Business agility has long been on the agenda of CEOs, but is it missing the most important area: people agility? In volatile and unpredictable markets, the ability to adapt to changing conditions. is critical, and talent agility allows companies to do just that. Rather than relying on rigid corporate structures, agile workforce models allow businesses and employees to shift, upskill, fill gaps, and respond to needs as they arise.
Rigid organizations with fixed functions are very difficult to pivot or shift during times of instability. For example, if a large company has been successful in a growth market for several years, it probably had plans to expand over the next three to five years. This may have included hiring more people. But in the face of sudden changes, such as a major economic downturn or market shifts that force cost cuts, layoffs are almost inevitable as the company operates on a fixed-cost, fixed-capacity model. Probably.
However, when combined with a talent-on-demand strategy, talent agility offers many clear benefits. More flexible organizations can break down work into project-based components and deliver quickly while the market behaves as it did at the beginning of the project. There is a core team of 15 people who are permanently employed in the department, and he may hire an additional 15 people as independent personnel when the business takes off or goes into project mode. With a variable cost and flexible capacity model, companies realize that throughout the year they do not need 30 people and can enjoy the benefits of increased agility and resilience to shocks.
This sounds simple enough, but executives are certainly turning to agile models because they recognize the benefits. However, there are some important aspects to keep in mind to ensure your onboarding strategy has the best chance of success.
- Decide who will lead the initiative.
There are two ways companies can think about talent on demand. It's business leaders and HR leaders.
A business-driven approach focuses on project implementation and is solution-oriented. There is a gap that needs to be filled and HR approaches to fill it. It's simple and fast.
However, problems arise when no one considers the impact that processes have on the business. Has anyone considered how independent talent is compensated? What about the risks? Has the legal side also looked at the contract?
If the process is done by an HR professional or an HR representative, internal or infrastructure issues are handled. Legal consultations are held, contracts are drawn up, procurement boxes are ticked…slowly. In a dynamic market where skills are in high demand, this is also not ideal.
The best-case scenario is a hybrid of both, where the speed and practicality of a business-driven approach is matched with the detail-oriented approach of a human-driven approach.
- Are you really ready to join the company?
To ensure the success of independent consultants and contractors, it is important to be structured and thoughtful throughout onboarding.
The above issues are just the tip of the iceberg and all must be resolved before you say yes to independent employment. Contracts, non-compete clauses, non-disclosure agreements, payroll, and how the procurement process will be managed all need to be considered. It's easy to think of that person as a new employee, but in reality, they're a contractor or vendor with a different set of requirements.
Independent employer relationships can be jeopardized if all work elements are not in place, so for best results, thoroughly review your talent-on-demand recruitment process before you begin. You need to make sure you are ready to onboard your employees well in advance. chance of success.
- Test test:
No matter how many talent models you design on paper, problems will arise when you put them into practice. This is where the pilot comes into play. Pilots give you the opportunity to run real-world tests at scale.
Testing your talent-on-demand model with one person in one department can help you see exactly where your processes are failing without causing major productivity issues. It's always good practice to test, learn from your tests, and apply those lessons immediately before scaling.
When executed correctly, agile talent models have the potential to transform business growth and profitability. Many executives are currently in a test and learn phase. It won't be long before more companies start making the transition.
- Johan van Niekerk, Co-founder and CEO of Outsize
