We’ve spilled a lot of (digital) ink over the last few months talking about what comes next for a business world that has been battered by turmoil. We’ve touched on the ways in which the Covid-19 Pandemic has challenged the conventional wisdom and changed the nature of the employee/employer relationship. And while we believe many of the trends that emerged during this unusual time will continue to shape the working world for years to come, the truth is, the future is difficult to predict, especially these days. But as anyone who runs a business knows, planning ahead (especially budgeting) is important to stay afloat.

During Q1, many organizations budget for workforce strategy—determining how much they can afford to spend on hiring, raises, benefits, and other expenses related to their employees. And while some degree of uncertainty is always a factor, this year is dramatically more extreme. Many economists expect a rebound in the near future, especially if vaccination efforts continue to speed up. However, thus far logistical hurdles have stymied the campaign and new mutated variants with limited vaccine resistance have emerged. Even as inoculation efforts accelerate It’s difficult to plan with so much up in the air.

Nonetheless, a recent XpertHR report found that nearly half of the firms they surveyed are looking to hire this year[1]. Harvard Business Review has argued that employers will pursue a new strategy that prioritizes flexibility: contingent and temporary hiring[2]. Doing so gives employers the adaptability to find skilled workers when needs arise. If they find that their temporary or contract employee is a good fit, hiring them for the long term is a simple next step. However, if they find that conditions change, they have lost very little. Ultimately, flexibility is going to be the name of the game in 2021, and your workforce planning strategy needs to reflect that to stay ahead.

[1] https://www.benefitspro.com/2020/12/07/recruiting-hiring-top-employer-challenges-in-2021/
[2] https://hbr.org/2021/01/9-trends-that-will-shape-work-in-2021-and-beyond