New business model

- If you need to hire people to fill open job requisitions, finding top talent and retaining key employees are probably the two things that keep you up at night. Unfortunately, these two issues aren't going away anytime soon. There is a tremendous shortage of top talent worldwide, and to make matters worse, baby boomers are retiring at record numbers, one every six seconds. That means millennials make up the majority of the workforce. And according to Gallup and Forbes, millennials are the job-hopping generation. 42% are changing jobs every one to two years, and this percentage is expected to increase. You need to accept the millennials have a gig mentality, and so they change jobs frequently. That is a driving force behind a new intentional business model. Employers and talent acquisition professionals realize retention improved when they surrounded their core employees with contractors. This is the new business model. Core employees surrounded by contingent workers who bring specific skills needed for each project. This business model also prevents employers from overloading their core people with additional projects and heavier workloads. If you need someone to do lower level tasks, complement your team with temporary employees who can provide support for a day or for as long as you have a need. The temp employees complete tasks that your core employees don't enjoy, and that are often not best use of their time or the money you're paying them. The cost of turnover is also a driver of the new business model. Studies on the cost of employee turnover are all over the board. They predict that every time a business replaces a salaried employee, it cost an average of six to nine months' salary. For a manager making 40,000 a year, that's 20 to 30,000 in recruiting and training expenses. Another benefit of the new business model is that your company can scale your business quickly for growth. Think of the peaks and valleys of your business and how your company could benefit. You hire additional talent as needed based on sales and workflow. This new business model gives you the opportunity to absorb their skills, personality, and ability to excel in your company culture. You may decide to upgrade a core employee with a more qualified temporary employee or contractor. One last thought. Consider hiring your retirees as part-time contractors. This generation lived to work, and rather than return to the workforce for one of your competitors, bring them back to support and mentor your core employees. This new business model is flexible, cost-effective, and will improve retention. If you are not currently embracing this new intentional business model, now may be the perfect time for you to do just that.