I attended a seminar this week about managing a contingent workforce, presented by Gary Campbell, an expert in the field.  “Contingent workforce” is the new buzz phrase for outsourced labor - contract workers, independent contractors, consultants, freelancers, interns, offshore workers, third party contractors – in short, anyone who works for your company who’s not a “regular” employee. 

You see them in every airport in America.  Flying out on Sunday afternoon or Monday morning, heading for work.  Flying back home on Thursday night, ready for a weekend of home and family.  Some live in extended-stay hotels, others have apartments during the week, homes-away-from-homes.  They manage extended and short-term projects, consult for various industries, and provide outsourced labor services that aren’t offered by the companies which they serve.

The industry is growing so quickly, that some large companies are hiring permanent staffers who do nothing but oversee the non-permanent workers. 

There’s even an accreditation to become a Certified Contingent Workforce Professional. 

Competition for top talent is increasing.

In the third quarter of 2012 (and we must assume that the numbers have continued to rise), 2.95 million people were employed by US companies as contingent workers every single business day.  Approximately 16% of the US workforce now comes under this categorization – and that’s expected to rise to 20% (some say as high as 40 – 60%) in the next few years. 

Millennials and Baby Boomers are fueling this growth, with flexibility as the driver.  Millennials expect a flexible work environment, and many aren’t keen about entering the 9 – 5 world.  In addition, their entrepreneurial spirits enjoy the freedom of setting their own career course, moving from one job to another.  Boomers caught between work and aging parents find it increasingly hard to squeeze caretaking into a 40-hour workweek.  Many Boomers are looking for a way to make a living in a world that seems increasingly loathe about hiring older workers.  Others might still have a lot to give – but might not necessarily have the desire to do that giving 40+ hours a week anymore.  Contingent work is the answer.

The IRS is stepping up scrutiny of this group, concerned that employers are trying to shirk taxes by moving their workforces away from the land of the W-2.  And indeed, if the employer is hiring someone to be onsite every day, someone whose workday is directed, who is instructed how to do their job by someone on the employer’s staff, who receives vacation and sick pay – they should most likely receive that W-2.  They’re called an employee.

But if the contractor sets their own hours, is pretty much self-supervised, provides their own direction and expertise, supplies their own working tools, pays their own healthcare and employment taxes – in general, serves as a set-apart part of the team – then you’re talking contingent labor.  The distinction is important – and it’s critical to be ever-mindful of it.  Fines are steep.

I’ve lived in this contract labor world for 3.5 years now.  Sure, keeping your project pipeline full can be stressful – but any of the commissioned salespeople that I coach can tell you the same thing about their desks! 

Buying your own healthcare insurance is incredibly expensive – but since the passage of the ACA, it’s a lot better than it used to be.

After the flexibility, having a variety of work experiences is the best benefit.  As a consultant/coach/outsourced staff – fill in the title blank – I’ve been able to employ literally every skill that I’ve learned through a full career in public broadcasting marketing, development and sales, commercial advertising, ad agency media buying – plus all the writing I’ve done, continuing education courses I’ve taken, and so much more.  In any given day, I might be planning a pledge drive, writing a membership letter, coaching a sales person, crunching numbers for “media math” or planning a generational workshop.  It’s certainly not a recipe for boredom!

And that’s critical for both Boomers and Millennials, the two generations who can’t stand boredom.  As the American workforce makes it ever easier to make your own hours and to create your own job, the numbers of contingent workers will only rise.  And as they do, more companies will discover the benefits of augmenting their full-time workforce with contingent workers who can manage short-term projects, teach new performance skills, and take over outsourced job functions.    

Healthcare has long been a stable and deep underwriting category for public broadcasting.  A recent RAB Radio Sales Today article highlighted three trends that are fueling the healthcare industry’s growth – and they are trends that public stations can take advantage of when seeking sponsorship dollars.  Even better, these sponsorship dollars may have their own budget line for our underwriters, not coming from their general advertising/marketing budget.  

1)  Drug store partnerships – highlighting events, in-store clinics,  community partnerships, more
2)  Hospitals – it’s not just about getting  bodies in beds.  It’s about community involvement, attendance at lecture
series, support groups and more
3)  Health insurers – enrollment begins in October for the 2014 mandatory health insurance plan.  Public broadcasting has scores of listeners who work for themselves, who will be shopping for a more expansive, less expensive form of health insurance.

