Solving the Skills Mismatch
In contrast to the highly publicized 8.5 percent U.S. unemployment figure, the unemployment rate for “management, professional, and related occupations” is just 4.4 percent. It’s no wonder many hiring managers can’t fill higher-level, strategic, management and technology positions. The data suggests there aren’t enough applicants eligible, available or willing to fill those jobs.

To manage through labor shortages companies have historically leveraged temporary workers.  Generally these positions required lower-level skills; the more important projects were reserved for senior full-time employees.  But unlike years past, today’s employers are utilizing independent consultants to tackle mission-critical initiatives.

In the new year we’ll see that despite the down economy, this is not a buyer’s market with employers calling all the shots.  Individuals with in-demand skills will require a work environment where they have greater control over what they do, how they do it and for whom. These independent professionals comprise perhaps the fastest growing trend in the labor market: the emergence of the “flexible workforce.”

This week, we feature:

• A timely story by Staffing Industry Analysts that highlights compelling survey results released earlier by M Squared Consulting
• A positive article in the San Francisco Business Times that includes feedback from recently surveyed Bay Area CEOs and executives who are optimistic about the economy as we head into 2012
• An interesting online story posted by Sustainable Industries with a twist – it draws a parallel between enlightened businesses that use a flexible workforce and socially and environmentally responsible organizations

Here’s the latest scoop:

- Earlier this week, a story titled “Flexible Workforce Is Permanent, ICs Say” was posted online by Staffing Industry Analysts in their “Daily News” section. The story highlights some of the top-line results of the annual M Squared Consulting survey of independent consultants that was conducted in December 2011. To read the full story, visit http://www.staffingindustry.com/site/Research-Publications/Daily-News/Flexible-Workforce-Is-Permanent-ICs-Say.  Or, to download a survey summary directly from M Squared, visit http://www.msquared.com/thought_leadership.php

- A decidedly upbeat jobs and economy article titled “Bay Area CEOs express increased optimism on local economy” by San Francisco Business Times reporter Eric Young highlights survey information from a recent Business Confidence Survey conducted by the Bay Area Council. For more, go to www.bizjournals.com/sanfrancisco/blog/2012/01/bay-area-council-survey-optimism.html.  Or, for more survey information directly from the Bay Area Council, go to http://www.bayareacouncil.org/news/2012/01/11/business-confidence-hiring-outlook-on-the-rise/

- And, an intriguing story titled “The employee age” was posted online earlier this week by Bay Area based Sustainable Industries that explores the use of flexible workforce while, at the same time, highlights efforts to create a “green” workplace. Intrigued? Read the full story at http://sustainableindustries.com/articles/2012/01/employee-driven-environment

Join the conversation…we invite you to share your feedback, insight and experiences about these and other topics having to do with today’s “new world of work.”

Thompson ran Wal-Mart’s financial services unit before retiring in June; she was recognized by the magazine for her efforts to develop and sell affordable financial products to low-income customers.   Just as quickly as Thompson was feted, veteran banking analyst Dick Bove chided AB’s consumer finance editor for her recognition of Wal-Mart’s innovations.  He asserted that “the industry is still far better at providing services to low-income customers than Wal-Mart ever will be,” adding the retailer actually “creates an impediment to getting its customers into safe, high-quality depository institutions.” 

Of course both points have merit – Wal-Mart is innovating and the established banking industry offers vastly more banking options – but what we’re most impressed with is the rising voice of the under-served financial services consumer.   The Center for Financial Services Innovation recently released new data about the size of this market; in 2010 underbanked consumers in the U.S. generated approximately $45 billion in fee and interest revenue for financial services providers. 

Forty-five billion dollars?  That’s a lot of money and a big market opportunity.

Accountability at all levels is enhanced when independent professionals with solid project management skills are chosen for important assignments. Strong project leaders will be in high demand as they ensure that milestones are met, goals are achieved, and hiring executives are kept informed. These proven professionals can save the day for business managers who can’t find, can’t afford or don’t want full time staff; executives get an industry expert to manage the work and deliver results. A strong project manager – who can also bring communications, technology, finance or other skills – is like gold to the business leader.

In 2012 society will realize that the world of work has profoundly changed. We are not going back to life-time employment or one-job careers. The companies that adapt to this new reality – one that recognizes the power and efficiency of the professional flexible workforce – will be in a stronger position to compete.

This week, we feature:

• A thoughtful trend story posted by Human Resource Executive Online that provides insightful perspectives from thought leaders about what will happen in 2012
• An interesting online story posted by Examiner.com about the increasing demand for online contingent labor
• A timely story by Staffing Industry Analysts that highlights the latest labor statistics and the value of employing a temporary workforce

Here’s the latest scoop:

- A comprehensive story titled “What Lies Ahead” posted this week by Human Resource Executive Online that explores human resource trends and issues in 2012.  As part of a focus on “Talent Trends,” M Squared CEO John Kunzweiler is quoted in the article as it relates to the increasing importance of project management expertise provided by independent consultants.  To read the complete article, visit http://www.hreonline.com/HRE/story.jsp?storyId=533344050

- A story titled “2012 online employment forecast sunny with a chance of stability” posted online by Examiner.com examines results of a recent survey that shows a sizable and growing demand for contingent labor and highlights what skills are likely to be in demand next year.  For more, go to http://www.examiner.com/online-marketing-in-chicago/2012-online-employment-forecast-sunny-with-chance-of-stability-elance-predicts

- A story titled “News: Adding Temps, Saving $” recently posted by Staffing Industry Analysts cites November labor statistics and provide perspective about how companies are strategically using contingent labor to reduce costs while getting important work done.  To read more, visit   http://www.staffingindustry.com/Research-Publications/Publications/CWS-30/December-7-2011-Vol.-3.35/Adding-Temps

Join the conversation…we invite you to share your feedback, insight and experiences about these and other topics having to do with today’s “new world of work.”

