Exceeding
competition through
people strategy
Organisations are increasingly relying on a talent
ecosystem that may not be directly employed. To attract
this talent when they have the pick of employers will
involve HR splitting in two, says KEVIN GREEN
Abstract
The world of work is changing fast. Disruption is being driven by
technology, labour market polarisation, differing social attitudes and
political upheavals. It’s also true that businesses are securing more of
their competitive advantage from people than at any other time in
history. Yet the vast majority of businesses and HR leaders do not know
how to create a competitive people strategy. It isn’t widely taught and
there are few great case studies. The evidence shows that
organisations that execute a strategy focused on maximising their
any time since organisations were
first created.
A 2018 study by the Staffing
Industry Analysts shows that in
many large multinational firms
only 66% of their workforce are
permanent employees, the rest
being temps, contractors or
freelancers (SIA, 2018). That’s
34% of your workforce who
perceive themselves to be a gun
for hire.
This change of approach will
only increase as businesses start
to engage talent in myriad
different forms. How do you build
a people strategy when much of
your talent and skill are not
employed by the organisation?
Today’s companies are seeking
to be ever more responsive to
customers’ wants and needs. The
desire for greater skill and talent
while at the same time keeping
costs under control means
organisations are deploying new
workforce strategies.
This leads to businesses
bringing in capability just in time
to meet and fulfil projects or
respond to changes in customer
demand. It creates the need for
a people strategy for the whole
workforce, not just direct
employees. No business can
afford to treat their flexible
resource as a commodity. You
must build a culture that
engages, develops and keeps
flexible talent wanting to come
back to your business.
The second workplace shift is
that the majority of organisations
are suffering with skill and talent
shortages. PwC’s 2018 CEO
survey showed that 80% are
concerned with a shortage of
skills and talent. This was, by
some distance, their number
one issue.
In a separate Employment
Trends survey the Confederation
of British Industry (CBI) and
Pertemps found that 56% of
employers in 2018 were struggling
to fill all the jobs they have
available. So, while businesses in
all sectors and of different sizes
are finding it tough to find the
right people, they are using
contractors, freelancers and
consultants to plug the gaps and
resource important work.
Strategic HR A different slant
What’s new
The people advantage has
come about as some businesses
recognise that it’s ideas, creativity,
brands, relationships and
agility that will enable them
to win in today’s hypercompetitive
markets.
Whereas in previous eras
commercial success was created
by access to capital – primarily to
invest in plant and machinery –
it’s now all about attracting and
retaining your skill, talent and
capability both individually
and collectively. People are
the wealth creators now.
Businesses that are able to
leverage their culture and talent
will be able to create a sustainable
competitive advantage.
Two giant workplace shifts are
taking place at the same time.
First, individuals with the talent
and skills demanded by employers
have more choice than ever. They
can choose not just for whom
they work, but how, when and
where. Many of these talented
individuals will choose to be
employed, but just as many
will want to run their own
business, become a freelancer or
contractor, or many choose to
work part time.
The talented will be able to
balance their life – secure
meaningful work while also
controlling their own destiny.
They are able to utilise the power
of the market to provide them
with opportunities in the most
convenient format.
To attract, hire and retain this
talent businesses need to provide
a great employee experience.
As a consequence companies
need to think more deeply
about purpose, culture and
leadership behaviour than at
38 HR April 2020 hrmagazine.co.uk
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