Building a Flexible Workforce

Why a Virtual Bench Beats Overstaffing 

Professional service organisations face a constant challenge: maintaining optimal staffing levels while ensuring high utilisation rates and profitability. While research shows that this industry is predicted to significantly grow over the next five years, organisations trying to grow still must navigate increasing competition, commoditisation, and evolving buyer behaviors. One way to stay competitive is by utilising virtual affiliates rather than full-time employees. 

The Hidden Costs of Overstaffing 

Maintaining a full roster of full-time staff can significantly impact your bottom line, especially for consulting companies with billable resources. Hiring a full-time employee means considerable tax costs including state and federal unemployment taxes and paying the employer share of FICA. 

Other challenges include: 

• Lower utilisation rates during inevitable project lulls
• Reduced profitability due to maintaining underutilised talent 
• Decreased employee bonuses and profit sharing 
• Limited flexibility to adapt to changing market demands 

The most efficient organisations maintain utilisation rates around 85%. However, firms staffed at peak levels often struggle to maintain this efficiency during slower periods. 

The Virtual Bench Solution 

Rather than maintaining costly overhead with full-time staff, consider developing a virtual bench of affiliates. This approach offers several advantages: 

• Flexible scaling based on project demands
• Improved utilisation rates across your full-time workforce 
• Enhanced profitability through optimised resource management 
• Access to specialised talent when needed 

Building Your Virtual Bench Strategy 

Organizations have two main options for developing their virtual bench: 

1. Internal Development
   1. Build an in-house recruiting function
   2. Create systems for talent identification and engagement
   3. Develop relationships with high-quality affiliates
   4. Implement technology to support the program 
2. Partner with a Workforce Solutions Provider
   1. Leverage established talent networks 
   2. Access streamlined engagement processes 
   3. Ensure compliance and risk management 
   4. Provide competitive benefits for affiliates 

The Benefits of Partnership 

When choosing a workforce solutions provider, critical costs often lurk beneath the surface. From compliance issues to resource inefficiencies, these hidden expenses can significantly impact your business performance and growth trajectory. 

Working with a workforce solutions provider like People2.0 offers distinct advantages: 

• Lower acquisition costs compared to traditional staffing models
• Reduced administrative burden 
• Comprehensive benefits for affiliated workers 
• Enhanced employer brand through professional talent management 

Creating Win-Win Outcomes 

A well-managed virtual bench strategy benefits all parties: 

• Your Firm: Maintains optimal utilisation rates and increases profitability
• Your Clients: Receives high-quality work from skilled professionals 
• Your Talent: Enjoys flexibility and competitive benefits 
• Your Full-Time Staff: Benefits from improved company efficiency through enhanced profit sharing and bonuses 

Next Steps 

Ready to optimise your workforce strategy? Let us show you how People2.0 can help you build and manage an effective virtual bench of affiliates. Our solutions enable you to maintain peak efficiency while ensuring access to top talent when you need it most. 

Contact us today to learn more about our workforce solutions.