![17
Future employment
Optimizing Capacity for Opportunity Jill Stephens
think “few people will have stable, long-
term employment in the future”
— PwC
60%
Traditional
Nontraditional
Permanent, full time job with one employer
Usually organized around skills, business functions
Independents
Project-based
[ L E S S ] [ M O R E ]](https://image.slidesharecdn.com/optimizingworkforceagility-180321080759/75/Optimizing-Workforce-Agility-17-2048.jpg)
Uploaded byJill Stephens
Optimizing Workforce Agility
The document discusses the shift towards a freelance-driven workforce, highlighting the increasing prevalence of temporary and contract work as millennials and younger generations dominate the labor market. It outlines the implications of this trend, including the potential talent shortage and the need for organizations to adapt their hiring practices to work effectively with freelancers. The emphasis is on compliance, clear communication, and strategic management of flexible labor as the future of work evolves.
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Similar to Optimizing Workforce Agility
Optimizing Workforce Agility
- 1. October 13, 2017 JillStephens Optimizing workforce agility PREPARING FOR OPPORTUNITY Jill Stephens Adapted from my presentation for the AIGA Design Conference in Minneapolis, MN, October 2017 March 2018
- 2. NEWS AND TRENDS > FREELANCERS March 29 We’reTurning Into a Freelance Nation. Here’s What That Looks Like. The workforce is changing Feb 19 ・ 30 min read “GIG” ECONOMY IS ON THE RISE 08.10.15 | THE FUTURE OF WORK Here’s Why The Freelancer Economy Is On The Rise February 13, 2017 The Evolution of the U.S. Workforce from Solidity to Liquidity Mar 31, 2016 @ 10:18 AM Contractors And Temps Were 100% Of JobGrowth In US: And That’s A Good Thing CRUNCH NETWORK The Freelancer Generation: Why Startups And Enterprises Need To Pay Attention
- 3. A freelance revolutionis underway, driven by market forces and the needs of stakeholders. Optimizing Capacity for Opportunity Jill Stephens 3 TALENTBUSINESS $ ECONOMY TECHNOLOGY
- 4. If the marketis bending towards a freelance economy… Optimizing Capacity for Opportunity Jill Stephens 4 How might we harness this rising opportunity and make it easier for talent and enterprise to accomodate each other, meet market needs, and remain competitive 4 ?4 What needs to change?
- 5. The changing talent environment First,some context
- 6. Used to be… Full-timeemployment the ticket to security and success Employer provided all benefits needed Skills updates required less frequently 6Optimizing Capacity for Opportunity Jill Stephens In the past, anyone—from accountants to machinists —could spend their entire careers doing the same job, using the same skills to support businesses with largely unchanging goals… “ — Accenture
- 7. The future ain’t what it used to be.“ —Yogi Berra
- 8. 2015 20252020 2030 Demographicsare trending younger. 8Optimizing Capacity for Opportunity Jill Stephens In 2015, Millennials replaced Xers as the dominate share of the workforce By 2025, 60M boomers will have retired… …about the time Gen Xers begin to turn 65 and start to retire. Millennials 75% of workforce by 2030 …and only 40 million younger workers will replace them Gen Z (born 1996 and later) start to enter the workforce in 2018 Sources: US Bureau of Labor Statistics, 10x Management 20 million worker deficit
- 9. By 2020, accordingto one McKinsey study, it is predicted there will be a shortage of 30-40 million college-educated workers.30-40 million A talent shortage is on the horizon. Optimizing Capacity for Opportunity Jill Stephens 9 Sources: McKinsey, Pew Research Center, MAXIS Global Benefits Network One factor is education. There aren’t enough people getting advance degrees in relation to the needs of the market place. Also a factor: an aging workforce. 10,000 Baby Boomers retire every day, and there will be fewer younger people to replace them in the coming years. Supply Demand 9
- 10. 10Optimizing Capacity forOpportunity Jill Stephens Meanwhile, technology has changed the way we work. Now, it happens virtually. And virtually anywhere… Office Home Co-working Coffee shops/restaurants Digital workspace
- 11.
- 12. on virtual platforms. New technology makesit easier to search, source, vet, and match talent and organizations. 12
- 13. Mix in theseeconomic factors: 13Optimizing Capacity for Opportunity Jill Stephens And what is the result? Cost of benefits Reluctance to hire Uncertainty Great Recession Stagnant wages
- 14. More freelancers* Uncertainty Skillsgap 34% of workforce in 2015 50% by 2025 * Full-time, part-time or occasional freelancers Sources: Upwork, Freelancers Union, Medium More millennials More technology 14Optimizing Capacity for Opportunity Jill Stephens in numbers too big to ignore
- 15. 15Optimizing Capacity forOpportunity Jill Stephens by choice 60% earn more than with traditional employment. 79% believe freelancing is better than a typical job. Mutually beneficial relationship Talent Flexibility Mobility Control Enterprise $$ savings Skills More freelancers* 1515 Sources: Upwork, Freelancers Union, Medium
- 16. What does itall mean?
