Ep. 162: Jeff Nugent, Co-Founder of Independently, Why Innovation Through External Talent Should Be An Executive Mandate, And How Industry Founders Can Meet The External Talent Opportunity

Leaders, 

Jeff is a trailblazing entrepreneur who’s been there and done that in the external talent space. Prior to his latest venture transforming workforce compliance, Jeff started in IT staffing, founded an industry leading VMS - flextrack, and built an EOR company, Contingent Workforce Solutions, which he merged with People 2.0 to become one of the pioneers of the EOR industry.  

In this episode we’ll hit on five important things. 

1. Definitions - what is this space? Who are the players? What’s really needed? 

2. Positioning - what kinds of founders and businesses have been, and look to be successful in this space?

3. Market Trends - where is the external talent industry going? What is in the way?

4. The Impact of the Trump Administration

5. Enterprise Adoption - what is blocking every F500 from spending $100m+ on digital talent platforms, also called freelance platforms, on-demand platforms, gig platforms, and more

One of the biggest takeaways for us, was when Jeff said, “The talent industry runs on trust”. 

Why? Because for leaders, whether founders or executives, decision-makers in this industry uniquely need to trust that you’ll get the job done and be there long term. 

The impact is that rather than trying to disrupt the industry, successful leaders typically learn how to complement existing players, and navigate win-win partnerships rather than expecting immediate revenue capture. 

This mistake is one of the most consistent patterns we see in outside entrepreneurs trying to break into the industry. They take tech and try to disrupt the existing ecosystem, only to learn that most companies won’t dramatically change their talent strategy and vendor solutions even with 10x differences across speed, cost, and quality. 

Another big takeaway was how we defined the various aspects. 

First, he calls us the external talent industry. Next, he defined the various aspects. 

• External Talent: Everything not internal full-time employees, often categorized as “spend”, or external talent depending on the owner

• MSP: Outsourced HR for external talent

• VMS: Technology that stores and centralizes relevant external talent data

• Program: Centralizing the management of external talent spend

• Staffing: Provides the talent

Second, he highlights the importance of taking a program approach. Without a program approach, companies were losing hundreds of millions of dollars.

Last, he highlights the importance of knowing who owns the external talent program, and aligning with that function rather than trying to make them change. 

Jeff made a really nuanced, but integral point – most of the external talent industry is owned by private equity. The impact is that these companies, and most of the industry, have focused on revenue optimization. Obviously, this leaves gaps of opportunity for innovative solutions.

For you, this means that there is a significant opportunity to see the broader picture, and solve accordingly. Rather than incrementally solving for a process that’s already been over-optimized, where can AI and new processes to fundamentally transform external talent?

But caution, while you redefine what the external talent space can be, remember his first piece of advice, build trust and operate through partnership rather than trying to disrupt everyone. 

Key takeaways:

• The new administration supports innovation, independent contracting, and workers rights

• Trust is essential in the flexible talent industry.

• The shift towards remote work has created new challenges for enterprises.

• Efficiency in talent acquisition is crucial for businesses today.

• The gig economy is ripe for growth and innovation.

• Understanding compliance is vital for hiring independent contractors.

• The language of business is becoming more explicit and focused on efficiency.

• Relationships matter in the talent acquisition space.

• The flexible talent market is still evolving and needs clarity.

• Taking a step back to understand the broader market is important for success.