The business world expected a lot of positive change and growth in 2020. We predicted trends and planned strategies at the beginning of the year but now in the middle of 2020, we know that we were not in the least prepared for what 2020 had brought us – The Covid-19 pandemic! The impact of this crisis has been so huge that it has changed and challenged every single aspect of our lives, including how we work. But on a positive note, a crisis like this brings us valuable lessons for the future. One important lesson that this pandemic has taught businesses worldwide, is the practicality of a flexible workforce.
Flexible staffing options are the way forward!
As the lockdown has slowed down the global economy to a sluggish pace, businesses, both big and small, are finding it hard to sustain their workforces. We hear of massive layoffs and furloughs every day. On the other hand, firms that were employing a flexible workforce find themselves in a better position to handle this disruption. Here are some reasons why a workforce that includes the right mix of temporary and permanent staff makes more sense in uncertain times:
Scaling down business is simpler
When business is stalled and revenues are not forthcoming, it can be a huge burden to pay salaries to permanent employees. And laying off permanent workers can be tough both on employers and employees. On the other hand, it will be easier to relieve temporary staff with soon-to-expire contracts. Some contracts specifically allow employers to end the contract when there is no work requirement.
It’s easier to Resume Business
Just as it is easier to scale down with a temporary workforce it is easier to scale up too. When business picks up again, a temporary workforce can be hired much more quickly. Moreover, a flexible workforce arrangement allows you to scale up at a pace that suits your requirement. In contrast, firms with large permanent workforces will be saddled with difficult choices when they restart. If they need to restart at a lower scale, they will have to choose which of their permanent employees they have to let go of.
Millennials prefer to be part of the Gig economy!
It is not only employers that benefit from flexible workforce arrangements, but workers too. Millennials and Gen Z who constitute the major share of workers today prefer to work on multiple projects rather than being constrained by a full-time job. The challenges and excitement of such projects stimulate better learning, more robust skill development, and fosters an entrepreneurial spirit.
Significant Savings on Cost
The primary reason that businesses choose flexible workforce arrangements in normal times is for the savings on cost. Contract employees can be hired, trained, and retained at a much lower cost than full-time employees. Further, employers save on paid leaves and other benefits that are to be mandatorily provided for on-roll employees.
If you are interested in building a more flexible workforce in the post-COVID-19 world, you will find an ideal staffing partner in Rannsolve. We offer comprehensive IT staffing solutions including contract, contract- hire, and project support. With our extensive experience, we can help you create a flexible workforce so you are better equipped for unexpected challenges that the future may hold.