2011 workforce management forecast

Posted by: Joel Capperella

Looking ahead to 2011, I see another challenging year. No duh, right? Well, like most things in life, it’s 10 percent what happens to you and 90 percent how you react.

So while 2011 might be more of the same, this difficult business climate also presents a great opportunity to demonstrate how workforce management can make a difference on the bottom line. Whether you are in procurement, HR, or on the front lines, you need to understand how you fit into the picture.

Below are some key areas I believe will need some attention in 2011. As you read through, think about how you can contribute to the workforce planning and management process in the coming year.

Workforce planning will be crucial to success.
But wait. HR is focused on retaining and attracting talent. And there are fewer people in HR. Now’s the time to look inside and, if necessary, outside your organization for the resources to properly assess your hiring needs. The turnaround might not be quick, but those who are prepared will reap the benefits. Input and collaboration are required throughout the organization to keep up with a constantly changing workforce.

Independent contractor compliance remains an issue.
You still have time, but as the workforce starts to grow, so does the likelihood that more independent contractors will sneak in under the radar. Procurement should get it under control now and put a process in place, so you don’t have to worry about it in the future. Hiring managers, don’t take the easy way out and put your organization at risk. Understand when someone is really independent or really just a temporary without proper insurance.

Steeper hiring curve for some industries.
Who really knows what’s driving this economy? The only certain thing is that for some areas, things will happen quickly. We’re already seeing signs that IT hiring is up, and the health and life sciences areas are showing strong signs of life. Put plans in place to deal with a sudden upturn. Recruitment process outsourcing (RPO) and managed services programs are on the upswing. Time to get on board. It takes procurement and HR working together, but the payoff is in efficiencies and cost savings.

Benefits and pay discussions return.
We’ve heard about Google throwing around some cash. It’s doubtful that any company will be able to hold the line on salaries and benefits after two years of cuts. This is going to lead to some complicated discussions about how to acquire and keep key talent or niche skills. It’s not just about money or permanent employees. Look for ways to better acquire and engage temporary employees. Procurement needs to get involved in rates discussions. HR should make sure managers are not just throwing money at workers or having pay and benefits discussions with temporaries.

As our latest Workforce Trends Study has shown, as temporary workers have become a more permanent part of the workforce, managing all the facets of the workforce has become more complicated. 2011 will be no exception and maybe more so.

For procurement, HR practitioners, and hiring managers, this presents some interesting challenges and opportunities. Be prepared by making workforce planning a priority in 2011.

Happy New Year!