job postings driven by an improved labor market is not necessarily a panacea for employers:

“In a tight labor market, employers see relatively few candidates compared with the number of jobs available,” the report stated. “All that declining mismatch indicates is that the candidates employers are seeing are better suited for posted jobs than applicants were a few years ago. Overall, it’s hard to find workers when unemployment is so low. And, that’s particularly true for roles that are chronically tough to fill, such as some nursing or tech positions. But, when hiring is so competitive, the challenge of finding workers isn’t confined to those tough-to-fill roles.”

And, while mismatch rates have improved, they are still significantly high in all four countries. Australia has the highest rate at approximately 50%, while the mismatch rate is roughly a third in the U.S., 40% in the UK and just below 30% in Canada.

The research illustrates that, even in the best-case scenario, one in four active job-seekers are mismatching with the jobs being posted. With demand at or near historic highs, this can lead some employers to bring on those without the right skills and experience to succeed, potentially leading to increased training costs and higher turnover.

GLOBAL ECONOMIC SNAPSHOT: AUGUST 2019

Key Takeaways

  • The demand for talent continues to grow, defying concerns about economic uncertainty. And, while the rate of job growth is slowing, the pool of available talent in many leading economies is diminishing.
  • Rising wages present a challenge for employers who need to balance the right level of wage increases with a minimal effect on profit margins. This can be done most effectively with an understanding of prevailing wages and the market conditions that drive wage levels.
  • Much of the available talent does not have the skills or experience to succeed in a significant percentage of the jobs currently being offered. The risk of onboarding the wrong people due to hiring pressures can be mitigated by leveraging the expertise of an outside organization with proven track records of successful employee recruitment and retention.

Increasing Retention: Through the First 90 Days & Beyond

By DANA LOOK-ARIMOTO
Founder, Phoenix5 & Author

If you’re only focused on recruitment but not retention, you’re throwing away money.

According to Forbes, the cost of replacing an employee can range anywhere from 50% of the salary of an entry-level employee to more than 200% of the salary of a senior executive. Increasing retention – even by just a couple of percentage points – can save millions of dollars each year.

I think “engagement” and “retention” are just different words for the same thing. If you want to retain people, you need to engage them, and you should start as early as possible. Recent surveys have found that about 30% of job-seekers have left a job within the first 90 days of hiring. Despite this, most onboarding programs are too short. According to SHRM, nearly 40% of onboarding programs last one week or less.

This is important across the talent spectrum. In extreme-burnout, high-volume roles, culture counts. Rather than just dealing with unwanted turnover, you need to onboard employees to your culture early. You need them to be invested with you so they have a reason to stay.

On the other end of the spectrum, I consistently see specialized, rock-star candidates deflate when they become new employees. During the recruitment process, they are engaged and excited for a new role. But, when there is no onboarding process, they are left on their own – unengaged and more likely to respond to the next recruiter that pops into their inbox.

In this article, I’ll walk you through how to set up an onboarding program that builds engagement from day one. Then, I’ll share strategies on how you can continue to measure that engagement and build it further.

The 90-Day Onboarding Program

A well-developed onboarding program for the first 90 days makes all the difference in the world when it comes to engagement and retention. When new employees start on day one, they have a lot of expectations, and they’re excited. However, many employers forget how critical the first impression is to a new hire.

For many organizations, the onboarding program starts and ends an employee’s first day with HR basics. Employees fill out paperwork, get a badge, find their desks, complete a training and often receive some sort of handbook. That’s it. Employees are left without any idea of what their first 90 days will look like. In some cases, employees go home from that first day not even knowing what’s in store for day two. These programs are set up by default. They’re easy, and they’ve often been in place for a long time.

I recommend a 90-day program that is designed to give the employee control over their onboarding experience. When a person owns their career experience and expectations are clear from the beginning, they are more likely to stay. They will be set up for success in those first 90 days and beyond.

The Background

I like to think of a new employee’s first 90 days in three phases.

