by Fronetics | Apr 14, 2015 | Blog, Leadership, Marketing, Talent
As much as 80 percent of employee turnover is due to bad hiring decisions, which doesn’t fare well for a company since a poor hiring choice can cost from 1.5x to 3.5x of that person’s annual salary. Consider an employee who earns $50,000 a year. If that person is a bad hire it could cost a company up to $175,000. The higher the position, the higher the salary, the higher the cost is to lose or fire that person.
More than ever companies are hiring project-based professionals who provide a specific skill-set. These placements might be short-term or long-term, depending on the company’s needs. According to the Wall Street Journal, in March 2014, more than 2.8 million workers, or 2.5% of the workforce, held temporary jobs, up from 1.7 million in 2009. One reason for the spike in numbers is due to companies having to reassess their processes and spending after the recession. Some of these employees, many of whom hold multiple part-time jobs as temps or contractors, are the new semi-permanent, temporary, or “perma-temp” work force. They are in charge of their own brand, skill-set, and advancement.
Why do companies continue to lean in this direction, even while the economy is recovering?
Let’s have a look at the benefits for employers:
- Hiring a temp or contractor allows a company to meet work demand and deadlines without having to make rushed decisions about long-term, expensive, permanent staffing.
- By hiring a contractor or temp employee companies cut expensive benefit, administrative, and payroll costs, not to mention unemployment insurance.
- Bringing in temps or contractors can boost morale amongst other employees who may feel overtaxed. A temp or consultant can take some of the work overflow from other employees.
- Temporary and contracted employees are often eager to work hard to prove themselves and gain experience. Some may be coming off of a period of unemployment and anxious to get back to work. Temporary and contract workers may work creatively and tirelessly to meet their own financial obligations. They might not have the same loyalty as full-time, permanent employees, but since they have to fend for themselves, they are not complacent. According to University of Illinois professor Joe Broschak, “On average, these temporary workers displayed better performance relative to goals compared to their full-time counterparts.” When those temps were hired on as full-time employees “they continued to become better workers after becoming permanent.”
- Temp and contract workers can offer an area of specialization that a company might be lacking in current staffing. It might be less expensive to hire a new contracted employee with years of experience in a specific skill-set than to train a current employee.
Semi-permanent work is not ideal for everyone. Some employees, especially those seeking security, certainty, and the full gamut of benefits will not be satisfied with this work. One concern is how temporary or semi-permanent employees are paid and treated. If paid fairly and treated well, this paradigm will work smoothly for some people.
What are the benefits for employees?
- Many contracting and temporary positions allow for flexibility. The jobs might be part-time and allow for adjusted hours that could accommodate an employee’s home life, another part-time job, or other interests. Because these workers have a different status than permanent, full-time employees, the same “in-office face-time” expectations may not apply to a consultant or temporary worker.
- If a temporary worker or consultant is hired for a specific skill set, they are able to focus on work they’re good at and interested in. If they’ve been out of work they can use this as an opportunity to sharpen their skillset or, perhaps, learn a new one.
- Working on a short-term project might be freeing and invigorating. Having more of a sense of control over one’s own branding, hours, and projects is exciting for many people.
- This can be a wonderful opportunity for people to network, build their personal “press kit”, and garner new, current references.
- Temporary positions often turn into long-term, semi-permanent project based consulting positions. Some people find the combination of interesting work and flexibility perfect for their lives.
It is important to remember that every dollar paid to employees –temporary, semi-temporary, “perma-temp”, full-time, or part-time—is not a dollar taken away from the bottom line, but an investment in the company. Finding the right fit that benefits employers and employees is critical.
by Fronetics | Mar 23, 2015 | Blog, Supply Chain, Talent
What you need to know about the supply chain talent gap.
The supply chain talent gap has been called a “perfect storm.” Few topics are shrouded in such doom and gloom. Every report cites doomsday statistics of the impending crisis when, by 2025, 60 million baby boomers will exit the workforce, leaving a gigantic gap when 40 million millennials take their place. To make matters worse, the retirement exodus is only one factor contributing to the sinking ship. Future supply chain professionals need to master not only the hard analytical skills but also the soft leadership skills fueled by the transition from an industrial economy to an economy grounded in service and information. In numbers, it means only 20% of the workforce will possess the skills required of 60% of all new supply chain jobs.
But listen up, all you forward-thinking millennials and midlevel supply chain managers with cross-functional expertise. There’s some good news: The market can’t get enough of you.
Yes, amid all the dire facts, there is opportunity. There has never been a better time to be, so to speak, on the other side of the table — a college graduate or a motivated professional looking for a career with upward mobility? What other field of work can offer as much promise to new recruits and current employees as the supply chain industry?
