Profit 101 Video: Pursuit of Profit Margins - Talent Pool
Oct 28, 2023
Increase your talent pool size for better performing individuals
The third reason to consider fractional hiring, and one that was pivotal in helping us achieve 50% margins, is talent. It's about the availability and quality of talent. When we focus on technical talent, such as software developers, hiring has become somewhat easier recently. This year has seen layoffs, making some developers available. But this doesn't necessarily mean it's an easy task.
If we look at the pool of developers currently seeking employment, it comprises those who are unemployed and those looking to change jobs. This group represents about 5 to 10% of all developers, either because they're unemployed or they're currently employed but looking to shift.
However, there's a significantly larger group, potentially between 5 and 10 times the size of the first group. From our interactions with numerous developers, we've discovered that about 50% are interested in the idea of working fractionally. This means you can initiate discussions with a much larger group, rather than limiting yourself to the smaller pool. This increased availability enables you to seek more experienced candidates or those with specific skill sets. While you might not find every skill set in the smaller pool, the larger one, comprising those already employed elsewhere, offers a broader range.
Talent availability was a major reason we pursued fractional hiring. Coupled with cost savings and the ability to reduce risks, it played a significant role in our push towards achieving 50% margins.
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