The Covid-19 pandemic has accelerated the transition towards more flexible work arrangements, and away from traditional workforce models, according to a new report.
Around 56% of global companies expect to shift more of their roles to contingent, project or contract work models, confirmed Randstad Sourceright’s latest 2021 Talent Trends report. Its research, based on responses from 850 C-suite executives and talent leaders across 17 markets globally, found that the pandemic has led companies to increasingly adopt a more flexible approach to talent; while maintaining key expertise and skills within their permanent workforce to better adapt to ongoing economic recovery efforts.
According to the survey, 77% of C-suite and HR leaders say their talent strategy is now more focused on workforce agility than ever before.
KEY FINDINGS
Other key findings from the report, include:
- Remote work is on the rise among contingent talent. Prior to the pandemic, only 28% of contingent workers at companies surveyed worked remotely. But after the outbreak, that number rose to 44% in the fourth quarter of 2020.
- AI impacts jobs and displaces workers. Around 72% of talent leaders believe that AI will open up new opportunities for talent. However, 52% also say jobs will be lost from broad adoption of automation and artificial intelligence.
- Companies are embracing talent analytics with 42% reporting they are increasing their investments in talent analytics. Another 36% are holding their talent analytics budget steady.
NURTURING DIVERSE & INCLUSIVE CULTURES
“As organisations embrace a more agile way of working during the recovery and in the future, simply engaging more contingent talent may not be enough. Companies will need to look at their workforce and skills more holistically. This requires nurturing a diverse and inclusive culture, investing in a consumer-like talent experience enabled by technology, and using market intelligence and talent analytics to understand skills availability,” stated Mike Smith, Global CEO of Randstad Sourceright. “It’s a chaotic time, but disruption often leads to transformative results; and organisations should consider how to take this opportunity to redefine work and the use of all forms of talent.”
According to McKinsey & Company, flexible labour has the potential to be the key to a company’s success in 2021. As businesses turn to more contingent talent in the year ahead, Staffing Industry Analysts predict that the overall US staffing sector will grow by 12% in 2021, noted the report. With the increased focus on contingent talent, businesses are realising there is an opportunity to leverage their recruitment capabilities not only for permanent talent, but to attract and engage with flexible talent as well. In fact, 69% of organisations expect to implement total talent management in 2021; and nearly half (47%) are increasing budgets allocated for total talent investment.
TALENT ACQUISITION STRATEGIES
To aid recruitment efforts, companies are tapping into HR technology tools to redefine and enhance their talent acquisition strategies. Approximately 71% of HR/senior leaders say AI-powered solutions and robotics will make the recruitment process more efficient; around the same percentage say they will be able to source, attract and engage more of the right type of talent.
“Deploying talent analytics is essential for companies trying to achieve greater agility,” added Smith. “During this period of recovery, it’s imperative that organisations are assessing how leveraging new tools and data can expedite their development of a more holistic, agile workforce strategy.”
Click here to download a copy of the Q2 2021 issue of Talent Trends Quarterly report: The rise of the agile workforce. Additionally, the UK’s CIPD has urged employers not to rush back to ‘old ways of working’; and embrace more flexible work arrangements, as reported.
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