nimble talent strategies
DESCRIPTION
Presentation on how to build a more flexible workforce.TRANSCRIPT
Nimble Talent
Strategies for a New
EconomyBy:
Tom Erb
What is Nimble?
AGILE
FlexibleQuick
Responsive
Nimble: Quick and light in movement or action
What is a Nimble Workforce?
Strategic approach to workforce structure
Flexible to change with your business
Efficient – low turnover, high-capacity
Scalable
Responsive to Customer Demand
Attractive to Employees
A Competitive Advantage for your Company!
Why do I need a Nimble workforce?
Layoffs Stink! (and they don’t work)
Opportunity Only Knocks Once
It’s Good for your Company
It’s Good for your Employees
“In the new high-speed business world,
organizations have to be able to deploy (and
redeploy) resources at a just in time pace.
Especially human
resources.”
Layoffs Stink – The Price of Layoffs
$ Severance pay
$ Paying out accrued vacation and sick pay
$ Outplacement costs
$ Higher unemployment-insurance taxes
$ Cost of rehiring employees when business improves
$ Low morale and risk-averse survivors
$ Potential lawsuits, sabotage, or even workplace violence
$ Loss of institutional memory and knowledge
$ Diminished trust in management
$ Reduced productivity
Wayne Cascio - Responsible Restructuring
Long-Term Impact Leadership Costs
Brand-Equity Costs
Client Relationships
Employee Morale
Voluntary Turnover
Lost Opportunities
Out of 542 executives surveyed, 46% said they believed their companies
had taken actions during the recession that could hurt their long-term growth prospects. The most
commonly cited concern:
"deep cuts in work force"
Duke University/ CFO Magazine study
Cost of Inflexible Labor
Labor Needed
Actual Labor
ShortageSurplus
Lost Opportunity
Nimble Workfor
ce Options
Part-Time
Significant flexibilityOnly 13% are looking for
full-time work
Less dependent on set hours
Easily scalable
Part-Time
Significant flexibilityRetirees
Students
Stay at home parents
Second Incomes
Attracts a highly qualified labor pool
Part-Time
Significant flexibility
Attracts a highly qualified labor pool
Increases Productivity
“Productivity of firms with a high share of part-time
employed is higher than productivity of firms with a high share of full-time
employed.”
Nelen, Grip, Fouarge - Does Part-Time Employment
Affect Firm Productivity?
What is Full-Time?
USA Japan Canada England France Germany2526272829303132333435
Hours Worked/Week
The Organization for Economic Co-Operation and Development
Telecommuting Employers can save 63% of
absenteeism costs per teleworker
Fifty-three % of teleworkers say the ability to work at home is important to their employment choice
Telework can cut corporate real estate costs by 25% to 90%
Possible savings in office space, per worker, can equal up to $8,000
Teleworkers are often 20% to 25% more productive than office workers
International Telework Association and Council
Hoteling Also referred to as “Hot
Desking”
The practice of providing office space to employees on an “as-needed” basis
Great for remote workers, outside sales reps, and other primarily mobile employees
Reduces overhead, increases flexibility, and reduces ramp up time for new employees
Job Sharing Two part-time employees
fill one position
Typically higher level positions
Benefits include: Increased Flexibility
Scalability
Increased Productivity
High Retention
Leave Coverage
Alfred P. Sloan Awards for Business Excellence in Workplace Flexibility
31 of 37 BDO offices received Sloan Awards for their strategic flexibility practices
Telecommuting - saved real estate costs while increasing business
Part-Time - Three- and four-day workweeks let BDO “get really fabulous people and save costs when we don’t need a full-time person”
“My workplace model is a business-strategy-based approach where flexibility is integrated into the business model of the organization.”
Barbara Taylor, flexibility chairperson and general counsel for BDO
Outside HelpD
ele
gati
on
Complexity
Contingent/TempTemp, Project, Seasonal, Temp
to Hire
Benefits of using include Significant Flexibility
Quick ramp up and down
No commitment
Savings on benefits
Protection from workers comp, unemployment, and other employer-related liabilities
Outsourcing!The transfer of a business function to an
external service provider
Benefits include: Potential cost savings
Scalability
Service Level Agreements
Frees up Resources
Managed Service Hybrid model between
contingent staffing and outsourcing
Based on-site rather than off-site
Ideal for standardized, measurable tasks (i.e. call center, mailroom, help desk)
Benefits include: Greater oversight and
control
Integrated with operations
Easier to pull back in house
Independent Contractor (1099)
Benefits include: Flexibility
No commitment
Potential cost savings
Not an employee, responsible for own withholding
Review against IRS Contractor Test and FLSA employee definition
Explore management companies to comply with laws
ComparisonTemp On-
SiteManaged Service
Outsourcing
1099
Scalability Moderate High High High Some
Management Required
Moderate to High
Low to Moderat
eLow Low Minimal
Control High Moderate Low Minimal Minimal
Potential Cost Savings Some Moderat
e High High Some
Accountability Minimal Some High Very High High
Employee Commitment Low Moderat
e Moderate High High
Leveraging a Flexible Workforce
60 years without a layoff
Workforce Strategy includes: 15% Temporary
Employees
Managed Services
Outsourced Non-core Functions
“Firms that increase their reliance on contingent labor by at least 10% experienced
increased EBITDA over companies without a flexible
workforce strategy.”
University of Oklahoma School of Business Study
8 Steps to a
Nimble Workforce
Benefits of a Nimble Workforce Model
Workforce Flexibility
Increased Morale
Higher Retention
Widens Recruiting Net
Reduces Expenses
Improves Productivity
Maintains Momentum
More Compelling Arguments for Executive
Buy-In
88% of the companies that downsized said that morale had declined
More Compelling Arguments for Executive
Buy-In
Only 3% of companies plan to revert to the staffing model they used before the recession
2009 study
More Compelling Arguments for Executive
Buy-In
“On average, temporary workers displayed better performance relative to goals
compared to their full-time counterparts.”
- Joe Broschak, Assistant Professor of Organizational Behavior
More Compelling Arguments for Executive
Buy-In
83% of companies surveyed had achieved an ROI of over 25% on their outsourcing projects
2009 Outsourcing Study
More Compelling Arguments for Executive
Buy-In
Job displacement results in a 15 to 20% increase in death rates during the following 20
years, implying a loss in life expectancy of 1.5 years
Traditional Workforce Model
Labor Needed
Actual Labor
ShortageSurplus
Nimble Workforce Model
Labor Needed
Internal Flex Staff (Part-time, etc)
ExternalResources
Full-Time Staff
Some Final Thoughts Think Strategically
Get rid of “9-5” Mindset
Challenge assumptions
Start small and build
What’s good for employees is good for the company