Hope these items for your prospecting list are great ones – happy selling!
jc


Category Update: Healthcare Companies
 Health Care Reform Has Created New Opportunities for Nearly Every Type of Property

From IEG SR's perspective, few categories represent as much opportunity as the healthcare industry.  Driven by the ongoing rollout of the Affordable Care Act and the aging Baby Boomer population, nearly every segment of the industry is undergoing seismic changes in how they market products and deliver services.  That evolution has created new sponsorship opportunities for nearly every type of property as companies place more focus on taking their messages directly to consumers.  Those messages range from anti-obesity and other health and wellness campaigns to educating consumers about undiagnosed medical conditions and the products that treat them. 

Below, IEG SR provides an overview of three active segments of the healthcare industry and their sponsorship hot buttons: 

Drugstore chains. Walgreen Co., Rite Aid Corp. and other drugstore chains are placing more focus on sponsorship to support their health and wellness positioning and promote front-of-store products.  One growing trend: customer rewards programs. Like other types of retailers, drugstore chains are increasingly using sponsorship to access perks and other
assets that can be used to reward loyalty club members. 

For example, Walgreen uses its partnership with Susan G. Komen Race for the Cure to promote its Balance Rewards loyalty program. The company activates the tie by distributing pedometers to race participants who earn points for every mile walked. Consumers can then use the points to gain discounts on future purchases. 

Like other types of retailers, drugstore chains frequently leverage with vendor partners. For example, Walgreen in January partnered with The Procter & Gamble Co. to activate the CPG company's sponsorship of The People's Choice Awards. Walgreen activated the tie with "Night at the W," an in-store event held the day after the show. The event featured Walgreen beauty advisors who used CoverGirl, Pantene and other P&G products to help customers create their own “red carpet look." 

Another key hot button: community involvement. Walgreen last year partnered with the NFL Detroit Lions in a deal that affords presenting status of the team’s "Living for the City" health and wellness initiative for disadvantaged and at-risk families.  The deal also provides a platform to drive store traffic: Walgreen activated  the sponsorship with in-store flu immunization events that featured both current and former Lions players. 

Sponsorship hot buttons: drive store traffic; demonstrate community involvement; promote customer loyalty programs; promote in-store clinics

Hospitals. Health care reform and industry consolidation continues to drive new sponsorship activity on behalf of hospitals. 
While hospitals previously used sponsorship in large part to promote areas of expertise, they are increasingly using the medium to promote broader health and wellness messages. 

The Hospital for Special Surgery activates the NBA New York Knicks with the "Train like a Knick" contest, around which fans can submit entertaining exercise videos on the team's Facebook page. The contest dangles the opportunity to train with Knicks trainers and alumni at the MSG Training Center in Tarrytown, N.Y. among other prizes.  HSS also uses the sponsorship to discuss the importance of physical fitness through a series of videos that feature Knicks players, doctors and announcers. The hospital shows the videos at home games and on the Knicks’ Facebook page. 
 
Sponsorship hot buttons: promote health and wellness; showcase medical expertise in action; demonstrate community involvement

Health insurers. While they once used sponsorship to build their brands and promote health and wellness, a growing number of insurers are using the medium  to engage consumers and reach new audiences.  That activity is driven in large part by the Affordable Care Act and the  millions of consumers that will soon be required to purchase health insurance. 
And some companies are already expanding their portfolios prior to the Oct. 1 rollout of health insurance exchanges. 

Case in point: Horizon Blue Cross Blue Shield of New Jersey is signing new deals to reach Latinos and other under-insured consumer segments. The company this month announced a $1 million partnership with the New Jersey Performing Arts Center, around which it will sponsor NJPAC’s Sounds of the City summer concert series and the nonprofit's Latin and urban music performances. 

Sponsorship hot buttons: reach uninsured consumers; support CSR initiatives; promote Medicare Advantage programs to senior citizens; promote loyalty wellness programs

 (Source: IEG Sponsorship Report, 04/29/13)

Here’s a great article on marketing to Boomers from today’s RAB e-newsletter.  It contains the best quote I’ve heard in a long while - "Boomers are not a needle in the haystack. They ARE the haystack."   By 2018, they will control 70% of the disposable income in the US.  And they’re not buying Geritol.  46% of Apple’s sales are to people aged  55+.   Public radio  listeners are active, engaged, and willing to try new things – and they have money to spend!
 
