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

From RAB’s daily e-newsletter – another underwriting suggestion!  Financial groups traditionally do well for public broadcasting stations, and with mortgage firms beefing up their staffing, it stands to reason they will also want to get the word out about their services to qualified buyers.  NPR listeners are in the market to buy homes.  Aging Boomers are downsizing
– or moving to one story homes.  They’re looking at second homes for eventual retirement.  Xers and Millennials are buying first homes – or moving up to a larger family home.

As the article mentions, this also puts a demand on related items, such as landscaping, pools/spas, outdoor furniture/kitchens, remodeling/decorating, home furniture and more.

Lots of good potential for spring, which is when many of these categories do their largest marketing push!
 
Mortgage Firms Betting on Continued Recovery 
Mortgage companies are betting that the nascent housing recovery of 2012 has legs by beefing up their staffs to accommodate the continued expansion in lending, sales and construction that many economists forecast this year. 
Wells Fargo Home Mortgage and other lenders are responding to increasing home  sales and values, and to the Federal Reserve's commitment to keep borrowing rates near historic lows until the unemployment rate improves. That combination
of factors typically spurs both home sales and refinancing activity.

"It should be a very good year for housing," said James Chessen, chief economist of the American Bankers Association. "With house prices rising, it means that there will be more (homeowners) refinancing at low rates because the equity in their house is improving. It also means more people are interested in selling their house to buy larger ones."

Daniel Vessely, president of Iowa Bankers Mortgage Corp., said: "The Fed's commitment to keeping interest rates low has given people in the mortgage industry a little more confidence, because everyone agrees that we won't see the unemployment rate coming down anytime soon."  The U.S. unemployment rate was 7.9 percent in January, versus 8.3 percent a year earlier.

Anika Khan, a senior economist at Wells Fargo Securities LLC, said there's no doubt that home sales, construction and prices have hit bottom and are in recovery mode. The West Des Moines-based bank reported that its mortgage originations rose 4 percent to $125 billion during the fourth quarter.   "It makes sense," Khan said of the mortgage industry hiring spree.
"Inventories are very low, and that's the impetus for builders to get out there and ramp up activity. We're seeing that in every region of the country."

Wells Fargo's housing forecast calls for a 27.7 percent increase this year in housing starts -- a measure of new home construction -- from the 775,000 units begun in 2012. That means more work for idled carpenters and electricians, and an increase in demand for related products, such as barbecue grills, refrigerators and living room furniture.

Wells Fargo Home Mortgage, which handles about 30 percent of all U.S. mortgages, is adding staff and facilities across the nation. It's proposing to build a structure at its West Des Moines campus to accommodate 1,800 additional workers. It also announced plans in January to add more than 900 workers in Arizona, 100 in Georgia, and 90 in Alabama. The home mortgage division expanded its headcount by 18 percent to 17,945 full-time employees during the 12-month period ended July 1, according to Fitch Ratings.  The largest bank in the U.S. by market value increased its staff in Chicago by 10 percent last year to more than 800 workers, and has explored development of a four-block area of downtown Minneapolis.

Wells Fargo Home Mortgage is one of the nation's top mortgage servicers, which accept and record mortgage payments, pay taxes and insurance, and handle the foreclosure process. As of Aug. 30, 2012, it was servicing 9.5 million loans with a combined value of $1.66 trillion, according to Fitch Ratings.

"As demand increases and decreases, we respond," said Wells Fargo Home Mortgage spokeswoman Vickee Adams.

 (Source: USA Today, 02/12/13)

I live in Sugar Land, TX, home to a population that’s 35% Asian-American.  From Millennial high school students to Boomer business professionals, I am continually amazed at the level of support for public broadcasting and NPR programming that I find in anecdotal conversations.   With their passion for education (the common denominator that ties together public broadcasting lovers) and their higher-than-average incomes, this demographic group is an important constituent for our stations.  We find a large potential for individual giving, but there's also opportunity for underwriting.  The report states that Asian-American businesses (with a gross revenue of over $506 billion) generate more revenue than any other
demographic group except non-Hispanic Whites.  

Seminars I’ve attended on Asian-American giving patterns indicate that they don’t need (or desire) donor approaches in language other than English.  Unlike some other demographic groups, there is a high desire for assimilation.   61% of new immigrants speak English very well.  However, 77% speak a language other than English at home.  To effectively reach this market through advertising, the use of Asian-language media is encouraged – Asian media outlets increased a staggering 1115% from 1999 to 2010 – primarily print outlets.   You might wish to consider adding your local Asian newspaper/website to your station’s marketing mix.

Asian-Americans  are prime targets for your station’s website, viewing more pages each month than any other demographic group.  Reach them via your mobile apps – with a 70% smartphone penetration, they have the highest usage of any demographic group.  80% have broadband at home, 74% own a laptop, 77% have wireless connectivity.    

The summary of this Nielsen report is here, with a link to the entire report here.  It’s an interesting report about a very important group of our listeners.