The Modern Talent Challenge
In today's business landscape, companies face significant challenges in securing the right talent for their customer experience (CX) operations. As of 2024, 70% of companies are facing labor shortages, with CX sitting in the top 10 of the most challenging roles to fill. To address this, some CX leaders are turning away from traditional hiring processes and towards digital talent platforms to find skilled professionals on an as-needed basis. By leveraging platforms like LiveXchange’s GigCX Marketplace, companies can now access a global pool of highly skilled customer experience professionals that can be leveraged whenever and wherever you need them and at a fraction of the cost of traditional full-time equivalent(s) as well as traditional outsourcers.
It's time for organizations to develop a contingent labor strategy for their CX functions—an innovative approach that views all talent as part of a global network, ready to work wherever and whenever needed.
The New Contingent Labor Landscape
Traditional hiring methods are becoming obsolete. Despite significant investments in digital transformation, many companies still adhere to outdated and costly talent acquisition practices. The modern approach involves engaging a globally distributed contingent workforce accessible through on-demand digital platforms.
Understanding the Talent Crisis
Regardless of company size or brand strength, many organizations are experiencing a talent crisis. A 2021 survey revealed that nearly 41% of workers were considering leaving their jobs, with 4 million U.S. workers quitting their jobs in April of that year alone. This will create a surge in demand, meaning that over 85 million jobs could go unfilled globally by 2030, resulting in an $8.5 trillion talent shortage.
This issue predates the pandemic and the Great Resignation. Even before these events, large organizations struggled to find the needed talent. This has led to top companies turning to digital talent platforms like Freelancer, Fiverr, and UpWork to find skilled labor help quickly and efficiently. The problem is those platforms weren’t developed with volume hiring or the customer experience function in mind.
The Rise of Digital Talent Platforms
According to research, online talent platforms are transforming the labor market. Projections suggest that by 2025, up to 540 million people will utilize them to global talent and work opportunities.
LiveXchange’s GigCX Marketplace is one of them, with over 250K+ skilled customer experience professionals using the
platform to find service positions. These individuals have expertise in everything from technology to outbound sales. These freelancers have transformed themselves into empowered microentrepreneurs who set their terms of employment.
This shift represents a fundamental change in how work gets done. Companies can now rent the services of individuals to solve specific problems, develop initiatives, or temporarily fill skill gaps. Workers in the flexible labor economy are highly skilled providers who work when and how they want.
Benefits of a Flexible Staffing Model
Companies that adopt a flexible staffing model can experience numerous benefits:
- Reduced friction in finding skilled help for quick ramp
- Lower fixed salary costs
- Greater ability to scale with demand
- Faster and more efficient work
- Substantial cost savings
Learn how LiveXchange enabled an on-demand, global, virtual workforce at a 30% savings over the traditional FTE model here.
Research indicates that companies using contingent labor provide support just as well, if not better, than those using traditional staffing models, but four to five times faster and eight to ten times cheaper. This efficiency does not come from pushing workers harder or paying them less; it results from introducing efficiencies and reducing bureaucracy.
Creating an External Talent Cloud
To fully take advantage of the flexible staffing model, companies need to create an “external talent cloud.” This involves integrating a digital talent platform that can quickly and precisely match talent to an organization’s specific needs.
Steps to Implement an External Talent Cloud
- Establish a Center of Excellence: Create a division within your company to research, develop, and deploy contingent labor practices. This center can consist of multiple people or even a single coordinator.
- Cultural Shift: Overcome cultural resistance by building a coalition of support and working with managers to determine if contingent labor is suitable for your service needs.
- Identify Pain Points: Use workshops to focus on strategy, goals, and operational models. Identify the exact problems external talent will solve for you.
- Pilot Program: Launch a pilot program to test the external talent cloud, focusing on areas with the greatest pain points. Evaluate and iterate based on the pilot’s success.
- Strategic Integration: Gradually scale up the contingent labor plan, ensuring transparency and communication to help internal stakeholders understand the benefits
Challenges and Considerations
The biggest roadblocks to a contingent labor strategy are cultural rather than technical. Internal staff may fear job losses and resist externalizing aspects of their workflows. Overcoming this resistance requires thoughtful communication and a clear demonstration of the benefits.
Additionally, companies need to address:
- Compliance and Security: Ensure systems access, compliance, and security constraints are managed effectively.
- Intellectual Property: Navigate intellectual property issues, especially if freelancers create new IP or technology.
See how LiveXchange combats cyber security concerns with our proprietary secure endpoint technology!
The flexible labor revolution is just beginning. Companies that adopt an external talent cloud will be better positioned to thrive in an increasingly competitive landscape. Organizations can achieve greater efficiency, flexibility, and cost savings by leveraging a global network of highly skilled professionals.
Ready to transform your talent strategy? Explore how LiveXchange's GigCX Marketplace platform can help you build and manage your external talent cloud. Sign up for free and take the first step towards a more agile and efficient workforce.