The CXC global team were honored to present at the American Chamber of Commerce Vietnam for the, ‘The Workforce of the Future – Global Trends and Technology‘ event, held at the Reverie Saigon. The following is an overview of the event and key takeaways.
Global Trends – Work, Worker, Workplace
Growth of the Contingent Workforce: 2008 – Now
77M workers have formally have been identified as freelancers in Europe, India and the United States
Freelancers are the fastest growing labor group in the European Union, with their number doubling between 2000 and 2014.
According to Deloitte’s Global Human Capital Trends 2019 Survey, finding qualified talent is among recruitment’s biggest challenges:
Adapt or become irrelevant. Traditionally organizations have focused on the permanent workforce while the non-permanent workforce has been largely neglected, but what will organizations do when the shift has already happened? Forward thinking HR & TA leaders who are prepared will win the war for talent over their competitors, while others will continue to battle or become irrelevant.
CXC 2019 Access to Talent Survey
Most gig workers identified flexibility, control and work life balance as top benefits of gigging:
- 33 % Enjoy being able to work from home
- 49% Like the control
- 80% Appreciate the flexibility
Risk and Compliance Implications
With a growing number of businesses now facing risk in relation to the modern workforce and where misclassification claims are an issue, it is essential that businesses have a risk strategy in place. According to Gartner’s 2019 Emerging Risks Survey, 63% of respondents indicated that a talent shortage was a key concern for their organization, with more than two-thirds of respondents in each industry signalling this as one of their top five risks.
- Worker Misclassification
- Tax Compliance Breaches
- Payroll Risk
In order to better manage identified risks, strategies should include:
- Incorporating new technology to identify risks and bad actors early in transactions – in an automated way
- Developing a next-gen compliance officer who is digitally fluent, analytical and proactive in cultivating relevant risk insights
- Defining new roles to support the reshaped operating model, so the business ca better manage risk, while keeping compliance’s ‘seat at the table’
Due to the significant impact on a company’s revenue and future direction from successful sourcing of top talent, businesses are now moving away from traditional models of hiring and embracing a new generation of workers.
Organizations are now turning to direct sourcing, either solely, or in combination with some of the more traditional methods of recruitment. These newly adopted strategies can come with a multitude of benefits including significant time and costs savings, in addition to helping them overcome the challenges of accessing top talent.
CXC’s recent market survey suggests we’re operating in a challenging recruitment environment due to:
- Full employment in major economies
- Limited access to skilled talent
- Low quality of talent available
Benefits of Direct Sourcing
- Cost savings
- Talent on demand
- Candidate experience
- More autonomy / reduced reliance
- Risk & compliance
Vietnam – Local Trends
With GDP growth exceeding forecasts for the first three quarters of 2018, the strong potential of Vietnam’s economy is reflected by the government’s projection of between 6.6% to 6.8% in GDP growth for 2019.
According to ManpowerGroup’s 2019 Total Workforce Index, Vietnam has a workforce of over 57 million with 70 percent coming from the Y generation (commonly called millennials, born between 1976 and 1995) and Z generation (born after 1995). And 57 percent of this workforce is engaged in contingent, non-full-time work. Some 79% of women aged 15 to 64 are in the labor force, compared with 86% of men.
The next wave of digital technologies – artificial intelligence, blockchain, the Internet of Things, and platforms and cloud-based services – has the potential to transform Vietnam into Asia’s next high-performing economy, and to bring up the living standards of all of Vietnam’s citizens over the coming decades.
To keep pace in today’s Skills Revolution, an effective talent strategy should be comprised of a blend of four key elements: build, buy, borrow and bridge.
For the next 5 years, “automation” will have the biggest influence on the labor market. According to a recent survey by LinkedIn, the future job & skills in demand are:
- Cognitive skills
- Social and emotional skills
- Technical and logical skills
CXC partners with our clients to address transform and optimize their contingent workforce program. Click here to view recent case studies including Deloitte implementation of a contractor management solution, supported by a custom-built online management portal. Deloitte has worked with CXC for the last seven years. Key achievements throughout the partnership:
- Improved reporting across spend, contingent worker trend data, KPIs and budget analysis
- Improved monitoring of the contractor talent pool
- Additional roadshows and education sessions to stakeholders
Connect with our global specialists today and learn more about how we assist companies around the world to implement compliant contingent workforce strategies.