Nearly every business must face the inevitable retirement of crucial, senior employees. Decades of experience cannot simply be replaced overnight. Many companies turn to workforce procurement when faced with these situations.
The situation becomes even more complicated when professional credentials and security clearances are required for the work they do. For businesses in highly technical industries, the knowledge lost from employee retirement can result in decreased efficiency and productivity. Recruiting is increasingly competitive and finding new, quality team members is more important than ever. Sacrifices in quality result in turnover, additional cost, and increased delays.
Effective knowledge transfer is crucial to getting team members up to pace and working productively. Although it has many forms and names, workforce procurement in this context refers to professional services and statement of work (SOW)-led projects. This approach is used not only to bring in new team members but also to bring back retired alumni to train the next generation. Keep reading for the top five signs your business may benefit from workforce procurement.
Your Superstar Employee Retires
More often than you would like to admit, most business projects follow the Pareto Principle, where 20% of the people perform 80% of the work. But what happens when one of your star employees decides to retire? Your options might include offering a retention package, implementing phased retirement, or providing more flexible employment terms. Each alternative has its pros and cons. Sometimes, none of the options will work for both the employee and the company. In this situation, workforce procurement solutions achieve a win-win scenario for the employee and the company. This is a way for the employee to gain freedom while allowing the company to maintain the expertise the employee provides.
You Rely on Tribal Knowledge
Retirement is a looming reality faced by all businesses for each senior employee. The Pew Research Center notes that between 2008 and 2019, the retired population ages 55 and older grew by about one million retirees per year. In the past two years, the ranks of retirees 55 and older have increased by 3.5 million. The Silver Tsunami has arrived. How are you preparing for the most senior people, and all the institutional knowledge they possess, to leave your company? Will the entire atmosphere of your business change almost overnight? Or do you have knowledge transfer programs and transition plans in place? For companies lacking current planning and protocols, workforce procurement solutions can create a bridge between generations of employees while the company works to build internal plans and processes.
Your Existing Approach Is Not Working
If your company uses a Managed Service Provider (MSP) or a Vendor Management System (VMS) to handle all contingent labor needs, you might need an alternate workforce procurement strategy. MSP and VMS programs incentivize speed and quantity (rather than quality) when finding candidates for your business. In a 2021 Staffing Industry Analysts (SIA) report, those services had negative Net Promoter Scores, indicating poor customer satisfaction. While they may be numerous and readily available, poor-quality hires can result in turnover, delays, and increased costs. If your focus is finding someone with the tacit knowledge and experience required for your needs, then you likely need a different workforce procurement solution.
You Need An Exact Fit for a Crucial New Job
If you’re planning a challenging project that stretches current internal knowledge, skills, or abilities, you might need workforce procurement. Complicated, innovative projects are often highly profitable for businesses, but only when you equip the team with the right expertise. Hiring a team too quickly or not hiring to fill knowledge gaps, could mean the project fails altogether. Workforce procurement can identify and acquire new team members you will need for this intricate project. You can also use workforce procurement to hire an expert outside evaluator to assess all phases of the project life cycle, ensuring the pieces work together as a whole.
Your Project Has Definite End Date
If your project is a short-term assignment, with a definite end date, it sometimes doesn’t make sense to hire a new employee. You may only have the budget for those few months and would have to lay them off when the project is over. There are multiple “gig” platforms that provide valuable services for short-term projects, enabling someone 1,000 miles away to provide help. However, if your needs require someone to work with you in person, or if your company policies don’t permit the use of gig platforms, workforce procurement may be the best solution for your situation.
Learn How Gentry Professional Services Provides Workforce Procurement Solutions For These Situations And More
Gentry works with your team when faced with a need for expertise and skills in critical, highly complex areas. Finding the right people is crucial to keep your staffing problems to a minimum and ensure you operate as efficiently as possible. Gentry can help you navigate your company’s HR policies while procuring the right team members for your project.
Reach out to our team to learn more about how workforce procurement can solve your highly skilled worker staffing challenges.