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Tap Hidden Talent Sources with Contingent Worker Redeployment
Andrew Karpie | June 5 2022
Contingent worker sourcing and management has traditionally followed a “catch and release” model, with little focus on redeployment of the worker into another role within the organization. However, this oversight and unaddressed value leakage presents a new opportunity, especially in today’s highly competitive labor market.
Redeployment, as an additional sourcing strategy, can:
- Proactively tap a hidden source of known talent
- Avoid new talent acquisition and onboarding costs
- Reduce time to fill and increase quality of hire
- Pre-empt early worker leaves (voluntary terms)
In this blog post, we’ll reveal some of the data-driven insights on contingent worker redeployment from Magnit’s “Spring 2022 U.S. Labor Market Report,” including why the time is ripe for worker redeployment, how you can use it to combat voluntary terminations, and what you’ll need to effectively execute redeployment.
Contingent Worker Redeployment Provides Pre-Vetted Talent
The “Spring 2022 U.S. Labor Market Report,” based on analysis of Magnit’s massive database of hiring organizations and worker engagements, found that roughly 50% of organizations’ contingent workers would complete their assignments within the following six months. On average, 23% will roll off assignment at any given time.
The pool of workers approaching the end of their assignments can include valuable, pre-vetted talent who would otherwise disappear and eventually become employed by another organization. But by leveraging known assignment end dates and other internal data (such as worker skills and manager assessments), specific workers can be identified for other suitable contract roles in the organization.
The report also found that the organizations could expect on average to match 3% of open positions with workers completing assignments in the following two weeks. This percentage varied widely by organization. For example, some organizations could expect up to 29% of their open positions to be potential matches.
Overall, across all worker job titles, 4% matched up with a redeployment possibility, but some more frequently than others. The report identified job titles that had the highest number of potential redeployment matches, including many that are difficult to source in the current market
Preventing Voluntary Terminations Through Contingent Worker Redeployment
The report also found that contingent worker redeployment can be leveraged to prevent voluntary terminations that can occur shortly before the end of assignment. The data showed that 7.2% of all voluntary terminations occur within four weeks of the scheduled end date. In addition, 16.3% of all voluntary terminations occur within eight weeks of the scheduled end date.
This eight-week interval may be the optimal time frame for organizations to begin to identify potential redeployment matches for contingent roles and take action, such as alerting suppliers and starting discussions with potential in-house candidates finishing their assignments. But to pull this off, organizations must be able to leverage the right data and process-enabling technology beyond a traditional Vendor Management System (VMS).
Kicking Contingent Worker Redeployment into Gear
The potential value of contingent worker redeployment is clear. But to make it work, organizations must be able to orchestrate a for-purpose process involving specialized data, technology and talent curators to efficiently realize matches and convert candidates into fills.
For example, assignment end dates are easy to pull from a VMS, but that is only the first step. Data points such as worker profile information and adjacent skills must be assembled and algorithmically matched with the job requisitions already posted. But it’s not all machine-driven. Talent curators are needed to review and validate the matches and then proactively facilitate the subsequent process steps, including communicating with hiring managers and workers; coordinating interviews, offers and acceptances; and initiating re-onboarding.
If pursued, redeployment sourcing can provide organizations with a secret weapon in the war for talent. But to make it happen and realize the benefits listed at the outset, organizations must be able to implement new processes that leverage:
- The right data to not only know what workers are approaching the end of assignments, but to have a complete, in-depth view of worker skills and capabilities
- The right technology to not only automate fit-for-purpose processes, but to enable AI-based matching of currently engaged candidates with open requisitions
- The right people to not only to add a human touch in facilitating the process, but to provide contextual judgment and expert insight to ensure program success
For additional information on worker redeployment, plus more exclusive data and insights on effectively sourcing and managing today’s workforce, download Magnit’s “Spring ’22 U.S. Labor Market Report.”
If you’re interested in learning more about how Magnit is helping organizations implement winning contingent workforce programs globally, please contact a Magnit representative at info@magnitglobal.com.
Disclaimer: The content in this blog post is for informational purposes only and cannot be construed as specific legal advice or as a substitute for legal advice. The blog post reflects the opinion of Magnit and is not to be construed as legal solutions and positions. Contact an attorney for specific advice and guidance for specific issues or questions.