2020 has been one of the most unpredictable and difficult years for businesses. Just a month ago, almost 80% of small businesses said they had felt a moderate-to-large negative effect from the pandemic. Experts are still predicting that the “real recession” is yet to come, and hiring has plunged by nearly 40 points.
So what’s the biggest concern for businesses in 2021? The obvious answer is cost savings. When labor is the largest company spend, now is the ideal time for companies to reevaluate their talent management strategies. And Total Talent Management programs are a good place to start.
What is Total Talent Management?
Total Talent Management (TTM) is a labor-management program in which companies proactively consider all options for engaging, acquiring, and managing all kinds of talent—i.e., both employed and non-employed workers. Companies using TTM programs regularly deploy both contractor and full-time employees to meet their talent needs.
Today, only about 24% of organizations are practicing total talent management. And yet, those who do are 2x more likely to see non-employed workers as a competitive advantage.
So why would a company transition to a total talent management model? Well, a few key benefits include:
- Tight Control of Labor Costs. Paying employee benefits and salaries is the #1 expense of every company. But if 2021 is anything like 2020, businesses need to prioritize cutting costs. Already almost 60% of companies are outsourcing labor to cut costs, and a total talent management program can provide visibility into outsourced labor so you can optimize savings.
- Meeting Skilled Labor Requirements. Today over 50% of companies are experiencing a skills shortage, and this talent shortage spans across industries: manufacturing, marketing, healthcare, you name it. Supplementing your full-time workforce with contractors can help you meet your talent needs at a price point that works for your company.
- Manage Risks Per Project. Every project comes with its own set of risks. By bringing in contingent labor with expertise in the field, you benefit from their ability to analyze project timelines and mitigate any potential risks.
Total Talent Management in 2021
The potential benefits of TTM programs are enormous—from cost savings to new skilled labor, and more—and in a post-COVID economy, companies should seriously consider investing in a new approach to their labor costs.
The good news is that many companies already are. 58% of companies are planning to implement a total talent management program by 2021, and 89% of companies say that having a reliable talent mix of data is vital to their operational efficiency.
Small and large businesses alike would do well to take a long look at their labor costs and take advantage of the opportunities TTM programs offer.