Marketing to Boomers Crucial to Bottom Line
Although their children may not agree, the 80-million-strong Baby Boomer population in the United States is hip, willing to change their minds and spends more on consumer packaged goods (CPG) than any other age group. 

"The Boomer market is misunderstood," Beth Brady, global head of marketing effectiveness for Nielsen, said during a recent webinar entitled, "Boomers: Marketers' Most Valuable Generation." She noted that Boomers spend 50 percent of their total spend on CPG, but only 10 percent to 15 percent of advertisements are marketed to them.

The entire Baby Boomer demographic, defined as individuals born between the years of 1949 and 1964, will be 50 years old or older in 2014. And in five years, the demographic will control 70 percent of the country's disposable income, according to Brady. Baby Boomers spend more money on 119 of Nielsen's 123 defined CPG categories and have the highest average annual basket ring -- $7,233 -- of all demographics, she stressed.

These facts combined mean the Baby Boomer generation is a potential gold mine for marketers, with Brady dubbing the demographic "the most valuable generation in the history of marketing."

 "Boomers are value conscious and seek out information before purchasing items," she explained. "But they don't only shop on price." Addressing where companies should market their products to Baby Boomers, Brady relayed that "TV is still king," considering this demographic watches television an average of 174 hours a month. However, Baby Boomers also frequent
social media websites.

"Usage on social media by Boomers has doubled in the past year," Nielsen's global head of marketing revealed. "Fifty-two percent are now on Facebook." In terms of approach, she said the marketing should be more holistic, give plenty of facts and communicate value beyond price points.
 
"Boomers are not a needle in the haystack. They are the haystack," she stated. "Boomers are easy to target with a mass-media message."

Importantly, Baby Boomers are also willing to change their minds and highly respect loyalty from marketers, Brady concluded. "You don't need to change your brand personality," she said. "Apple is a great example. Forty-six percent of
its sales are to people (aged) 55-plus. That's because the company makes it easy for Boomers and created its Genius Bar."

(Source: Convenience Store News, 04/04/13)

To access the full report, please visit Nielsen's website

While spring may have already sprung in the southern tier of the country, the upper half still has some time before outdoor construction projects start!  We’ve long discussed landscapers, gardeners, garden centers, pool/spa contractors and more as being excellent prospects for underwriting partners on our stations.  

Here’s some good prospecting information from today’s RAB e-newsletter for your local landscape architects.  Increasingly popular are outdoor kitchens (perfect for public radio foodies!), along with fire pits/fireplaces and outdoor living/dining rooms.  When you add the uptick in requests for water elements, plus the desire for backyard gardening/farming (don’t forget those
designer chicken coops!), you have a strong prospect for spring/summer business.

Consumers Digging into Bigger Outdoor Projects 
While spring is typically the busiest time of year for gardening and landscaping projects, experts are predicting a particularly abundant sales crop, powered by recovering real-estate sales. 

Outdoor living spaces will be on the top of many lists, according to a trend forecast from the American Society of Landscape Architects, as will designs focused on sustainability and low-maintenance. These outdoor living spaces -- defined as kitchens and entertainment areas -- earned a 94.5% rating, making them just as popular as gardens or landscaped spaces. And people want these rooms filled with such amenities as fire pits and fireplaces, grills, seating and dining areas and lighting. 

"Business definitely seems to be picking up," Ted Cleary, a member of the association and owner of Studio Cleary
Landscape Architecture in Charlotte, N.C., told Marketing Daily, "even over and above the typical spring bump. Over the last few years, we were seeing more customers back out of projects because of financial concerns. There seems to be more equilibrium now."

Water elements are also making a bit of a comeback -- not just as features in landscapes, but also in terms of spas and pools. And in keeping with the local food movement, the survey also reports more people are asking for food and
vegetable gardens, including orchards and vineyards.

Cleary also believes the recent real-estate slump has reset people's relationship with their homes. "There's definitely a lot more thought going into projects, and less of this frantic 'Let's fix this place up and move on.' I'm hearing more people say, 'We could be in this house for a while. Let's make the yard more suitable for what we want long-term.'"

