For organisations to stay ahead of the competition and be agile to a rapidly changing business environment, they must build a blended workforce made up of permanent employees and contingent workers.
Hays CEO, Dirk Hahn, emphasises that business leaders must evaluate their own workforce planning strategies and consider whether a blended workforce is the right solution for modern challenges.
Ongoing technological advancements, increased globalisation, and new business priorities are resulting in skills gaps across several industries. Businesses that fill these gaps sustainably can gain a competitive advantage.
Hays’ report, ‘The Workforce of the Future: Navigating the skills disruption’, focuses on where talent is readily available in different industries across the globe. The report highlights that organisations could be missing out on important skills by failing to look beyond their usual borders.
One of the key stages in workforce planning is deciding how much work needs to be in-house and what can be outsourced.
Hahn commented; “Business leaders need to identify the roles that are crucial to their organisation’s long-term goals, which tasks require ongoing focus, and those that are shorter projects. Additionally, it’s important to understand which skills will be needed at different times and whether contractors can fill these gaps.”
Benefits of working with contractors in today’s world of work
External expertise can greatly benefit an organisation as they react to changing landscapes. Contractors can be used for specialist skills that an existing permanent workforce doesn’t possess, especially in niche areas.
Hahn said; “Working with contractors allows organisations to essentially buy these cutting-edge skills for their organisation, without the need for long-term commitments. In today’s world of work, this offers organisation’s flexibility in scaling up or down, based on shorter project cycles and market conditions.
“There are financial benefits, as hiring contractors can just be done for short-term needs or specialised tasks. Another benefit is their technical skills, which are transferable across industries and makes them more likely to adapt quickly to new environments. They can be onboarded quickly to meet immediate and specific project needs, which helps organisations to act quickly.”
It's important to recognise the drawbacks of introducing contractors, including the potential impact on company culture when members of the workforce are separate from others. It can also negatively affect the morale of permanent employees because contingent workers typically receive higher salaries. Employing contractors can also lead to less focus on in-house skills and recruitment. However, these challenges can be mitigated.
Transitioning to a flexible workforce
Traditionally, organisations have used a core permanent workforce, with certain tasks or responsibilities being outsourced. However, that foundation of permanent employees is becoming a thing of the past. Today, many organisations are adopting a more blended approach, with their workforce split between permanent employees and contingent workers.
A third of the world’s workforce currently operate under contracts, while a Gartner report reveals that contingent workers are expected to reach 35-40% of the workforce by 2025. For organisations that want access to the best talent, these professionals will become a crucial component.
James Milligan, Global Head of STEM at Hays, commented: “There are two key reasons that employing a blended workforce is beneficial for businesses. Both relate to flexibility. Contractors are available on demand, which means organisations only cover their costs for a predetermined period. This allows organisations to account for this in their planning, as well as react to the market. Also, these are professionals with niche skillsets that can be hard to find when recruiting for permanent roles. Being able to access these skills, as and when they are needed, is advantageous.”
Innovation through a contingent workforce
Contingent workers have often worked at a range of organisations and across different industries, bringing new perspectives, different experiences, and fresh ideas, helping to cultivate innovation. The integration of a contingent workforce has a positive impact on an organisation’s innovation performance.
Hahn commented, “After you’ve introduced these specialists to your projects or processes, you should give them the confidence to challenge the status quo. By offering new approaches to problem solving, they will help your business to thrive.”
As the business landscape continues to evolve, implementing a blended workforce strategy can provide organisations with the flexibility and expertise they need to remain competitive. By leveraging the strengths of both permanent employees and contingent workers, businesses can navigate modern challenges more effectively and drive innovation.