TFT: Embracing Temp Work in the Evolving Labor Market

Aug 08, 2024

This TFT will be a little bit more of throwing some spaghetti at the wall and seeing what sticks and what is just a dry noodle. I was listening to one of the way too many podcasts that I follow, and they discussed temp work and the labor force. It got me thinking about the workforce of the future. Who will you be hiring, and who will just be a contract worker? Please keep in mind no state or federal laws were reviewed as a part of the preparation for this post. I have tried to find some stats that support or challenge my thoughts.

a group of people working in a factory — Photo by Museums Victoria on Unsplash

Everything is on Demand

The first part of this post discusses the general idea of an on-demand workforce. Reflecting on what we learned from the work-from-home movement or mandate, depending on when you started, we see the potential for multiple work streams to go through one person. Freelancers have known this for years. Work, in many cases, is a fluid activity. There are times of great focus and high output and times of lower output. With more and more digitization in the workplace, these jobs can be completed from anywhere. This means you can hire anyone anywhere and truly find the best skills for that job, no matter the location. Why not find the best programmer in the US rather than just in Tyler, TX? A wider net will catch bigger and better fish. The pay will, of course, be different due to the varying costs of living across the country. This leads to a different way of paying, perhaps the freelance model or maybe the Lyft model. Hire anyone, anywhere, for any project rather than a traditional job. The workforce is on-demand and ready to work for anyone at any time.

One study shows that the global gig economy is projected to grow at a CAGR of 17.4% from 2021 to 2026, demonstrating the increasing shift towards freelance and contract work (Source: Business Wire).

There are details to work out, such as IP and trade secrets, but in reality, we’re not working with competitors. We’re working with someone that is helping us launch our next success. Maybe in the small-scale manufacturing space, this means someone to help automate your billing system or help you create some design software for the customer interface. This shift focuses on small companies outsourcing small parts of their operations so they can focus on customer service and delivering the best product and service. Everything else is noise that distracts you.

Hire Personalities, Train on the Job

The next piece to consider is where the apprenticeship has gone. While some skilled labor jobs still use it today, why not your business? College and technical schools can get you part of the way there. Speaking as a college grad, it was a great experience, but I honestly could have learned a lot of my job just by shadowing and asking questions. What is the bare minimum that we need technical schools or colleges to teach our next generation? If you were starting with a high school graduate, what would you hire for, and how would your training be different?

Apprenticeship models can bridge the gap between education and job readiness. According to the U.S. Department of Labor, 94% of apprentices retain employment after completing their programs, showcasing the effectiveness of this training model (Source: U.S. Department of Labor).

Consider hiring someone part-time and allowing them to finish college. Big companies do this all the time, but what about your small manufacturing shop? If you could hire the right personality to fit with the team and then train them, keeping them challenged, why would they have to leave? Besides, your business is growing, and you need more leadership down the road. Or maybe you want to try a new product line or service. Having someone who has grown with your business would be a great way to experiment. You know you can trust them.

Another thought is this could be a way to trial new hires. Maybe your apprenticeship starts with a six or nine-month trial period. This ensures the person who showed up for the interview is the person who shows up every day for work. This type of trial period also ensures you have a good cultural fit.

Where are You Hiring

The last section discusses where to look for talent, whether full-time or temporary help. Are you only looking for a college graduate? Do you truly need a college graduate? Are you looking at all colleges or only certain ones? College does instill a set of learnings and skills, but it has become less of a factor in determining good hires.

A study by the Harvard Business Review found that employers are increasingly emphasizing skills over degrees in their hiring processes, with 67% of HR leaders prioritizing skills-based hiring (Source: Harvard Business Review).

Consider high school graduates who have just as much, if not more, potential if supported correctly. Technical schools also have a lot of great graduates. Think about what you truly need on day one versus down the road. There are skills you can teach and training you can provide.

Another idea is to see what projects technical schools and colleges could complete as part of a senior design project. Especially for one-off projects. It may take a little longer and may not be perfect, but would it be better than what you have today? Would it be free?

Action Step:

Take 10 mins today to think through some different ways to create a workforce. Let those ideas roll around in your head for a week, talk to other members of the team. Schedule a 30 min meeting with yourself one week from today. Review the ideas and put one into motion as a trial for the next three months.

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