Technology innovation has given people more choice about how, where and when they work. At the same time, digital transformation and business innovation initiatives have resulted in companies embracing more project-based work practices.
These trends have helped create a growing ‘gig economy’ that is driving the traditional employment relationship toward more flexible, project-based work. At the same time, we are seeing a global shift toward contingent and on-demand employment models.
As companies continue to evolve toward more project-based and on demand modes of work, HR strategies focused on ‘employees’ working in traditional ‘jobs’ will become less relevant to the business.
HR’s challenge in the new work economy will be to attract, retain and engage a diverse and increasingly virtual workforce, improve collaboration and drive innovation across multiple teams, projects and initiatives.
Employee experience 2.0 must support new ways of working
Businesses today have access to an open, global talent market that can work remotely and serve multiple clients with specialized skills and alternative work arrangements.
Both companies and individuals with in-demand skills benefit from an open talent market: Companies can deploy the best talent regardless of location and skilled workers can change jobs or clients if they are no longer motivated or stimulated in their current roles.
Contractors and freelancers are not the only members of the workforce impacted by the gig economy. Digital and business transformation initiatives have resulted in a landslide of critical projects in many companies, which in turn have contributed to an increase in project-based work for employees as well as well as contractors and freelancers.
In today’s workforce, everyone’s a ‘gig worker’ at least part of the time because work is increasingly
organized in projects involving people from different teams as well as external workers.
The gig economy therefore presents an opportunity – and necessity – to rethink work and traditional careers as more people embrace flexible and on-demand work arrangements.
To prepare the organization for changing employment models and new ways of working, HR needs to start thinking differently about how people are organized, managed, compensated and evaluated to reflect the new reality of project-based collaboration.
The first step is defining a holistic and inclusive people agenda.
A holistic people agenda begins with core HR
A Core HR solution that supports a holistic people agenda should help create a positive work experience for everyone who contributes to the business.
It should enable companies to organize the workforce around projects and company mission instead of traditional jobs and empower people to bring their most engaged and authentic selves to work.
It should provide flexibility for where, when and how work is performed, as well as making it easy for people to collaborate, develop their skills, and find their next opportunity.
It should support jobs and projects, hierarchies and matrix organizations, skills mastery and skills development, as well as employees and external contributors.
How well companies deploy talent and orchestrate work across multiple business-critical projects will drive business performance.
To learn more about how the HR function is evolving as companies adopt new employment models and project-based collaboration, check out our free white paper: Talentsoft HR and the New People Agenda. It’s just bellow!