- 17. 17 Future employment Optimizing Capacityfor Opportunity Jill Stephens think “few people will have stable, long- term employment in the future” — PwC 60% Traditional Nontraditional Permanent, full time job with one employer Usually organized around skills, business functions Independents Project-based [ L E S S ] [ M O R E ]
- 18. …work will increasinglyconsist of short-term assignments, and a career will be composed of a bundle of such assignments over a lifetime. Today, this is known as the ‘gig economy.’ “ —The Good Economy
- 19. AUTOMATION THE UBERIZATION OFWORK Fundamental transformation Scarcely recognizable The Future of Work Is On-Demand FourthIndustrialRevolution The future of work FREELANCE IS THE FUTURE
- 20. Working with freelancers So,how do we make it work — now, and as we prepare our workforce and our businesses for future opportunities?
- 21. 21 Creative agencies workwith a variety of contingent resources who perform a range of services Maybe this time! Content development Design Production Brand strategy/development Naming Account management Business development Optimizing Capacity for Opportunity Jill Stephens
- 22. 22 …and come fromvarious sources Optimizing Capacity for Opportunity Jill Stephens …working across the city, country, and globe. Agencies • Clients • Employees • Alumni • Other independents • Peers/colleagues PlatformsReferrals • Creative Circle • The Creative Group/ Robert Half • Artisan Creative • Aquent • 24|Seven • … • Behance • Talenthouse • WorkingNotWorking • Fiver • LinkedIn
- 23. Success factors Be compliant Beintentional Be clear
- 24. Only two typesof workers that matter EMPLOYEE FT regular employees PT regular employees Temporary employees hired for a limited duration W-2 INDEPENDENT CONTRACTOR Freelancers, ICs, Consultants Organizations 1099 BE COMPLIANT — CLASSIFICATION
- 25. 25 This much istrue Employer makes the call There are no hard and fast rules Don’t go it alone Optimizing Capacity for Opportunity Jill Stephens BE COMPLIANT — CLASSIFICATION
- 26. EMPLOYEE vs. INDEPENDENT CONTRACTOR Typicallyworks for one employer Employer determines work performed Control Free to accept or refuse work Decides manner and means of performing work Largely sets own schedule/hours Contractor and client agree on scope and compensation Salaried or hourly compensation FT and PT employees eligible for benefits Financial Typically invoices and paid per project or milestone completion Continuing relationship as defined Relationship Temporary, per project 20+ Common law factors Internal Revenue Service There is no ‘magic’ or set number of factors that ‘makes’ the worker an employee or an independent contractor, and no one factor stands alone in making this determination. Also, factors which are relevant in one situation may not be relevant in another. “ BE COMPLIANT — CLASSIFICATION
- 27. 27 Reasons to augmentstaff • To scale up to accommodate more work • Seasonal or cyclical work • For projects that require specialized skills that are not needed once the project is complete • Planned expansion — before you have the revenue flow to support FT hires • To vet potential future employees before FT hire Optimizing Capacity for Opportunity Jill Stephens Contingent workers can meet swings in demand and reduce the need for layoffs that lower morale. BE INTENTIONAL
- 28. 28 Cost considerations The “rightmix” of traditional and flexible workers will be different for every organization. Optimizing Capacity for Opportunity Jill Stephens Ready to hire another full-time, permanent employee? WAIT - Keep costs variable and use contractors to take on more work until financials targets are reached. No OK - Go for it. YesAre you consistently hitting chargeability and profit margin targets? BE INTENTIONAL
- 29. 29 Finding the rightpeople Leverage your network Sign a mutual NDA, then ask to review and discuss sample work Check references Know your criteria Optimizing Capacity for Opportunity Jill Stephens Only one unknown quantity at a time: New client ▶︎ trusted resource New resource ▶︎ legacy client BE INTENTIONAL
- 30. 30 Have an agreement Provideslegal protection and helps establish independent contractor status Incorporate salient SOW/MSA terms with client into IC agreement/PO. To include: • Scope of services and deliverables • Compensation • Term and termination • Work ownership • Confidentiality • Any other salient terms agreed to with client Optimizing Capacity for Opportunity Jill Stephens BE CLEAR
- 31. 31 Teamwork Matrixed organizations andteams; multi-faceted projects Project management leadership required Team norming/internal kickoff Optimizing Capacity for Opportunity Jill Stephens • Set expectations; review client expectations • Roles and responsibilities • Preferred work styles and methods of communication • Clear points of contact “I love working with your firm. The relationship is one based on mutual respect and a genuine desire to collaborate as a team.” “I appreciate the intellectual stimulation and challenge I get when working with you guys. That’s not always the the case, especially with straight ‘pass-through clients.’” — Independent Contractors our firm regularly hires Educate staff on the ins and outs of working with contractors BE CLEAR
- 32. 32 Evaluation and feedback Didthe IC’s work meet/exceed expectations? Was it on time? Were all parties receptive to feedback/critique? Optimizing Capacity for Opportunity Jill Stephens Did they go beyond? Bringing vision, expertise and perspective not considered; challenge you the right way? Do you trust they are acting in your best interests? Remember, it’s mutual. With experienced, strategic independent contractors, you’re paying for their thinking, not time. BE CLEAR
- 33. 33 What about clients? Keyimperatives Put your best team on it Company is fully accountable and owns all work quality Optimizing Capacity for Opportunity Jill Stephens “I don’t get to be in front of clients as much with some of the other firms I work with, and that makes my job harder. Especially when I eventually do get in front of the client (often to present a first pass at something) and it’s obvious I’ve missed an important piece of information that was communicated in my absence.” Put your highly experienced freelancers in front of the client — early and often. Transparency is your best bet. — Independent Contractor BE CLEAR
- 34.
