How Flexible Talent Strategies Drive Business Success

Of all the future of work predictions we’ve heard in recent years, none have come true as quickly as the rise of the flexible workforce. As remote work, globalization, and changing employee needs create the need for a flexible, dynamic workforce, the way companies identify, recruit, and hire talent is evolving in real time.

In 2018, McKinsey reported that companies with flexible HR strategies are 1.5 times more likely to outperform their competitors. In the U.S. today, roughly 10% of all work is completed entirely outside the office.

Traditional talent acquisition is often based on long-term, full-time positions with fixed roles and rigid structures. While this model offers stability and predictability, today’s businesses are focused on efficiency and adaptability to stay competitive and pave the way for sustainable growth. For companies with global ambitions, a flexible talent strategy is essential to deal with the uncertainty and changes of the global marketplace.

Types of Flexible Work

As the name suggests, there is no “right” flexible work strategy that is ideal for every company. Finding the best option, or combination of options, depends on your company’s mission, size, goals, and employees.

Remote Work: Remote work has become virtually ubiquitous during the COVID-19 pandemic and there’s no going back. At its peak in April 2022, more than 20% of jobs posted on LinkedIn were fully remote.

Hybrid Work: While fully remote work has declined, hybrid work remains one of the most common examples of flexible working arrangements. The exact parameters of where and how often a hybrid employee works in-person or remotely can be set as a company-wide policy or can be determined based on individual roles and personal preferences.

Job sharing: When an employer institutes job sharing, an employee works with at least one other employee to share the duties of a single full-time position.

Compressed workweek: Many companies allow employees to complete a 40-hour workweek in fewer than the usual five days. An example of this would be working four 10-hour days.

Flexible working hours: Similar to a compressed workweek, flexible working hours allow employees more freedom to set their own working hours. Flextime gives employees the freedom to choose their own working hours and success is measured based on results and performance, not hours worked.

Companies are not only working more flexibly, but also pursuing more flexible workforce strategies. In a rapidly changing business environment, finding the right mix of full-time employees, contract workers, freelancers and part-time employees is key to success.

Keep in mind, however, that you need to correctly classify your employees for compliance and tax purposes. This can be challenging, especially if you have a global workforce operating in multiple jurisdictions. Technology can help, as today’s HR and global employment platforms provide up-to-date local information and help you quickly assess the risk of misclassification and other costly compliance errors.

Tips for making flexible working arrangements work

Developing and implementing flexible working arrangements requires careful consideration, planning and implementation. Employers should consider taking the following steps to ensure a smooth integration and maximum benefits:

• Run a pilot program: Start with a small pilot program to identify and address any issues before expanding the policy to your entire workforce.
• Conduct regular evaluations: Continually monitor and evaluate your flexible work arrangement to ensure it is achieving its intended goals, and make improvements where necessary.
• Provide tools and training: Give managers and leaders the training and tools they need to guide employees through the transition to flexible working.
• Set clear expectations: Employees need to understand what is expected of them under your new flexible work arrangements. Clearly define their roles, responsibilities, and success criteria to ensure everyone is on the same page.
• Make communication a priority: Establish and maintain open channels of communication between employees and management. This allows for seamless alignment required to achieve individual and organizational goals.

Benefits of a flexible workforce strategy

The introduction of flexible working arrangements, such as the use of freelancers or contract workers, can be a big change to a more traditional workplace. This change requires time and expense for employers to ensure that the new arrangements work, and naturally employers will want to fully understand the benefits of such an initiative.

Promoting inclusivity

One of the most valuable benefits of flexible working is the flexibility it provides to employees who would not otherwise be able to pursue work opportunities within the company. Limited transportation options often create barriers that prevent people from applying for jobs for which they are fully qualified. With that in mind, think about caregivers, whether they are parents with limited childcare options or those caring for aging parents. Giving these individuals the opportunity to work remotely can help them succeed both personally and professionally. Needless to say, these flexible options allow companies to simultaneously access a larger talent pool.

Dealing with uncertainty

Challenging economic times, shifting competitive environments, and even natural disasters and climate change can put markets and companies on a precarious footing. In these times of change, many companies prefer to hire contract workers and freelancers rather than investing in full-time employees who require benefits, employment taxes, workers’ compensation, and training.

Achieving scalability

Every business has ups and downs, and companies need to be able to scale their workforce quickly and efficiently. In growth phases, companies need to hire talent quickly. In downturns, a flexible workforce makes it easier to scale down. Many industries (e.g., retail, agriculture, manufacturing) have predictable seasonal peaks and valleys, and a flexible work strategy can optimize staffing levels to meet the needs of the business at different times of the year.

Access to Specialized Skills

In a recent survey, more than three-quarters (77%) of HR professionals said they are having difficulty filling full-time positions. Industries like healthcare and skilled trades have the largest skills gaps, but advances in technology like AI are driving the need for workers in all industries to develop new skills. A flexible workforce strategy can help companies close talent gaps and quickly fill positions that may take months to recruit and onboard through traditional channels.

Support for Critical Projects

Not all of the skills needed for a project are available in your existing workforce. In many industries, geographic location used to be a determining factor in hiring rates. Engineering offices sprout up near technical universities, technology companies thrive near innovation centers, and financial services companies grow near banking centers in major cities. Today’s global, remote workforce allows companies to attract employees with unique and specialized skills from anywhere in the world for projects that can’t be easily staffed by a local workforce. This allows companies to quickly and efficiently bring new products to market, staff new geographies, or introduce new technologies.

Attracting Top Talent

For companies wanting to grow, there’s no better fit than an experienced manager. But top talent isn’t always willing or able to take on full-time positions. Many prefer consulting or part-time contracts. These flexible options allow resource-limited SMEs and start-ups to tap into experienced, skilled talent that may not otherwise be available to them.

Capitalizing on the Future of Flexible Workforce

A flexible talent acquisition strategy is essential for companies that want to thrive in a dynamic business environment. Flexibility increases agility, reduces costs and expands the talent pool, but it also requires thoughtful planning, a robust technology stack and a commitment to an inclusive and adaptable workplace culture. Companies that successfully implement these strategies are well-positioned to lead and innovate by building on the talents, experiences and unique capabilities of a flexible, global and diverse workforce.