3�e Tru FilesHIRE WORK, NOT WORKERS

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@BillBoorman and Dinette Koolhaas

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We scoured presentations and conversations from the last twelve months of TRU events to bring you the best forward-looking ideas in the field of recruiting. 48

8,00010EVENTS

ATTENDEES BIG IDEAS

HIRE WORK, NOT WORKERS /03

IN THE FUTURE, PAYING FOR WORK BY THE OUTCOME WILL BE THE NORM.

GET READY TO HIRE A NEW BREED OF TRANSIENT WORKERS.

TRU uncovered an idea so radical it will dramatically disrupt the field of recruiting over the next 18 months.

And yet, the concept is still so new that most recruiters are not aware of it.

But before we set out to change your mind, we must sketch in some context. In particular,

to understand the changing future of recruiting, we must take a detour to study the growing

power and influence of the knowledge worker.

/04HIRE WORK, NOT WORKERS

UNDERSTANDING OUTSOURCING MARKETPLACES

Companies like Elance and

oDesk—which recently

completed their merger—

match freelancers (e.g. web

development, writing, designers

and translators) with companies

seeking short-term, on-demand

talent. Hiring companies can

view examples of freelancers’

work and evaluations by previous

hiring companies.

As well, freelancers review

hiring companies, disclosing

such things as whether the client

treated them fairly and paid

them on time.

As these types of marketplaces

become more mainstream,

companies will engage

for “work” rather than

“workers”. Talent Supply Chain

Management will become a more

integral component of traditional

staffing companies.

A global chemical company

may engage Kelly to retool their

sales and marketing efforts in

Eastern Europe. Rather than

asking for specific roles, the

company will simply ask for

specific outcomes, and a

staffing company will mobilize

the right mix of employees,

consultants and freelancers to

complete the project.

RISE OF THE KNOWLEDGE WORKERAcross every business and every industry is a potent demand for professionals whose job it is to aggregate, analyze and report information—or said another way, those who think for a living.

These include traditional professionals such as attorneys, physicians, engineers and scientists,

as well as the newer, high-demand jobs in the STEM field such as UX developers, data analysts

and designers.

What drives the relentless demand for knowledge workers? They are innovation engines for

companies large and small. No longer is competitive advantage dictated by brute scale or

capital; companies now gain an edge by out-designing, out-forecasting, out-strategizing – that

is, out-thinking their competitors.

HIRE WORK, NOT WORKERS /05

This insatiable demand for knowledge workers runs in parallel to a raft of other

interesting trends:

Growing acceptance and prevalence of virtual work and mobility. To remain agile and support innovation, global organizations increasingly view mobility as a

key competence; mobility ensures top-talent is at the ready to staff critical projects, regardless

of geography. Global companies allow employees to work remotely, encourage teams to

collaborate across borders, and more and more rely on contingent labor for knowledge work.

IDC projects the worldwide mobile worker population will increase from about 1 billion in 2010

to more than 1.3 billion by 2015—and the company hypothesizes this shift will be a critical

factor for companies to achieve greater productivity.1

Massive gains in technology to support virtual/mobile workers. This trend hardly needs explaining. The advent of cloud-based computing, near-ubiquity of

broadband in developed markets, and the low cost of powerful, portable devices have removed

the last barriers to working remotely. IBM, for example, allows 45 percent of its 400,000

contractors and employees to work remotely.2

/06HIRE WORK, NOT WORKERS

Scaling these types of alternative work relationships is cumbersome and inefficient unless the work is standardized in some way (e.g. project pricing vs. payment by labor hour), and workers are easier to access and evaluate.

1 IDC, Mobile Enterprise Group. Statistic taken from Deloitte’s report, “Making virtual work business as usual.”2 HBR: The Third Wave of Virtual Work.

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Expanding cadre of free agents. Working independently—outside of the confines

of a traditional employer/employee relationship—has become mainstream. In the United States

alone, there are an estimated 10 million self-employed individuals, as well as almost 22 million

non-employer firms (i.e. businesses with no payroll, which means solo practices).