Just as all reports predict a brewing crisis, they also tout talent management as the primary remedy. For a self-motivated individual, fresh out of college or in the midst of a corporate climb, this focus on professional development presents a smorgasbord of options. Many companies have taken note and adopted a strategy of action for recruiting and retaining new talent. A growing number of university program offerings reflect a strengthening partnership between academia and the supply chain industry. Many supply chain companies are building partnerships with academic programs to offer internship opportunities; a move that’s creating strong early relationships with students and will likely have a positive effect on future recruitment efforts. A company that can offer its current staff competitive salaries in addition to cross-functional training is much better positioned to meet the challenges of the talent shortage and the evolving nature and demands of the supply chain.
Another way companies within the logistics and supply chain industries are attracting top talent is through their use of social media. Considering the global reach and vast talent pool of LinkedIn’s 300 million users, the business-focused social network is helping companies with open positions that might require a unique and specific skill set to connect with candidates across the globe.
What’s clear is that companies that follow a plan of inaction will be left behind. This new talent pool will swiftly turn down a company that remains stuck on strict functional divisions and favors the old siloed approach to doing business. Many supply chain managers have grown up in such divided organizations themselves, so they have been slow to take appropriate action to retain and train talent, according to a Supply Chain Insights survey, leaving those better prepared with a competitive advantage.
If a company does not appeal to the desires of top candidates, individuals will take their talent elsewhere. And there will always be another company to welcome them. As Rebooting Work author Maynard Webb points out in a 2013 interview with Elance, in order for companies to remain competitive they’ll need to adapt to the modern workforce. “Companies have traditionally thought of people as a disposable resource,” he says. “They have valued their buildings much more than employees… this doesn’t make sense in a world where the best people can choose to work wherever they want. Businesses have to realize that some jobs can be done from anywhere, anytime, and save the brick and mortar buildings for the few jobs that demand a physical presence.”
Touting the unlimited opportunities and unparalleled growth in the supply chain field should be part of turning the tide. Sure, there is a lot of talk about doom, but mainly for those companies that fail to attract and retain top talent.
by Fronetics | Jan 29, 2015 | Blog, Supply Chain, Talent
Millennials are Poised to Change the Supply Chain Industry
This is part two in a two-part series examining the role of Millennials in the supply chain industry. Part one highlights strategies for attracting and retaining top Millennial talent.
With supply chain industry leaders lamenting a growing talent gap, tapping the Millennial generation may be key to filling that gap. But how, exactly? A closer look at the generational characteristics emerging from the influence of digital technology and pervasive interconnectedness allows us to draw inferences about the potential Millennial contributions to the supply chain industry.
Here are four areas where Millennials are poised to change the supply chain industry.
Internet of Things (IoT)
The Internet of Things (IoT), loosely defined as the growing and pervasive use of interconnected devices, is rising concurrently with Millennials entering the workforce. Born and raised during the digital revolution, they’re accustomed to products and processes that are highly integrated and interconnected. Supply chain companies should tap Millennials to leverage their unique perspective by engaging them in creative and strategic thinking about optimizing operational processes using interconnected devices, sensors, and tracking tools and soliciting ideas to grow revenue through the production of devices.
Marketing and Sales Approaches
Targeted for advertisements from an earlier age than their parents and grandparents, Millennials have been desensitized to overt branding messages. Instead, they respond to more organic marketing and sales approaches – strategies that can be expected to carry over into their work. Further, following current trends that deploy digital and social media, Millennials will seek to shift sales and marketing activities online to develop more meaningful, solutions-based relationships with buyers.
Global Partnerships
Ubiquitous and immediate virtual access to resources, information, networks, and people make Millennials the most interconnected generation. That unencumbered access, coupled with a tendency to favor collaborative decision-making in their work, creates opportunities for global work spaces and more complex industry partnerships – particularly relevant and significant advantages to companies within the supply chain industry.
Big Data
Similar to the way Millennials relate to the Internet of Things, so too will big data emerge as a tool Millennials will use to transform the supply chain industry. Their digital confidence and understanding of the types of information and data being collected and analyzed by companies will lead to gains in supply chain operational efficiency as Millennials seek to analyze robust data and apply their findings in practical ways.
With Millennials positioned to outnumber Baby Boomers in the workplace by 2020, shifts in ideas and processes are inevitable. What other supply chain elements do you see as ripe for transformation by Millennials?
by Fronetics | Jan 6, 2015 | Blog, Logistics, Strategy, Supply Chain, Talent
The start of a new year generally brings with it a host of resolutions. For individuals finding and landing a new job, or advancing in their current job are common resolutions. For companies, identifying talent, hiring, and retaining great talent are typical goals for the new year.
At Fronetics we work with clients to understand and execute on talent acquisition, performance management, learning and development, and succession management. We also work with clients to design and develop roles and responsibilities, on leadership development, mentoring and counseling, and on performance management and compensation strategies.
Throughout 2014 we have created content focused on talent. Topics have included: networking; how to identify and hire top top talent; and how to solve the supply chain talent crisis. We have identified the most popular talent blog posts of 2014, #1 receiving the most pageviews.
