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)

We all know that medical is a hot category for public broadcasting  underwriting.  We expand it out to physicians of all types, hospitals, home care, geriatric care, durable medical equipment…but we might be forgetting an important (and newly popular) category:  Health insurance.  With the new regulations kicking in, the sale of individual policies is going to be hot –
with over 9 million people buying it in 2014.  While much of that messaging will be to younger consumers, public media’s audience of entrepreneurs is also a good potential target for those insurance companies.  These companies are
thinking outside the box to get the word out.  Looks like a good opportunity for us!

In addition,some hospitals are exploring the insurance market.  It's reported that Piedmont Healthcare and WellStar Health System, both in the Atlanta area, are creating a jointly owned insurance arm, marketing coverage to employers and Medicare recipients in 2014.  A health exchange is also being explored - one of the online insurance marketplaces required in each state by the health-overhaul law.  Look for more of these to spring up - and be ready to show them how your station can help get the word out.

Here’s more from RAB’s daily enewsletter –