Knowledge workers—with their position of power and influence—seek to work on their own

terms. They want to live in certain regions, report to work on a flexible schedule, work remotely

when convenient, and are more likely to work as free agents.

Yet scaling these types of alternative work relationships is cumbersome and inefficient unless

the work is standardized in some way (e.g. project pricing vs. payment by labor hour), and

workers are easier to access and evaluate.

Outsourcing marketplaces such as oDesk, Elance, Freelancer.com, Guru, Contently and GLG

Research point to a future of free agency. These platforms connect independent workers

and micro-practices with large companies seeking specialized knowledge areas and skills.

Engagement types range from the simple (e.g. translation and copywriting from Elance) to the

complex (e.g. supply chain consultants and forensic accountants from GLG Research).

HIRE WORK, NOT WORKERS

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But in order for a large global organization to rely on independent workers for a growing

portion of their talent needs, these marketplaces will need to offer more standardized

“packages” to corporate clients. Knowledge workers will need to be paid based on outcomes

rather than hours. Or said another way, companies will pay for work rather than the worker. Fast-

moving global organizations will plan a project with an 18-month timeline, and pull in a diverse

team of independent experts to deliver results—an undertaking that will resemble supply chain

management more than staffing or hiring.

HIRE WORK, NOT WORKERS

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IF COMPANIES SEEK WORK AND NOT WORKERS, WHAT WILL THE ROLE OF RECRUITERS BE? In a world in which companies are interested in hiring this type of flexible, on-demand labor, recruiting must adapt targeted strategies for free agents.

For example, if it’s true a company will want to engage, terminate and re-engage a single

worker multiple times over the course of their career, then the recruiter’s focus will no longer

be on one-time hires or one-time projects.. Instead, recruiters must forge lasting relationships

with high-value prospects, and keep those individuals engaged over many years. (An idea we

explore in the New Role of the Recruiter ebook.) Recruiting programs may come to resemble

university alumni programs: organizing ongoing events, providing education, and constantly

communicating with free agents regardless of whether the recruiter has an opening for that

person or not.

HIRE WORK, NOT WORKERS

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We predict that within the field of recruiting, an important new role will take shape: the

Talent Attractor. This new breed of recruiter won’t be responsible for sourcing any individual

candidate, but rather building long-term relationships with professionals who either may

become candidates in the future or who may influence future candidates. Talent Attractors will

borrow lessons from so-called content marketers and behave more as publishers. Rather than

promote their own brand, they will answer questions and publish educational information to

help would-be job seekers and the types of transient workers described here.

Recruiting will become less a function of hiring John Smith for a specific job, and more about

keeping an eye on John over a lifetime of work, engaging him in conversation if he’s deemed

to be a high-value passive candidate, and understanding what types of opportunities he’s

interested in at different stages of his career.

HIRE WORK, NOT WORKERS

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To hire flexible, on-demand

labor, recruiting must

adapt targeted strategies

for free agents. Recruiters

should no longer focus on

one-time hires or one-time

projects. Instead, they will

forge lasting relationships

with high-value prospects,

and keep those individuals

engaged over many years.

(An idea we explore in the

New Role of the Recruiter

ebook.) To get started:

HIRE WORK, NOT WORKERS: ACTIONABLE INSIGHTS

GET YOUR FACTS

Assess the need. While the

idea of hiring for work rather

than the worker sounds

promising, your organization

may not be ready to make

the leap. First assess the

need for on-demand labor.

Survey hiring managers and

senior business leadership.

Does your company use

contingent and freelance

labor as part of a purposeful

strategy, or simply to fill

short-term needs? Would

the company be served by

increasing reliance on free

agents? In which fields?

Identify low-hanging

fruit. Many organizations

hire tomorrow’s workers

based on how they hired

yesterday’s workers. Which

is to say, if they previously

hired engineers as full-time

employees, they will likely

continue to do so.

Study your organization’s

mission-critical talent, and

explore which roles may be

better filled by free agents

rather than employees

(based on how workers in

that field prefer to work,

time-limited assignments,

and other relevant factors).

