A new study from the REC suggests that employers are increasingly shifting from traditional models of talent management towards highly skilled flexible workers, such as PAYE umbrella contractors, instead. Moreover, they are utilising umbrella companies and other flexible sources of talent on a long-term basis.
The new ‘open’ model described in the study (Talent Acquisition in Turbulent Times) works by placing a ‘cloud’ of contractor talent around a core of permanent employees. Employers are thereby able to align their need for specific types of talent with their increasingly flexible business aims.
The report’s author, REC Director of Research Roger Tweedy, said that the newly emerging open model “combines permanent workforce flexibility with the next generation recruitment skills of leading staffing agencies to challenge existing internal recruitment solutions that have become gridlocked by time and cost pressures.”
Tweedy’s analysis drew on data from the REC’s own monthly JobsOutlook surveys, as well as US research supplied by the Human Capital Institute. Both revealed a substantial shift from traditional talent procurement approaches. For many companies, traditional internal recruitment procedures have become ‘gridlocked’, the report finds, with the result that employers desperate to bridge skills gaps have turned to skilled temporary workers, such as professional contractors, instead.
In the race to appoint the best candidates over the next few years, the report predicts that employers will need to manage “rapidly changing technology, lack of internal resource, continued pressures on costs, new ways of working and a new breed of candidate – against the backdrop of continuing economic uncertainty and fluid business priorities.”
For the jobbing contractor, having one’s head in the newly emerging cloud may be a very wise move.