SHADOWING
Phase one is often the first 30 days a new employee is at an organization. They are integrating themselves into your organization and absorbing your company culture, structure and processes. They’re learning what their own role entails and what’s expected of them.

REFLECTING BACK
Phase two takes place during days 30 through 60. The new employee is taking the information they learned in the first 30 days to start developing and sharing their own ideas. However, they are doing this cautiously, looking for feedback and checking to see how their role fits in the organization.

STARTING TO SOAR
In phase three, or days 60 through 90, the employee is taking more freedom and action on their own, but still checking in with some regularity. As they transition out of this phase, they have a base where they know who to go to and how the organization operates, but they are taking control over their own career.

Building the Program
As employers build an onboarding program, I encourage them to think of it as a 360, where they introduce the employee to everything they will touch and be touched by at an organization. To do this, employers need to ask two questions:

What tools, technology and equipment does the new hire need to do their job?

Most organizations have some sort of onboarding program to get a new employee acquainted with the tools they need, but they fall short on the second question:

What processes and people does the new hire need to know to do their job?

We can break this question down into more pieces. Who is the new employee going to interact with? Who are they going to learn from? Will they have a mentor? Who will they go to for what kinds of information or resources? What is the operating philosophy at this organization and in different departments? What are the fastest and most efficient ways to navigate this organization?

Your onboarding program should provide a new hire with the answers to both of these questions and empower them to take control of their role.

A Program That Empowers
In many organizations, it’s unusual for companies to give a new hire control of their onboarding process, but I recommend creating an onboarding plan and handing it over. With that plan and the right guidance, employees will be engaged in their own career success from day one.

However, that doesn’t mean they are on their own. There’s a lot of hand-to-hand or shoulder-to-shoulder work that has to take place. If you have people working virtually, video is important. You can gauge someone’s total emotional responses. You can see if they’re learning and absorbing. Make sure you can see each other more than once or twice in the first 90 days. It makes new virtual employees feel like part of the team.

As a best practice, I encourage one-on-one, short meetings with key team members. These can be as short as 15 minutes. Managers should provide a new hire with a guide to what their first 90 days will look like – who they are going to meet with, where they are going to get the things they are going to need, and access to people’s calendars. In these meetings, the new hire can learn team members’ responsibilities, processes and philosophies, and can also share information about themselves. These conversations help facilitate better working relationships.

Instead of relying on traditional trainings for critical material, I encourage different interactive teaching styles so the new hire can absorb and apply the knowledge. This could be training on technology, best practices for outward-facing roles, or company culture – things that are tempting to stick in a guidebook or slide deck. However, because people often don’t retain information well from passive, instructor-led training, challenge the status quo and explore better ways to deliver training.

Transitioning Out
The transition out of the formal onboarding period should also be included in the onboarding plan you provide new employees. When you empower them to take control of the process, it should be simple. In the last 30 days, the new employee should already be starting to soar in their role, and check-ins will be less frequent. However, for some strategic roles, the process may take longer than 90 days.

What About New Promotions?
I also recommend using this same approach with people who are promoted from within. While most employers typically have at least a very basic onboarding program, newly promoted employees are rarely given any onboarding support. You can use the same strategies, but I recommend – at the very minimum – an abbreviated version.

How to Measure Engagement & What to Do With the Numbers

We know what engagement feels like. When you walk into a workplace with an engaged workforce, you can feel the positive energy. When you walk into a workplace with a disengaged workforce, you want to turn around and walk back out the door.

Your battle for engagement may start with the onboarding process, but it doesn’t end there. Once, I took over a company for a founder and morale was really low. We measured it, and it was a three out of 10. Within six months, we scored it again and we were at a seven out of 10. When engagement is low, you need to measure and then act.

Measuring Engagement Effectively
There are so many engagement tools out there, but I say: just keep it simple. Measure engagement consistently, do it on a frequency that makes sense for your organization, share the results, and share what you’re willing to do about the results.

