In today’s dynamic business environment, finding the right mix of full-time employees and external talent can be the key to maximizing efficiency, reducing costs, and boosting employee satisfaction. At Peak Performers, we understand that true business success extends beyond mere number balancing—it involves aligning skills with company culture and fostering a dynamic, innovative workforce.
Our latest article draws on RGP’s influential study, “The Transformational Impact of a Dynamic Workforce,” to examine how C-suite executives are reshaping workforce strategies for global competitiveness. We provide actionable insights and strategies from over a thousand surveyed executives across various industries, offering valuable guidance for your strategic planning and business growth.
Key Findings and Insights from RGP Study
The RGP study found that large global companies are undertaking an average of 20 significant transformation initiatives, each defined as projects of over $1 million intended to improve various business metrics.¹
There’s a Shift Toward a Dynamic Workforce
The study emphasizes the concept of a “Dynamic Workforce” which involves a strategic blend of full-time employees and a flexible pool of external talent.
Successful companies are creating an ecosystem with a nearly 50-50 split between full-time employees and outside talent. The proportion of outside talent on transformation teams increased from 38 percent in 2020 to 45 percent in 2022 and is expected to reach 48 percent this 2024. So far, companies that have adopted this strategy have seen a 54 percent increase in market capitalization over the last five years.
Related article: Hiring Outside the Industry Brings Fresh Perspectives
Skills Shortage Is Costing Businesses A Lot
Around 60 percent of the respondents reported delays in project starts due to skills shortages. Over half (53 percent) indicated that completion dates for projects were pushed out, while more than 40 percent reported missing critical goals because of insufficient internal skills.
The average organization manages 20 ongoing transformation initiatives, increasing the pressure to find skilled talent. The most successful companies use a mix that includes almost 50 percent outside talent, focusing on skill-based collaboration and cultural fit.
Shifting Focus from Roles to Skills
There’s a shift from a ‘jobs’ perspective to a ‘skills’ perspective in workforce model design. Optimizing the number of people on a team and selecting the right mix of internal and external talent is key. This shift is evident in how companies approach their transformation initiatives on a large scale. They’re willing to cast a wide net, going long distances to obtain skills that are hard to find in their areas.
For instance, a chief information officer at a large life insurance company described their reliance on a tie-up with a staffing company to staff new IT projects in their Asia-Pacific locations. According to the CIO, an estimated 70 to 75 percent of the staff for these projects are sourced from staffing agencies. In fact, about 64 percent of employers plan to increase their use of contract professionals in 2024.² These stats underscore how companies can effectively scale and adapt to new challenges and markets by leveraging external expertise.
Such partnerships enable companies to quickly mobilize skilled professionals for specific projects, ensuring that the talent brought on board meets the unique requirements of the task at hand. By collaborating with staffing firms, organizations can benefit from their extensive networks and expertise in talent acquisition, making the process more efficient and effective.
Moreover, this approach aligns with the modern trend of focusing on skills rather than rigid job titles. It fosters a dynamic and agile workforce, capable of responding swiftly to evolving business needs and technological advancements. Strategic partnerships with staffing firms thus play a pivotal role in building a resilient, capable, and future-ready workforce, tailored to the specific skills required for each project.
There’s a Push to Treat Internal and External Talent as Equals
Organizations need to cultivate an inclusive atmosphere where external contributors feel as valued and included as full-time employees. This may require developing a corporate culture that supports ongoing learning and upskilling, enabling both internal and external staff to adapt to new technologies and methodologies quickly.
Companies that successfully cultivate such a culture are likely to see improved employee morale, higher productivity, and better retention rates. They are also more attractive to top talent, both permanent and external, who seek dynamic and progressive working environments.
Related article: 8 Inclusive Hiring Practices You Need to Know in 2024
The Dynamic Workforce Model: A Paradigm Shift
The dynamic workforce model represents a significant shift from traditional workforce structures, heralding a new era in workforce management. Unlike the conventional model, which relies heavily on full-time employees, the dynamic model integrates a flexible mix of permanent and external talent. This paradigm shift is rooted in a strategic approach to workforce composition, emphasizing agility, innovation, and efficiency.
