What to expect in 2010: emerging workforce trends

Posted by: Matt Rivera

As we get ready to take on what we anticipate to be another challenging year, we’ve put together a list of the top trends we expect to emerge in 2010. Hopefully, you’ve already accounted for some of these in your planning. However, as we saw this year, plans can change with the weather these days.

So, in no particular order, here are our projections for 2010.

1. Richer Contingent Labor Dependency. We’ve seen in the past that temporary hires are a leading indicator of the economy. The effective management of this population is a critical component of any workforce strategy.
2. Delayed Impact of Stimulus Efforts. We may see more infrastructure projects in the short term, but likely, the effect on business in general will be slow. We do see good opportunities for those poised to take advantage.
3. Accelerated Adoption of Managed Services. While this may have been a secondary effort in the past, we see a trend of companies leveraging this spend and workforce to keep their businesses moving forward. We suggest making this a priority in the new year.
4. State Unemployment Tax Increases. The rumblings have already begun, and such increases will likely impact every employer. Efficiency and cost management efforts will help offset this, but tight workforce plans and proper use of contingent workers and independent contractors may provide greater savings.
5. Increased Independent Contractor Scrutiny. We already identified this as one of the top trends of 2009, and with the IRS having started sweeps this past November, the scrutiny will likely continue into next year. Look for legislation that will also increase this activity and associated reporting. The best way is to start now with a fresh look at your independent workers and policies.
6. Return of IT Staffing. We see a big pick-up coming in IT staffing. However, it’s likely to come in fits and starts. There are a lot of projects on hold, and it remains to be seen how many of those will come off the shelves in 2010. Taking a look at your IT skills inventory, or lack thereof, will help you prepare for more activity in this area.
7. Delayed Retirement of Baby Boomers. Further complicating the employment picture are the baby boomers who are prolonging their time in the workforce to rebuild their retirement funds. Employers need to carefully look at the makeup of their workforce and plan accordingly. If things really pick up, this dynamic could start changing as early as next year.
8. Performers Leaving as More Jobs Open Up. We are starting to see this already, but expect it to increase as soon as the economy starts to pick back up. Employers should look at succession planning and focus on key players (and skills) in their organization.
9. Impact of Healthcare Reform. Whether or not this passes, the impact of healthcare reform will be felt. If it passes, there will be more people in the healthcare system. If it doesn’t, healthcare companies and related industries will need to be more efficient to keep up with even minor changes. In any case, change is coming.

Flexible, agile businesses with a connected workforce plan will be able to continue to weather this storm. The key question is whether or not your company will be able to capitalize quickly when the winds change.

Happy New Year!

Here’s to a better 2010.

Cheers!