Charles Darwin famously said: “It is not the strongest of the species that survives, nor the most intelligent; but rather the one most adaptable to change.” Of those organisations working their way through the economic downturn, a select few will come out stronger than before as they identify clever business solutions that will enable them to adapt to change and get ahead of the competition.
One such business solution is the deployment of contingent workers. Indeed, what began as a financial and economic crisis is now evolving into a workforce crisis – with employers struggling to adapt to a rapidly changing marketplace and the growing disconnect between needed skill sets and available talent. The winners in the post-recovery world will be the companies that have mastered the art of change and are managing a flexible mix of permanent and contingent workers, who can act as “workforce accelerators” to increase the speed of execution, build talent capability, yet keep fixed costs low and do more with less.
Currently, many employers underestimate the strategic potential of using the four types of contingent, or non-permanent workers: temporary employees, outsourced workers, contractors and consultants.
Manpower’s research, including The Role of Contingent Workers in Workforce Strategy Survey from August last year, shows that 62% of employers around the world do not see contingent labor as a key element of their workforce strategy. Only 14% of employers now turn to contingent workers to derive greater strategic value. Of the 635 employers surveyed in Singapore, only 33% viewed contingent workers as a key element of their workforce strategy.
Yet, the advantages in viewing contingent workers as more than “stop-gaps” to cover maternity leave or seasonal demand, or to keep permanent payrolls in check, are several-fold. A well-managed workforce strategy, taking full advantage of the opportunities offered by correctly utilising a contingent workforce will allow an employer to gain access to people with scarce, specialised skill sets; outsource non-core business functions; try out candidates before hiring for full-time positions; and provide longer-term workforce flexibility. Most importantly, they can be the catalyst for increasing the speed of an organisation’s execution and drive competitive advantage.
In order to make the most of a contingent workforce, employers must engage with them, integrate them into the workplace and provide them with the support they need to ensure they are able to do their jobs, and are committed to the company, its business goals and strategy. To do this effectively, employers should consider segmenting the contingent workforce by developing individual, customised, flexible development plans for contingent workers, just as with their permanent employees. Besides that, employers should also make contingent workers part of the team. Remove the unnecessary barriers and including them in special events and social occasions.
Employers should view the global economic downturn as an opportunity to re-think and restructure their people practices, and to act differently when considering their people business models. Adopting contemporary work practices and building a flexible team of talent are integral to an organisation’s approach and will optimise its workforce to gain a competitive edge as we move towards more stable economic ground.