What is the Blended Workforce?
March 20, 2018
March 20, 2018
Blended workforces, also called on-demand or variable staffing models, are shaking up traditional org charts. They use independent workers or contractors to fill in skills gaps for companies of all sizes, providing the expertise and manpower just when it’s needed. If you need a short course on the power of a blended workforce and think its time for your company to join in, read on.
Org charts are no longer a compilation of linear boxes filled with full-time employees (FTEs) or W2s. Instead, hiring managers are employing a core group of traditional full-time employees, with a blend of skilled independent contractors, contingent staff, and variable workers.
One common driver of a blended workforce is the short-term need for special skillsets. For example, a service company will hire a temporary worker when a client’s project requires a skill outside of their full-time staff’s knowledge base. Instead of losing the contract, they’ll hire a contractor who is highly recommended and skilled to take on the task.
Another perk of the blended workforce model is the need to align expenses with billings. Imagine a field services company operating at full capacity with their full-time workforce when a client approaches them about work needed in another state. The service company doesn’t want to add travel expenses to its current operating expenses. Instead, they engage an on-demand workforce in the needed location to expand their geographic reach and satisfy the customer.
A blended workforce includes a mix of permanent and temporary staff including:
In 2017, Intuit’s CEO estimated that more than 34 percent of today’s workforce was made up of flexible or free agent employees with this number increasing to 43 percent by 2020.
The primary reason is the power of the digital era. Everyone is connected and teams no longer need to be in the same location to work together. Hiring managers can quickly locate talent with specific skillsets in any geographic location, and individuals like the flexibility and work-life balance this on-demand lifestyle provides.
One of the questions you are likely asking is who benefits from a blended workforce? The answer is simply that both companies and individual providers are choosing this model. It makes financial sense for all sides and provides the flexibility both desires.
Companies:
Individuals:
The role of a contractor or temporary worker has changed dramatically over the past decade. Companies realize that to attract top talent, they need to treat their employees AND their temporary workforce well. Thus, contract, on-demand professionals are embraced as part of the team, offering fresh ideas, proven skills, and extra manpower just when needed. If you walk into today’s enterprises, it is often impossible to differentiate a W2 worker from a short-term contractor.
Managers are already using online marketplaces, including Field Nation, to fill their short-term and long-term needs with skilled and capable workers. As you look at your staffing for 2018, ask yourself how a blended workforce can give it the extra skills you need.
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