Why flexible resources are vital for effective workforce planning

What can we expect in today’s fast-paced world of work??

We know markets will change and customers will have new priorities. We know technology will continue to evolve, and we’ll have to keep up. We’ll need to continuously innovate to stand out from the crowd. Ongoing globalisation will increase competition and collaboration across borders. It’s easy to make these broad predictions, but understanding when and how this will happen is a much greater challenge.?

Adapting and reacting to this in an effective way means that your workforce planning has to be more agile than ever. The factors I mentioned above will repeatedly result in skills gaps, so being prepared to fill these on a sustainable basis is vital for success.?

The good news is that there are plenty of options for organisations in building the workforce they need. The challenge is in choosing the right solution.?

Permanent employees vs. temporary workforce?

One of the key stages in workforce planning is deciding how much of your work needs to be in-house and what would benefit from being outsourced.?

Hays’ recent report, ‘The Workforce of the Future: Navigating the skills disruption’ , has shone a light on where talent is available in different industries across the globe. As I discussed in my last newsletter, it’s clear that organisations are missing out on important skills by failing to look beyond their usual borders. We must also consider whether using contingent workers from these locations is easier and provides better value.?

To assess this properly, you need to identify the roles that are crucial to your organisation’s long-term goals, which tasks require ongoing focus and those that are shorter projects. As well as this, it’s important to know which skills you’ll need at different times and whether contractors can fill these gaps.?

Why it makes sense to work with contractors in today’s world of work?

One thing is for certain: external expertise can always benefit your organisation as you react to changing landscapes. Contractors can be used for specialist skills that your existing permanent workforce might not have, especially in niche areas. Working with them allows you to essentially buy these cutting-edge skills for your organisation, without the need for long-term commitments. In today’s world of work, this offers organisations flexibility in scaling up or down, based on shorter project cycles and market conditions.?

This will often make financial sense for your business, 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. This means they can also be onboarded quickly to meet immediate and specific project needs, which will help you to act quickly and save time.?

And what if you ignore these external experts? You’ll miss out on top talent, and it’ll be much harder to adapt. As the CEO of Hays APAC, Matthew Dickason , points out in his blog on building a Contingent Value Proposition , “Current talent shortages mean these workers have even greater choice when it comes to their next move”.?

To put it simply, if you don’t bring these experts on board, they will find opportunities elsewhere and build relationships with other organisations instead – perhaps even competitors.?

Of course, there are some drawbacks to introducing contractors which must be considered. This includes the potential impact on company culture when members of the workforce are separate from others. It can also negatively affect the morale of your permanent employees. Why? Contingent workers typically receive higher remuneration. As well as this, their presence can also lead to less focus on in-house skills and recruitment. However, these challenges can be mitigated.??

The shift to a blended workforce?

In the past, organisations have traditionally leaned on a core permanent workforce, with certain tasks or responsibilities being outsourced. However, that foundation of permanent employees is often no longer the case. Today, many organisations are adopting a more blended approach, often with a 50/50 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 . If your organisation wants access to the best talent for every project or situation, it’s inevitable that these professionals are a crucial component.?

For example, a creative agency made up of graphic designers and creative strategists might have outsourced its IT function. In contrast, a tech company’s core competencies might include software developers and product managers, but activities such as customer support or legal advice might come from an external business. At Hays, our expertise is in people – we're never going to outsource our recruitment consultancy because it’s core to who we are. However, we also know that, in order to offer our clients, the best service possible, we might have to use external specialists for other functions.?

Organisations, particularly in certain industries, have to be agile and be competitive in fast-paced markets. A tech business with intelligent products (such as smart devices or wearable technology) needs access to specialised skills while also being flexible in when they recruit these experts. Contingent workers are an obvious solution.?

James Milligan , our Global Head of STEM at Hays, commented: “Fundamentally, there are two key reasons that employing a blended workforce is beneficial for businesses. Both relate to flexibility.??

“Firstly, contractors are available on demand, which means organisations only have to cover their costs for a predetermined period. This allows you to account for this in your planning, as well as react to the market. The next point is that 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 you need to, is hugely advantageous. More and more organisations are opening their eyes to this and reaping the rewards.”?

Innovation through a contingent workforce?

Innovation cannot happen without new perspectives, different experiences and fresh ideas. As a result, it doesn’t make sense to ignore contingent workers who have worked at a range of organisations, especially across different industries.?

This is backed by research, as studies have shown that the integration of a contingent workforce has a positive impact on an organisation’s innovation performance.?

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.?

What’s next?

In order to stay ahead of the competition and be agile to a rapidly changing world, building a blended workforce with contingent workers is a logical step. It’s not the future – it’s already happening.?

I’ve outlined the many benefits to using contractors and outsourcing (and even offshoring). To leaders in all industries, I encourage you to evaluate your own workforce planning strategies and consider whether a blended workforce is the right solution for modern challenges.?

I would also like to hear from you in the comments. Has your organisation benefited from a blended workforce? If so, how? Which challenges have you faced in workforce planning??