Consider a pilot. Identify a

new project that requires a

fast-moving, interdisciplinary

team. Use the project as a

pilot to test whether mixing

free agents and employees

in a single working team

makes sense. How well did

free agents work in concert

with employees. Was the

“on-demand” nature of

the independent workers

a benefit? Did the hiring

manager also think so?

Share results. Share results

of the pilot study with

other hiring managers and

leadership. Assess whether

the program makes sense

to duplicate on a larger

scale, and how to adapt the

recruiting team to support it.

HIRE WORK, NOT WORKERS /12

I first discovered the Unconference concept when I led a track at #RecruitFest in Toronto in

1999. I was taken aback by the way discussion flowed and how different the format was to a

traditional conference. I led a track all day under a tree and learnt far more than I gave.

Two months later and back in the UK, we ran the first #truLondon at Canary Wharf in November

2009. Today, we’re running dozens of #tru events a year across Europe, North America, Africa

and the Asia-Pacific. Thousands of recruiters, HR leaders and providers come together in an

informal spirit of information sharing and networking.

#tru is based on the BarCamp principle, which means that everybody can be an active

participant instead of listening to speakers and watching presentations all day. The emphasis is

on communication and the free exchange of ideas and experiences where the participants fuel

the conversations.

THE #TRU STORY

BILL BOORMAN

HIRE WORK, NOT WORKERS /13

Companies aren’t hiring workers anymore; they are hiring work / Talent and want to pay for

an outcome rather than an hourly rate. Leading companies need an agile and innovative

workforce, and massive gains in technology which allow for virtual and mobile workers make

this possible, a trend which hardly needs explaining.

Working independently, as a free agent, outside of the confines of a traditional employer/

employee relationship is becoming part of the mainstream. But despite this massive shift, there

continues to be an important place for recruiters to help source, manage and communicate with

free agents. For example, who will keep track of the best workers operating in an industry?

We predict that within the field of recruiting, the role of the Talent Attractor will emerge,

who won’t be responsible for sourcing any individual candidate, but instead build long-

term relationships with professionals who either may become candidates or influence other

candidates. They will also have an important role in the formation and management of online

talent communities.

Recruiters should no longer focus on one-time hires or one-time projects. Instead they will

forge lasting relationships with high-value prospects and keep those individuals engaged

over many years.

THERE’S A SEISMIC SHIFT TAKING PLACE WITHIN THE WORLD OF WORK

DINETTE KOOLHAAS

DINETTE KOOLHAAS VP & Operations Leader EMEA

Dinette who leads EMEA operations joined Kelly in June 2008 as VP & Regional General Manager Western Europe. Since 2013, as VP & Operations Leader EMEA, she is responsible for leading the operations to execute our growth strategy. She started her career as Consultant at a logistic consultancy agency in Holland. In 1997 she moved to USG People and started her career in staffing as Sales Executive. Within USG Group she was General Manager for both specialized niche brands Unique and Secretary Plus as well as generalist and large account player Start People. Dinette holds a Master degree in Business Administration. In her leisure time, Dinette likes playing golf, cooking for friends and family and reading.

For more thought leadership go to talentproject.com

EXIT

This information may not be published, broadcast, sold, or otherwise distributed without prior written permission from the authorized party. All trademarks are property of their respective owners. An Equal Opportunity Employer. © 2014 Kelly Services, Inc.

ABOUT KELLY SERVICES®

Kelly Services, Inc. (NASDAQ: KELYA, KELYB) is a leader in providing workforce solutions. Kelly® offers a

comprehensive array of outsourcing and consulting services as well as world-class staffing on a temporary,

temporary-to-hire, and direct-hire basis. Serving clients around the globe, Kelly provided employment to

approximately 540,000 employees in 2013. Revenue in 2013 was $5.4 billion. Visit kellyservices.com and connect

with us on Facebook, LinkedIn, and Twitter. Download The Talent Project, a free iPad® app by Kelly Services.

TO LEARN MORE ABOUT THE FUTURE OF RECRUITING, DOWNLOAD THE FOLLOWING TRU FILES EBOOKS.

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