Findings from a Bloomberg economist survey indicate that over the next 12 months, the probability of a recession stands at 47.5%. CEOs are even more convinced a recession is on the way—91% are predicting one in the next year, and only 34% of those think it will be mild and short.
Even if we only come close, the reality is that current economic conditions still pose many challenges to companies:
- Employee retention
- Hiring challenges
- Reduced budgets
- Inflation impacting pay rates
- Lower FTE allocations
To weather the storm, organizations must proactively prepare to navigate economic uncertainty while simultaneously planning for growth and workforce optimization.
3 Ways to Navigate Economic Uncertainty Using a Contract Workforce
While there is no crystal ball telling us what to expect in the new year, we have enough data to know that companies need to be thoughtful and creative when it comes to workforce planning for 2023:
- Assess and prioritize to maximize efficiency: We know that it’s absolutely vital for businesses to maximize workforce efficiency. But this can’t be at the expense of overloading your workers. Companies must quickly assess and prioritize work and projects, ensuring they have the staff necessary to maintain critical business operations, as well as strategic projects that drive revenue and/or future growth. This prioritization process will help companies focus on the performance of what is most important, while maintaining employee morale during these challenging times. Additionally, this will help you understand where to strategically employ contract or part-time workers in order to fill remaining gaps.
- Optimize your workforce with contract labor: To achieve 2023 business goals, most companies will still need experienced talent on their roster. However, the current economic environment may hinder the ability to add full-time headcount. In the case of needing to look outside the organization to find qualified talent for expert or niche roles, consider using contract labor to augment your existing workforce. Staffing partners can quickly, easily provide skilled labor without the high costs associated with hiring exempt employees. Contract workers can fill short-term, in-demand needs, or they can be added on a longer-term basis to help combat ongoing labor shortages. In either case, flexible, knowledgeable employees can help keep your business running in an agile, cost-effective manner.
- Turn to a strategic talent partner: It’s never been more important for businesses to reach goals efficiently. From setting 2023 targets across departments to re-evaluating work processes, vendor relationships, and even shareholder accountability, organizations have many operational facets to consider. To alleviate some of the burden, consider working with a strategic talent partner to help you right-size your workforce and achieve the best balance of full-time and contract employees to meet your needs going into the new year and beyond.
Resource allocation and workforce balance are more important than ever before. Staffing challenges have the ability to negatively impact your productivity, and your bottom line. Read more about strategies for alleviating these challenges and driving budget efficiencies with a staffing partner.