Most companies have some form of employee survey, and tons will do these surveys once a year like clockwork, but they don’t do anything with the results. If you’re going to survey people and do nothing with it, don’t survey at all. You actually do more harm to yourself and to your employees because you’re demonstrating that their wants, needs and engagement don’t matter.

First, ask for the right information. There are three areas I always recommend:

  1. Do you know what is expected of you at work?
  2. Do you have the tools that you need to do your work?
  3. Do you have the opportunity to do what you do best at work?

From there, you can ask more specific questions related to your organization or changes you are considering making, but only ask about areas where you are willing to make changes. You can ask more simple questions to make early wins. For instance, you could ask about upward mobility, career pathing or development – if you’re prepared to put something in place to address it.

Then, publish your results. You don’t have to share every detail, but you do have to publish the themes, and you do have to be authentic. If the results aren’t great, people already know that. However, it gives you an opportunity to demonstrate that you hear your employees and are willing to make changes to address their concerns.

Building a Pulse Team
I also like to create what is called a pulse team – the culture team for your company. The team should be a cross-functional group of key stakeholders – not executives. The group can pulse what’s going on, how people are feeling, if they are supported, if they are happy and if they are productive.

The pulse team reports up and out to the executive team on a frequent basis – many do it quarterly, but some companies even have it monthly. This gives everybody a pulse on what’s happening on the ground, especially if an organization is virtual or global. Then, leaders have a chance to understand when something isn’t going well and address it.

Organizational Influences

When you take time to follow these steps – building an onboarding program, measuring for engagement and responding, your people are more likely to become invested in your organization. They can see their career path. They can see that your organization cares. There’s depth and predictability. All of that increases engagement, which increases retention.

Recall what I said at the start of this article: engagement and retention are just different words for the same thing. To increase both, you need to start with the first 90 days, and you can’t stop.

The Expert: Dana Look-Arimoto

Dana Look-Arimoto is a mentor, speaker and change agent. Dana has more than 20 years experience in the talent ecosystem. She’s created Phoenix5 to evangelize a new mindset: Stop Settling™. She coaches executives and leaders of all kinds to become their all in every part of their life: work, home, community and giving back. Dana also recently released the book, “Stop Settling, Settle Smart: Rethinking Work-life Balance, Redesign Your Busy Life.

Are You Getting It Right? How to Manage Your Independent Contractor Workforce

By ERIC DYSON
Trend Writer

Increasingly, organizations are harnessing the talents of contractors to augment their current workforce, respond to rising talent demands, staff large strategic projects, add new skills and expertise to their teams, and accelerate growth.

The rising trend of contract labor is a global phenomenon. According to an Oxford Economics survey, 61% of executives reported an increase in the usage of contract labor to meet business objectives. What’s more, according to CareerBuilder’s Annual Jobs Forecast, 47% of employers are looking to hire part-time or contract workers.

It’s not just organizations getting in on the contractor market; more and more professionals are opting to work as “free agents.” In fact, according to a Bureau of Labor Statistics report, 79% of independent contractors in the U.S. preferred their arrangement over traditional employment.

While there are many types of freelance, SOW, consultant, temporary and contingent workers in a multitude of settings, in this article, we focus on the proper classification and management of independent contractors.

Co-Employment Risks & Considerations Associated with the Use of Independent Contractors

Leveraging the skills of independent contractors may provide many significant benefits, such as decreases in taxes, fewer employee liabilities and increased workforce agility. However, improper management and classification of independent contractors can result in co-employment and compliance issues.

What is Co-Employment?
In the U.S., when an independent contractor has two employers whom both have potential legal responsibilities to them, that relationship is known as co-employment. Co-employment situations are common when independent contractors are hired through a staffing vendor because both the vendor and its client can claim an employer-employee relationship with the contractor.

