Does Your Organization Need On-Demand Labor? | DCR Workforce Blog

Does Your Organization Need On-Demand Labor?

Companies get stuck in the now – juggling time and resources – and fail to plan for audacious growth, be it a case of scaling up from $10 million to $50 million or $50 million to $1 billion. After all, taking on more work brings growth but it also presupposes more resources. Growth cannot happen without concrete planning and effort, and a surefire way to failure is when we neglect to put a talent strategy together to support growth.

Being consumed by current opportunities with no time for planning is highly counter-productive for an organization on the path to growth. In the talent management space today, when you fail to scale up, your groove could well become your rut! Hiring new talent in these uncertain times is a challenge that needs to be addressed by employers as they decide the mix of workers they plan to hire – as permanent, contingent, independent contractors, freelance or on-demand workers – to plan for and meet their talent needs.

The way to go about growth is not too complex:

  1. Get bigger and better deals
  2. Support those deals with the right resources and infrastructure
  3. Get revenues and more deals
  4. Continue the growth cycle

Failure to achieve any of these targets could only mean stagnation, if not worse.

Any genuine effort at talent management must include anticipating the future human capital needs and putting a plan in place to meet them. No business should suffer or stagnate for want of employees with the required skills and competencies. Any sudden need for new talent, whether to meet new business requirements or replace the attrition of existing talent, shouldn’t come as a disruptive or calamitous development to an organization.

Using on-demand labor helps organizations to achieve the following benefits:

  • Leverage the availability of trained and valuable talent
  • Reduce costs
  • Avoid increasing permanent headcount
  • Increase productivity and reduce timelines
  • Challenge traditional ideas and static approach to talent management

Deciding in favor of on-demand labor

Questions abound. What’s the tipping point for opting for on-demand labor and not for any of the other workforce models? Is the use of on-demand talent like a supply chain for talent? Can we gain access to the right talent, just in time? Do we know where to go to get it? What is the cost? How variable and uncertain is the process? Would you rather carry an additional set of sales persons or engineers without having any work for them? Or would you much rather scramble to find the needed workforce, accepting the possibility that you may not be able to find them? What is the cost under each of these scenarios?

Make an insightful, data-driven forecast of workforce needs and plan for a workforce that combines internal and on-demand labor. To decide why they need to source from an on-demand talent pool, it’s clearly time organizations posed and answered some tough questions for themselves:

  • Do we have an effective and dependable long-term plan in place to meet our talent needs?
  • Is the talent we need readily available for us to hire and scale up as and when we need to do so?
  • Are our internal development efforts sufficient to meet our projected talent requirements?
  • Is our business highly predictable and our industry growth/contractions fairly easy to forecast and estimate?
  • Is our organizational culture so infallible that attrition is not a factor in estimating our talent requirements? This is patently a rhetorical question, as no company can possibly have a positive response to this!
  • Are open positions going unfilled as no qualified applicant is applying for them?
  • Can we use technology to have the work performed from anywhere on the planet? If not, can we re-design the work processes so that portions of it can be outsourced to on-demand workers?
  • Do we have managers who are capable of managing a dispersed, remote team for results, if necessary?
  • Do we have access to tools which can help us track the different kinds of workforce engaged on their performance, engagement and costs?

Remember, by not adapting to changing talent management strategies, an organization could stand to lose its competitive advantage against its rivals. What’s your company’s plan?

The content on this blog is for informational purposes only and cannot be construed as specific legal advice or as a substitute for competent legal advice. They reflect the opinions of DCR Workforce and may not reflect the opinions of any individual attorney. Do contact an attorney for advice specific to your issue or problem.
Ozzie has more than 30 years of experience in human capital management as an expert in managed service programs and vendor management systems for the non-employee workforce. With a focus on strategic solutions by analyzing client pain points and issues, he has achieved results-oriented first-in-class programs.