Flexible Staffing? Scalable Resource Models?

We have talked about "flexible staffing" as a business concept for years — primarily because we are in the talent management business and have long understood the blend of contract, temporary, regular fulltime positions and use of consultants to be one of the most powerful and efficient approaches businesses can take to fill human capital requirements for business strategy and goal attainment.

In today's market using the term "scalable resource model" may be a better description of this strategy, but even so in order to avoid sounding esoteric — a simple explanation of how it can work may encourage more leaders to employ it at a variety of levels — to staff their organizations and to realize important gains.

Regardless what you call it this flexible, scalable method of aligning workforce requirements with the pressures of any market or business condition — growing, changing, declining or just uncertain — spawns a corporate strategy for success that can be utilized within specific functions of a business or across the enterprise in general.

For a growing number of businesses that seek to effectively and efficiently accomplish goals, utilizing a blend of regular fulltime employees supplemented by temporary or contract professionals in a variety of skill areas, translates directly to increased quality, lower, manageable costs, flexibility and sustainability. The underlying benefit driving all of this is the availability of precise levels of expertise at just the right time and for only as long as you need it.

Not always viewed positively

The increased use of a contract or temporary labor force however has often been maligned because of the obvious effect on fulltime jobs. The recent Business Week article on the "Disposable Workforce" is one example, although as far back as the 1980's the reference was to a "shedable workforce." It is important to note however that changed labor market demographics and recent work experiences have helped shape new expectations of job seekers, which ultimately encourage the examination of scalable approaches as solutions to a growing number of business imperatives.

"Free agency" has been growing since before the last recession and even dot-com bust. The "silvering" of the workforce, delayed retirement plans for many "boomers," and the severe, widespread nature of this particular recession all have set up scenarios where a growing number of professionals want to work, but on their terms concerning how much and when. A perfect storm for introducing the "scalable resource model."

A different look at work

Additionally, many businesses are beginning to look at the work they traditionally have had to accomplish and are beginning to view it as a series of projects with different skill requirements from cycle-to-cycle or at different times throughout the year. Recruitment has been looked at in this way for a long time, as have compensation management, compliance administration, benefits administration, even learning and development, training, strategic planning and managing or implementing change.

In all of these instances companies have focused on bringing in the best talent and experience available to concentrate attention on specific goals and accomplish them as quickly as possible. In doing so most have found that results can be attained more efficiently, the experience and skill levels brought to bear are current, and costs are better defined and managed.

In most cases companies that engage interim professionals with proven, current competencies in these areas rather than maintaining a fulltime staff with the varied skills required for the same initiatives, enjoy a more direct line to quality results and lower costs. And in the end, when planned and managed well, they appreciate better returns on investment, which is a bottom line contribution.

HR Jobs too

Many HR jobs evolving out of this recession serve as good examples of how changing business environments call for different approaches and more flexibility than in the recent past.

In our experience an increasing number of businesses are beginning to re-staff their recently reduced-size HR functions with professionals commanding broader HR generalist skills and more general business knowledge and experience. The indication is the need for broader capabilities to do more with less but with the knowledge of how to identify and source resources for a project approach to work.

This may speak to fewer fulltime jobs across a spectrum of HR functions (levels and experience) at any particular business — but the need will continue to be there for diverse professionals in a variety of skill areas throughout the course of the year or business cycle. Their work arrangements will have changed, but if you engage professionals who want to work on an interim or contract basis, the outcomes can be win-win.

Hedge against uncertainty

Aside from being a "just in time" staffing approach, scalable resource models allow companies to hedge against uncertain times while continuing to attract talent to get work done — just in different ways. And the inviting aspect of this approach for professionals looking for the flexible nature of these work arrangements is that contract or temporary work is a hedge for them as well against being laid off yet again from regular fulltime jobs. An experience some have gone through several times in the last ten years.

Moving in the direction of scalable resource models creates a number of new issues that companies and professionals may not have had to manage before, such as sourcing and maintaining a pool of talent, contracts and appropriate classification of work, not to mention addressing questions about benefits and variable pay. But there are many success stories where these models are working well for businesses and workers alike and so it is more a matter of understanding how to plan, communicate and implement these approaches — learning from others and thinking through the consequences as they relate to you and your needs.

The key for both employers and employees participating in scalable resource solutions is having access to each other when the business needs arise. Third-party firms specializing in these types of business solutions can provide invaluable help to expedite this for both.

Bottom line contributor

Successful and forward leaning companies insist on effective HR planning and HR contributions to the bottom line as much as they expect these results from other business functions such as finance, marketing, and sales. Utilizing scalable resource models in staffing HR, who in turn can use the approach for staffing the broader enterprise, is a definite step toward meeting these expectations.

How are you addressing these points in your business?

As always we welcome your comments and ideas regarding these articles. If we can answer any questions you may have about using scalable resource models in your organization, don't hesitate to be in touch. E-mail me at rodh@merithr.com or call 925-867-4400 or 408-501-8863.