Labor Shortages Put Mission-Critical Projects at Risk. Contingent Workers Can Save Them.
In the context of business, a mission-critical project refers to any task, product, or system that is indispensable for the smooth operation of the organization and its profitability. Any failure or interruption can bring the entire operation to a grinding halt.
A halted company is at grave risk — which makes mission-critical projects the lifeblood of a company. A disruption can lead to dire consequences.
Labor shortages are a prime cause of those disruptions. And many sectors — especially engineering, construction, and manufacturing — are enduring serious labor shortages. Those organizations must look outside traditional hiring to ensure success of their mission-critical projects.
Let’s explore the significance of mission-critical projects, the impact of labor shortages, and the ways contingent workers can bridge the gap, ultimately driving success.
The significance of mission-critical projects
The nature of mission-critical projects varies significantly across industries, sectors, and organization, but they all share the common trait of being essential to business continuity.
Take, for example, a SaaS version of a top-selling software product designed for a profitable industry. If the software company produces a flawless version of its leading product, it can enter a new sector, capitalize on a hot delivery platform, and own that market. If the project fails, hungry competitors will seize the advantage and keep the high ground.
Every company is in this position on some scale, at some time. But in sectors like construction, engineering, and manufacturing, the success of mission-critical projects extends beyond business interests. Their projects include health and safety concerns with serious implications for people’s lives. The risks and consequences of mission-critical failures are profound, with legal, financial, and regulatory ramifications that can destroy an organization.
Even the reputational damage associated with mission-critical failures can be grave. Customers, partners, and stakeholders lose trust in a tarnished brand, which erodes the business’ credibility and soon, its sales. Therefore, the seamless execution of mission-critical projects is imperative — and labor shortages are a major threat to execution.
The impact of labor shortages
Consider the engineering sector. It’s currently grappling with a labor shortage crisis, which poses a severe threat to mission-critical projects, completion timelines, quality, and overall business outcomes. Several factors contribute to this crisis:
- The early retirement of experienced engineers during and in the aftermath of the COVID-19 pandemic, which has created a void in expertise
- The perception that the engineering profession is less lucrative than other fields, discouraging new talent from entering the industry
- The limited supply of local expertise, which forces organizations to compete for workers in a shrinking talent pool
The consequences of this shortage are grim, to say the least: Recent studies show only 15% of companies achieved all of their critical project goals, while a staggering 24% admitted less than half of their projects were successful.
Furthermore, this scarcity of skilled workers not only jeopardizes project success. It also inflates labor costs, driving organizations to pay a premium to secure the needed talent. This, in turn, drives up the cost of bids and contracts, putting additional strain on organizations’ budgets.
Leveraging contingent workers to bridge the gap
There are long-term solutions to the labor shortage, which are of no help to companies today. The contingent workforce is.
Not only do these workers provide organizations with the flexibility to address immediate staffing needs, their skills can be plugged into specific gaps in mission-critical projects. And when the project is complete and the organization no longer requires those skills, it is not committed to a long-term employment contract for a worker it doesn’t need.
This workforce model is particularly feasible for organizations within the construction and engineering sector, as work is generally project-based and inherently temporary. Contracting contingent workers as needed offers a cost-effective solution to acquiring talent for mission-critical projects, allowing organizations to hire as needed. This type of agility is a crucial competitive advantage that, according to 9 out of 10 executives, is the key to an organization’s success.
At the same time, contingent workers bring their specialized skills to the table, filling the expertise gaps and mitigating the impact of labor shortages. This not only ensures project success but also maintains a high level of quality and efficiency.
Moreover, employing a contingent workforce can be lucrative for both workers and organizations. It allows workers to choose projects aligning with their skills and interests, giving them flexibility while offering organizations the adaptability to scale their workforce up or down according to project requirements. In many cases, these short-term relationships can evolve into long-term partnerships, benefiting both parties in the long run.
Achieve mission-critical success
Mission-critical projects are the backbone of all organizations, and their successful execution is paramount for business continuity and growth. In the wake of the ongoing labor shortage, many sectors, including engineering, manufacturing, and construction, can benefit from leveraging contingent workers.
To get ahead of your competition and achieve mission-critical success, partner with hireneXus. We connect skilled contingent workers with organizations in need of their expertise. We can help you navigate the fluctuating labor market to adapt and maintain project quality. To learn more about our services, visit hireneXus.com or contact us today.