Very little changes in the World of Work – The Value of a Flexible Workforce
John Harland FRCSA(Life)– Director ERG Recruitment
In 2012 I wrote an article during the global recession at the time which I updated in July 2020 during the Covid19 Pandemic which threw world-wide economies and businesses both large and small into chaos. Many businesses survived the Pandemic by pivoting into more profitable sectors, reshaping their business operations, and “work flexibility” became more than just a buzz word as “remote work” grew in popularity. Many businesses hung on to the hope that things would return to some form of normality in the not-too-distant future. Unemployment numbers grew exponentially world-wide, and for businesses, survival was the major driver of activity.
Unfortunately, while businesses in general coped very well during and immediately after the pandemic, it appears that worldwide economies are now slipping into recession and once more businesses are restructuring en-masse. Increasing costs of production, services, and accommodation and food, are putting pressure on the cost of living. In New Zealand large restructuring of the Government sector and other businesses such as construction, is resulting in large numbers joining the un-employment queues. Whilst some sectors are doing well others are struggling to find enough suitably qualified people to fill roles. There is a lot of dialogue on the numbers of people crossing the Tasman however as a counter to this New Zealand is seeing large numbers of immigrants entering the country. However, there is a disconnect in the skills that are being lost compared to the skills being gained.
I am optimistic about the future as all this has shown is that we are going through a recurring cycle of growth and resizing which has been consistent over decades. As per the title of this article “very little changes in the world of work” and things will improve once again. It is very much how we adapt to the current environment. Be confident, as I am, that the good times will return sometime in the future.
This brings me to how businesses can adapt and survive until the good times inevitably return. Flexibility and opportunity of work life balance has now become a popular concept yet “Flexible Workforce” has been around for a long time and is a concept about which much has been written and broadly refers to that group of workers described as casual workers, temporaries, contingent workers, and contractors.
Recurring recessions usually bring the benefits of flexible workforce to the forefront of workforce management and is a legitimate strategy. It has a significant competitive advantage being a driver of investment and growth in any economy. With rapidly increasing unemployment it is more important than ever that we think critically about flexibility. This flexible approach assists employers not only as a temporary retention strategy, but as a permanent and sustainable solution to more competitiveness.
By choice or by circumstance, more people are entering the Flexible Workforce. As a group, they will be more important than ever as an essential force on the road to economic recovery. Once again businesses will need to be cautionary when making investment in growth and their manpower requirements will be a critical component in these decisions.
Over time very little changes in the World of Work. Current economic conditions should focus businesses on the challenges of retaining or re-employing talent and remaining competitive. By finding solutions to these recurring workforce trends companies will attract talent that competitors can’t access thereby creating a competitive advantage. So, let’s reiterate?
The benefits of Flexible Workforce
For the employer
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Potential cost savings from adopting a strategic approach.
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Maximisation of the workforce to accommodate volume fluctuations, maintaining leaner head counts whilst accessing the right skills when needed such as project work, annual leave etc.
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A wider pool of talent, potentially locking this off from competitors.
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Being seen as a progressive employer thereby attracting the best talent
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Reduced attrition of women
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Retention of the” voluntary workforce”, keeping skilled and motivated employees
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Lower absenteeism an improved attendance management
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Increasing skills and creativity of managers
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Improving customer service and retention through closer alignment with customer needs
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Cost avoidance of replacing employees
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Reduction of the cost of HR
For the employee
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Better work/life balance.
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Opportunity to reposition their career when required.
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Increased tenure and loyalty.
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The opportunity to learn new skills.
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The potential to maintain or increase earnings.
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Facilitates mobility.
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Being able to remain in the workforce longer (ageism not a factor)
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Increased sense of control
For the economy
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Removal of excess supply and demand thereby improving productivity and competitiveness
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Improved labour mobility leading to less unemployment.
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Stronger employment creation during economic recovery or upturn
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A more flexible response to external economic shock because wages and employment are more flexible.
If you need advice on flexible staffing or would simply like to discuss this option, please feel free to contact Elisha or John at ERG Recruitment on 09 258 5130 or www.ergnz.co.nz.
Published on: 23/05/2024
Author: john harland
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