When most people think about the future workforce, they think about robots taking over jobs and machines doing more of the work. However, this may not be exactly what's in store for your organization or industry. It's important to understand what the workforce of the future is and why it's important for your company to be optimizing an external workforce. Research by Stoke Talent indicates that the number of employees working as freelancers will be over 50% by 2025.
Therefore, companies must learn to optimize the external workforce to their advantage. This article on optimizing an external workforce provides five reasons why businesses should include an external workforce in their future workforce strategies.
1. An External Workforce Allows You to Diversify Your Talent Pool
One of the primary reasons a business would opt for an external workforce is that they can access the talent they normally wouldn't be able to reach otherwise. This allows them to hire individuals with specific skill sets, helping you build more efficient teams.
An external workforce gives you a wider pool of candidates: When hiring employees directly, there are only so many people in your immediate area who will meet your qualifications and are willing to work for your company. However, with an external workforce, there are no geographical limitations on where you can find qualified workers—you simply need to know where to look.
2. An External Workforce Opens Up New Channels for Finding Talent
By using a staffing partner, you can have access to many more candidates than if you rely on your in-house recruiting team. This can also help ensure you attract a higher caliber of candidates. It also frees up your internal recruiting staff from scouring job boards and resumes – they can focus on finding hard-to-find skills that may not come through your typical channels.
3. An External Workforce Increases Innovation and Productivity
Many companies that have been in business for a long time may lack innovation, so an external workforce can help. By hiring individuals with new ideas and fresh perspectives, your company can think outside its usual box and increase productivity in various departments.
It can also expand your organization's knowledge base. This is especially beneficial if you're an older company that's been in business for several years. An external workforce can help your employees better understand how other companies operate and learn how your business can improve its operations.
4. An External Workforce Is Less Costly
An external workforce can help you save money by not investing in your internal workforce while still allowing your company to fulfill its demands. This can make it easier for you as a business owner if you aren't sure whether or not your current size is ideal for growth. An external workforce also gives you more flexibility, helping keep down costs and giving you additional resources if necessary.
5. The Rising Demand for Flexibility
The workforce of tomorrow will offer a significantly different experience than what companies are used to today. The old model of 8-hour workdays and 5-day workweeks is becoming a thing of the past, and new employees want employers who'll give them more flexibility in scheduling hours.
As millennials become a bigger and bigger part of the workforce, demand for flexibility will increase. Yahoo! Finance reported that 52% of Gen Z and Millennials are willing to change their jobs for flexible work arrangements. According to FlexJobs, 70% of Millennials reported that they want a flexible schedule.
The workplace is changing, transitioning into a gig and external workforce. Employees no longer stay with one company for life; they choose jobs based on location and flexibility rather than salary and benefits. This type of freedom gives workers more options and makes it difficult for companies to fill all of their needs internally. If you need help with staffing and HR-related issues, contact us today.