Nate Akeroyd | July 26 2022 |
Traditionally, the contingent workforce has often been associated with performing “non-core” business functions. However, this reality has changed over the past few years. The contingent workforce has increasingly consisted of highly skilled workers who often work in tandem with their full-time counterparts. In the current landscape of work, many organizations have realized that they can shift from full-time, in-office workers to a hybrid approach with remote working employee and non-employee workers.
With such a significant increase in contingent labor, it is becoming more important to match the level of organizational commitment to the wellbeing of contingent workers with that of their full-time counterparts. This starts by scaling organizational Diversity, Equity and Inclusion (DE&I) programs to cover the entirety of the employee population, contingent workers included. Below are three critical reasons why organizations should be prioritizing DE&I in their contingent workforce.
The contingent workforce makes up over 40% of the total employee workforce population,with signs showing a rapid rise to 50% by the end of the decade1. To further illustrate this trend, a report from Intuit shows that 80% of large U.S. corporations plan to increase the use of a flexible workforce in the coming years2. It has become clear that organizations are placing a much higher emphasis on the necessity of contingent labor to drive business success.
However, according to a 2020 study focused on DE&I in the contingent workforce, only 26% of respondents believe that their organization is properly prioritizing contingent Diversity, Equity and Inclusion3. In this new world of work, it is becoming essential to match the level of commitment and investment of your contingent workforce to that of your full-time employee workforce.
Millennials are now becoming a larger part of the workforce, so it is important to understand what this growing demographic values in their employers. As of 2021, Millennial engagement at work has jumped to a staggering 75% compared to 35% two years prior in 20194.
Studies show that Millennials will comprise most of the workforce by 2025, and that their top priority for employers is DE&I4. In order to properly elevate DE&I impact throughout your organization, it is necessary to understand how to increase the feelings of inclusion and belonging that employees feel within the company.
For example, an effective solution that can help improve a sense of belonging are facilitated Community Circles for contingent workers to participate in. These groups are similar to Employee Resource Groups for full-time workers, but are specifically designed for the contingent worker. They establish a safe, inclusive, and diverse space focused on specific demographic groups, providing a working environment that supports development, networking, and long term community development. In addition to nurturing personal and professional development, Community Circles also help foster feelings of inclusion in the workplace.
It has been proven that organizations that invest in DE&I are 35% more likely to financially outperform organizations that do not. Higher workplace diversity can lead to an increase in diversity of thought, perception and awareness. By introducing more points of view to the organization, it can help encourage collaboration and increase productivity and efficiency across the company.
To improve workplace diversity, it is important to work with a diverse talent pool of accredited staffing suppliers. A purely vendor-neutral approach creates a foundation of transparency and trust with suppliers, in addition to offering the client organization improved talent quality and increased cost savings.
However, properly identifying these outstanding suppliers can sometimes be a challenge. Utilizing Supplier Scorecard Key Performance Indicators (KPI’s), which track and optimize diversity spend by monitoring supplier diversity trends and benchmarks can help organizations better identify, empower and support suppliers who are making an impact. These KPI’s can help organizations better identify, empower and support suppliers who are making an impact.
Having diversity certifications also documents the diverse workforce of the organization. This can help organizations make better informed decisions on the suppliers they partner with. It is key to fully understand the supplier’s impact, as it will translate to the organization as well.
Magnit DE&I is the only comprehensive Diversity, Equity and Inclusion solution for the contingent workforce. Not only does Magnit DE&I partner with client organizations to drive cultural inclusion and promote worker and supplier diversity, we offer also consulting services as well as point solutions. This helps us provide an additional level of total talent DE&I support that encompasses both full-time talent and the contingent workforce.
We’re excited to announce that we have launched the industry’s first Magnit Diversity Intelligence. This Diversity module works with our proprietary Vendor Management System, in addition to virtually any VMS/ATS to collect voluntarily self-disclosed diversity data to provide enhanced visibility into the entire hiring lifecycle. The purpose of this feature is to highlight specific areas where unconscious bias might be present.
Historically, diverse candidates can often get filtered out in the early stages of the application process well before the hiring decision. By capturing and analyzing anonymized, self-reported diversity information, both Magnit and our clients will have the unprecedented ability to determine any areas where diverse candidates are disproportionately lost.
In addition to this pioneering data collection solution, Magnit DE&I leverages a powerful partnership with Eightfold.AI to include blinding resumes and job description reviews for biased language. Additionally, we work with clients on consistent messaging, hiring process recommendations and inclusive hiring training for managers and executive teams.
To learn more about how you can generate organization-wide DE&I impact, read our white paper here.
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 email@example.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.