To transform or not to transform, that is the question for HR teams
Rarely does a day go by when I’m not reading something that reiterates the speed of change we are facing.
Be it automation, AI or the changing workforce due to the rise of the contingent worker. It’s probably not surprising then that businesses seem to be in a state of change (or chaos depending on your viewpoint), but the question is how do HR teams rise to this challenge and come out on top?
In the last 12 months, after nearly 20 years’ leading in-house HR teams and the security that supposedly came with working in the corporate world, I found myself becoming one of “those workers”. Those being workers who make up the “gig economy” or form a band of contingent workers who spurn the traditional team and office way of working and live for flexibility, selling their knowledge and expertise to those businesses that are smart enough to take advantage of this new approach to working.
We started to see the rise of the gig economy about 5 years ago with companies like Airtasker, Uber and Foodora, to name a few, who burst onto the scene and challenged our way (and our laws) of employing staff. The question is how has this evolved into the contingent workers within the corporate world?
We no longer see a prevalence of contractors at junior or administrative levels, rather we are seeing a rise of Executives and Corporate Leaders offering their skills as independent experts. Now this won’t limit the permanent work out there as such (although it may have to evolve), but as large businesses transform more people can take up consulting and our HR teams need to be the first to adjust themselves to lead the way, and then support their organisations to transform.
With continued budget constraints, automation and AI coming to the forefront, businesses need to think differently and adapt. Within an organisation there are roles where we need to hold onto the Intellectual Property, this should be your permanent workforce. But why not buy in expert talent to develop critical projects and then hand over to a smaller, more focused permanent workforce to implement? This “contingent” talent has experience, industry knowledge and thrives on keeping abreast of the latest thinking and thought leadership. They are also temporary so no fixed headcount costs.
This may mean the transformation of the HR function within an organisation, where the HR team becomes smaller with less permanent roles but flexing up and down within the team. However, is this actually a win-win situation for businesses and HR teams?
Benefits for Businesses & HR teams:
Reduced overheads with a small permanent workforce
Only pay for what you need – cost effective resourcing of key projects (no salary and employer headcount commitments)
You buy in experienced talent for your projects, but only pay for what you need
Reduced risk with less employees and fewer employment commitments
Business money can be spent on improving/expanding the business not just on headcount and office space
Benefits for the contingent worker:
Flexibility to choose the work they want, and where they can deliver the greatest value
Ability to more easily manage around work and family life, as well as the opportunity to live away from the large cities and work remotely
Not tied to one employer (and their culture/rules) – broaden their industry exposure
Paid for their expertise in the areas they want to specialise
Downside for contingent workers can often be the lack of career development, but with so much knowledge available online – self managed training and development is now easier than ever, in fact it’s encouraged
Challenges for both to consider:
Whilst the above may sound like some utopian dream, there are in fact some very practical considerations.
Businesses have less control over contingent workers in terms of their performance and the quality of work. If they’re not performing they may find it harder to coach and guide them to improve either through development plans or a performance appraisal. They can just let them go (contract permitting) but that often does not bring about a successful project.
The key here is to ensure clear project scope objectives are outlined upfront and everyone understands the standard of outcomes required.
For their part, contingent workers have the challenge of no longer being part of a team. They move around regularly, so feeling connected and engaged with a team is definitely harder. What these workers do get though is a sense of purpose in the work they are delivering.
They have had a say in the project they have accepted and know that at the end, whilst not being there to enjoy the fruits of their labour as they move onto the next role, they do know that they had a hand in creating something successful.
The opportunities then, are most definitely there, and those businesses, HR teams and workers who will be most successful are the ones who will embrace the change and use it to their advantage quicker than others.
For more inspiration on maximising the benefits of a contingent workforce, or if you’re looking for support to transform your business or HR team head to www . contingent.com . au .