This front-runner status has some wondering if we’re witnessing the advent of another “tech bubble” akin to the dotcom debacle of the past decade.  Stephen Levy, director of the Palo Alto-based Center for Continuing Study of the California Economy, says no, noting that that sector leaders such as Google, Apple and Facebook have real sales and real product plans.

However, in a recent industry forum, panelists from Facebook, Foursquare and Tagged agreed that just because the technology sector is expanding, it doesn’t mean it’s easy to find a job.  There seems to be a growing gap between what Silicon Valley companies need and many applicants’ skills.  Employers report having trouble finding applicants who fit the requirements for many open positions.  Those with specialized technical skills are faring best.

From all indications, it appears the new Silicon Valley “boom” is real, but unlike the halcyon dotcom days, employers today are looking harder and longer to find qualified applicants.  Increasingly, job seekers who sit on past laurels or fail to hone new skills will be left behind.

Recently, protesters gathered in front of the Federal Reserve Bank of California in San Francisco and cheered when a city supervisor called for the formation of a municipal bank.  It was quite a change from demonstrations of yesteryear to see a gray-haired elected official in a suit and tie elicit wild enthusiasm about a bank from sign-carrying demonstrators.  The Occupy movement aside, could the establishment of a municipal bank in San Francisco come to fruition? 

Shifting from long-standing relationships with leading national banks to the establishment of a municipal financial institution may gain support as the impact of recent banking legislation continues to hit under-served communities.  Expanded capital requirements required by the Dodd-Frank legislation are affecting loans to businesses in under-served areas; this shift is prompting elected leaders to consider alternatives to long-standing banking relationships. 

Bank of North Dakota (BND), the only state owned bank in the nation, posted record profits in 2008 as other banks across the country were sinking into crisis.  Established in 1919 by the state legislature, BND is credited with helping the state maintain remarkable unemployment numbers while remaining profitable throughout the recent recession.

This isn’t a new idea for San Francisco.  A municipal bank has been discussed at several points in the city’s history – including 1975 and 2001 – according to their budget analysts’ reports and the Huffington Post.  What is new is the groundswell of public interest in creating a bank that would act as a funding resource in partnership with other financial institutions, economic development groups and guaranty agencies.

“San Francisco Municipal Bank”…it’s an idea worth watching.

Job creation will be the central issue of 2012 and the upcoming presidential election.  But like a lot of political issues, the facts lie far below the headlines and rhetoric.  Overall, unemployment is unacceptably high, but different groups or classes of workers are faring differently.

Solving the Skills Mismatch
In contrast to the highly publicized 9.0 percent U.S. unemployment figure, the unemployment rate for “management, professional, and related occupations” is just 4.4 percent. It’s no wonder many hiring managers can’t fill higher-level, strategic, management and technology positions. The data suggests there aren’t enough applicants eligible, available or willing to fill those jobs.

To manage through labor shortages companies have historically leveraged temporary workers.  Generally these positions required lower-level skills; the more important projects were reserved for senior full-time employees.  But unlike years past, today’s employers are utilizing independent consultants to tackle mission-critical initiatives.

In the new year we’ll see that despite the down economy, this is not a buyer’s market with employers calling all the shots.  Individuals with in-demand skills will require a work environment where they have greater control over what they do, how they do it and for whom. These independent professionals comprise perhaps the fastest growing trend in the labor market: the emergence of the “flexible workforce.”

This rise of the professional flexible workforce and the new employer-independent worker dynamic comprise the backbone of the “new world of work.”   It’s exciting, it’s different, and it’s growing: in 2012 flexible labor may comprise as much as 22 percent of the workforce at leading Fortune 500 companies.

This week, we feature:

• Two thoughtful and compelling articles in U.S. News & World Report titled “Larger Temporary Workforce Could Be New Normal” and “Are Employers to Blame for the Skills Gap?”
• An important story in International Business Times that sums up why many smart and successful businesses are turning to the top-tier flexible workforce to achieve their business goals
• An interesting seasonal hiring story in Staffing Industry Analysts as we continue to watch emerging and ongoing workforce trends at all levels

Here’s the latest scoop:

- In two recent U.S. News & World Report stories, important workforce topics are explored including the continued growth and permanence of the contingent workforce and the growing skills gap disconnect.   For more, go to http://money.usnews.com/money/careers/articles/2011/11/17/larger-temporary-workforce-could-be-new-normal  and also http://money.usnews.com/money/careers/articles/2011/11/18/are-employers-to-blame-for-the-skills-gap?PageNr=2

- A timely story by Human Capital Magazine was posted by International Business Times titled “Executive contracting and the market dynamic” outlines why successful companies are employing a continent workforce strategy in order to be more flexible, control costs and manage risk.  To read the complete story, go to http://au.ibtimes.com/articles/243164/20111104/line-executive-contracting.htm

- With the holiday shopping season upon us, it’s interesting to follow seasonal hiring trends given that everything — including seasonal staffing and consumer confidence expectations — can affect other aspects of the economy and workforce.   To read an article titled “News: ‘Tis the Season (to Hire) from Staffing Industry Analysts, visit  http://www.staffingindustry.com/eng/Research-Publications/Publications/CWS-30/November-16-2011-Vol.-3.33/Seasonal-Hiring

Join the conversation…we invite you to share your feedback, insight and experiences about these and other topics having to do with today’s “new world of work.”