On-Demand Talent Hiring Challenges and Solutions
One of the trends in the recruitment industry that various organisations are following is hiring on-demand talent. Companies who have or are facing the immediate requirement of talent or their internal team members are overstrained, they can improve their work output by opting for on-demand talent.
When hiring on-demand talent, you get the flexibility to choose when and for how long you would require their services. This will depend on your requirements, such as the scope of the project(s). What companies need to acknowledge and accept is that hiring on-demand talent is different than hiring full-time employees. On-demand workers are particular about the projects they work on and the companies they associate with; their concerns from the job are different from those of full-time employees.
With the right planning and strategy, hiring on-demand talent should get more manageable for you and can be instrumental in your company’s growth. Paul Estes, who led Microsoft’s gig economy strategy, said: “If you want radical agility in your workforce, it starts with a gig mindset. It is a concept that speaks to system thinking in design, and bringing together people and technology in a solution that is both strategic and humanistic.”
To assist you in this, we here mention the most common hurdles your company might face and also the solutions to those problems.
1. Make shift hiring processes
Solution: Create standard HR or recruitment systems
Based on the 2019 Deloitte Global Human Capital Trends survey, only 8% of companies have processes in place to supervise and handle an on-demand workforce. It implies that in most of the companies when contract workers are onboarded, there is a disconnect between individual departments, HR, procurement, and business operations.
If a company has created the right hiring policies and sincerely implements them, they can reap the benefits of their on-demand workforce. Getting the required output could be simple if companies hire the talent that fits their requirements, and they utilise the talent to work quickly and economically.
When working on the strategy to recruit on-demand talent, the teams should focus on sourcing, hiring procedures, training, making work arrangements, and feedback. Once created, this hiring process should be accepted and implemented across the company.
In the hiring process, these are the three main areas: management systems, worker classification, and payment.
Talent Management Systems
The three main choices for talent management systems are:
- HR Management System (HRMS)
- Freelance Management System (FMS)
- Vendor Management System (VMS)
During the hiring process, you have to define the classification of an on-demand worker. Usually, the traditional systems for permanent employees do not account for different worker statuses. You need to follow the government’s guidelines for this.
Companies need to include a payment policy in the hiring process for on-demand talent. Generally, HR systems schedule a weekly, biweekly, or monthly schedule. In contrast, on-demand workers can have different schedules such as advance payment and then each at after a specific portion of the project is completed or payment by the milestone. Being paid quickly is high on the talent’s priority list.
2. Fluctuating management with on-demand workers
Solution: Train managers
The manager you have assigned to manage on-demand talent might be great at managing the team members who are full-time employees. This does not necessarily mean that they would do an excellent job with on-demand workers as well. There could be inconsistencies in areas such as communication, performance tracking, scheduling, and conflict resolution. Some managers could also face language or cultural barriers. Managers assigned for this task should be well-trained to collaborate with on-demand and remote talent. The training should focus on cross-team dynamics, methods to share company knowledge, project management practices, and constructive communication processes.
3. On-demand workers do not feel included in the team
Solution: Build organisational systems that promote confidence, equity, and diversity
If the on-demand workers do not receive the necessary support and information, they might feel like outsiders. At the same time, full-time employees might worry about their jobs because of the present on-demand talent. This could hamper on-demand workers’ morale.
If the existing team members feel threatened or feel that they are treated impartially, it can affect their work output and behaviour. They might not communicate properly, share data, take required decisions, take responsibility, or reach their maximum potential.
To manage such possible issues and build trust within the team, handle on-demand workers, and full-time employees separately. For on-demand workers, provide them with whatever they need to give their best; this would establish trust. This comprises of tools for project information, collaboration, help to get started, and introduction with the team members who can assist them during the project.
For full-time employees, ensure that you effectively communicate that on-demand workers are a part of the project for additional support, and they are not a threat. Share information with them about how there on-demand workers will help in making the project successful. Your policies must ensure that neither the full-time employees nor the on-demand workers should get uncomfortable in this collaboration, and their work status is not impacted in any way.
4. Legal is worried about worker classifications
Solution: Work with legal in building the hiring guidelines and intellectual property (IP) strategy
Contract workers might face issues with classification as the employee classification process is complex and tedious. To avoid this, the hiring company must decide about the authority to manage the way and method by which the work is done. Important information in this classification process entails financial control, behavioural control, and the type of collaboration between the parties included. Your legal team will ensure that while hiring guidelines for on-demand talent are being created, all necessary government regulations are followed.
Also, many organisations have stringent policies to protect their IP. This applies to both contract and full-time employees, but generally, there are enough practices in place for the latter. With on-demand workers, you should develop an IP strategy that provides them the required access but, at the same time, protects necessary information. Involving legal will help you in making this IP strategy entirely error-free with no grey area.
5. Unclear communication between team members
Solution: Set clear communication expectations and practices
Communication can be a challenge between a team comprising of full-time employees and on-demand workers. Important communication tasks such as team members’ speed of response times, sharing of project updates, feedback, and group tasks need to be aligned from the beginning.
Using technology, you can follow these practices:
- Decide communication time slots – Setting particular times for the team members to arrange meetings and communicate.
- Define the communication service-level agreement – Setting the time frame within all team members to need to revert on different communication channels such as texts, emails, or calls.
- Have a work management process – Setting communication for the project and its progress. It could be daily or weekly, depending on the project and done using a work management tool.
With different types of the workforce in the industry, companies need to step up their game to find, recruit, and manage these workers. With planned and strategic processes, tools, management, technology, and guidelines, this can be efficiently done.