Here are the top talent blog posts of 2014
Kathryn Minshew, founder and CEO of The Muse and The Daily Muse, began a piece for the Harvard Business Blog Network with this sage advice: “Network Your Face Off.” The truth and value of this statement cannot be underestimated. Here are 5 reasons why networking is essential and why connections matter. Read the full blog post.
CrossFitters recognize that good outcomes only come with hard work, and lots of it. For that reason, it generally attracts people who are willing to make sacrifices and go the extra mile to get results both in the gym and at work. If you want to hire top performers who have staying power hire people who do CrossFit. Here are eight reasons why CrossFitters make great employees. Read the full blog post.
The supply chain industry has a talent crisis. The question is: how can we solve this crisis? To answer this question I turned to Rodney Apple, founder of the SCM Talent Group. Apple has worked as a supply chain recruiter for the majority of his 19+ year career within the staffing industry and he has filled more than 1,000 positions within the industry ranging from executive-level in Fortune 500 headquarters settings to leadership and staff-level roles across large networks of manufacturing and distribution facilities within North America. Apple’s role affords him the ability to witness the talent crisis from the perspective of the industry, the company, and the job seeker. Read the full blog post.
Here’s the thing – the supply chain industry is perceived by those outside the industry as having no “wow” factor whatsoever. If the supply chain industry is going to attract new and qualified talent, it needs a face lift. It is time for the supply chain industry to re- brand itself. Read the full blog post.
Wouldn’t it be nice if great talent looked like Waldo? If great talent looked like Waldo we could simply look at the pool of candidates and be able to identify them by their telltale red and white striped shirt. Unfortunately, great talent doesn’t show itself like our friend Waldo. Given this, how can the supply chain industry spot great talent? Read the full blog post.
Be honest. How does your company approach talent acquisition? Is it viewed as a cost center or is it viewed as a strategic department, crucial to the success and growth of your business? If your answer is the former, it is time to rethink your approach. Read the full blog post.
With more than 240 million active users, LinkedIn is one of the largest social media networks. LinkedIn is an incredible tool for networking and professional development. LinkedIn is also an essential component in a job search strategy. Optimizing your LinkedIn profile is crucial to your success. Read the full blog post.
If the supply chain industry is going to attract new and qualified talent, it needs a face lift. The industry needs to be proactive. It needs to communicate what it is, what is currently happening within the industry, and what is in store for the future. Who is responsible for making change possible? You. Read the full blog post.
After the ball has dropped and after the champagne has been drunk, the New Year will begin. Forty-five percent of American’s will start the New Year with at least one resolution. Whether or not you are typically a resolution-maker, the New Year is a great time to evaluate your career and set goals. Here are nine career resolutions everyone should make. Read the full blog post.
Whining. Just writing the word makes me cringe. Whining is a truly unattractive characteristic. It is unattractive in children and it is even more unattractive when adults partake. One of the reasons why whining is just so unattractive is that it is ineffective and it can make a brilliant leader look like, well, like a blithering child. Read the full blog post.
by Fronetics | Dec 3, 2014 | Blog, Strategy, Talent
Where is your career going? If you feel like you are stuck in a career rut, here are five tips to pull yourself out:
1. Focus on the short-term, not your career path.
When it comes to a career path, one plus one doesn’t necessarily equal two anymore. The nature of business and the career landscape is evolving at lighting speed and making it nearly impossible to map out a five- or 10-year career path. So rather than trying to map out a long-term plan, optimize for one to two years.
Dara Khosrowshahi, CEO, Expedia, Inc., offers this sage advice: “Look for the right opportunities, stay flexible, have some idea of what direction you are headed in, but don’t lock into a long-term direction because chances are that the world will change up on you.”
2. Speak up.
Does anyone know you want to switch department or roles, or is it your secret? Are you the only who knows that you want to move up the ladder within your company? If so, you need to speak up and let people know what’s on your mind. Talk with your boss, talk with the manager in the role/department in which you are interested, and talk with HR. If you let people know your desires, your desires will be much more likely to be realized.
3. Prove yourself.
Don’t think — act. If you want to take on additional responsibilities, you need to show that you are capable. If you want to move into a new role, prove that you have the skills to do so. Actions speak loudly.
4. Network.
Networking opens doors. Networking begets opportunities that benefit and feed your career, professional development, and personal interests. And if you are interested in finding a new job, networking will help you do just that. Studies have shown that the majority of candidates find jobs via their networks.
5. Quit.
If you are truly unhappy — quit. When you make the mental decision that you are going to leave your job, most likely you’ll feel a weight has been lifted. With the weight gone you will be able to more easily determine your next steps and find a new position. Note I said mental decision. It is best to give your actual notice after you find a new position.
Getting your career going in a positive direction will benefit you and your organization. It’s never the wrong time to make some moves designed to get yourself out of a career rut.
