If there’s one term that describes the current economy from an employer’s perspective, it’s “Watch and wait,” states Raj Namboothiry, Senior Vice President of Manpower in a recent USA Today article. On-again/off-again tariffs, layoffs and funding cuts make long-term planning challenging, to say the least.
You may be confused by all the contradictory economic news coming out lately.
- Largest year-to-date number of layoffs since 2009
- Seesawing tariffs affecting supply chains
- Number of people holding multiple jobs is the highest since the Great Recession in 2009
But there are some positive indicators:
- Inflation rate lower in March than expected
- Interest rates are still favorable
- The U.S. economy added a robust 177,000 jobs in April, beating expectations for the second month in a row
Are Employers Cutting Back?
“The uncertainty around tariffs and economic policy has everyone second-guessing themselves and is absolutely affecting hiring confidence,” stated Namboothiry in another USA Today article. “Employers aren’t canceling hiring initiatives outright, but they’re dragging their feet at every stage of the process.”
Despite cuts to the federal government and not-for-profit organizations, unemployment claims have held fairly steady for the last couple of months. Additionally, a Reuters report indicated that annual wage growth increased in January and February, signaling that the economy continues to expand, though at a very moderate pace.
Navigating Uncertainty
Planning for the future might seem tough with all the environmental challenges we're facing, but doing nothing isn't the answer. In fact, while your competitors are sticking to the same old routines, this could be an opportunity for your company to shine.
But how do you prepare for the unknown?
One word: flexibility.
In times of uncertainty, the ability to bend, pivot or go with the flow is key. Here are some ways to build a more flexible workforce.
Test Talent Before Committing.
Try-before-you-“buy” isn’t just a retail concept. Consider project-based or contract-to-hire roles to keep things flexible. This gives you time to evaluate candidates in real-world conditions before going all in. You may even want to make contingent talent a “permanent” part of your strategy. (See 4 Solid Reasons to Consider Contingent Workers in Manufacturing.)
Use Hiring Pauses Strategically.
If you're unsure about hiring full-time, shift your focus to identifying skills gaps, evaluating team bandwidth, and realigning roles. Then, explore short-term solutions like contract-to-hire.
Rethink What “Hiring” Means.
Hiring doesn’t always mean bringing someone on full-time. It could mean outsourcing a business function, eliminating the need for additional help by automating repetitive tasks or engaging a team through a managed services model.
Enhance Flexibility Through Upskilling.
Instead of hiring new workers with the skills you need, why not upskill your current workers? You’ll be better positioned to go head-to-head with your competitors—and you’ll increase engagement and retention. For more about creating your own upskilling program, read The Human Resource: Is Your People Strategy Green?
Hire for the Future.
Whether you’re hiring or upskilling, keep in mind the skillsets you’ll need for the future. As automation and digital transformation become critical components of the transformation strategy, you’ll need to rethink the niche skills you’ll need in the months and years ahead.
A Case in Point
A major U.S. tire manufacturer was experiencing wide swings in staffing needs as production ramped up or down. The company looked to temporary staffing as a strategy for building workforce flexibility and protecting its permanent staff from potential layoffs.
They turned to Manpower for assistance. We brought in a contingent workforce that met the employer’s needs in terms of skill and productivity. Because of the size of the contingent workforce, the manufacturer also chose to engage with Manpower for onsite management. We provided an onsite manager to keep track of day-to-day needs as well as an offsite team that handled all payroll and administrative needs for the temp workers.
As a result, this client is able to cost-effectively meet its production goals despite fluctuations in demand. In addition, turnover in the facility was reduced by 60% and absenteeism is at 1.5%.
To be at your agile best, it’s important to start with a strong foundation.
Examining Your Foundation
The strongest organizations are characterized by high employee engagement and a positive culture. These organizations are better equipped to navigate challenges and adapt to change.
Here are the hallmarks of a solid foundation:
- Increased Agility
Employees in supportive environments are more likely to be proactive, innovative and adaptable, allowing the company to respond quickly to shifting market conditions.
- Talent Retention
Workplaces that build trust and well-being are more likely to retain top talent, which is crucial during periods of uncertainty when companies may struggle to attract and keep skilled employees.
- Enhanced Performance
Engaged employees are more productive and motivated, leading to improved overall performance and resilience in the face of volatility.
- Better Customer Service
A positive work environment can translate to better customer service and satisfaction, which can be a key differentiator in an uncertain market—especially if competitors are scaling back.
- Financial Security
Giving employees a financial safety net will further aid talent retention and help them navigate whatever lies ahead. Consider an employer-matched 401K plan, pension, health savings account, or an emergency savings fund.
- Successful Employee Resource Groups
Successful employee resource groups build wider bridges across the business, increasing engagement and fostering a more inclusive and resilient work environment.
Consider a Professional Partner
If developing a multi-faceted, flexible workforce plan sounds like a herculean task, it might be time to call in reinforcements. Manpower has over 75 years of experience supplying talent and management solutions through all types of economies. From maintaining a strong pipeline of talent, to analyzing the stability of your workforce, to providing insights into the labor market and much more, we’re here to help you stay ahead of the curve—and the competition.
Looking for a stable workforce customized to your needs? Contact us today!
