Mitigating risks with flexible workforce solutions

by Brian Clark

In business, risks are hiding around every corner. From volatile market conditions and geopolitical tensions to rapid technological changes and shifting consumer demands, there is no shortage of unexpected events that can disrupt a company’s operations, strain its resources, and undermine its long-term growth.

As evidence, look no further than 2024. While inflation has eased in many regions, new challenges have emerged, including escalating geo conflicts and pivotal elections in the world’s enduring democracies. Meanwhile, with emerging technologies showing great promise, they also introduce new vulnerabilities, with cybersecurity threats and service outages taking center stage. These challenges are injecting a profound sense of uncertainty into the world of work, just as we approach a somber anniversary: five years since the COVID-19 pandemic began, ushering in the most disruptive event in at least a generation.

No aspect of a company’s operations is as vulnerable to risk as its workforce. Personnel costs are often the single largest expense, with some estimates suggesting they account for up to 60 percent of a company’s overall expenditures. For larger organizations, including Fortune 500 companies employing thousands of workers, these costs can exceed $2 billion annually. This highlights just how sensitive businesses are to even minor fluctuations in the global economy, where changes in wages, labor availability, or economic conditions can significantly impact the company’s financial health and long-term sustainability.

The global landscape of business risks forms the overarching theme of AgileOne’s Workforce Solutions Market Overview: November 2024 Update. In this report, we provide the latest data and economic insights impacting the United States, Europe, and India, and focus on key trends across the life sciences, manufacturing, and chemicals sectors. By highlighting the risks impacting key geographic regions and leading industries served by AgileOne, it is our hope that we can help you make informed decisions and proactively adjust your workforce strategy to stay competitive in a world that’s always on the move.

Here are five takeaways from our report:

1. In the U.S., the labor market has continued to tighten. In early 2022, there were more than 12 million job openings — at the time, more than double the number of unemployed people seeking work. Today, that gap has narrowed to roughly half a million people.
2. Labor tightness persists in Europe, where demographic shifts are poised to exacerbate workforce imbalances. Take the Netherlands, for example, where a quarter of residents are expected to reach the age of 65 or older by 2040. Meanwhile, in France, nearly one in five individuals aged 15-24 are unemployed — more than double the national unemployment rate.
3. Given the risks facing the labor market, companies should consider adopting flexible workforce strategies to navigate the uncertainties ahead. Contingent staffing offers the agility required to respond to changing labor demand and evolving economic conditions.
4. The tight labor market highlights the value of a diverse talent pool. As demographics shift, diversifying your team is a powerful asset, bringing a wide range of perspectives, skills, and experiences that enhance innovation and problem-solving.
5. At the same time, companies would be wise to invest in reskilling and upskilling programs to help employees acquire new skills or strengthen existing ones to meet evolving demands. AgileOne is here to assist through our managed services program (MSP), providing hiring managers with essential workforce insights and the data needed to make smart, informed hiring decisions.

Navigating today’s unpredictable business environment requires resilience, adaptability, and proactive workforce planning. With so many risks emerging from different angles, the key to mitigating these challenges lies in understanding their impact and being prepared to respond with agility. AgileOne’s Workforce Solutions Market Overview: November 2024 Update aims to empower businesses with the data and insights needed to assess current conditions, adapt strategies, and embrace flexibility as a strength. From labor shortages to demographic shifts, our expertise helps you anticipate change and build a workforce that’s ready to thrive.

Whether you’re facing regional labor shortages, navigating technological disruptions, or striving to make your workforce more resilient, remember that you’re not alone. AgileOne remains committed to helping organizations like yours create tailored workforce solutions that can withstand the challenges ahead.

Together, we can ensure that your company is well-equipped to respond to today's uncertainties while laying a foundation for tomorrow’s successes

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Download AgileOne’s Workforce Solutions Market Overview: November 2024 Update here.