- 35. Know the latestrules and regs, proper classification, etc. Information is readily available. But interpreting it is another story. The pros can help. Be compliant Success factors Have a system. Know when and why you need to hire contingent workers. Use consistent processes to vet, onboard, manage and pay them. Be intentional Cleary communicate details and expectations of the engagement in writing. Have a formal kickoff process and team norming. Be clear Treat your trusted contractors like a member of the corporate family and they’ll go the extra mile for you…and keep coming back.
- 36. As the presentnow Will later be past The order is rapidly fading Technological, cultural, and generational shifts are expanding the opportunities and structural workforce arrangements. The Times They Are a-Changin' We can foretell some of the implications, but ultimately, much of what lies ahead is uncertain. The only constant is change. Tomorrow Never Knows When it's time to change You’ve got to rearrange Who you are into what you're gonna be The best preparation for uncertainty is agility. Who knows? Change, even the unexpected kind, can create possibilities… Time To Change 1 2 3 Turn off your mind, relax and float downstream Lay down all thoughts, surrender to the void That you may see the meaning of within Key takeaways — Bob Dylan — Beatles — Raymond Bloodworth, Billy Meshel and Chris Welch
- 37. 37 References “People First: ThePrimacy of People in a Digital Age,” Accenture, 2016. “The Evolution of Work and How to Thrive in the Contractor Economy,” LinkedIn, March 2017. “A Labor Market that Works: Connecting Talent with Opportunity int he Digital Age,” McKinsey Global Institute, June 2015. “Global Talent Shortage Worries Multinationals More than Revolution or Recession, according to new report from MAXIS Global Benefits Network,” Business Wire, June 2012. “Why Is Washington Ignoring the Freelance Economy?” The Atlantic, September 2010. “Get Ready for Freelancers: How to Prepare Your Company for the Freelance Revolution,” 10x Management, 2017. “‘Gig' Economy is on the Rise,” Medium, February 2017. The Good Economy, Roosevelt Institute and Kauffman Foundation, February 2016. “The Freelance Surge Is the Industrial Revolution of Our Time,” The Atlantic, September 2011. “The Gig Economy and the Changing Nature of Work,” Living Cities, March 2017. “Independent Contractor (Self-Employed) or Employee?,” Internal Revenue Service, October 2017. “Freelancing in America: 2016,” Upwork and Freelancers Union, October 2016. Optimizing Capacity for Opportunity Jill Stephens Images in this slide presentation are used under a Creative Commons Attribution, Non-Commercial, No Derivatives license.
- 38. About The views andopinions expressed in this document are meant to stimulate thought and discussion. Since each organization and situation has unique requirements and objectives, these ideas should not be viewed as professional advice with respect to your business. With more than 22 years of experience in UX design, strategic communications and branding, Jill thrives on the problem solving nature of her work. At corporate and employer branding firm Baker Brand Communications, she plays a key role in deal structuring, brand strategy and development, and studio practices. At Baker she’s helped several premier clients from a wide range of industries including AECOM, Avery Dennison, Booz Allen Hamilton, UCLA, and Viasat. Jill was previously a practice leader at an ecommerce developer where she managed the design and development of Footlocker.com and other brands. She also has served on the board of the Association of Professional Design Firms, an international organization of brand, graphic, product, and digital design firms. Jill is a proud New Jersey native and a graduate of James Madison University, located at the foot of the beautiful Blue Ridge Mountains in Harrisonburg, Virginia. She admits, however, that she’s partial to the sun, sand, and waves of her present digs: Santa Monica, California. Contact Jill Stephens VP Strategy and Management Baker Brand Communications [email protected] Twitter: @jillstephens
- 39. image slide Thank you October13, 2017 Jill Stephens Twitter: @jillstephens Jill Stephens