In most cases, the staffing vendor is called the primary employer or employer of record. Co-employment risks occur when the client, or “secondary” employer, oversteps the bounds of the contractor-secondary employer relationship. Simply put, when the client exercises more control over the contractor than the laws and regulations permit.

Organizations that overstep their boundaries run the risk of taking on the role of the employer of record as determined by the IRS’s 20 Factor test. If an organization is deemed to be the employer of record, they then become responsible for all the tasks their staffing vendor has been performing.

For example, lawsuits connected to co-employment can result in an organization having to repay lost wages, overtime or benefits. In these cases, organizations may also be responsible for any associated court fees, which, because many of these cases are protracted over many years, can accrue over time.

A famous example of co-employment litigation is the Vizcaino v. Microsoft Corp case. The court found that Microsoft failed to properly identify the roles of temporary workers, resulting in nearly $100 million in penalties.

Mitigating Co-Employment Risk
One way to avoid potential co-employment risk is to have a single point of contact for staffing vendor management. A Managed Service Provider (MSP) can act as this single point of contact. MSPs can mitigate co-employment risks by ensuring compliance and proper classification of 1099 workers. MSPs also mitigate risk related to workers themselves by conducting drug testing, background screenings and skills assessments, and determining worker eligibility.

Comprehensive MSP programs include pre-screening and onboarding best practices; these are designed to drive compliance and mitigate co-employment risk. They include drug testing, worker eligibility, skills assessments, wage rate, bill rate and performance ratings. Enterprise-wide independent contractor (1099) risk assessments enable MSP clients to understand their exposure and provide strategies for independent contractor replacement or migration to W-2 status when necessary.

Engaging Your Contract Workforce

Behavioral scientist Dr. Ashley Whillans from the Harvard Business School, who researches what makes people happy in the workplace, summarized the power of engagement succinctly:

“Cash matters in people’s lives, but it’s not all that matters,” she said. “What really matters in the workplace is helping employees feel appreciated.”

To get the best from your contract workforce, your organization needs to treat contract workers with the same respect and appreciation you give to your full-time employees. Just like any worker, contractors value the opportunity to advance in their careers and take on challenging projects. Providing contract workers with opportunities to learn and grow as professionals can keep them satisfied and happy to work for your organization, and will encourage them to extend engagements rather than seeking new opportunities.

Improve the Contract Candidate Experience
While seeking new engagements, a contractor may review multiple opportunities a day. To stand apart from the crowd, clearly articulate what makes your contract opportunity worth their time. This will make it easier for them to quickly assess whether the opportunity is a good fit and, if so, motivate them to toss their hat in the ring. For example, job postings for contract positions should be more precise and to the point. Try not to include a long list of rigid experience qualifications and responsibilities.

Contractor hiring experiences can be very different from full-time employees. Therefore, don’t use the same process to recruit and onboard them. Instead, develop and employ a consistent onboarding process designed for independent contract workers.

Integrating Contract Workers Into Your Team

For your contract workforce to be effective, your leadership should go above and beyond to ensure that members feel welcome and are properly integrated into the larger organizational culture. A worker’s hiring status should not preclude them from feeling like they are a part of the team. In other words, make sure all your contract workers know that they are valued contributors.

What’s more, treating contract employees like “second-class citizens” can result in bad morale – not just with your contractors, but also with your permanent workforce who work beside them. Organizations can find a myriad of ways to welcome them into the corporate culture while avoiding co-employment risk. For example:

  • Involve contractors in all relevant meetings.
  • Include them on team email lists.
  • Solicit their opinions and ideas for process improvement.
  • Remember contract employees when you celebrate project milestones.

Contract workers have more than likely been a part of many projects and organizations across industries. So, by properly integrating them into your team, you are also integrating the collected wisdom and perspectives of multiple organizations and industries.

Communication
Establishing good communication is the key to maintaining strong relationships between contractors and employers. The first step in establishing good communication is letting your contracted team members know that you are always available to answer questions and address concerns.