One of the most significant benefits of this model is its ability to enhance organizational agility. Companies can swiftly respond to market changes, scale their operations up or down, and access specialized skills on demand. Google and Amazon, for example, demonstrate this through their ability to swiftly respond to market changes and scale operations, utilizing a blend of full-time and external talent.³ This flexibility is crucial in a fast-paced, ever-changing business environment.
Innovation is another key advantage. These companies bring together diverse perspectives and skills, fostering creativity and new ideas. Microsoft also leverages this diversity to drive innovation across its organization, exemplifying the strength of a dynamic workforce.
Related article: Why Inclusive Hiring Matters: A Strategic Approach to Bias-Free Hiring
Strategies for Implementing the Dynamic Workforce Model
Implementing the dynamic workforce model successfully requires strategic planning and an understanding of key elements that drive its success. The RGP study identifies six major elements essential for effective implementation:
1. Strategic Workforce Planning
This involves aligning the workforce strategy with business objectives. Assess their current and future talent needs, considering factors like market trends, technological advancements, and business growth goals.
2. Talent Sourcing and Management
Effective sourcing of both full-time and external talent is critical. This includes establishing a reliable talent pool, leveraging networks, and using advanced recruiting technologies. Managing this diverse talent pool requires flexibility and an inclusive approach.
3. Performance Management
Adapt performance metrics to fit the fluidity of your workforce. Set clear, achievable goals reflecting your strategic vision, provide regular, constructive feedback, and ensure alignment with your overarching business objectives.
4. Learning and Development
Your commitment to continuous growth is key here. Invest in the development of both your permanent and external staff, ensuring they possess the skills to meet evolving business challenges. You can utilize training programs, workshops, and online learning platforms that align with your innovative approach.
5. Cultural Integration
Foster an environment where every team member feels valued and can collaborate effectively.
6. Technology and Infrastructure
Implement the right technology and infrastructure to support the dynamic workforce model. This includes tools for collaboration, project management, and communication, which are essential for managing a geographically dispersed and diverse workforce.
The Road Ahead
As the concept of a dynamic workforce gains traction, more companies will likely adopt this model to stay competitive. This shift will bring about significant changes in how organizations plan, recruit, and manage their workforce.
Looking ahead, there’s a need to be prepared to embrace flexibility and innovation in their workforce strategies. There will also be a need to invest in technology and infrastructure that support a diverse and dispersed workforce.
Ultimately, the dynamic workforce model points to a future where adaptability and agility are at the forefront of workforce management. Companies that anticipate and adapt to these changes will be well positioned to thrive in an increasingly complex and competitive business landscape.
ELEVATE YOUR WORKFORCE WITH THE HELP OF PEAK PERFORMERS
In today’s fast-paced business world, staying ahead means embracing a dynamic workforce model. At Peak Performers, we understand the challenges you may face in finding the right talent to drive your transformation initiatives.
Our expertise lies in connecting you with top-notch professionals who possess the skills and adaptability your projects demand. By partnering with us, you gain access to a vast network of candidates, ensuring that your team is equipped with the skills needed to succeed in a competitive market.
Don’t let skill shortages limit your company’s potential. Contact us today to discover how our staffing solutions can transform your workforce, reduce costs, and propel your business forward.
References
1 “The Transformational Impact of a Dynamic Workforce” RGP Research, Accessed 16 Jan. 2024, www.rgp.com/now/research/dynamic-workforce/transformational-impact/.
2 “2024 Staffing Industry Trends & Statistics.” altLINE, The Southern Bank Company, 26 Jan. 2024, altline.sobanco.com/staffing-recruitment-statistics/.
3 “Case Studies of Successful Workforce Planning Programs.” Testlify, Accessed 30 Jan. 2024, testlify.com/case-studies-of-workforce-planning/.