A stronger real-estate market drives gardening and landscaping sales at such stores as Home Depot and Lowe's. In the latest analysis from CoreLogic, January's home sale price index rose 9.7% from the prior year -- the biggest increase since 2006, and the 11th consecutive month of gains.  Last month, Home Depot reported a quarterly gain of 7% in same-store sales, and expects sales for the year ahead to climb 3%. At rival Lowe's, same-store sales rose 1.9%, and it predicts a gain of 3.5% in the coming year.

 (Source: Marketing Daily, 03/18/13

Adding to the information from RAB on senior housing – it seems that buyers over 55 are the hottest segment of the housing market.  In fact, one builder says that “this is the housing segment that’s going to lead us out of recession”.  And as with everything else the Boomers have done, they’re going to do retirement on their own terms.  They’re not interested in the
sprawling retirement communities with multiple golf courses and clubhouses.  Instead, they’re looking for age-restricted properties in the suburbs centered around a fitness-oriented lifestyle.  They’re not interested in downsizing, either.  They have lots of stuff, and they want their big houses in retirement, too.

(Personally, I’ll be looking for a one-story, 2500+ square feet, in a nice neighborhood, preferably with a porch…!)

Hope this results in some good conversations with your realtors!
jc

Builders Hope to Lure Boomers and Seniors as Home Values Rebound
From RAB's "Radio Sales Today" 2/19/13
Seniors who have been itching to trade the old home place for some new digs may get the chance now that the housing market is recovering. 

At least that's what builders hope. 

They are ready to build a new generation of housing aimed at seniors and aging baby boomers -- not the huge retirement golf course developments of yesteryear, but smaller, age-restricted suburban subdivisions.  During the economic crash, many of these potential buyers put their plans on hold when their houses wouldn't sell or they lost equity.  But with housing values on the rebound, homebuilders are sharpening their marketing efforts aimed at buyers over 55.

"We think this is the housing segment that is going to lead us out of recession," Don Whyte, a Utah builder, said recently at the housing industry's annual meeting in Las Vegas.  "We are seeing the traffic from these buyers is up, and shoppers are coming around looking at houses again," he said.

The National Association of Home Builders is predicting an almost 25 percent increase in home starts this year for properties targeted at 55-plus buyers. And next year, construction for this market will jump almost a third.   "This is a growing share of the market, just in terms of the underlying demographics," said Paul Emrath, an economics researcher with the builders
association.  Currently, about 42 percent of U.S. households are made up of 55-plus residents. By 2020, that number is forecast to grow to almost 47 percent.

Equity returns
John Sheleimer, a housing researcher from Northern California, said there are 79 million U.S. baby boomers and almost 80 percent already own a home.   "We are the wealthiest consumer segment in the housing market," Sheleimer said. "We have money to buy homes if we can sell our home at what we think it is worth, and that is also improving.  We are starting to see the home equities come back," he said. "We are starting to see people feel they can sell their home and move equity to buy a
new home."

Home starts for 55-plus buyers should total about 150,000 units this year, the builders predict.  The recession froze sales of homes to seniors in many areas of the country, builders and economists say, and there is pent-up demand.   "We have had a delay of several years where boomers and seniors didn't move," said Bob Karen, a Maryland builder. "In our sales offices, we now see an absolute change in this consumer's behavior.  They are coming in with lots more optimism and not as depressed about selling the homes they have," Karen said.

Now that older buyers are thinking about moving again, builders are trying to figure out what type of housing they want. New research shows that most still want to live in the 'burbs, with few opting for central city locations.

Different priorities
But they are less interested in the huge "retirement" communities that were developed in past decades.  "The days of the mega master-planned community with four clubhouses and 27 golf courses are dead," said Sheleimer.   Instead, the 55-plus buyers are looking at smaller age-restricted subdivisions close to traditional housing. Most of those buyers also aren’t
interested in drastically downscaled housing, Sheleimer said. "Many 50-plus buyers do not want to downsize to 1,500-square-foot or 1,200-square-foot homes," he said. "We have lots of stuff."

 While aging buyers may not want golf courses, that doesn't mean they aren't interested in community amenities. Developers are building walking trails, fitness centers, swimming pools and clubhouses in most of the successful projects.

"The exterior amenities are just as important as the interior," said Andrew Wong of Pulte Homes, one of the country's largest builders of homes for 55-plus buyers. Wong said Pulte's homes aimed at boomers and seniors are as large as 3,000 square feet.  "These buyers might still be working, or they could be retired," he said.

 (Source: The Dallas Morning News, 01/31/13)