How do you align contractors with internal employees? This question will be the focus of this blogpost. But first, I’d like for you to consider a number.
Yes, it’s an outrageously large number. It’s equivalent to the GDP of South Africa. You could go to outer space 8.571 times for $300 billion – until Elon Musk succeeds in cutting the price of space travel even further. Or, you could get 150.000 Bugatti Veyron sports cars.
But $300 billion is also how much is spent on contingent labor globally, according to an Accenture study. That figure is expected to grow in the coming years. There are great benefits to reap from on-demand labor for most companies. These include optimized cost structures, improved work quality, and accelerated go-to-market capabilities, according to the study.
Most importantly, perhaps, using contractors can foster innovation, according to the Accenture study. An essential part of any growth-driven competitive strategy.
Nearly all companies now are increasing their use of talent from the outside, by engaging freelancers, consultants, and contractors in alternate forms of employment, according to Harvard Business Review. Business leaders increasingly recognize the need for agile staffing strategies of talent to fill critical gaps — without necessarily employing them full-time.
However, most companies don’t have the organizational set up for getting the most out of the contingent workforce, according to Harvard Business Review. And even more companies have not yet started the transition and risk losing out on on of the next great opportunities to gain a competitive advantage.
In this blogpost, we help you understand how you can align contractors with internal employees.
A shift in the mindset: Separate and equal
Most managers would never dream of treating contractors like internals. Contractors are hired for projects, for the short term, to fill a specific need. But as the number of independent workers are continuing to grow worldwide that sort of thinking won’t do it.
The “separate, not equal” mentality is the very first area, leaders need to work with in order to benefit from a contingent workforce.
Leaders and managers alike must treat externals like internals, according to Harvard Business Review: Separate and equal. The studies found that companies that engage, motivate, and build teams with both internal and external staff, are the most successful.
Contractors are interested in doing meaningful work. They want to further develop their competencies and grow their career. They want to be respected, trusted, and engaged. They want to be treated as a part of the team for the while being. Receive ongoing communication about issues relating to the problem they are solving. And be recognized for their effort. Read more about this in this blogpost Focus On Employee Experience To Attract The Best Freelancers.
Too often, they feel unappreciated by management and powerless in dealing with the administrative bureaucracy of partner organizations, according to Harvard Business Review. The key to attracting the best talent is to focus on creating a good employee experience.
Contractors should not be seen as a transactional relationship – “service for money.” Instead, all the recognized management best practices that we already know applies to fulltime employees accounts for the contingent workforce too. You need to align your independent workers with your internal employees, treat them as equals and nourish your relationship to them.
The complete guide on how to align contractors with internal employees
You can use these questions from Younger and Smallwood’s book Agile Talent, published by Harvard Business Review Press as a guide to learn more about how you can align contractors with internal employees.
- Is my company good at identifying areas where contractors are required and beneficial?
- Does my company have the critical capabilities it needs to benefit?
- Is my company effective at defining the role, relationship, and scope of initiatives addressed by contractors?
- Are contractors provided with the right level of mentorship?
- Are timing, budget, and resourcing consistent with what is required for a successful outcome?
- Are performance expectations clearly defined, established, and communicated?
- How often is performance evaluated and feedback provided?
- What metrics are used, and are they the best ones?
- When performance problems arise, how does my company react?
- How much is cultural fit as well as competencies considered?
- Are contractors provided with some sort of onboarding?
- How are problems between internal staff and contractors resolved?
- Are they engaged and treated with consideration and respect?
- Is my company overly bureaucratic in dealing with this type of flexible staff?
- Are the rules and procedures communicated appropriately?
- Is the orientation of my company one that views contractors as colleagues or merely as a “pair of hands?”
If you’re a business leader, you should ask yourself these questions, and then start to look at how you can improve your business accordingly. The rise of flexible labor will transform the traditional relationship between the company and its workforce.
At some point, these questions will arise. And better sooner than later.
You need to align contractors with internal employees in order to reap the full benefits. Because there’s plenty of them.
Contractors workers foster greater efficiency and cost savings
The process of aligning your current workforce with contractors may seem long and cumbersome, but there are great benefits to doing it. Leaders who embrace these changes and respond effectively build more competitive organizations, according to Workmarket’s 2017 Workforce Productivity Report. This report finds that 83 percent of business leaders believe that external workers are more, or equally as productive as, their full-time counterparts.
In addition, the business leaders report that they experience greater efficiencies and cost savings, and that they can deliver specialized skills faster. They also report that they are able to offer greater specialization, access to new technology, and new solutions the company other couldn’t provide. They are able to seize new opportunities faster, by remaining flexible and nimble to changing market trends and conditions.
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