Hold regular meetings with members of your contract staff to stay updated about the progress and obstacles they might be facing on projects. You can also assign each contractor a point person they can go to when questions arise, or they are unclear about their assignments.

Video calls, chat messages and emails are all great ways to keep in touch – especially if the worker is remote – but don’t rely too heavily on technology to communicate; just like with your full-time employees, contract workers who work on-site like to have personal and face-to-face communications with their employer.

Onboarding Contract Employees
Walking into an unfamiliar office, parsing out the do’s and don’ts of a new workplace, and locating the restrooms and water coolers can be daunting on the first day of a new job. So, imagine a contractor who may have to go through this process multiple times a year as they move from assignment to assignment. This is where providing a seamless onboarding process to contract hires can help reduce the stress related to starting a new assignment, and establish trust and comfort from day one.

During the contractor onboarding process, make sure you have everything prepared on a worker’s first day. Security badges, equipment, office supplies and access to the information required to navigate projects should all be ready to go once they enter the door.

While the onboarding process for contractors will and should look different from an administrative perspective, it should be an equally positive experience. Every employee, once onboarded, should feel as much a part of the team as anyone. Doing so will promote trust in the workplace, and will ultimately lead to more creativity and production across the board.

Fostering Relationships
Workers – regardless of employment status – are more effective and productive when they have strong relationships with their colleagues. According to research conducted by Gallup, employees who report having a best friend at work constantly perform better than employees without similar connections.

When workers respect and view their colleagues as friends, they are more likely to value each other’s input and ideas, and may feel more comfortable sharing their own. This mutual respect and comradery leads to better teamwork and the development of solutions based on the collective insight, wisdom and creativity of the whole team.

Early on in an assignment, introduce your contractors to each other and their full-time counterparts. During the initial meeting, encourage everyone to share their background, experience, personal achievements and interests. This can help build rapport and engender greater trust and cooperation.

Tracking & Supervising Projects Assigned to a Contract Employee
Managers who oversee contract employees do so without a formal supervisor-employee hierarchical relationship. They can specify what projects need to be done and when they need to be completed. However, they cannot dictate the specific hours that contractors work or exactly how they are to perform the work. So, to effectively manage projects assigned to a contract employee, managers need to employ a more hands-off supervisory approach.

Define Your Goals, Expectations & Timelines
Before assigning a project or task, you should discuss the goals of the project, the contractor’s role in it and what you expect from them. You can avoid future confusion about when they should complete tasks by sketching out a clear timeline of when the project starts, when they should report on the progress, and when they have to turn in the final product.

Check In Regularly
A good way of checking up on project status is to schedule intermittent check-ins with your contract employees to gauge progress toward goals and objectives. While checking in, do not explicitly direct your contract employee’s actions, as this may run the risk of employee misclassification and run afoul of co-employment regulations. Think of it as managing for results rather than specific activities.

Evaluate & Review
Just like your permanent employees, contract workers need constructive feedback to improve on their skills. When a contractor submits a task, evaluate it right away and provide speedy feedback. This will not only help them review their work, but also allow you to check on whether the project that you assigned the worker is on the right track or if it needs a course correction.

Conclusion

As more professionals choose to make their living working as contract employees, the contractor workforce is becoming a bigger part of the labor mix. Developing a best-practice management strategy is essential to attracting and retaining them, and it’s required for optimizing organizational growth.

Forward-thinking organizations are providing contracted workers with a greater say in the work they do; they’re connecting them with teammates and they’re recognizing them for their contributions. In other words, they’re positioning themselves to become employers of choice for contractors.

ARE YOU GETTING IT RIGHT? HOW TO MANAGE YOUR INDEPENDENT CONTRACTOR WORKFORCE

Key Takeaways

  • Having a single point of contact for all staffing vendors can help mitigate co-employment risks.
  • Treat contract workers with the same respect and appreciation you give your full-time employees.
  • Clearly define goals, expectations, and timelines with contract workers to ensure projects are completed on time and to your satisfaction.

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