Global talent markets are experiencing a fundamental change in the way organisations manage their workforce.
Traditional employment models are not enough to meet the modern business needs, as skill requirements change at an unprecedented rate and businesses face increasing pressures to be agile. Strategic workforce solutions, particularly flexible staffing methods, are powerful ways for organisations to meet these challenges and maintain competitive advantage in their markets.
Before joining People2.0 I had extensive experience in staffing. I have seen first-hand how this change has reshaped the talent acquisition and management strategy.
In recent years, what began as a slow evolution, has become a rapid one, due to the changing preferences of workers, the technological advances, and a need for more specialised skills.
Kellen Economy is chief revenue officer for the Americas, People 2.0. She writes that organisations who adapt to this change are better equipped to meet current and future demands.
The strategic value of flexible workforce solutions
Talent acquisition is evolving beyond the traditional models of employment.
Flexibility is the main advantage of hiring temporary workers. Organisations can quickly adapt to changes in the market and adjust their talent requirements.
This flexibility was especially useful during the COVID-19 Pandemic which has accelerated the adoption flexible staffing models.
The demand for temporary workers increased as businesses began to adapt to distributed operations. Using this model, businesses can not only control costs but also have access to specialized skills when they are needed.
In talent acquisition, we’re seeing a shift away from job-based recruitment to a skillsets-based approach. Organisations can now hire specialists to work on specific projects, such as web developers or analysts working on data transformation initiatives. They can scale their workforce up and down depending on the project requirements.
The approach allows businesses access to the exact expertise they require without having to maintain permanent overheads for temporary requirements.
Understanding the Compliance Landscape
Flexible staffing has many advantages but also unique compliance challenges. I regularly see organisations struggling with these. Every jurisdiction, whether it is a state or a country, has its own rules and regulations regarding employee classifications and employment requirements. Global organisations that manage workforce compliance across international borders face an even greater complexity.
Initially, many organisations assumed that temporary workers were independent contractors. The reality is nuanced. The classification depends on a variety of factors, such as the need for oversight and flexibility in scheduling. To ensure compliance, it is important to classify temporary workers as W2 employees.
Consider the healthcare sector, which has faced significant challenges in terms of compliance. Some staffing firms have tried to classify nurses independently contractors in order to cut costs. This approach is not always compliant with regulatory requirements, and it can expose organizations to serious risk. Understanding that proper classification protects the organisation as well as the worker, while also ensuring compliance with applicable regulations is key.
Create an Environment for Success
The success of temporary workforce strategies goes beyond administrative considerations. Organisations achieve best results by treating temporary workers as valuable team members from the first day.
Some organisations make the unfortunate mistake of treating their temporary workforce as if it were a completely separate entity from their permanent staff. This can lead to unnecessary divisions, which in turn reduce productivity. Most successful organizations ensure that temporary workers are onboarded, have access to resources and are integrated into the team culture.
This inclusive approach has benefits that go beyond immediate productivity. Organisations that provide a positive experience for temporary workers are more likely to be able to attract top talent in the future. They build stronger and more cohesive teams that can deliver better results regardless of employment arrangements.
Leveraging Strategic Partnerships
Manage a flexible workforce effectively requires knowledge in multiple areas, from compliance to payroll management. Employer of record services (EOR) or agent of record services (AOR), which are invaluable in this situation, can be very helpful.
Compliance can be a complex issue, especially for global organisations. Partnering with workforce solution providers allows organisations to focus on their core businesses and talent strategies while experts take care of the administrative burdens.
This model works particularly well for large companies that want to retain control over talent selection, while outsourcing compliance and administration. These partnerships offer not only compliance expertise from across jurisdictions but also streamline processes that improve the experience of both workers and organisations.
Building for the Future
The flexibility of the workforce model appeals to all generations. Many early-career professionals use temporary assignments as a way to build their experience and portfolio.
Experts in mid-career may choose to work on projects that allow them to concentrate on challenges they find interesting. Professionals with more experience may prefer temporary work to maintain their flexibility and continue contributing their knowledge.
The diversity of the workforce provides organisations with unique opportunities to create dynamic multi-generational groups that combine different perspectives and levels of experience. These teams, when managed well, can deliver outstanding results and drive innovation while maintaining the flexibility workers and employers increasingly value.
Looking ahead
When we consider the future of work it is clear that those organisations who adopt strategic approaches to managing temporary workforces will have a better chance at achieving sustainable success. It is important to create programs that are flexible and compliant while also ensuring positive experiences both for workers and employers.
The evolution of workforce strategy goes beyond filling temporary jobs. It’s about creating an approach to talent management that is more dynamic and responsive, which benefits all parties. These arrangements are strategic opportunities for organisations to create stronger, more flexible workforces that can meet tomorrow’s challenges.
